PART 3: CAMPAIGN ANALYSIS AND PROFILE COMPARISON Paper (approximately 12 to 14 pages double spaced, not including Title Page, Appendix, and Bibliography) and presentation (15 to 20 minute). Groups may submit the document in either hard copy or electronic format via email. Paper is due on the day that the group is scheduled to present. Presentation days will be chosen randomly. The presentation and paper will be graded using custom grading rubrics. The presentation assessment will focus on content, materials, and skill. The paper assessment will focus on content, organization, and readability. In addition to scoring the rubric, I will provide some specific comments from myself on the presentation and paper, along with some additional comments from your classmates on the presentation. The paper and presentation should contain the following: Section 1: Group Consumer Profile • Begin your paper and presentation by restating your group consumer profile from Part 2, Section 4. • It is ok to update your profile from Part 2 for a more direct comparison with your product choices in Part 3. Section 2: Product Choice and Advertising Campaign Description • As a group, select 3 branded products or services that you find particularly appealing and representative of your group as consumers. • The branded products/services that you choose do not need to be a subset of the ones from Part 2. • Describe the products/services and their brands. Explain why they were chosen and why they are particularly appealing and representative of your group as consumers. Think about it in terms of your group’s consumer profile (Section 1) as well as how each product/service represents the self-concepts and your personalities (e.g., CH 12). • Do a thorough investigation of the current advertising and promotion campaign (e.g., TV ads, Print ads, sales promotions, direct marketing, Internet sites, event marketing, etc.) for each specific product/service. • Summarize the campaigns and describe the primary message or theme of the each campaign and how it is communicated. • Compare the campaign to 1 or 2 main competitors in terms of primary message, positioning, brand image, and brand personality to show how your product differentiates itself in the marketplace. Explain why you chose these as main competitors. • Provide examples (video, print, etc.). Web links may be included in the text; other visuals should be included in the appendix. Section 3: Campaign Analysis • Consumer Behavior Concepts o For each campaign, identify 3 different consumer behavior concepts that we covered in class that the marketers are using for the products or services. 6 o Describe the concept and provide examples from the current campaigns to demonstrate. o Discuss why you think these concepts are effective or not for the product/service campaign. • Target Market Profiles o For each campaign, identify the specific target market segment to which the current campaigns are designed to appeal based on your campaign analysis and develop a one paragraph target market profile for each specific product/service. o Consider all relevant segmentation techniques and be as detailed as possible. o Include media consumed in the marketplace by the target market. Where do they come into contact with the marketing communications? o Again, try to think of each of these profiles as a description that a marketing executive would want to circulate to his marketing team to describe the market that they are targeting. They should be concise, direct, and descriptive. Section 4: Group Consumer Profile and Target Market Profile Comparison • For each product, compare and contrast your group consumer profile (Section 1) against the target market profiles that you developed for each campaign in Section 3. • How are the profiles similar and how are they different? Do some group members fit better with the target market profile than others? Does this correlate with who actually owns or uses the product? • How effective is the campaign to the members of your group? • Is it more or less effective than the campaign of the primary competition? Why? • How could the campaign be changed or improved to more directly target the members of your group? Give some thoughtful suggestions. Suggestion for organization of the paper and presentation: Both the written portion and the presentation portion should cover the same material. Section 1: Group Consumer Profile Product 1 Section 2: Product Choice and Advertising Campaign Description Section 3: Campaign Analysis Section 4: Group Consumer Profile and Target Market Profile Comparison Product 2 Section 2: Product Choice and Advertising Campaign Description Section 3: Campaign Analysis Section 4: Group Consumer Profile and Target Market Profile Comparison Product 3 Section 2: Product Choice and Advertising Campaign Description Section 3: Campaign Analysis Section 4: Group Consumer Profile and Target Market Profile Comparison 7 Group Project Presentation Guidelines • You will have 15 to 20 minutes maximum to present. • Each group member is expected to present some of the material. • Please practice to make sure you can finish in the time provided. You will not be allowed to go over. • Please email me an electronic version of your PowerPoint slides prior to your presentation. • Attendance is mandatory for all presentations. • Students will submit a grade and comments for their classmates. Chapter 11 Expected Utility Theory  Economic model explaining how people should think about risky decisions in terms of gambles.  