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Chapter 17
CONSUMER BEHAVIOR AND PROMOTION STRATEGY
AUTHORS' OVERVIEW OF THE CHAPTER
In this chapter we discuss consumer analyses involved in developing effective promotion strategies. Marketing
promotions are designed to communicate information about products and persuade consumers to buy them. Like all
marketing strategies, promotion strategies are part of the consumer's environment. As such, promotions can affect
consumers' affective responses, cognitions and behaviors, as well as other aspects of the environment.
Conceptual Issues. We begin the chapter by identifying and defining four major types of marketing promotions-advertising, sales promotions, personal selling, and publicity. We give examples of each. Advertising is any paid,
nonpersonal presentation of marketing information. Sales promotions include a wide variety of environmental
stimuli intended to induce consumers to make a purchase--coupons, rebates, premiums, contests, etc. Personal
selling involves direct, two-way communications between a salesperson and consumer. Publicity is any nonpaid
form of communication about marketers' products or services. We complete this section by summarizing the
advantages and disadvantages of the four promotion methods. Together, these forms of promotion make up the
overall promotion strategy or the promotion mix.
Communication Model. Fundamentally, all marketing promotions are communications. Therefore, we present a
general model of the communication process, consisting of a source, a message, a transmission media, a receiver,
and a resulting action (Exhibit 17.2). This model also identifies the relevant actions and decisions that marketers
undertake in preparing effective marketing communications (promotion strategies). We briefly discuss each stage in
the model and present examples.
Communication Goals. Next we discuss the various marketing goals of promotion communications. These goals
include stimulating a category need, creating or maintaining brand awareness, creating or maintaining a positive
brand attitude, generating a positive intention to purchase the brand, and facilitating other behaviors.
Promotion Environment. Next we discuss the promotion environment, which includes promotion strategies and
other aspects of the social and physical environments in which consumers experience promotions. A huge number of
factors are included in the promotion environment. We discuss two that can influence the effectiveness of
advertising and sales promotions--clutter and level of competition. Clutter is an especially relevant influence for
advertising and sales promotions, as consumers are exposed to hundreds of promotions competing for their attention.
The level of competition is an important environmental influence in that a marketer must tailor his strategy to those
used by the competition.
Promotion Cognitions. Next, we consider some important promotion affect and cognitions. One factor of recent
research interest concerns consumers' attitudes toward the advertisement, and how these attitudes influence
consumers' attitudes toward the product being advertised. We also discuss another cognitive factor--persuasion
processes. We briefly discuss the currently popular theory that two "routes" or processes are involved in persuasion.
The direct or central route to persuasion involves deep comprehension processing of the product-related information
in the advertisement. The indirect or peripheral route to persuasion involves shallow comprehension and low
elaboration of the product message, but more attention to the nonproduct or peripheral information in the ad such as
aspects of the advertising execution (colors, scenery, models, etc.). Because the type of processing depends on
consumers' goals and involvement with the brand, most advertising probably receives peripheral processing.
Promotion Behaviors. Then, we discuss two of many possible promotion behaviors, information contact and wordof-mouth communication. Through information contact behavior consumers become exposed to marketing
promotions. Thus these behaviors are highly relevant part of marketers' consumer analysis. Some information
contact behaviors are stimulated by marketers' promotion strategies, while others are accidental or controlled by the
consumer. Finally, marketers often are very interested in stimulating word-of-mouth behavior. They may create
strategies directed at encouraging consumers to tell others about a product, store, or service.
Managing Promotion Strategies. In the last section, we identify four tasks in managing promotion strategies. In the
first, marketers must analyze consumer-product relationships, the key step to creating successful marketing
strategies. This involves identifying the relevant market segment(s) and then determining the relationships between
those consumers and the product or service. These relationships involve consumers' affect, cognitions and behaviors
regarding the product, as well as the environments that are relevant to the product.
Next, we present a model used by Foote, Cone & Belding to analyze consumer-product relationships (see Exhibit
17.4). The model categorizes products along two dimensions--high versus low consumer involvement with the
product and thinking versus feeling as the dominant mode of interacting with the product. We give several examples
of how this model could be used to help marketers understand consumer/product relationships and develop effective
promotion strategies.
The next steps in the promotion management process concern setting the promotion objectives and the promotion
budget followed by designing and implementing the promotion strategy. A variety of models have been created to
help marketers develop promotion strategies. We describe one such model, proposed by Jerry Wind, for analyzing
consumers' vulnerability to promotional strategies (see Exhibit 17.5). This model is based on consumers' product
cognitions and behaviors. We give several examples of how it can be used to identify consumers who may be
vulnerable to a firm's promotion strategies.
Then, we present the MECCAS (means-end chain conceptualization of advertising strategy) model, proposed by
Tom Reynolds and Jerry Olson, which is useful for developing advertising strategies (see Exhibit 17.6). The
MECCAS model identifies the key elements of an effective ad strategy that links the product to important end goals
of consumers. The stages in the MECCAS model are related to the levels in a means-ends representation of the
consumer/product relationship.
Finally, we describe the ISTEA (information, strategy, transmission, evaluation and adjustment) model, proposed by
Bart Weitz that is useful for developing personal selling strategies (see Exhibit 17.7). A key component of ISTEA
is an analysis of consumers' needs and their relationships with the product.
We conclude the chapter by discussing the need to evaluate the effectiveness of the promotion strategy, including a
brief treatment of how to measure advertising effects using measures of sales, ad recall and persuasion.
KEY CONCEPTS AND ISSUES
 Varieties of marketing promotions--advertising, sales promotions, personal selling, publicity
 Advantages and disadvantages of types of marketing promotions
 Model of promotion strategy management process
 General communication models
 Attitude toward the ad
 Central versus peripheral routes to persuasion
 Information contact behaviors
 Word-of-mouth communication
 Foote, Cone & Belding Grid for analyzing consumer/product relationships
 Difference between think and feel products
 Alternative objectives of promotion strategies
 MECCAS model for developing advertising strategies based on means-end chain data
 ISTEA model of personal selling process
 Informational versus transformational advertising
OUTLINE OF CHAPTER TOPICS
Chapter 17. CONSUMER BEHAVIOR AND PROMOTION STRATEGY
A. Winning Promotions
B. Types of Promotion
1. Advertising
2. Sales promotions
3. Personal selling
4. Publicity
5. The promotion mix
C. A Communication Perspective
1. The communication process
2. Goals of promotion communications
a. Stimulate category need
b. Brand awareness
c. Brand attitude
d. Brand purchase intention
e. Facilitate other behaviors
D. The Promotion Environment
1. Promotion clutter
2. Level of competition
E. Promotion Affect and Cognition
1. Attitude toward the ad
2. The persuasion process
a. The elaboration likelihood model
F. Promotion Behaviors
1. Information contact
2. Word-of-mouth communication
G. Managing Promotion Strategies
1. Analyze consumer-product relationships
a. The FCB grid
2. Determine promotion objectives and budget
3. Design and implement a promotion strategy
a. Designing promotion strategies
b. Developing advertising strategy
c. Developing personal selling strategies
4. Evaluate effects of promotion strategy
a. Measuring advertising effects
H. Back to..... Winning Sales Promotions
I. Marketing Strategy in Action: The Cereal Wars
TEACHING OBJECTIVES
Upon completion of this chapter, students should be able to:
 define the four main types of promotions--advertising, sales promotions, personal selling, and publicity-and describe some of the advantages and disadvantages of each.
 identify several types of sales promotions.
 describe the components of the general communications model and their roles.
 identify and discuss the various goals of promotion communications.
 describe the stages in the model of promotion strategy management.
 analyze products in term of the involvement and think/feel dimensions of the FCB grid.
 use the vulnerability model to analyze consumer/product relationships and design promotion strategy.
 use means-ends chain model to analyze consumer/product relationships and use the MECCAS model to
design advertising strategy.
 use the ISTEA personal selling model to analyze consumer/product relationships and design personal
sales strategy.
 identify affective, cognitive, behavioral, and environmental factors that could be considered in an
analysis of consumer/product relationships.

