Advertising Principles and Practice Lecture 3 PDF

Advertising: Principles and Practice LECTURE 3 The Communication Process Source Factors Establishing communication objectives Semester 1, 2023-24 PART ONE The Communication Process Chapter Five, Advertising and Promotion: An Integrated Marketing Communications Perspective, by George E. Belch, a...

Advertising: Principles and Practice LECTURE 3 The Communication Process Source Factors Establishing communication objectives Semester 1, 2023-24 PART ONE The Communication Process Chapter Five, Advertising and Promotion: An Integrated Marketing Communications Perspective, by George E. Belch, and Michael A. Belch, McGraw-Hill/Irwin (12th edition) - Supplementary readings: pp.146-157 (A Basic Model of Communication) 2 The Communication Process 3 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Forms of encoding Encoding – the process of putting together thoughts, ideas and information into a symbolic form to communicate a message Verbal • Spoken Word • Written Word • Song Lyrics Graphic • Pictures • Drawings • Charts Musical Animation • Arrangement • Instrumentation • Voices 4 Successful Communication Selectan an appropriate appropriate source Select source Developa aproperly properly encoded encoded message Develop message Select the appropriate channel for for the the target target appropriate channel audience audience Receive feedback © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin PART TWO Source Factors Chapter Six, Advertising and Promotion: An Integrated Marketing Communications Perspective, by George E. Belch, and Michael A. Belch, McGraw-Hill/Irwin (12th edition) - Required readings: pp.178-195 (Source Factors) 6 Source; Source Attributes and Receiver Processing Modes Source : the person involved in communicating a marketing message (in any forms, e.g. ads in traditional or digital media, events, etc.) Source Attribute Receiver Processing Modes Credibility Internalization Attractiveness Identification Source Credibility • Source Credibility – the extent to which the recipient sees the source as having relevant knowledge, skill, or experience AND trusts the source to give unbiased opinion or objective information on the issue. 8 Source Credibility § Two important dimensions to credibility – expertise AND trustworthiness § applying expertise: the target audience find the source as having relevant knowledge, skill, or experience in a particular product or service area § applying trustworthiness: the target audience find the source honest, ethical, and believable 9 Source Credibility § Information from a credible source can influence beliefs, opinions, attitudes, and/or behavior through internalization, which occurs when the receiver adopts the opinion of the credible communicator since he or she believes information from this source is accurate. § Once the receiver internalizes an opinion or attitude, it becomes integrated into his or her belief system and may be maintained even after the source of the message is forgotten. Two Major Types of Source Attractiveness – (1) Similarity (1) Similarity § Similarity is a supposed resemblance between the source and the receiver of the message. § Similarity may create a situation where the audience feels empathy for the person shown in the advertisement – consumers may think “I can see myself in that situation.” § Usually use regular-looking, everyday people with whom the average person can easily identify. 11 Two Major Types of Source Attractiveness – (2) Likability (2) Likability § Likability is an affection for the source resulting from physical appearance, behavior, or other personal characteristics. § Likable sources can be celebrities (e.g. TV or movie stars, athletes, singers, musicians, and other public figures), physically attractive models, or any other persons who are admired by the target audience because of their physical appearance, talent, and/or personality. 12 Source Attractiveness § Source attractiveness leads to persuasion through a process of identification, whereby the receiver is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, preferences, or behavior. § Unlike internalization, identification does not usually integrate information from an attractive source into the receiver’s belief system. Applying Likability: Using Celebrities § Reasons for using celebrities: Ø they have “stopping power” and draw attention to advertising messages. Ø the respect, popularity, and/or admiration the celebrity enjoys may influence consumers’ feelings and their purchase behavior toward the brand the celebrity is endorsing. Ø meaning transfer: celebrity endorsers may bring their meanings and image into the ad and transfer them to the products they are endorsing 14 Factors to Consider When Choosing a Celebrity Endorser • Matching product image, characteristics of the target market and image of the celebrity— Ø consider whether the celebrity is well received by and resonates with the advertiser’s target audience Ø consider whether the celebrity is properly matched with the image of the brand Celebrity MATCH Product Image Target Audience 15 Factors to Consider When Choosing a Celebrity Endorser § Dangers of overshadowing the product: The celebrity may overshadow the product being endorsed – consumers may focus their attention on the celebrity and fail to notice or recall the brand or advertising message. § Risks of being overexposed: The celebrity may be overexposed (endorses too many brands), reducing his or her credibility. Ø Consumers are often skeptical of endorsements because they know the celebrities are paid. This problem is particularly pronounced when a celebrity endorses too many brands. 