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Chapter 17
Consumer Behavior and
Promotion Strategy
Goal of Promotion
• To communicate product related
information to the target market with a view
to persuading them.
• To maintain a differential advantage for the
product over its competitors.
Types of Promotions
• Advertising
– Paid, non-personal (more reach, less customizable, less
persuasive)
• Sales Promotions
– Paid, non-personal (more reach, effective in modifying
behavior, little information value)
• Personal Selling
– Paid, personal (less reach, more customizable,
persuasiveness varies)
• Publicity
– Non-paid, mass (great reach, not controllable, very
persuasive)
Goals of Communication ~ or ~
Promotion Strategy
•
•
•
•
•
Create need
Increase brand awareness
Increase brand attitude
Influence intention to purchase
Influence purchase-related behaviors
A general model of the
communication process
Feedback
Source
Message
Transmission
via media
Receiver
Action
A general model of the communication process Relevant agents and Stimuli
Feedback
Source
•Manufacturer
•Ad agency
•Salesperson
•Promotion
manager
Message
Transmission
via media
Receiver
•Advertisement
•TV,
magazines
•Consumer
•Publicity
•Direct mail
•Personal
selling
•In-home
•Newspaper
articles
Action
•Consumer
A general model of the communication process Key actions for Promotions
Feedback
Source
Message
Transmission
via media
Manage
promotion
strategy
Create
promotion
communication
Transmit
promotion
communication
Receiver
Interpret
promotion
communication
Action
Take
action
A general model of the communication process Relevant agents and Stimuli
Feedback
Source
•Analyze
consumer/
product
relationship
•Implement
promotion
strategy
•Evaluate
promotion
strategy
Message
•Design
promotion
to
communicate
meanings
about
product
attributes
Transmission
via media
Receiver
•Exposure
to message
•Select
medium or
method to
expose
message to
appropriate
audience
•Attend to
message
•Comprehend
promotion
•Form
beliefs
Action
•Purchase
product
•Store
contact
•Word-ofmouth
communication
Central Route to Persuasion
Exposure to
persuasive
communication
Persuasion
Product
beliefs
Higher involvement
with product or
message
Brand attitude
Purchase
intent
Attention:
Comprehension:
Focus on “central”
product-related
info.
Deeper thoughts about
product
More elaboration
Exposure to
persuasive
communication
Peripheral Route to
Persuasion
Persuasion
Non-product
beliefs
Lower involvement
with product or
message
Ad attitude
Brand attitude
Purchase intent
Attention:
Comprehension:
Focus on
“peripheral”
product-related
info.
Shallow thoughts about
product
Elaboration on nonproduct elements of
message
Grid for Analyzing Consumer /
Product Relationships
Higher
•Insecticide
•IRA account
•35mm camera
•Car battery
•Greeting card
•Rum
•Ice cream bar
•Car
•Wallpaper
•Refrigerator
Lower
•Perfume
Think Products
Feel Products
Analysis of Consumer Vulnerability
Like
Neutral
Dislike
Buy
regularly
Loyal to
our brand
Regular customers vulnerable to competitors
Buy
occasionally
Occasional customers who are vulnerable
to competitors’ promotions
Never
buy
Customers of other brandsare vulnerable to promotion
Forget it!!
The MECCAS model
Executional framework
Aspects of
creative
strategy
Elements of
advertising
strategy
Relevant
levels of a
means-end
chain
• How the ad communicates the advertising strategy
• All details of the finished ad, including models, setting, props, script
and the style and theme of the ad
Driving force:
The value
orientation of
the ad. The
end goal
implied in the
ad, but
seldom
stated
explicitly
Terminal or
instrumental
value
Leverage
point:
The hook that
connects the
tangible
attributes to
the intangible
values of the
driving force
Consumer
benefits:
The key benefit
consequences
communicated
in the ad
Psychosocial
consequences
Functional
consequences
Message
elements:
The
product or
brand
attributes
communicated in
the ad
Concrete or
abstract
attributes