discuss the importance of considering cognitive, behavioral, and environmental factors in developing
promotion strategies.
TEACHING IDEAS AND SUGGESTIONS
Overview. This long chapter contains a great deal of material. Usually we would use two class periods to cover this
material (perhaps three classes on a MWF schedule). In the first session, you could cover sales promotions and
personal selling. The second (and perhaps third) class could cover advertising. Again, class time is probably best
spent working through a case or in-class examples, rather than lecturing on the concepts covered in the text. This
will give students experience analyzing the consumer-product relationship and in using that knowledge to critique
and develop effective marketing strategies.
In-Class Exercise: Sales Promotions. As discussed in the text (pages 426-427), there are many types of sales
promotions. Total expenditures on sales promotions far exceed spending on advertising. You can use the Wheel of
Consumer Analysis to stimulate students to think about sales promotions and their potential impacts on consumers.

Bring several current examples of sales promotions to class, or ask students to do so.
These could be coupons, premiums, sweepstakes, contests, rebates, etc. For instance, dozens of
examples are described in Advertising Age each week. Depending on the depth of analysis you
want, one or several sales promotion strategies can be examined.

Show a transparency of the Wheel of Consumer Analysis model, and ask students to evaluate the
potential impact of each sales promotion strategy.
The Wheel of Consumer Analysis provides a useful framework for considering the possible impact
of a given promotion on consumers' affect, cognitions, behaviors and environment.
Students might begin by identifying the environment where consumers are typically exposed to the
sales promotion (in store, at home, or elsewhere). Then, they should consider the types of
cognitions and affective responses consumers are likely to have (interpretation of the promotion
and beliefs about the promotion; pro and con feelings, even emotional reactions). Finally, students
should consider what behaviors consumers must perform for the promotion to be effective. For
instance, do consumers have to clip, save and redeem coupons?
Then, students should consider the major problems or blocks in the affective/cognitive, behavioral,
and environmental areas. Students should also consider problems caused by how these factors
interact. Finally, students should consider strategies to deal with these problems.
Possible Mini-Lecture: Couponing. From 1986 to 1990, coupon redemptions were flat (about 7.2 million per
year). Actually, the percentage redemption rate declined as increasing numbers of coupons were distributed. Most
marketers thought that couponing was at a saturation point—consumers could not clip and redeem any more
coupons. Then, coupon redemptions increased nearly 10% in 1992 to almost 8 billion.
But from 1993-1996, the trend reversed itself. In 1996, consumers redeemed only 5.3 million coupons, a 31%
decline from 1992. Part of that drop may be attributable to fewer coupons in circulation. In 1992, 231 billion
coupons were generated, compared to just 171 million in 1996. [Sources: Scott Hume, “Coupon Use Jumps 10% as
Distribution Soars,” Advertising Age, October 5, 1992, pp. 3 & 44; American Demographics Web site,
http://www.demographics.com]

Ask your students to speculate about what happened.
Certainly, economic factors play a role. Coupon redemption rates are closely associated with the
nation’s economic health. The recession of the early 1990s contributed to consumers’ increased
interest in collecting and redeeming coupons. As the economy improved, people had more disposable
income and saw less need to go through the hassle of clipping coupons.
No matter how good the economy gets, however, coupons will probably never completely disappear.
For many consumers, clipping coupons is like a hobby. In the midst of a burgeoning economy in 1996,
a group of manufacturers and supermarkets in New York sought to eliminate coupons. They were met
with public outcry, criticism from politicians, and even an investigation by the state attorney general.
Possible Mini-Lecture: The Communication Model. The generic communication model presented in the text
(Exhibit 17.2) is probably familiar to most students. The model could, however, be the basis for a short mini-lecture.

You might review the key entities involved in the various stages, and the actions they must perform.
The source, message, and media transmission stages are areas of strategic decision-making. You can point
out that to make these many decisions, marketing managers must anticipate how the receiver (the target
audience) will react to the encoded message. The MECCAS model discussed later in the chapter can help
managers create effective advertising strategies.
Another point is that consumers who are in a decoding mode (focused attention and deep, elaborate
comprehension processing) are trying to figure out what the promotion information means and whether it is
relevant to their needs.
If they decide no, the promotion is not likely to have much impact on their affect/cognition or
behavior.
However, if the promotion is considered to be personally relevant (higher levels of involvement),
the consumer will attend to and comprehend the promotion information and integrate it with other
product knowledge.
Then, the promotion has the potential to influence overt behavior, including purchase of the
promoted brand. However, other behaviors such as communication with other consumers about
the brand could also be affected.
The action/feedback stage is important. Consumers vote with their dollars, and sales figures (often
produced by scanner data) are important feedback to marketers about the effectiveness of various promotion
communications. Another type of feedback is provided by the results of marketing research studies of
consumers' reactions to promotions.
In-Class Exercise: Analyze Consumer-Product Relationships. Analyzing consumer-product relationships is the
first and most critical stage in managing promotion strategies. To effectively promote a product, marketers must
understand how consumers relate to those products.
That is, marketers must understand product meanings and how they are related to consumers' meanings
about themselves. This requires that marketers identify and analyze consumers' affect and cognitions,
behaviors, and environments that are relevant to the product.
Also, means-end chains provide a useful framework for analyzing and understanding consumer/product
relationships.

