CHAPTER HOW MARKETING COMMUNICATIONS WORK
Hierarchy-of-e ects Consumers go through three stages in responding to marketing communications:
model 1. Cognitive stage (think) = mental processes lead to awareness and knowledge
2. A ective stage (feel) = emotional or evaluative responses and attitudes formed
3. Conative or behavioral stage (do) = undertaking actions with respect to brand
Low-involvement Consumers, after frequent exposures to marketing messages, might buy a product, and
hierarchy-of-e ects decide afterwards how they feel about it (cognitive —> conative —> a ective)
Experiential Consumers’ a ective responses towards a product lead them to buy it and, if necessary,
hierarchy-of-e ects they re ect on it later (a ective —> conative —> cognitive)
Foote-Cone-Belding Segmentation and positioning tool with two dimensions (see picture):
(FCB) grid* - Involvement (importance people attach to product, has to think it over and level of risk)
- Think-feel dimension (continuum, decision made on cognitive or a ective basis)
Rossiter-Percy grid Modi cation of FCB grid based on dimensions involvement and ful lling buying motives:
- Transformational buying motives (positive motivations, products that give pleasure)
- Informational buying motives (reducing negative motivations, avoiding problem)
Top-of-mind Very important in hierarchy-of-e ects model, it indicates which brand is most salient
awareness within a product category
Attitude Person’s overall evaluation of an object/person/organization/ad/etc. (the more favorable
the brand attitudes, the more likely a purchase of the brand). Two dimensions:
- Way attitudes are formed (cognitive, a ective or behavioral)
- Level of elaboration of a message (central vs peripheral and MOA)
Elaboration - Central-route processing = if MOA are all high, elaboration likelihood is high and
Likelihood Model consumers engage in central-route processing (willing to elaborate and evaluate)
(ELM) - Peripheral-route processing = if one or more of MOA are low, consumers will process
information peripherally, evaluation is based on simple peripheral cues
High elaboration - Cognitive attitude formation: expectancy-value model (Fishbein), theory of reasoned
likelihood action (based on attitudes, subjective norms and social sensitivity), theory of planned
behavior (ability and opportunity factors of MOA) and self-generated persuasion
(consumers are persuaded by own thoughts)
- A ective attitude formation: a ect-as-information (feelings as source of info, more
likely with hedonic rather than functional purchase motivations)
- Behavioral attitude formation: post-experience models (central-route, current purchase
in uenced by previous purchase behavior, ads after brand usage, higher brand recall)
and perception-experience-memory model (framing perceptions)
Low elaboration - Cognitive attitude formation: heuristic evaluation/satis cing choice process (based on
likelihood peripheral cues, not looking for superiority but settle for satisfactory/acceptable brand)
- A ective attitude formation: attitudes towards the ad (Aad) transfer (attract attention
and induce favorable ads), dual mediation model (evaluation of ad not only impact on
evaluation of brand, but also indirect e ect on brand attitude), feelings transfer (to
attitudes towards ad, brand and purchase intentions), emotional conditioning (pair
brands with emotional response) and mere exposure (increase liking ad and brand)
- Behavioral attitude formation: reinforcement model (awareness leads to trial and that
leads to reinforcement, ads reinforce habits), routinized response behavior model
(product experiences lead to routinized behavior, based on habits)
How communication - Persuasion: not just one-sided narration, but guided exploration
works in digital age - Involvement: mostly emotional, consumers create content about brand and take over
control of brand building and brand communication
- Salience: creative and original marketing ampli ed by people sharing brand messages
- Sales promotion: messages intended to do promotions, sales (buying behavior)
Interpersonal - Homophily = extent to which individuals are alike (increases persuasion and in uence)
communication in - Tie strength = strength of relationships in social networks (based on interaction)
digital age - Source credibility = degree to which source is considered as expert/unbiased/credible
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, CHAPTER MARKETING COMMUNICATIONS PLANNING
Integrated Various formats exist to visualize the steps in a communication plan, we use the format of
communication plan* situation analysis, strategy, tactics and control (see picture)
Situation analysis Comprehensive assessment drawn upon external, internal and SWOT analysis. Elements:
- Products and brands to be communicated (unique strengths and weaknesses)
- Markets (market size evolution, market shares, segments, consumer characteristics)
- Competitors (who are they and what are their strengths, weaknesses and strategies)
- Macro-environment (PEST: political, economical, sociological, technological situation)
- Communications audit (internal and external), competitor communications strategy
research, communications content research and management judgement tests
Segmenting- - Segmenting (lead to homogeneous subgroups that react similar to stimuli)
targeting-positioning - Targeting (based on segment attractiveness target groups are selected)
(STP) process - Positioning (way a product is perceived by target group relative to competitors)
Market segmentation - Geographic segmentation (continents, climate, nations, regions: cultural di erences)
variables - Demographic segmentation (sex, age, family size, religion, education, income)
