The FCB Grid or Vaughn Matrix - Advertising and Marketing Theory PDF

How the target react to the context: The FCB Grid or Vaughn Matrix This model takes name after the agency Foote, Cone and Belding. Here, in year 1980, FCB Senior Vice president Mr. Richard Vaughn tried to represent how the brain actually reacts to advertisement and promotional messages. The t...

How the target react to the context: The FCB Grid or Vaughn Matrix This model takes name after the agency Foote, Cone and Belding. Here, in year 1980, FCB Senior Vice president Mr. Richard Vaughn tried to represent how the brain actually reacts to advertisement and promotional messages. The theory assumes a marketer should rely on two main levers Involvement > understood as the level of interest the consumer has in the product: it can be high or low Perception > regards the reason to approach the product/service: it can be more rational or emotional The matrix matches these two dimensions: the subsequent crossing of their intensities determines four quadrants, each corresponding to a different process type that represents how marketing inputs are going to be elaborated by the potential target. This process is going to represent both which levers the communication is triggering and which behaviour is going to be solicited in the receiver/consumer. Namely we will find (trigger/behaviour) 1. First Quadrant = Informative/Thinker 2. Second Quadrant = Affective/Feeler 3. Third Quadrant = Habit Formation/Doer 4. Fourth Quadrant = Satisfaction/Reactor Obviously enough the grid may frame product in different quadrants… also according to the context! For example: think about - How a product as a bicycle can correspond to different quadrant, according to the target provenience: someone in countryside will a have a totally different approach from someone looking for a bike in a city context - How local culture can determine the way wine (or beer or coffee or rice…) can be more easily processed in a quadrant or another ADV Industry and Models 76  How the target react to the context: The FCB Grid or Vaughn Matrix The process these types will apply is constituted by the same set of actions but in different sequence for each quadrant - LEARN > when the consumer proceeds through a rational approach to evaluate the brand/product/service - FEEL > when the approach towards the brand/product/service is driven by a feeling or an emotion - DO > when a practical accomplishment is motivating the approach to the brand/product/service According to this type representation, when stimulated by advertising, people will organise these steps in a different order for different sort of goods. Context is also affecting this flow for, obviously, the perception a person has regarding a specific good is mediated by his background, location and social milieu. The receiver/consumer will be exposed to promotional communication and will apply one of the following procedures, according to the existing background and the product/brand who is speaking to him. We should not forget, that what is considered a basic need in India, might not be the same in Germany, or what is a habit for someone might be extraordinary for someone else… thus the matrix needs to be calibrated according to the context, but what changes are the goods corresponding to the Quadrants, not the process or the deriving communication hints. ADV Industry and Models 77  How the target react to the context: The FCB Grid or Vaughn Matrix In the First Quadrant we will find a Thinker type. Product focus is likely to be something pretty expensive but still important to everyday’s life (e.g. a city car for a Milanese singleton, or a washing machine for a big family). This consumer will first rationally evaluate the proposed solution, then eventually consider an emotive value (e.g. a manufacturer that is considered more innovative o more suitable in terms of green-footprint). How much the good is accomplishing a practical need is a granted step, which will hardly interfere with the final choice and can almost be silenced in communication. In this occurrence we see a “learn-feel-do” procedure and the creative can be explanatory, objective and focusing on tangible features. In the Second Quadrant a “feel-learn-do” progression will be deployed: this is the case of a Feeler, looking for a non fundamental product, probably expensive (e.g. a luxury car or fashion brand). He is mainly approaching this brand/product because it makes his heart beat or because it represents a specific value in his social or cultural terms, rational motivations are marginal though not inexistent (for example one might consider how much taxes or insurance could cost on a luxury car…). The accomplishment the product has to objectively fulfill is negligible. Advertising can be highly evocative and suggestive, playing on positioning and uniqueness. The Doer in the Third Quadrant is likely to look for a basic good: something will be chosen firstly because it satisfies a practical need. Rational levers behind the approach are strong though elementary and a micro-level of emotion is related to the final choice. It’s a “do- learn-feel” process that could be, for example, the one applied to the selection of a gas station or a hand-soap. Is hard to emphasize a simple practical accomplishment and usually advertisers choose to highlight some unique feature or marketing asset such as convenience, reliability… A “do-feel-learn” process will be represented in the Fourth Quadrant and corresponds to a Reactor: approach is mainly driven by an impulsive need, which might be objective but is not necessarily fundamental. Emotion, rather than a ratio, is motivating the final choice because, as a matter fact, there are few real reasons to determine what is better: eventually