You can give students practice in analyzing consumer/product relationships by working through
examples using the four models described in the text.
These models include the FCB grid, the consumer vulnerability matrix (Exhibit 17.4), the
MECCAS advertising strategy model based on means-ends chains analysis (Exhibit 17.6), and the
ISTEA model of the personal selling process (Exhibit 17.7).
Each model requires an understanding of the consumer/product relationship.
Since time probably will not permit each of these models to be covered in class, your own interests and
expertise will probably determine which model(s) to discuss. The same basic process can be used for
discussing each model.
In-Class Exercise: The Foote, Cone & Belding Grid. The FCB grid (Exhibit 17.4) is an interesting and useful
tool for basic analyses of consumer/product relationships.

Show a transparency of Exhibit 17.4 and briefly review the grid's two dimensions--consumers' level of
involvement and the think/feel distinction.
These dimensions describe the typical consumer's dominant affective and cognitive responses to a
product.

Ask students to position several products within the grid.
Choose products that cover a wide range of positions so that students can get practice thinking
about the involvement and think/feel distinctions. For example, such diverse products as
clothespins, CD players, athletic socks, greeting cards, swimming suits, and rice can generate
interesting discussions.

In discussing product placements in the grid, encourage disagreements and arguments.
"Does everyone agree with that placement?"
A key point is that no product placement is universal. In fact, consumers in different market
segments may see the product quite differently. Not everyone, for instance, will be highly
involved in selecting a swimming suit or will feel that rice is a low involvement, feel product.

Once a few products are placed in the grid, encourage students to explore the implications for
developing promotion strategies--including advertising, sales promotions, and personal selling.
In-Class Exercise: Consumer Vulnerability Matrix. The consumer vulnerability matrix (Exhibit 17.5) combines
affective and cognitive factors (brand attitudes) with behaviors (past brand purchases). That is, it encompasses two
of the elements in the Wheel of Consumer Analysis.

Show Exhibit 17.5 and ask students to discuss the implications of the various cells in the vulnerability
matrix for developing promotion strategies for a product such as toothpaste or ink pens.
The vulnerability matrix gives managers an overall idea of consumer/product relationship and thus
serves as a general framework for designing promotion strategies.
In-Class Exercise: The MECCAS Model of Advertising Strategy. The MECCAS model is particularly useful
for designing advertising strategies (see Exhibit 17.6). The model is derived from the means-ends chain approach to
understanding consumers' meanings for products.

Show a transparency of the MECCAS model to the class and describe the five elements in the model.

Then, present two or three means-ends chains for a product.
These could be derived from earlier projects or constructed from your imagination. Also, Chapter
4 presented several means-end chains that could be used here.

Ask students to translate each means-end chain into an advertising strategy. Encourage disagreements
and arguments about details.
Also, encourage students to develop an execution for the strategy. How would they design an ad to
accomplish the ad strategy?

You might ask the challenging question of how a marketer could determine if a particular ad is effective.
Astute students should recognize that the key to advertising effectiveness is whether the ad
accomplishes the ad strategy--that is, how well did it communicate the meanings at the various
levels specified in MECCAS?

Alternatively, show two or three existing ads and ask students to analyze each one in terms of the
MECCAS model.
This working "backwards" from ad to apparent strategy can be informative. Students should
identify the ad content that corresponds to each component of the model (see Project below).
Students should recognize that some ads do not contain all five elements, and therefore might be
considered "incomplete" and lacking in impact. Some ads will be seen to be rather weak, at least
from a MECCAS perspective.
In-Class Exercise: Attitude Toward the Ad and Advertising Effectiveness. This exercise forces students to
think about what makes an ad effective. This, in turn, requires that they consider how to define advertising
effectiveness.

Ask students to identify ads that they really dislike. Ask them what it is about the ad that they
particularly dislike.
Most students will have several ads that they "love to hate."

Then ask students to discuss whether these ads they dislike are effective.
First, students must decide what "effectiveness" in advertising means, or the factors that make an
ad effective. Basically, an ad has to be "persuasive"--it has to create meanings that lead to positive
attitudes toward the brand, positive attitudes toward purchase, and a positive purchase intention.
Many students are likely to believe that lousy or offensive ads cannot be effective.
Alternatively, ask students if ad effectiveness is enhanced if people like the ad (have a positive
attitude toward the ad). Most research shows that positive attitudes toward the ad are related to
positive brand attitudes.
Example: Gallery Furniture. Although it is probably true in general that liking the ad is related to
positive brand attitudes, exceptions can be found. Consider, for instance, the Gallery Furniture in Houston,
Texas. When the marketing professor at the University of Houston asks his class to describe the worst ads
on TV, most students identify ads for Gallery Furniture ads as crude, obnoxious, or just bad.
The ads for Gallery Furniture really are "bad." The ads are created and acted by the owner of Gallery,
James (Mattress Mack) McIngvale. In many ads, the unphotogenic McIngvale (who looks much older than
41), jumps up and down and waves fistfuls of cash. He talks so fast it's hard to understand what he is
saying, except for the tag line he shouts at the end--"Gallery Furniture will save you money." McIngvale
has appeared in Santa Claus suits, bunny rabbit suits, even a hollowed out mattress--anything to draw
attention. The commercials look as if they were shot with a home video camera (consistent with the lowcost image McIngvale wants to project). Also, since the ads don't cost much to shoot, McIngvale can afford
to show them frequently--about 450 spots per week on TV and radio (which contributes to consumers'
negative reactions). Needless to say, McIngvale is Houston's best-known businessman.
Despite the lousy ads, Gallery Furniture, sold an astounding $44 million of discounted, mostly middle-ofthe-line furniture from a single store. The few retailers who sold more volume did so from much bigger
stores than the 35,000 square-foot Gallery store. Sales at Gallery were $1,270 per square foot, higher than
any other competitor. McIngvale turned over his inventory 15 times in a year, compared to 2.5 for the
industry average. Why the success?

Ask students to speculate what is going on here with these obnoxious TV ads (or similar ones in your
community) that seem to be drawing in customers by the droves.
Of course, the merchandise selection, the low prices, the assortments, and the low-key sales force
(all salespeople are on salary) help create $44 million in sales.
But the ads do work. They definitely attract attention, and they keep the Gallery name at high topof-mind awareness thus, one is likely to think about Gallery if in a furniture decision situation
(Gallery is in the consideration set). The ads also convey one of the key means-end chain
meanings of Gallery (inexpensive furniture--you will save money). The ads probably also convey
the meaning that Gallery is unpretentious and the middle-class consumer can be comfortable there.
In-Class Exercise: The ISTEA Model of the Personal Selling Process. The ISTEA model is a customer-oriented
model of the personal selling process. Exhibit 17.7 shows the model. ISTEA requires the salesperson to "form an
impression of the customer" and develop their sales strategy based on this impression.

