Monday, March 17, 2008

How marketing communications works (MC, unit 1)

Lots of theories - lots of debate:

1) AIDA (gain attention, stimulate interest, create desire, result in action)
Elmo Lewis' theory whereby an advertiser seeks to position the product as an answer to a previously indentified problem.
This principle of sequential activity - 'the hierarchy of effects' - is now challenged

2) Hall’s Four Frameworks model (1992)
Sales – messages to shift product, e.g. direct response advertising
Persuasion – moving buyers through sequential steps
Involvement – drawing consumers into an emotional response
Salience – using conspicuous presentation

3) The Heightened Appreciation Model (Yeshin, '93)
Identifies a desirable attribute of a product (through consumer research) and stresses that attribute in advertising. The consumer is a) more aware of that attribute and b) has a more positive image of the brand.

4) Jones Strong Theory
Jones’s strong theory of advertising views consumers as passive and maintains that advertising can persuade and generate repeat purchase behaviour.

5) Ehrenberg's ATR Model (Awareness-Trial-Reinforcement) (1974)
Suggests that advertising reminds people of a need, which is more likely to explain why they purchase. Saw few customers were 100% brand loyal implying that Hierarchy of Effects was wrong, attitude didn't necessarily drive behaviour.

6) Prue’s alphabetical model (1998)
Prue seeks to create a more simplistic active-consumer model (argues AIDA assumes a passive-consumer model)

Four stages are observations of what the advertisement (not the consumer) must achieve:
- Appreciation - must be considered to have sufficient value for it not to be screened out
- Branding - stimulate recognition e.g. tony tiger = frosties
- Communication - should in some way communicate something strategically relevant about the brand
persuasion - rational, not necessarily sequential
involvement - a subtle emotional response whereby emotions transfer to the brand e.g. Andrex - soft, strong, family
salience - strikingly different, making a big impact on its target group and allowing a brand to punch above its weight e.g. Tango
- Desired effect on the brand - perception change

Word-of-Mouth communications (MC, unit 1)

Why use WoM?
Some campaigns seek WoM communication as it provides higher levels of credibility (and can be relatively free of media and production costs)

In fashion again?
The rise of the internet has given WoM new impetus. The mass of communities exchanging opinions all the time on myspace, bebo and facebook provide huge opportunities for marketers.

Terminology
WoM marketing can also be known as 'buzz marketing' or 'viral'. Whilst they're both WoM techniques, Buzz suggests that the extent that discussion of a subject or brand is compelling and exciting, viral is self-propagating and tends to refer to online marketing techniques that seek to exploit pre-existing social networks.
There's a thin line between some WoM campaigns and 'stealth marketing', any practice designed to deceive people about the involvement of marketers in a communication (see football example below).

Ethics
Besides the ethics codes of Womma or the Viral and Buzz Marketing Association (neither of which it is compulsory to join), the buzz marketing industry in Britain is almost totally unregulated. Stealth marketing, when it occurs, appears to be in breach of several articles of the Committee of Advertising Practice Code, such as 6.1: "Marketers should not exploit the credulity, lack of knowledge or inexperience of consumers"; or 22.1: "Marketers . . . should ensure that marketing communications are designed and presented in such a way that it is clear they are marketing communications." But it remains rather hazy whether the Advertising Standards Authority or the Office of Fair Trading actually cover these practices.
(Leo Benedict, Guardian, 2007)

How to stimulate WoM?
(Dichter 1966) a) Product interest - pleasurable or unfavourable b) Message interest - outstanding or controversial c) Self-interest - status and prestige d) Other interest - other's feelings

Examples:
  • Tremor is a marketing service - powered by Procter & Gamble - that develops teen word-of-mouth marketing programs. It recruits teens to help develop exciting and relevant product ideas and marketing programs that teens want to talk about.
  • Benedict refers to a premiership football club who increased subscriptions to their text messaging service by hiring actors to visit bars and clubs around the ground, saying that one of their mates had been sacked from work because he kept on getting these text messages and talking to everyone about it, and his boss had had enough and given him the boot. So they were going round with this petition trying to get his job back 'They'd have a mobile phone in their pocket, and they'd show them how it worked. 'What's the harm in that?' they'd say. And they could have these conversations with lots of people - that was the beauty of it. Two people could spend maybe 20 minutes or half an hour in each pub, working the whole pub. We did it at two home games and reckon we got about 4,000 people on the petition in total.' (Sneeze Marketing Agency)
To read:
Tom Himpe, a senior strategist at Naked Communications and author of 'Advertising Is Dead, Long Live Advertising!'

Credibility in the communications process (MC, unit 1)

Credibility
the extent to which the audience perceives the source to be reliable and objective
Linear model of communications (adaptation of Schramm, Shannon and Weaver)
The decoding process is influenced by recipient's preconceptions of the sender. Credibility is bestowed by opinion formers (experts) and opinion leaders (peer group)

Example: when Google wanted to launch gmail in 2004, it identified 1,000 online opinion-formers and inviting them to try the as yet unreleased service, the company set off an epidemic of recommendation that resulted in three million people signing up in just three months

Kelman's 3 source characteristics:
  1. source credibility
  2. source attractiveness
  3. source power (e.g. sales promos in crowded marketplace)
Pros and cons of celebrity endorsements (personalities as opinion formers)
Increased attention and global reach versus overshadowing, controversy and image changes. Examples: Gary Linekar and Walkers, Jodie Kidd and M&S