is a mere fact of closeness to the consumer’s expectation or taste. It could be the typical case when choosing soda water o a snack. Effective creative communication is likely to leverage on personal satisfaction, using recognized imageries and values and spreading product awareness. ADV Industry and Models 78 How the target react to the context: The FCB Grid or Vaughn Matrix 1 2 INFORMATIVE AFFECTIVE > Thinker > Feeler Product examples (Class exercise) 3 4 HABIT FORMATION SELF-SATISFACTION > Doer > Reactor ADV Industry and Models 79 Communication 4Cs ADV Industry and Models 80  Communication 4Cs Model: proper execution through proper creative The 4Cs (Clarity, Credibility, Consistency, Competitiveness) Model is most often used in communication than marketing. This ideally identifies the set of rules a message should comply to be sure to convey the desired information or statement. Thus is a basic hint to create proper advertisement. It was created by David Jobber and John Fahy in their book ‘Foundations of Marketing’ (2009). Once a business has segmented its marketing and identified the target audience, the next stage is to position the business. To successfully achieve this, the 4Cs is a useful tool to create a positioning statement or to build an online value proposition or to put together a multiple code creative solution and try to organise its constitutional elements at the best. We speak about the 4Cs Communication Model here, together with the Speech Acts Theory, because we can side these two paradigm: one’s Speech Act is likely to be as effective as it is satisfying these 4 simple instructions: 1. avoid questions to be arisen by the receiver, be Clear; 2. be sure what you transmit is sincere and believable, be Credible; 3. limit confusion or uneven levels of interpretation, be Consistent; 4. emerge from those that could be similar to you, be Competitive. ADV Industry and Models 81  The importance of objectives (goals) to execute proper ADV If we get back to our first statement, that advertising extensively means “trying to persuade people to buy”, it’s easy to understand why developing a nice looking creative is not the whole of it. ADV strategies and creative executions need to be effective, namely to ease the Action at the end of the AIDA funnel but, to be truly operative for a company, they also need to be efficient. That means one needs to set goals and determine which KPIs (Key Performance Indicators) are going to be tracked, in order to check how our strategy performs in relation to these goals. To better organise this, marketers usually split their strategy into three main “objective families” and for each they determine specific goals and expected outcomes. According to this the strategy can be activated having clear in mind - Ownerships: who is responsible for which strategic step - Strategic or business relation: where is the strategy crossing the AIDA funnel - Evaluation and tracking: how to collect data and how to interpret them - Message requirements: what is leading creative and delivery choices - Communication assets: what is better to tell or show, where, to whom These three “objectives families” are the following, family 1 and 2 usually are included in the creative brief, while group 3 is most often shared with the media agency only. This does not men that media is less important for creative development, we will later understand why. 1 2 3 ADV / Marketing obj Media objs communication objs ADV Industry and Models 93  Objectives a creative approach definitely has to understand to be performing 1 Marketing / brand obj 2 ADV / communication objs 3 Media objs ADV Industry and Models 94  Objectives a creative approach definitely has to understand to be performing 1 Marketing / brand A marketing objective is typically subordinate (and often pretty similar) to a obj business objective. It should be precise and measurable. Examples for this objectives family are: Introduce a new Promote/Services in the market, acquire new customers, retain existing ones, develop brand loyalty, increase Sales and/or Revenue or profit… ADV Industry and Models 95  Objectives a creative approach definitely has to understand to be performing 1 Marketing / brand A marketing objective is typically subordinate (and often pretty similar) to a obj business objective. It should be precise and measurable. Examples for this objectives family are: Introduce a new Promote/Services in the market, acquire new customers, retain existing ones, develop brand loyalty, increase Sales and/or Revenue or profit… 2 An advertising objective derives from marketing objectives. The fact that it can be set to ADV / reach “intangible” assets such as “awareness” does not mean it cannot be measured: it may communication objs need to rely on a dedicated research, more than a mere report, but it can and should always be investigated. Examples for this objectives family are: create brand awareness or recognition, vehiculate knowledge on the product/his features, promoting a brand/product image, shape prospects attitudes, stimulate want or desire… ADV Industry and Models 96  Objectives a creative approach definitely has to understand to be performing 1 Marketing / brand A marketing objective is typically subordinate (and often pretty similar) to a obj business objective. It should be precise and measurable. Examples for this objectives family are: Introduce a new Promote/Services in the market, acquire new customers, retain existing ones, develop brand loyalty, increase Sales and/or Revenue or profit… 2 An advertising objective derives from marketing objectives. The fact that it can be set to ADV / reach “intangible” assets such as “awareness” does not mean it cannot be measured: it may communication objs need to rely on a dedicated