Gambles have two components: 1. Probability, p 2. Value, v  The expected value (EV) of a gamble is (EV) = p x v  Dominance Principle ▪ Alternative gambles can be ranked from best to worst in terms of expected value. ▪ A>B>C  Transitivity ▪ Preferences should be transitive ▪ If you prefer A to B and B to C, then you must prefer A to C.  Invariance ▪ Preference should remain invariant or stable, no matter how choices are described (framing).  Cancellation ▪ The discarding of components that are shared by the prospective choices and focusing on the remaining unique features. ▪ Simplifies the choice. Behavioral Decision Theory  Focuses on ▪ Risky decision making ▪ Decision making under uncertainty  To reduce uncertainty, consumers attempt to predict the future. ▪ What will happen if I buy this brand instead of that brand? ▪ Will I be satisfied with my choice one month from now, one year from now, or several years from now?  Unfortunately, the future is almost always uncertain.  Consumers predictions are often biased by: ▪ Framing effects ▪ Selective thinking Framing Effects  Preferences change when alternatives are described in terms of different frames or perspectives.  This is in direct violation of the invariance principle.  To be consistent with your choice, you should choose the same program regardless of the choice set.  But most people are inconsistent because of the framing (lives saved vs. deaths).  They are risk averse (prefer the sure thing) when problems are framed positively (saved lives).  They are risk seeking (prefer to take chances) when problems are framed negatively (deaths).  They ignore the expected value (EV) of the options.  Expected utility theory cannot explain the framing effect because it violates the invariance principle.  Perception is subjective and behavior is often irrational.  Choice depends on:  Positive vs. negative framing  Gains (e.g., saved lives; profits; a price is less than expected)  Loss (e.g., deaths; losses; a price is more than expected)  Reference points (reference dependence)  Values are not absolute (e.g., $100 is not always valued the same)  Values depend on a reference point (e.g., suggested retail price, regular sale price, competitors price)  Reference points are often based on past experience, knowledge of what others pay, knowledge of what others are charging, expectations of future prices. Prospect Theory ▪ Descriptive model that helps explain systematic violations of the principles of rationality. ▪ Demonstrates how people’s choices are not based on dollar values but on psychological values of outcomes. ▪ The psychological value depends on framing and reference points. ▪ Three principles of Prospect Theory: ▪ Reference Dependence ▪ Outcomes are judged against a neutral reference point. ▪ Reference point can either be the status quo or an expectation. ▪ $8 seems like a lot to pay for a beer at a local bar but not at a Celtics game ▪ Diminishing Sensitivity ▪ Outcomes are weaker as distance from reference point increases. ▪ The subjective difference between $900 and $100o seems smaller than the difference between $100 and $200 ▪ Graph is curvilinear (concave for gains and convex for losses) ▪ Loss Aversion ▪ Losses have a larger psychological effect than gains ▪ Losses are seen as threats and gains as opportunities ▪ The pain from losing $100 is greater than the joy of winning $100. ▪ The slop is steeper for losses than gains at an equivalent distance from the reference point. Endowment Effect  The tendency to view a product as more valuable if one owns it.  Economic theories suggest that Willingness-to-accept (WTA) = Willingness-to-pay (WTP)  But, WTA tends to be higher than WTP due to loss aversion. ▪ WTA - Selling an item is viewed as a loss of the item ▪ WTP - Buying an item is viewed as a gain of the item Sunk Cost Effect  Sunk costs are costs that have already been incurred and cannot be recovered.  As the amount of time or money invested in a project increases, people are more reluctant to give up the project.  Due to loss aversion.  Loss aversion and Diminishing Sensitivity implies that you should:  Segregate (separate) gains (e.g., benefits)  Aggregate (combine) losses (e.g., costs) -Many small gains are more pleasant than one large gain. -Many small losses are more painful than one large loss. Psychological accounting (mental accounting)  People code or categorize their assets (e.g., earnings vs. gifts) and costs (e.g., textbooks vs. Celtics Tickets) in different mental accounts. Selective Thinking (selective hypothesis testing, confirmation bias)  Interpret ambiguous information as supportive of a preferred brand. ▪ Focus selectively on supportive information ▪ Neglect unsupportive information  How a question is framed can influence whether the focus is on positive or negative features Chapter 14  Enculturation ▪ Learning about one’s own culture. ▪ Happens as we live and grow within our own culture.  