16 Factors to Consider When Choosing a Celebrity Endorser § A celebrity’s behavior may pose a risk to the company – what the celebrities do in their personal lives can damage their image and embarrass the companies whose products they endorse. Ø to avoid problems, companies often research a celebrity’s personal life and background. They consider carefully the character of a celebrity as well as the potential risk associated with using him or her as a spokesperson or endorser for the brand. 17 Exercise and Discussion • Choose a celebrity who is currently appearing in an ad (traditional media or digital media) for a particular company or brand. Discuss the pros and cons of using him/her. Company/Brand: ________________________________ Celebrity:______________________________________ Pros: Cons: Suggest another celebrity endorser for the brand. Discuss your choice. 19 Discussion In recent years, many advertisers use Cantopop stars to endorse their companies and brands. Based on the concepts learnt, discuss this phenomenon and the effectiveness of these celebrity endorsements. Which ads are more effective in building brand image with their endorsements? Which ads may only gain short term attention? To what extent do you think that celebrity endorsements worth the cost? 20 PART THREE Establishing Objectives for the Promotional Program Chapter Seven, Advertising and Promotion: An Integrated Marketing Communications Perspective, by George E. Belch, and Michael A. Belch, McGraw-Hill/Irwin (12th edition) - Required readings: pp.220-222 (The Value of Objectives; Marketing versus Communications Objectives), p.225-227 (Communications Effects Pyramid) 21 The Value of Objectives 1) Communications § Problems can be avoided if all parties involved have a set of written and approved objectives to guide their decisions and actions 2) Planning and Decision Making § As a guide for the development of the integrated marketing communication plan - choices among strategic options should be made on the basis of how well a strategy matches the promotional objectives 3) Measurement and Evaluation of Results § Provide a benchmark against which success or failure of the campaign can be measured 22 Characteristics of Objectives - SMART Attainable Realistic Measurable Objectives Targeted and Timed Specific 23 Marketing Versus Communications Objectives Marketing Marketing Objectives Objectives •Generally stated in the firm’s marketing plan •Statements of what is to be accomplished by the overall marketing program within a given time period •Defined in terms of specific, measurable outcomes such as sales volume, market share, profits Communications (IMC) Objectives Vs. •Derived from the overall marketing plan and marketing objectives •Statements of what various aspects of the IMC program will accomplish •Based on particular communications tasks – the expected response from the audience 24 Communications Effects Pyramid – An Example Advertising & promotion perform communications tasks by accomplishing lower level objectives first, then move consumers to higher level in the pyramid. 5% Regular Use 20% Trial 25% Preference Preference 25% 40% Liking 40% Liking 70% Knowledge 70% Knowledge 90% Awareness 90% Awareness 25 © 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Communications Effects Pyramid • The initial stages, at the base of the pyramid (awareness, knowledge), are easier to accomplish than those toward the top (trial, regular use). • Thus, the percentage of prospective customers will decline as they move up the pyramid. Ø If awareness levels for a brand and knowledge of its features are low, the communications objective should be to increase them. Ø If the awareness levels for the brand and knowledge of its features are high, but liking or preference is low, the objective may be to change the target markets’ image of the brand. • Different communication tasks may be used to achieve different objectives. e.g. some mass media ads may aim at increasing awareness or knowledge, while sales promotion(such as sampling) may aim at inducing trial. 26 Example: Communications Objectives of ABC Shampoo IMC campaign Within 12 months (from 1 January – 31 December, 2024), •Objective 1: Create awareness of ABC Shampoo among 90% of target audience (female aged 25-39 who are active in sports) •Objective 2: 70% of the target audience know the major benefits of ABC Shampoo •Objective 3: Create positive feelings about the brand among 40% and preference among 25% of the target audience •Objective 4: Obtain trial among 20% of the target audience •Objective 5: Develop and maintain regular use of ABC Shampoo among 5% of the target audience. 27 Summary: Key Concepts Learnt • The Communication Process; Forms of Encoding • Source: Two Major Source Attributes: Credibility and Attractiveness • Source Credibility: Expertise and Trustworthiness; Internalization • Source Attractiveness: Similarity and Likability; Identification • Using Celebrities; Factors to Consider when Choosing a Celebrity Endorser • The Value of Objectives (why objectives are needed) • SMART objectives • Marketing vs Communications Objectives • Communications Effects Pyramid • How to write Communications Objectives 28