- Household life-cycle segmentation (marriage, birth, emancipation children)
- Psychographic segmentation (lifestyle (sport), personality (risk averse), based on AIO)
- Behavioral segmentation (product preferences, involvement, occasion when using it)
- Customer loyalty segmentation (loyal to brand, set of brands or brand-switchers)
- User status segmentation (non-user, potential user, rst-time user, regular or ex-user)
- Usage rate segmentation (heavy and light users)
- Bene t segmentation (it links psychographic, demographic and behavioral variables)
- Buyer readiness segmentation (customers unaware, aware of or interested in brand)
E ective Requirements of meaningful segments (ADMARS): accessible, di erentiated, measurable
segmentation (to gather information), actionable/attainable, relevant and substantial (large enough)
Targeting strategies - Concentration on one segment (can build expertise and learning, but vulnerable)
- Selective specialization (number of segments that are attractive and look pro table)
- Product specialization (focus on one product in di erent segments)
- Market specialization (focus on one segment and sells di erent products)
- Full market coverage (target all customer groups with all products they need)
Select target group Select the most attractive target groups by looking at four elements:
- Size and growth of segment (small rms better target less attractive niche segments)
- Structural attractiveness (analyze with Porter’s 5 forces model)
- Objectives* (reach, process and e ective) and budgets of company
- Stability of market segments
SMART goals Strategic, measurable, actionable, realistic and timely characteristics
DAGMAR model* Traditional model of e ectiveness objectives and results measurement (de ning
advertising goals for measured advertising results), it is a hierarchy-of-e ects model
Category needs It should t within category needs, so people are motivated to buy (must for innovations)
Brand awareness Association of brand characteristics with category need (before other objectives). Types:
- Brand recall (unaided awareness) = recall brands spontaneously
- Brand recognition (aided awareness) = recognize brand by its package, color, logo, etc.
Brand knowledge Target consumers are aware of most essential brand characteristics, features and
bene ts (comprehension), they know strengths of the brand compared to competitors
Brand attitude Perceived value of brand to a consumer (base choice on evaluation of di erent brands)
Purchase intentions In high-involvement situations with perceived buying risk the intention to buy is necessary
Purchase facilitation Assuring buyers that there are no barriers hindering brand purchase (minimize problems)
Purchase Sales is main objective (some direct marketing tools may be evaluated by sales)
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Hierarchy-of-e ects Consumers go through three stages in responding to marketing communications:
model 1. Cognitive stage (think) = mental processes lead to awareness and knowledge
2. A ective stage (feel) = emotional or evaluative responses and attitudes formed
3. Conative or behavioral stage (do) = undertaking actions with respect to brand
Low-involvement Consumers, after frequent exposures to marketing messages, might buy a product, and
hierarchy-of-e ects decide afterwards how they feel about it (cognitive —> conative —> a ective)
Experiential Consumers’ a ective responses towards a product lead them to buy it and, if necessary,
hierarchy-of-e ects they re ect on it later (a ective —> conative —> cognitive)
Foote-Cone-Belding Segmentation and positioning tool with two dimensions (see picture):
(FCB) grid* - Involvement (importance people attach to product, has to think it over and level of risk)
- Think-feel dimension (continuum, decision made on cognitive or a ective basis)
Rossiter-Percy grid Modi cation of FCB grid based on dimensions involvement and ful lling buying motives:
- Transformational buying motives (positive motivations, products that give pleasure)
- Informational buying motives (reducing negative motivations, avoiding problem)
Top-of-mind Very important in hierarchy-of-e ects model, it indicates which brand is most salient
awareness within a product category
Attitude Person’s overall evaluation of an object/person/organization/ad/etc. (the more favorable
the brand attitudes, the more likely a purchase of the brand). Two dimensions:
- Way attitudes are formed (cognitive, a ective or behavioral)
- Level of elaboration of a message (central vs peripheral and MOA)
Elaboration - Central-route processing = if MOA are all high, elaboration likelihood is high and
Likelihood Model consumers engage in central-route processing (willing to elaborate and evaluate)
(ELM) - Peripheral-route processing = if one or more of MOA are low, consumers will process
information peripherally, evaluation is based on simple peripheral cues
High elaboration - Cognitive attitude formation: expectancy-value model (Fishbein), theory of reasoned
likelihood action (based on attitudes, subjective norms and social sensitivity), theory of planned
behavior (ability and opportunity factors of MOA) and self-generated persuasion
(consumers are persuaded by own thoughts)
- A ective attitude formation: a ect-as-information (feelings as source of info, more
likely with hedonic rather than functional purchase motivations)
- Behavioral attitude formation: post-experience models (central-route, current purchase
in uenced by previous purchase behavior, ads after brand usage, higher brand recall)
and perception-experience-memory model (framing perceptions)
Low elaboration - Cognitive attitude formation: heuristic evaluation/satis cing choice process (based on
