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 A general model of the communication processcommunication process

Feedback

Source MessageTrans-mission via media

Receiver Action

A general model of the communication processA general model of the communication process - - Relevant agents and StimuliRelevant agents and Stimuli

Feedback

Source MessageTrans-mission via media

Receiver Action

•Manufacturer

•Ad agency

•Salesperson

•Promotion manager

•Advertise-ment

•Publicity

•Personal selling

•TV, magazines

•Direct mail

•In-home

•Newspaper articles

•Consumer •Consumer

A general model of the communication process - A general model of the communication process - Key actions for PromotionsKey actions for Promotions

Feedback

Source MessageTrans-mission via media

Receiver Action

Manage promotion strategy

Create promotion communi-

cation

Transmit promotion communi-

cation

Interpret promotion communi-

cation

Take action

A general model of the communication processA general model of the communication process - - Relevant agents and StimuliRelevant agents and Stimuli

Feedback

Source MessageTrans-mission via media

Receiver Action

•Analyze consumer/ product relationship

•Implement promotion strategy

•Evaluate promotion strategy

•Design promotion to commun-icate meanings about product attributes

•Select medium or method to expose message to appropriate audience

•Exposure to message

•Attend to message

•Compre-hend promotion

•Form beliefs

•Purchase product

•Store contact

•Word-of-mouth communi-cation

Central Route to PersuasionCentral Route to PersuasionExposure to persuasive communication

Higher involvement with product or message

Attention:

Focus on “central” product-related info.

Comprehension:

Deeper thoughts about product

More elaboration

Persuasion

Product beliefs

Brand attitude

Purchase intent

Peripheral Route to Peripheral Route to PersuasionPersuasionExposure to

persuasive communication

Lower involvement with product or message

Attention:

Focus on “peripheral” product-related info.

Comprehension:

Shallow thoughts about product

Elaboration on non-product elements of message

Persuasion

Non-product beliefs

Ad attitude

Brand attitude

Purchase intent

Grid for Analyzing Consumer / Product Relationships

Think Products Feel Products

Higher

Lower

•Insecticide

•IRA account

•35mm camera

•Car battery

•Refrigerator

•Wallpaper

•Car

•Perfume

•Greeting card•Rum

•Ice cream bar

Analysis of Consumer Vulnerability

Like Neutral Dislike

Buy regularly

Buy occasionally

Never buy

Loyal to our brand

Regular customers - vulnerable to competitors

Occasional customers who are vulnerable to competitors’ promotions

Customers of other brands- are vulnerable to promotion

Forget it!!

Aspects of creative strategy

Elements of advertising strategy

Relevant levels of a means-end chain

Executional framework

• 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

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

Message elements: The product or brand attributes communi-cated in the ad

Terminal or instrumental

value

Psychosocial consequences

Functional consequences

Concrete or abstract

attributes

The MECCAS model