Challenge students to consider how a salesperson (life insurance, real estate, salesperson in stereo shop
or car dealership) might do this.
What types of impressions would be most useful?
What consumer factors should they consider?
What affective and cognitive characteristics might be relevant (the customer's level of interest or
involvement in the product, their knowledge about the product)?
What behaviors would be relevant (body language; self-described product use behaviors)?
What aspects of the environment would be germane (selling in the customers' home versus in a
retail store versus in the customers' office)?

Ask students to discuss how the salesperson's customer analysis might vary for different types of
sales/purchase situations.
The consumer/product relationship is influenced by situational factors such as a first time purchase
versus repeat purchase; or buying for self versus a gift; or under great time pressure versus in no
hurry.
PROJECT
This project is intended to give students practice using the MECCAS advertising strategy model. Students are to
analyze and evaluate one or two print ads in terms of the MECCAS model. If two ads are used, they should be for
two competing brands in the same product class, and students should compare the likely effects of the two promotion
strategies.
Evaluating Advertising Strategies
 Select two print ads for two competing brands in a product category. (Hint: Ads with some print copy
are easier to analyze).
 Describe each ad in terms of the five components of the MECCAS ad strategy model (Exhibit 17.6).
You should identify the parts of the ad that correspond to the message elements, consumer
benefits, driving force. Remember, the driving force is usually implied; it is seldom explicitly
mentioned. Try to identify the leverage point in the ad (often a psychosocial consequence) that
"taps into" or "activates" the driving force. Describe the executional framework of the ad.
 Critically evaluate the ad strategy, and the ad, in terms of the MECCAS model.
Describe why you think the ad is likely to be effective (or ineffective) in communicating the ad
strategy (a particular means-end consumer/product relationship). Do you think the ad is
persuasive? Would the ad influence consumers' purchase behavior?
 Write up this analysis in two or three pages and hand it in for evaluation.
NOTES AND ANSWERS TO REVIEW AND DISCUSSION QUESTIONS
1.
As a consumer of fast-food products, discuss the usefulness of promotion strategies on your decision processes.
This application question will require some thinking about promotions and their effects on consumers'
decision-making processes. Of course, there will be legitimate arguments on both sides of this issue.
Specific pro and con points will depend in part upon the particular product and promotion examples
selected. The heavy use of promotion strategies in the national and local fast food market provides many
concrete examples of specific promotions.
Critics claim that promotional expenses increase the costs of the product to consumers, but add no value.
Other critics worry that excessive promotions lead consumers to make product purchase decisions based on
non-product factors (price deals, contests, etc.), which eventually erodes brand loyalty and a positive
consumer/product relationship.
On the other hand, advocates point to consumer benefits such as better information about products and
competitive situations in the market. Advocates also emphasize the monetary savings passed directly to the
consumer via many promotion strategies such as rebates, price-off deals and coupons.
Students who present a more sophisticated analysis should also point out that using promotion to develop
larger markets can then lead to economies of scale in production which in turn can lead to lower product
prices. Thus, spending money on promotions can lead to lower prices, not higher prices.
2. Using the soft-drink industry as an example, define and illustrate each of the four major types of promotion
strategies.
This is an easy review question. Students should be able to describe each type of promotion.

Advertising is paid, nonpersonal presentation of marketing information.

Sales promotion includes a variety of inducements to influence consumers' purchase behaviors.

Personal selling involves direct personal interactions between a salesperson and a buyer.

Publicity is any unpaid form of communication about a company or its products.
Examples of these promotions are common in most consumer products industries. For instance, the fast
food or soft drink business offers many possible examples of promotions.
For some consumer product categories, students might have a problem illustrating personal selling, since
the manufacturer does not typically sell directly to the ultimate consumer of the product.
For instance, P&G sells its many products to retailers (owners of grocery stores). Coca-Cola sells
its products (cola syrup) to bottlers, who in turn sell to stores, who finally sell to the consumer.
Personal selling is quite relevant in these first steps of the distribution process, such as interactions
between P&G salespersons and the buyer for the retail company.
3. Are the major promotion methods equally effective in influencing high- and low-involvement decisions? Explain.
This rather difficult application question requires students to consider the relevance of product involvement
for developing promotion strategy. With some thinking, students should be able to identify implications of
high and low involvement for developing effective promotion strategies. Specific advantages and
disadvantages, of course, are dependent on the particular promotion.
Students may need to review the concept of involvement presented in Chapter 4. Students should know
involvement is a motivational state that influences consumers' attention and comprehension (depth and
elaboration, for example).
Thus, consumers who experience high involvement will attend more closely to relevant promotions
and will process them more deeply (more self-relevant meanings) and more elaborately (more
meanings).
Students should recognize that personal selling seems to be more important for high involvement purchases
such as houses, autos, stereo systems, and business suits. In addition, personal selling is more relevant
when consumers do not know all the choice alternatives (brands) or their attributes. Consumers need
relevant information about the purchase that a salesperson can supply.
Students should recall that involvement is a function of both intrinsic self-relevance and situational selfrelevance. Sales promotions are often sources of situational self-relevance that temporarily increase
consumers' involvement in the decision process.
Consider a contest promotion or a $2 coupon that makes some consumers more interested or
excited about buying the product. Thus, one key implication is that some promotions can influence
consumers' level of involvement, largely by being a temporary source of personal relevance.
Some sales promotion techniques may be better adapted to low involvement purchasing activities. For
instance, publicity is more likely to be available and effective (though not always favorably) for high
involvement products.
4. Select a specific advertisement or sales promotion strategy and evaluate it in terms of the elements of the
communication model.
This fairly simple application question forces students to work through the communication model that is
presented in Exhibit 17.2.
Students should select an actual advertisement or sales promotion. Students should describe each stage of
the communication model--source, message, media, receiver and action. In evaluating this promotion,
students should demonstrate a clear understanding of the source, message, media, receiver and action.

