Making the Best of one-Way Mass Advertising in the Age of Two-Way Customized Marketing

STUDY GUIDE 11

MAKING THE BEST OF ONE-WAY MASS ADVERTISING

IN THE AGE OF TWO-WAY CUSTOMIZED MARKETING

Stage One in the four-stage marketer-consumer continuum: making consumers aware of the product, prefer it, buy it, and keep on buying it (churn buying). favorable opinion is called eliciting a positive stimulus.

Consumers' favorable opinions of products/services are based on the beliefs they entertain about the product/service prior AND at the time of purchase AND on the mood consumers are in especially at the time of purchase and after they have consumed the product or used the service.

STEP ONE calls for advertisers to craft an advertisement which generates a positive belief, feeling or attitude in consumers' minds towards the product or service. This is called opinion formation or stimulus categorization.

Pavlov a stimulus (called the unconditioned stimulus) known to automatically evoke a particular response (called the unconditioned response). food (the unconditioned stimulus) was used because dogs to salivate (the unconditioned response). transferred to a new stimulus ringing a bell (the conditioned stimulus)

The knives (an unconditioned stimulus) evoke a feeling of sharpness (an unconditioned response). Cracker Barrel pairs the knives with its cheese to transfer the meaning and feeling of sharpness to its cheeses.

STEP TWO calls for marketers to determine how much consumers need to "process" or think about the ad in order to derive a positive attitude or feeling about the advertised product or service.

How much processing is needed to derive positive meaning from an ad or stimulus depends on how easily the stimulus can be processed either through our cognitive or thinking powers or our affective powers (emotions and feelings

Bottom line: consumers' favorable opinions of mundane products is processed more through their affective (feelings and emotions) powers than through their cognitive (thinking) faculties.

STEP THREE calls for marketers to decide whether the visual stimulus should be product relevant or product irrelevant. The ad about the Children's Place department store for children's clothing is product irrelevant.

When are product relevant visuals or stimuli necessary and one is it possible to shape consumers' opinions with product irrelevant visuals? Current research tells us that product relevant visuals or stimuli may be required when the brand advertised lacks clear-cut and widespread superiority to other brands in the same product category. Given this fact, it makes sense that the Dodge, Cracker Barrel cheese, Tilex and Prudential ads all are product relevant.

1] Product irrelevant visuals/stimuli free companies from the obligations of explaining how well the brand compares with others in the market. Topol toothpaste decked out in all white clothing showing their pearly whites. The ad was product irrelevant, but it projected an image of Topol without having to compare Topol to its superior competitor.

2] product irrelevant stimuli lend themselves to simple visuals and stimuli, thus eliminating the need for consumers to engage in extensive cognitive processing.

Positive opinion formation also can be achieved through the combined activities of the product manufacturers or service providers; consumers themselves; and influencers. Positive opinion formation also can be generated if the product or service has become a pop culture artifact (Review Study Guide 1 on Brands and Branding, especially, pp. 4-6, 12).

o Companies. All four elements in the traditional marketing mix (product, price, promotion, and place) are used by companies to influence consumer purchase behavior at any stage in the four-stage continuum.

Customers. Word-of-mouth

Influencers. News media reviews and opinions expressed on talk shows

Popular Culture.

NEGATIVE OPINION FORMATION.

NAME OF THE PRODUCT

o Toro's snow blowers o Freeto-Lays' Cheetos Paw,

o comScore Networks' Marketscore, "researchware" instead of "spyware,"

TYPE OF PACKAGING

o Planters Fresh Roasted Peanuts looks like package for coffee beans

The right type of packaging, on the other hand, may contribute to positive opinion formation or stimulus categorization.

COLORS

Research indicate that consumers make subconscious judgments within the first ninety seconds of encountering a product and that color is the most important determinant of these judgments.

Examples:

White: The color for weddings and festive occasions in America and Europe, but the traditional mourning color in China and South America.

Yellow: It denotes grandeur and prestige in China, sanctity in India, and despair in Brazil.

Purple: The color of royalty in England, sorrow in Brazil, and deep religious connotations in Peru, where it is best to avoid this color.

Brown: It evokes bad luck in Brazil and is unpopular in Germany for clothing because of its past association with Hitler's Germany.

TYPE OF ADVERTISING APPEAL

As explained, all advertising --whether one-way mass advertising or two-way customized-- should combine informational, utilitarian, emotional, and value-expressive appeals.

STUDY GUIDE 12 CUSTOMER RELATIONSHIP MANAGEMENT

PURPOSE OF CRM: CRM is premised on the belief that developing a relationship with customers is the best way to get them to become loyal and that loyal customers are more profitable than non-loyal customers.

CRM systems include call centers, web sites, customer service and support teams, and loyalty programs. They also include database-driven CRM software which vendors claim contain valuable customer data which suppliers can use to quickly customize products and services for potential