likelihood peripheral cues, not looking for superiority but settle for satisfactory/acceptable brand)
- A ective attitude formation: attitudes towards the ad (Aad) transfer (attract attention
and induce favorable ads), dual mediation model (evaluation of ad not only impact on
evaluation of brand, but also indirect e ect on brand attitude), feelings transfer (to
attitudes towards ad, brand and purchase intentions), emotional conditioning (pair
brands with emotional response) and mere exposure (increase liking ad and brand)
- Behavioral attitude formation: reinforcement model (awareness leads to trial and that
leads to reinforcement, ads reinforce habits), routinized response behavior model
(product experiences lead to routinized behavior, based on habits)
How communication - Persuasion: not just one-sided narration, but guided exploration
works in digital age - Involvement: mostly emotional, consumers create content about brand and take over
control of brand building and brand communication
- Salience: creative and original marketing ampli ed by people sharing brand messages
- Sales promotion: messages intended to do promotions, sales (buying behavior)
Interpersonal - Homophily = extent to which individuals are alike (increases persuasion and in uence)
communication in - Tie strength = strength of relationships in social networks (based on interaction)
digital age - Source credibility = degree to which source is considered as expert/unbiased/credible
fffl fi fl ffffff3 ff ff ff ffff fi fi fffi ff fl
, CHAPTER MARKETING COMMUNICATIONS PLANNING
Integrated Various formats exist to visualize the steps in a communication plan, we use the format of
communication plan* situation analysis, strategy, tactics and control (see picture)
Situation analysis Comprehensive assessment drawn upon external, internal and SWOT analysis. Elements:
- Products and brands to be communicated (unique strengths and weaknesses)
- Markets (market size evolution, market shares, segments, consumer characteristics)
- Competitors (who are they and what are their strengths, weaknesses and strategies)
- Macro-environment (PEST: political, economical, sociological, technological situation)
- Communications audit (internal and external), competitor communications strategy
research, communications content research and management judgement tests
Segmenting- - Segmenting (lead to homogeneous subgroups that react similar to stimuli)
targeting-positioning - Targeting (based on segment attractiveness target groups are selected)
(STP) process - Positioning (way a product is perceived by target group relative to competitors)
Market segmentation - Geographic segmentation (continents, climate, nations, regions: cultural di erences)
variables - Demographic segmentation (sex, age, family size, religion, education, income)
- Household life-cycle segmentation (marriage, birth, emancipation children)
- Psychographic segmentation (lifestyle (sport), personality (risk averse), based on AIO)
- Behavioral segmentation (product preferences, involvement, occasion when using it)
- Customer loyalty segmentation (loyal to brand, set of brands or brand-switchers)
- User status segmentation (non-user, potential user, rst-time user, regular or ex-user)
- Usage rate segmentation (heavy and light users)
- Bene t segmentation (it links psychographic, demographic and behavioral variables)
- Buyer readiness segmentation (customers unaware, aware of or interested in brand)
E ective Requirements of meaningful segments (ADMARS): accessible, di erentiated, measurable
segmentation (to gather information), actionable/attainable, relevant and substantial (large enough)
Targeting strategies - Concentration on one segment (can build expertise and learning, but vulnerable)
- Selective specialization (number of segments that are attractive and look pro table)
- Product specialization (focus on one product in di erent segments)
- Market specialization (focus on one segment and sells di erent products)
- Full market coverage (target all customer groups with all products they need)
Select target group Select the most attractive target groups by looking at four elements:
- Size and growth of segment (small rms better target less attractive niche segments)
- Structural attractiveness (analyze with Porter’s 5 forces model)
- Objectives* (reach, process and e ective) and budgets of company
- Stability of market segments
SMART goals Strategic, measurable, actionable, realistic and timely characteristics
DAGMAR model* Traditional model of e ectiveness objectives and results measurement (de ning
advertising goals for measured advertising results), it is a hierarchy-of-e ects model
Category needs It should t within category needs, so people are motivated to buy (must for innovations)
Brand awareness Association of brand characteristics with category need (before other objectives). Types:
- Brand recall (unaided awareness) = recall brands spontaneously
- Brand recognition (aided awareness) = recognize brand by its package, color, logo, etc.
Brand knowledge Target consumers are aware of most essential brand characteristics, features and
bene ts (comprehension), they know strengths of the brand compared to competitors
Brand attitude Perceived value of brand to a consumer (base choice on evaluation of di erent brands)
Purchase intentions In high-involvement situations with perceived buying risk the intention to buy is necessary
Purchase facilitation Assuring buyers that there are no barriers hindering brand purchase (minimize problems)
Purchase Sales is main objective (some direct marketing tools may be evaluated by sales)
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