Encourage students to offer recommendations for improving their promotion.
This exercise should demonstrate the conflicts managers face in developing effective promotions
to achieve marketing objectives (10 percent increase in sales; 1.5 percent increase in market share),
while keeping costs within budget. Marketers continually must balance what might be the best or
optimal strategy with what is "do-able" (what we can afford).
5. Describe how the two routes to persuasion differ and discuss their implications for developing effective
advertising strategies.
This straightforward review question concerns two types of persuasive processes discussed in the text.
When exposed to a promotion, especially an advertisement, consumers must interpret the information it
presents.
The central and peripheral routes are two types of interpretation processes that can occur when consumers
are exposed to persuasive communications. They differ in the level and focus of consumers' attention and
comprehension processes during interpretation of the information.
The central route to persuasion usually occurs because consumers have higher levels of
involvement, perhaps because they have greater intrinsic self-relevance with the product. Such
consumers tend to pay greater attention to information in the ad concerning the product. And,
these consumers usually engage in deeper, more elaborate comprehension processes.
Because this type of processing leads to a consideration of the personal relevance of the
product for the consumers' goals, brand attitudes (Ao and Aact) may be formed or
changed. Thus, this type of interpretation processing is called the central (or direct) route
to persuasion because the consumer focuses on information about the brand.
Many marketers act as if most consumers process their advertising promotions in this
highly involved, central processing mode. However, this is not likely to be the case. It
seems more likely that most consumers engage in peripheral processing most of the time.
In the peripheral route to persuasion, consumers are not very interested in the product (they have
no purchase goals in mind and/or low levels of intrinsic self-relevance). Therefore, they are more
likely to attend to "peripheral" aspects of the advertisement such as the background scenery, the
models used, or some other non-product feature. Because consumers pay little attention to the
message about the product, their comprehension of this information tends to be shallower and less
elaborate.
Despite the "weak" cognitive processing of product information, peripheral processing
can lead to persuasion (more positive attitude toward the brand). If, at some later time,
consumers are "forced" to consider their attitudes toward the product, their memory of the
ad may be activated. These consumers may use these non-product beliefs and their
attitude toward the ad to construct a brand evaluation or attitude toward the product.
Marketers who are developing effective advertising strategies may wish to consider the typical
processing consumers exhibit when exposed to an ad (in a natural setting). To some extent, ad
content should be designed for the likely form of processing. Perhaps, some ads can be designed
to facilitate both types of processes.
6. Use the FCB grid model to illustrate consume-product relationships for four products you have purchased in the
last six months. How would this information be helpful to the promotion managers for these products?
This review and application question concerns the FCB grid, illustrated in Exhibit 17.4. The FCB grid is a
simple model of the consumer-product relationship. It focuses on two broad dimensions--consumers' level
of involvement with the product category, and whether the product is a think or feel (cognitive or affective)
product.
Students should be able to identify recently purchased products that fit into each quadrant in the grid. They
should be able to explain their rationale for each placement (in terms of involvement and think/feel).
Most students probably will find it easier to identify differences in involvement levels than the think versus
feeling distinction.

If your students are having problems with the think/feel dimension, suggest that they review the
discussion of attributes and consequences in Chapter 4 of the text. The think/feel distinction can be
thought of as a new way to look at the differences in means-end chains for products.
For some products (batteries, car insurance, hot water heaters, toothpaste), the dominant or most
important consequences are rational, functional consequences and the related rational (cognitively
considered) values. These are think products, because consumers tend to think about them in
terms of logical, rational, "objective" meanings.
But for other products (perfumes, ice cream, candy, some clothing) the most relevant consequences
are highly affective--feelings and emotions (psychosocial consequences) and the more aesthetic
values (beauty) that go with them. These are feel products because consumers tend to respond to
them in terms of affective meanings--emotions and feelings.
Students should recognize that not every consumer would perceive a given product in the same way. Thus,
the grid location of a product can vary depending upon the target segment of consumers. One might expect
to find cross-cultural differences between consumers in different countries. Nevertheless, research by FCB
has indicated a surprising amount of agreement about where various products are placed by most
consumers.
The general assumption of detailed consumer analysis is that managers can develop more effective
promotions (especially advertising strategies) if they understand the consumer/product relationship. The
placement of a product in the grid suggests the appropriate tone and content of the ad (compare ads for
toothpaste with cologne ads). However, it is possible to successfully use different strategies that intuitively
might seem to be inappropriate.
7. Describe the MECCAS model for developing an effective advertising strategy. Illustrate the use of the model by
suggesting a strategy for an athletic shoes promotion.
This is a review question. The MECCAS model (means-end chain conceptualization of advertising
strategy) is a key application tool presented in Exhibit 17.6.
MECCAS is intended to help marketers think about advertising strategy. The MECCAS model suggests
that the essence of advertising strategy concerns the consumer/product relationship. Means-end chains are a
useful tool for understanding the consumer/product relationship. The MECCAS model proposes that an
advertising strategy should be specified in terms of the desired meaningful linkages between the product
and the consumer. MECCAS shows how marketers can translate a means-end chain into an advertising
strategy. In sum, MECCAS is a conceptual framework that organizes and gives focus to the difficult
decision processes involved in formulating advertising strategies.
Students should recognize the need to understand the consumer/product relationship for the target segment.
A marketer will need to know which means-end chains are the most important to the target consumer
segment before developing an advertising strategy.
Some students should recognize that marketers need also to consider what advertising strategies their
competitors are using. If a competitor "owns" a particular ad strategy, it probably is not wise to adopt the
same strategy, even if it does reflect a dominant means-end chain. The most effective ad strategies will
reflect important means-end chain meanings for the target segment, and will be a unique competitive
position.
Because athletic shoes are a familiar category for most students, it should easy to apply the MECCAS
model. There are, of course, many possible means-end chains for athletic shoes and thus many possible
advertising strategies. These strategies could vary considerably. As is frequently true for application
questions, there probably is no one superior strategy. Selecting an appropriate advertising strategy will
require attention to the positioning strategies of one's competitors.