Acculturation ▪ Learning and adapting to meaning of another culture. ▪ Happens as we are exposed to new cultures. ▪ Immigration, travel, making new friends, inter-cultural marriage, study abroad. Rituals  Instruments that transfer meaning to consumers.  Symbolic actions that occur in a fixed sequence and are repeated over time. ▪ Exchange rituals (gift giving) ▪ Allows one consumer to impart desirable meaning on another ▪ Every culture prescribes certain occasions and ceremonies to give gifts ▪ Vary across cultures and by occasions ▪ Possession rituals ▪ Reinforces relationship between a product and an owner. ▪ How we display and use our material things to express the self. ▪ Grooming rituals ▪ Provide an opportunity to continually extract meaning from perishable goods. ▪ How we groom and the products we use. ▪ E.g., getting ready for work or to go out. ▪ Divestment rituals ▪ Empty products of their meaning before they assume new ownership. ▪ Suggest that cultural meaning can be transferred from products to people. ▪ Cleaning or redecorating previously owned products. ▪ Erasing meaning before selling. ▪ Works in both directions – when we sell something or when we buy something. Language (verbal communication)  Linguistics (study of human language) vary across cultures ▪ Four categories of study: ▪ Syntax – rules of sentence formation and structure ▪ In Spanish, the adjectives follow nouns; in English, adjectives precede nouns. ▪ Semantics – meanings associated with words ▪ Crash can mean auto accident, a drop in the Stock Market, to attend a party without being invited, ocean waves hitting the shore or the sound of a cymbals being struck together. ▪ Phonology – sound patterns in language ▪ Accents or dialect can vary from one region to the next. How do people in Boston say “Park the car in Harvard Yard”? ▪ Morphology – word formation (e.g., prefix, suffix, compound words) ▪ Russian is a highly inflected language, with six different endings for nouns and adjectives. Context cultures ▪ Low context cultures: 1. Words are very explicit and precise. 2. “say what you mean and mean what you say” 3. Meanings are largely independent of the context. ▪ High context cultures 1. Word are more implicit and ambiguous (open to interpretation) 2. Meanings of words change depending on the context (who is speaking, what is the situation) 3. Non-verbal communications are very important Universal cultural values (core values) ▪ Values that reflect and shape the collective personalities of cultures. ▪ Five general dimensions of cultural values: 1. Individualism (vs. collectivism) ▪ 2. 3. 4. 5. Which is more important the well-being of the individual or the well-being of a group; focus on individual vs. group goals ▪ Individual – USA, Australia, Italy ▪ Collective – China, Mexico, South Korea Power Distance ▪ The degree to which power is distributed across social classes and how well the structure is accepted. ▪ large – Russia, China, Mexico, France ▪ small – Germany, Austria, Great Britain, USA Masculinity (vs. femininity) ▪ Societies valuing money, success, and power vs. valuing harmony, tranquility, and quality of life. ▪ Masculine – Japan, Italy, USA ▪ Feminine – Sweden, Norway, South Korea Uncertainty Avoidance ▪ Lack of tolerance for ambiguity; need for formal rules and policies. ▪ Risk avoiders (high) vs. Risk takers (low) ▪ Low – India, Panama ▪ High – Greece, Portugal Long-term Orientation ▪ Prioritize future rewards or short-term benefits. ▪ Long – Japan, Hong Kong, Taiwan ▪ Short – USA, Spain, Portugal Norms  Culture’s rules of appropriate behavior. ▪ Enacted Norms ▪ Explicitly and formally communicated acceptable behavior within a culture - laws and bills, documents (e.g., syllabi, codes of conduct), signs (e.g., traffic, exit, restrooms), etc. ▪ Crescive Norms ▪ Not explicitly or formally communicated ▪ Learned and understood by being a part of a culture (e.g., through enculturation). ▪ Customs – norms handed down from one generation to the next (e.g., drinking coffee with desert, brushing teeth before bed). ▪ Morés – customs with strong moral implications – what is right or wrong (e.g., taboos or forbidden cultural activities involving eating, sex, gender roles, and vulgarity). ▪ Conventions – norms regarding what is correct in everyday life; e.g., silverware use Return Potential Model  Norms provide feedback on the amount (how much or how little) of behavior that is desired within a culture.  The return potential model expresses this based on two dimensions, the evaluative dimension and the behavioral dimension. ▪ Behavioral dimension ▪ The amount of behavior regulated by the norm. ▪ The amount of behavior associated with each norm can vary from low to high. ▪ Evaluative dimension ▪ The cultural response to the norm. ▪ Different levels of behavior are associated with different levels of approval within a culture. Chapter 13 1. The automaticity principle ▪ People spend a large portion of their day in a mindless state (e.g., routine, habit). ▪ Consumers often behave mindlessly, without evaluating the consequences of a request. ▪ As a result people often comply with a request without giving it much thought. ▪ Automaticity is often referred to as the cornerstone of all social influence techniques. Example: “The Because Heuristic” ▪ People are more likely to comply with a small request if you give them a reason to comply, even if the reason is not very compelling. 