research, more than a mere report, but it can and should always be investigated. Examples for this objectives family are: create brand awareness or recognition, vehiculate knowledge on the product/his features, promoting a brand/product image, shape prospects attitudes, stimulate want or desire… 3 Media objective are a wide variety and shall be defined according to previous objectives Media objs + target + platform + seasonality + competitor media pressure + distribution chain + product price policy… These seems to be the most “hard” goals, but have a variety of identification and tracking systems. Examples for this objectives family are: visibility in terms of reach on the selected target, message frequency, click rate, conversion rate, cost per acquisition, cost per contact, engagement, share of voice, campaign awareness or recognition… ADV Industry and Models 97 Define objectives to define actions through the funnel Brand Awareness / Top Of Mind How well-known / recognized / noticed is the brand  “lift it” Entrance Connection / equity / distinction / brand perception How deeply and along which values do people relate to the brand and how clearly do they understand attributes or promises that make the brand differentiate itself from competitors  “underline it” Credibility / trust / coherency / advocacy How strong is brand reputation? Is it conveyed properly throughout all touchpoints? Is it confirmed by costumers?  “take advantage from it” Purchase motivation / aspiration / engagement / selling How inspiring is the brand: is it preferable VS other brands?  “generate a direct response” (often exploits a CTA) Exit ADV Industry and Models 98 Define objectives to define actions through the funnel Entrance General branding The better we perform at the Advertising entrance  The more will obtain to the exit Exit Direct response ADV ADV Industry and Models 99 Define objectives to define actions through the funnel Year 1… Year 5… Year 10… ADV Industry and Models 100 Define objectives to define actions through the funnel Year 1… Year 5… Year 10… When the brand/product is well positioned, it might even happen that communication can capitalize existing awareness and thus be launched directly from a lower funnel level ADV Industry and Models 101 Netflix from launch to nowadays + Amazon Prime video 2021 ADV Industry and Models 102  (Netflix launch – example ITALY) 1 There is no market and no comparable offer. No Pay Tv is actually offering a «pure series» Marketing objs programming. Few channels to focus a bit more but are not specialised and are usually part of a wider Pay Tv bouquet. We need to CREATE THE MARKET / set a market share We exist (brand awareness, promise availability, customer acquisition, market entrance) 2 ADV / 3 Media objs communica tion objs Promise story telling «netflix is the first to offer - NO TV (the target is digital and The Games Of thrones» / offer positioning TV is expensive)  +++ digital (Youtube / social….) We are the champions on SERIES VS competitors - Customer advocacy / community being champions for CINEMA AND SPORTS - Interstitial time media e.g. OOH Offer & cost to subscirbe An «interstice» is a space or a gap between two things: «Interstitial media» can be defined as all those media channels that an audience uses when it namely has spare time-space to occupy e.g. accessing to a Social App when waiting for a coffee, looking to a billboard when stopping at the traffic lamp, reading a leaflet while standing in a queue, enjoying public transport TV screens… P.s. an Interstitial Banner is a digital format that specifically appears when the user moves from a page to another. In other words: it is delivered in the empty space ADV Industry and Models between two page folds  107  (Netflix after 3 years - increase market share – example ITALY) 1 The launch has settled the basis to make this market dynamic. Audience is more Marketing objs aware, service is a bit more clear in their mind: the brand aims to increase their user base = CLIENT ACQUISITION / increase market share Confirm relevance and possibly have users from other pay TV consider Netflix 2 3 Media objs ADV / communica Lots of content / exclusive productions / TV frequency tion objs personalised subscriptions… - the target is now every body enjoying a video We are the champions on «you can view the content content/production you choose wherever and whenever you wish» - offer needs to be reiterated Offer & cost to subscribe Digital - Offer specific information and CTA ADV Industry and Models 110  (Amazon Prime Video market entry example ITALY) 1 Series and generally Pay TV actually have a specific position in audience consideration but Marketing objs AMAZON is well known for other services. They wish to INCREASE THEIR ACTIVE USERS in order to enter a new market: namely switching from pure ecommerce to editorial company and, possibly, to be a «full service data driven» company People know who I am, i just need to create a linkage 2 Ever though about the fact we are the best in a lot of ADV / things and you can enjoy our service further? communica I hardly need to show my titles to sound interesting… tion objs 3 Media objs TV (the target is every body Come and subscribe somehow connected and interested in entertainment) Digital: to exploit retargetting and predisposition ADV Industry and Models 113 Goals, strategies and professional ownership Recognizing main objectives families helps us to classify who is in charge of the related activities in terms of “job responsibilities”. Job titles may vary a lot in each market and even office but, naming aside, accountabilities are clear enough and can be divided among three main professional verticality: client marketing side / creativity side / media side. ADV Industry and Models 114