Have students compare some alternative ad strategies for Nike and Reebok, for example.
8. Do you agree with the suggestion that personal selling tends to create higher levels of involvement than other
promotion strategies? How would your conclusion affect your use of the ISTEA model of personal selling
(Exhibit 17.7)?
This review/application question focuses on the effects of personal selling on consumers' involvement (and
the reciprocal relationship, too). The ISTEA model is presented in Exhibit 17.7.
Most students probably will agree that personal interaction is likely to generate a higher level of
involvement than other forms of promotions.
Students should recognize that the personal, face-to-face interaction of personal selling, virtually
"demands" that the consumer be reasonably involved. After all, personal selling is a dynamic,
interpersonal situation in which information is exchanged, reciprocally, by the buyer and
salesperson.
Of course, the influence of the personal selling situation is more due to situational self-relevance
than intrinsic self-relevance. Students might benefit from a review of Exhibit 4.9.
The ISTEA model identifies five steps in the personal selling process--impression, strategy, transmission,
evaluation, and adjustment.
The first step in the ISTEA model is that the salesperson should form an "impression" of the
customer. Part of that impression should be an assessment of the consumer's level of involvement
(and their relevant product knowledge). Capitalizing on already high involvement or increasing
consumers' involvement would be a key part of the salesperson's selling strategy. Thus,
involvement would influence the rest of the process.
9. Identify a specific promotional strategy. Use the Wheel of Consumer Analysis model to analyze its effects on
target consumers. Then suggest specific criteria that could be used to measure the effects of the promotion.
This is a somewhat difficult application question that probably will be handled in more depth by graduate
students and by undergraduates who have had a marketing research class.
The promotion example could be a print ad, or a sales promotion, or a TV ad, or a publicity story
(news release in a newspaper).

Organize the classroom discussion in three distinct steps as the question is presented.

Show a transparency of the Wheel of Consumer Analysis to focus students' attention on the promotions'
effects on consumers' cognitive and affective responses, their behaviors, and aspects of the environment.

Describe the promotion example and ask students to discuss possible criteria and measuring procedures.

An alternative approach is to assign groups of students to discuss each segment of the wheel, including
measurement approaches.
Students should know to take measures of each of the three main components of the wheel--affect
and cognition, behavior, and the environment. Most students will find it easier to think of
measures of affect and cognition. These might include recall measures, persuasion measures
(changes in beliefs, attitudes and intentions), and thought protocols during exposure to the
promotion.
The key behavior of interest is usually sales (purchase). Purchase behavior can be measured by
scanner technology, self-report, or direct observation. Other behaviors besides purchase may be
relevant for certain situations (going to the store, trying the product in the store, talking to others
about the product).
The promotion effects on the environment might include changes in social interactions or changes
in cultural values. Physical changes in the environment might also be relevant in some cases.
10. Suggest reasons for the increasing emphasis on sales promotion and publicity in the promotion mix of many
marketing organizations.
The popularity of sales promotions is a timely issue in marketing and should generate an interesting
discussion.
Some marketers, and many advertising agency executives, are worried that too much emphasis in marketing
is placed on sales promotions. They claim that sales promotions erode the "brand franchise," which we can
define as the special personal connections and meanings that brands have for consumers.

Students should be able to generate some good reasons for the popularity of sales promotions. Jot down
the best on the chalkboard.

One possible reason for greater use of sales promotions is the extent to which consumers have
low involvement with many products. The sales promotion is a source of situational selfrelevance. That is, most sales promotions temporarily create a temporary contingency of some
personal relevance for the consumer (buy one, get one free, get a chance to win $10,000, 25%
off). This situational self-relevance, in turn, enhances consumers' involvement in the decisionmaking process.
The problem, of course, is that most sales promotions do not increase consumers' personal
self-relevance (variously referred to as positive brand attitudes, brand loyalty, brand
equity). Thus, the long-run implication of heavy levels of sales promotions is a decline in
the brand franchise. Companies become "addicted" to sales promotions as a way to
manipulate sales volume, and consumers come increasingly to see competitive brands as
alike. Price becomes a dominant choice criterion.

Other reasons are the intensely competitive markets for many products, the desire to cut costs,
the need to do something different.

Another reason is the "bandwagon" effect. If several competitors in a market are using sales
promotions, it is difficult for a company not to follow suit.