2. The Commitment and Consistency Principle  People try to maintain consistency in their belief systems.  Consumers have a tendency to choose a course of action that is consistent with their past commitments, decisions, and behaviors. The foot-in-the-door technique Agreeing to a small request, increases the likelihood of agreeing to a large request.  Even if the second request is not immediately after the first request.  But, the second request should be similar to the first request.  Purchases, donations, volunteering, etc.  Commitment and consistency People choose a course of action that is consistent with their past commitments, decisions, and behaviors.  Self-perception theory People form perceptions of the self based on how they see themselves behave. ▪ Complying with the small request leads people to label themselves as helpful, good citizens, or reasonable people. ▪ Once people see themselves this way, they want to maintain this self perception and continue to comply. The low-ball technique Once committed, likely to maintain commitment, even if the initial terms of the deal are altered.  Common with hidden fees, taxes, and extra charges.  Very common with airlines, car dealers, car rental agencies, hotels, retailers, etc.  Bait-and-switch is a special case of the low-ball technique. ▪ Advertise a low priced item to get the consumer in the door. Inform them that the product is not available. Encourage to buy another more expensive product. 3. The Reciprocity Principle  If you feel like someone has done you a favor, you often feel obligated to return the favor. ▪ Free gifts (coffee mugs, pens, t-shirts, hats, etc.) ▪ Free samples (food, wine and beer tastings, etc.) ▪ No obligation deals (“if you are not completely satisfied…”) 1. The door-in-the-face technique   2. The multiple-deescalating-requests technique  3. Following-up a large, unreasonable request with a smaller, more sensible request. “Can you donate a $1000? How about $50?” “Wouldn’t this 60’’ Plasma TV look great in your living room? How about the 4o’’?” The smaller request is viewed as a concession, engendering reciprocity. Start with a large request and keep making smaller requests until one is accepted. “Can I put you down for a $1000 donation? How about $500? $100? $50? $20? $10?” The that’s-not-all technique  Increasing the attractiveness of the deal even before the consumer has time to reject or comply. 4. The even-a-penny technique  Leading with a very small request increases compliance. “Could you give a contribution? Even a penny would help?” “Just a moment of your time?”  Very effective for eliciting donations and volunteering.  Increase compliance without influencing the size of the average contribution. 4. The Scarcity Principle  Consumers often want what they can’t have or that might not be available in the future. ▪ “while supplies last” ▪ “limited addition” ▪ “one-time-offer” ▪ “only two left at this price”  Reducing availability often increases desirability. 5. The Social Validation Principle (BANDWAGON EFFECT)  Demonstrating that something is a popular choice increases compliance.  “proof is in the numbers”  People observe and imitate the behavior of others.  Descriptive Norms (what is done)  Injunctive Norms (what should be done) 6. The Liking Principle  Consumers are more likely to comply with people that they like. Familiarity  The more familiar we are with an object, the more we like it (mere exposure effect). Physical attractiveness  Attractive people are more persuasive.  Attractive people are perceived to be intelligent, kind, and honest. (a halo effect)  Attractive defendants are less likely to return to jail.  Attractive people are more likely to receive help.  Attractive people enjoy significant social advantages. Similarity  People tend to like similar others and dislike dissimilar others.  People are more likely to help others that dress like themselves.  Salespeople are trained to find out hobbies, activities, etc. to feign similar interests.  Salespeople are trained to mimic or mirror their clients body posture, mood, and verbal style. Ingratiation  Flattery and other techniques to aid liking.  Overdoing it can back fire (persuasion knowledge) 7. The Authority Principle  Consumers tend to comply with those in authority. ▪ Symbols of authority – uniforms, titles, credentials. ▪ Police officers, physicians, priests, doctors, teachers, flight attendants, etc. ▪ Often viewed as trustworthy, credible, or experts  Disobeying authority figures can result in negative consequences.  This is a very strong effect. The Milgram Experiment  The most famous experiment on authority and compliance.  Motivated by what happened in the Holocaust.  