Probably the most important reason for the popularity of sales promotions, though, is their
effectiveness. Sales promotions can have immediate, and direct impacts on purchase behaviors
(usually, offering a rebate will create a temporary increase in sales). In contrast, it is very
difficult to determine the precise effects of advertising and publicity on consumers' purchase
behaviors.
NOTES TO DISCUSSION QUESTIONS FOR MARKETING STRATEGY IN ACTION—
The Cereal Wars
Overview. This case discusses the promotion strategies used by General Mills and Kellogg, the dominant
companies in the breakfast cereal market. This case highlights the extremely fierce competitive environments that
exist in the breakfast cereal market and also in some product classes. In fact, the breakfast cereal market is so
competitive that facing large companies like General Mills and Kellogg has been likened to the marketing equivalent
of standing up to a Sherman tank.
The breakfast cereal market, although highly competitive, dwindled through the 1990s, falling nearly $1 billion to
$7.7 billion from 1995 to 2000. However, in the midst of this malaise, General Mills thrived, building its cereal
sales by an average of six percent each year between 1996 and 1999. By the end of 1999, General Mills eclipsed
Kellogg for the first time ever, becoming the nation’s leading cereal seller.
What happened? Although it led General Mills in market share by a 41 percent to 21 percent margin in 1988, some
warning signs were already in place. For one, Kellogg stagnated. It did not introduce one successful new product
from 1964 to 1991. Moreover, its brand names like Frosted Flakes, Corn Flakes, and Frosted Mini-Wheats, were not
so much brand names as descriptions of what was in the box. This made them increasingly vulnerable to private
label brands.
In the meantime, General Mills stepped up its marketing efforts considerably—very important in a market very
sensitive to well-designed promotional strategies. In 1996, General Mills ran a very successful promotion tied in
with its sponsorship of the Olympics. It also redoubled its marketing efforts for Cheerios, introducing puzzles,
children’s books, even clothing festooned with the Cheerios logo. It has also run promotional tie-ins with some very
popular children’s movies and products. It also targeted health-conscious adult consumers by winning American
Heart Association approval for Cheerios and putting calcium in Lucky Charms.
In the meantime, Kellogg blundered repeatedly. Its effort to position its cereals as healthy breakfast food flopped. It
struggled to introduce a successful “cereal on the go”—important for those consumers who don’t have time to sit
down to eat breakfast and have to eat on their way to work. Finally, it cut its advertising budget and was outspent by
General Mills by a margin of 2 to 1 in 1999.
The discussion questions are challenging. They require students to draw on their knowledge of various concepts
learned earlier in the course—involvement, behavior analysis, modeling, and means-end chains. The sample answers
below give a hint at some of the approaches a student could take in addressing these questions.
1. Use the means-end model to describe (based on your intuition) the consumer-product relationship for three
segments breakfast cereal market: kids (ages 6 to 12), teens/young adults (ages 16 to 22), and baby boomers
(ages 35 to 50). What implications do your ideas suggest for promotion strategies targeted toward these three
groups?
This challenging question asks students for their subjective opinions about the all-important
consumer/product relationship for three very different market segments. The question also asks students to
be creative in drawing implications for marketing action. Of course, answers will be idiosyncratic.
However, students should be able to provide justification for their answers. You may have to challenge
students to draw out their reasoning and rationale.
Students should be able to draw means-end chains that represent what they think are the dominant (most
salient) attributes, benefits, and values for customers in these three segments.
The main issue is how kids, teens, and middle aged adults see breakfast cereal as fitting into their lives—
that is, marketers need to understand the consumer/product relationships for these three segments.
Kids probably have higher levels of self-relevance with cereal than do teens. Kids often evidence
fairly high levels of involvement for breakfast cereals. Certainly the taste and the sugar content of
some cereals are part of their attraction.
Some students may note that part of kids’ involvement is probably due to situational selfrelevance from sales promotions, such as premiums in the box. These sales promotions
act as situational sources of self-relevance because they temporarily increase kids’ interest
in the cereal and make a temporary connection between the product/premium and
important, self-relevant consequences, goals, and values.
Students should note that kids are seldom the purchasers (the person who makes the final decision
and/or pays for the product). Usually, the buyer is an adult head of the household (mom or dad).
These buyers’ involvement with cereal is not likely to be as high as their child’s, since they are
buying the product for someone else.
Students (may are teenagers themselves) should have no trouble thinking about their relationships with
breakfast cereals. Their level of brand involvement is probably less than kids, but more than most adults.
Teens are more likely to make brand choices, and of course, adults tend to be decision makers for brand
choices.
One difference may be the guilt associated with perceived negative consequences of eating sugared
cereals. Teens may feel less concerned about health consequences of sugar consumption. Even
though a lot of adults eat sugared cereals, they may feel guilty about it.
In contrast, the segment of middle-aged adults is likely to have rather different consumer/product
relationships with breakfast cereal.
Adults may find breakfast cereal to be convenient (it’s fast to prepare and eat on a rushed
morning). Compared to kids and teens, they may be more interested in the nutritional attributes of
cereals (or claim to be interested). Thus, values and end consequences such as health and “good
for you” will be much more relevant for the adult segment.
Adults will certainly have different evaluations of tastes. Some may be more interested in unusual,
“adult” tastes (fruits, grains, crunchy) and less interested in sugar content. Cereals containing
honey seem more palatable to guilt-ridden adults. Cereals containing honey seem more palatable
to guilt-ridden adults.
Students also should be able to suggest promotion strategies for these segments. In doing so, they
should deal with the trade-offs between expenditures for advertising and sales promotion.
2. Find a current print ad for either Kellogg’s or General Mills’ cereal. Describe the ad strategy using the
MECCAS model described in the text (identify the driving force, message elements, leverage point, and so on).
Use the means-end approach to critique the ad strategy and make suggestions for improving the ad.
This application question forces students to think deeply about advertising strategy, in the context of
analyzing a particular ad.
Students should describe the means-end chains being communicated in the ad in terms of the MECCAS
model (see Exhibit 17.6)
Not every step in the six-level means-end chain will be explicit in every ad, but most breakfast
cereal ads will mention at least one product attribute, and many will mention a functional
consequence or two (good taste). A few ads will try to describe a psychosocial consequence or
perhaps demonstrate a value (pictorially).
Then, using the MECCAS model as a framework or guide, students can critically evaluate the
communication strategy in the ad.
Implicit in the MECCAS model is the assumption that a good ad strategy communicates an entire
means-end chain of meaning about the product and consumer, from attributes to consequences to
values.
“Good” ads show or tell how product attributes are related to functional and psychosocial
consequences, which in turn are connected to self-relevant goals and values. Of course, the
connections do not have to be brutally explicit. Some ads communicate these links in a subtle,
gentle way.
In the MECCAS view, an effective ad should have a driving force—an important selfrelevant consequence that provides the motivation for considering the product as relevant
and interesting. Students should recognize that most ads treat the driving force in a subtle
way. Few explicitly state the driving force. Instead the value orientation of the ad
strategy usually is implied, not explicit, in the ad.
The leverage point is the most difficult aspect of the MECCAS model to explain. The leverage
point is how the ad links the value orientation, which is the driving force of the ad, to the product
benefits and attributes. This is how the creative designers of the ad make the connection between
the explicit product-related meanings or values of the consumer. Typically, the leverage point is a
psychosocial consequence that is explicit in the ad. In turn, the psychosocial consequence implies
the value orientation (driving force) to the consumer viewer. This implication might be subtle—
just an “activation” of the value meaning, rather than a reasoned cognitive inference.
For instance, in the emotional TV ads for AT&T’s long distance service—the famous
reach out and touch someone campaign—the driving force was the end goal or value of
maintaining close, intimate relationships with friends and relatives.
The leverage point could be considered “caring,” which was portrayed in all the ads by
the obvious “caring” demeanor and behaviors of the actors and the “caring” situations (a
young father calls to tell the grandparents of a new baby; a child calls to tell grandpa
hello). “Caring” could be considered the leverage point that linked AT&T services with
the value of maintaining close relationships. Explicit demonstrations of caring helped
consumers make the connection to the unstated value.
The usual student critiques will focus on whether the ad communicated meanings at all
levels of the means-end chain. A deeper analysis might consider of the ad linked product
characteristics to meanings of relevance to consumers (did the ad tap into a driving
force?). More subtle critiques might question the strength of the linkages between
elements in the ad strategy.
3. Both companies discussed in this case use a mix of promotions to market their cereals. Discuss how consumer
reactions to brand-oriented advertising and sales promotions (coupons versus prizes and premiums) are likely to
differ. Discuss the likely effects on consumers’ behavior, affect, and cognition for a 75-cent coupon for cereal
versus a price reduction deal such as “buy three for the price of two.”
This review and application question will require some thought. The question touches at the heart of an
important and even controversial issue about the relative merits of brand-oriented advertising versus sales
promotions.
An obvious difference is the time horizon of the two promotion strategies.

Usually sales promotion strategies are short-lived and are intended to influence consumers’ shortrun purchase behaviors. That is, a sales promotion should motivate consumers to go out and buy
the product, immediately or very soon.

In contrast, an advertising strategy can have a long life. Most advertising does not have (nor is it
intended to have) an “immediate” impact on behavior. An exception is the typical grocery store
newspaper advertising that emphasizes prices and product availability. Such ads are intended to
influence immediate purchase behaviors.
Another difference is the intended effect of the promotion. Most brand advertising is intended to influence
consumers’ affective responses (liking for the product) and cognitions (meanings and beliefs about the
product’s attributes and consequences). Advertising affects consumers’ minds. It creates product meanings
and attempts to link them to self-relevant meanings. Sales promotions are intended to influence behavior—
especially purchase behavior. The influence on behavior is intended to be “immediate.”
The effects of advertising tend to be longer term, while sales promotions usually have short-term effects.
A given sales promotion is likely to fade from memory rather quickly. This is reasonable, since
the sales promotion has a short life (it is only valid for a short time). In contrast, brand image
(meanings) created by advertising can last for years. There are many examples of old-time brands
that still retain much of their image, even though they are not advertised much anymore (Lux and
Ivory soap, Bon Ami cleansing powder, Lucky Strike cigarettes). Very few consumers can
remember a sales promotion that ran 6 months ago, let along 5 years ago.
Another way of thinking about the two forms of promotion is as sources of situational self-relevance and
antecedents to involvement.
From an involvement perspective, sales promotions are intended to be sources of situational selfrelevance. Sales promotions create a temporary feeling of self-relevance for the product or the
purchase situation, because they offer an “extra” reward for buying the product. Sales promotions,
therefore, usually have a temporary effect on consumers’ involvement with the brand and the
purchase process.
Advertising, in contrast, tends to change consumers’ intrinsic self-relevance with the product.
These cognitive and affective factors may be stored in long-term memory where they can be
activated and influence decision processes at some later time. Thus, advertising has the potential
to create long-lived cognitive structures of brand meanings that have a continuous influence on
consumers’ involvement with the brand.
This question asks for students’ opinions, so the answers will be idiosyncratic. You should encourage
students to give the logic or reasoning underlying their predictions of the effects of these two promotions.
One point is that the 3-for-2 promotion is likely to sell a lot of boxes of cereal. Thus, it encourages greater
consumption of the brand. Probably the most likely participants would be consumers who already use and
like the brand.
The 75-cent coupon would be more effective for encourage trial of a brand that is not used (or seldom
used).
4.
Discuss the likely effect on consumers’ behavior, affect, and cognition of the various forms of promotion
General Mills has used to target children. What do you think are the effects on both parents and kids?
This is a fairly straightforward question that requires students to incorporate concepts from earlier in the
text as they think about why a particular marketing strategy has succeeded. There is a wide array of
possible responses.
Putting the logos and mascots of General Mills’ cereals on children’s books, pajamas, puzzles, and other
kids’ items likely creates a variety of responses in both parents and children. Parents who see the Cheerios
logo on a book, for example, might feel nostalgic, remembering when they ate Cheerios as children. It
might lead them to purchase Cheerios in attempt to create similar positive memories for their own children,
in turn making them feel like better parents. Along those same lines, parents also feel good about
themselves when they can give their kids something “special.” So they might buy a box of cereal just to
delight their kids with the special toy or figuring that might be inside. These products also might generate
in parents positive feelings about General Mills. Parents might draw the conclusion that General Mills
cares deeply about children’s overall welfare, not just what they eat for breakfast.
General Mills appeals directly to children by associating its products with fun things. A kid who really
liked “Toy Story2” might have badgered her parents into buying her a box of General Mills’ cereal with one
of the figurines inside. General Mills is also trying to create an emotional tie to its brands by using cute, fun
characters. If a kid decides to email Count Chocula, that child has probably developed some strong positive
emotions toward that character, and perhaps even built a kind of friendship. That kind of a string bond
makes it even more likely the child will request that their parents buy that particular cereal.
5.
Discuss the cultural issues faced by Kellogg and General Mills in trying to induce consumers in other cultures
to adopt ready-to-eat cereal as a food for breakfast. What types of changes in consumers’ meanings and
behaviors must occur before consumers will accept ready-to-eat breakfast cereal? In addition to what is
described in the case, what other promotional strategies could these companies use?
This is a challenging, but not technically difficult question. Students should be able to have an interesting
discussion of these points. Of course, there are no correct answers.
To expand their overall markets, Kellogg (and, more recently, General Mills) have focused on developing
markets in other cultures. In most of those cultures, consumers are not used to eating cereal products for
breakfast. Thus, Kellogg and General Mills must change those cultures to create customers for its products.
This is likely to be a long and hard process, but one that will build a market for Kellogg and General Mills
products and help establish relationships with customers that could be valuable for years to come.
The general answer to the meanings and behavior question is that many factors will have to change. These
will vary from culture to culture, depending on how different breakfast eating habits compare to those in the
U.S. For example, a large part of the Indian population does not eat breakfast, French consumers are used
to coffee and bread (croissants) for breakfast, and Mexican consumers are accustomed to cooked, fatty
breakfasts.
Some students may wish to discuss the ethical issues involved in a large company trying to change longstanding cultural habits and customs. Some may see this as inappropriate, even unethical; while others see
this as entirely appropriate marketing practice.
6. Why do you think the breakfast cereal market is so “marketing sensitive?” Why do consumers respond to good
marketing promotions but not at all to weak ones?
This is a rather demanding application question that will require some deep thinking. A general answer is
that the marketing sensitivity of the breakfast cereal market is influenced by the consumer-product
relationship and the level of competition in the market. Students should delve deeply into aspects of the
customer/product relationship. Here are a couple of ideas:
Breakfast cereal is not a product that enjoys high levels of intrinsic self-relevance for many
consumers. On the other hand, American consumers eat a lot of cereal and thus make many
choices in the supermarket. This provides multiple opportunities for marketers to have an
influence on purchase and consumption behavior.
In addition, cereal is highly taste sensitive—that is, taste and mouth feel (crunchiness, for example)
are important choice criteria. Because they eat a lot of cereal, many people become bored with the
taste of one brand over and over again. Many people want to try different brands and tastes, thus
they may have multiple brands on hand. For these reasons, many consumers may not have strong
personal connections.
For all these reasons, consumers may be more willing to switch cereal brands if intrigued by promotion
strategies for another brand. In this sense, the market for cereal could be termed “marketing sensitive.”
Marketing strategies can have an influence.
Thus the product category of breakfast cereal seems a natural for product promotions. In fact, the
cereal product category is very heavily promoted. Lots of sales promotions are occurring all the
time, including coupons, contests, premiums, and prizes. Of course, marketers spend heavily on
advertising, too. They can afford to with a market share point worth $75 million or more.
Because people are likely to try new products and switch around among a set of brands to get taste
variety, marketing promotions are likely to influence consumers’ brand choices. For all these
reasons, strong promotions are likely to have an effect. For instance, good ads that communicate a
unique feature or consequence may induce a significant number of consumers to buy a brand.
Weak marketing promotions, however, have little or no effect in such an environment, partly
because consumers can take advantage of many “good” sales promotions.