A series of studies by Yale psychologist Stanley Milgram measuring peoples willingness to obey an authority figure in situations that went against their own beliefs Chapter 16 Word-of-mouth (WOM)  The act of one consumer talking to another about a brand. ▪ Can be positive or negative. ▪ One of the most powerful forms of marketing communication. ▪ Consumers tend to believe other consumers more than they believe advertisers. ▪ Perceived to be : credible, trustworthy, honest, based on experience, not designed to persuade. ▪ Technology has increased its impact significantly. 1. Organic word-of-mouth  Word of mouth that occurs naturally.  Consumers are self motivated to share experiences and opinions with others. 2. Buzz Marketing ▪ ▪ ▪ Marketing efforts designed to generate excitement that will be spread from consumer to consumer. Guerrilla marketing – any type of unconventional marketing. Viral marketing • Spreading of information from one consumer to another in an exponential fashion. • Using Internet channels to quickly spread information. ▪ Stealth marketing • Spreading messages in a covert manner; consumers are unaware that marketers are involved. • Imitation Evangelists o Actors hired to play a role in a stealth buzz campaigns. o Vespa’s flirty actors o Sony Ericsson’s fake tourists • Product pushers o Opinion leaders recruited by a company to get products prominently seen and talked about. o Attractive, approachable, and influential consumers. Consumer generated marketing  The creation of advertising or other marketing content by consumers. ▪ Relatively inexpensive. ▪ Lots of brand involvement. ▪ New creative ideas from the eyes of the consumer. ▪ Increased consumer involvement in the ad. ▪ Can serve as marketing research. ▪ Lots of viewings of the ads on the Internet. ▪ Both the good and the bad can make it on the Internet. ▪ Passionate brand advocates can polarize the market. Celebrity Endorser  An individual who enjoys public recognition and uses it on behalf of a consumer product. ▪ Approximately 20% of all TV ads feature celebrities. ▪ Increase message recall and brand recognition. ▪ Increase levels of trustworthiness, likeability, and persuasion. ▪ Reduce perceptions of risk. ▪ The celebrity must fit the product endorsed and be perceived as a typical brand user. ▪ Correspondence inference – assumption that behavior is a reflection of beliefs and not guided by the situation. ▪ There is always the risk of a scandal. Chapter 3  Diffusion of Innovations—the rate a new product spreads or is adopted across the marketplace. ▪ The rate is influenced by… ▪ Relative advantage of the new product ▪ Compatibility with consumers’ lifestyles ▪ Complexity ▪ Observability ▪ Perceived risk ▪ Trialability Brand equity  The value of a brand above and beyond it’s measurable attributes.  The positive differential effect that knowing the brand name has on customer response to the product or service  Brand awareness: familiar with brand and what it stands for; have an opinion or attitude about the brand.  Perceived value: benefit to cost relationship compared to competition.  Brand loyalty: repeat purchases  Brand associations: mental links that consumers make between a brand and its key product attributes. Brand Strength (differentiation x relevance) Differentiation • Is the brand perceived as different from other brands? Relevance • Are the differentiated benefits relevant to consumers? Brand Stature (esteem x knowledge) Esteem • Is the brand highly regarded (respected) and liked? Knowledge • Are consumers knowledgeable about the brand and its benefits? • Does it have a clear consistent image? Brand loyal - Consumers have a strong preference for a brand and so are more likely to continue to buy products within a brand. Attribute loyal - Consumers have a strong preference for a particular attribute and are more likely to switch brands in search of that attribute. Acquisition strategies ▪ Strategies that attract new customers. ▪ Increase demand by attracting new users to a product category (potential category users). ▪ Educate consumers about the benefits of a product category (e.g., Green tea and antioxidants, Cheerios and heart health) ▪ Educate about a new product category (e.g., Google Glass) ▪ Advertise for the entire brand category (primary demand) (e.g., “Got Milk?” “Beef, it’s what’s for dinner”) ▪ Steal market share by attracting new brand users (competition brand loyal). ▪ Aggressive advertising, promotions, pricing, or innovation. ▪ Both acquisition strategies use trial pricing . ▪ Large price discount on smaller quantities to encourage trial and brand switching. Retention strategies ▪ Strategies that retain current customers. ▪ Increase demand by increasing consumption among current brand users (brand loyal consumers). ▪ Increase package size, new product uses ▪ Encourage stockpiling with promotions ▪ Steal market share by increasing consumption among multi-brand users (non-brand loyal consumers). ▪ Reduce variety seeking behavior and increase loyalty (e.g., loyalty programs). ▪ Both retention strategies use continuity pricing. ▪ Price discounts on larger quantities to encourage continued use. ▪ Price matching to reduce switching based on price sensitivity.
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