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Instructor Solution Manual For Advertising & Promotion 8CE Michael Guolla, George E. Belch, Michael A. Belch Chapter 1-19 Chapter 1: Integrated marketing Communication Chapter Overview This chapter provides an overview of advertising and promotion. The first section summarizes how marketing communication conveys marketing mix decisions. The promotional mix is introduced, and the firms involved in promotion planning and execution are highlighted. This chapter introduces integrated marketing communications (IMC) and discusses its evolution, a renewed perspective, and importance. Most marketers understand the value of strategically integrating the communication functions rather than having them operate autonomously and so this provides a foundation of the book’s IMC perspective. A model of the IMC planning process is examined to illustrate the content of a promotional plan. Finally, the organization of the text that is consistent with the planning process is summarized. Learning Objectives 1. Describe the importance of marketing communication within the marketing mix. 2. Identify the content of the promotional mix - advertising, sales promotion, public relations, direct marketing, digital, and personal selling – and summarize their purpose. 3. Illustrate the concept of integrated marketing communications (IMC) by distinguishing its evolution, renewed perspective, and content. 4. Explain the IMC planning process model and express the steps in developing a marketing communication program. 5. Identify how the IMC planning process is continued throughout all chapters. Chapter and Lecture Outline I.

MARKETING COMMUNICATION

This section reviews the definition of marketing and illustrates how advertising and promotion communicates the remaining elements of the marketing mix to support the AMA definition. A

Marketing— Most students have had a marketing course; however, it is helpful to remind them of definition of marketing. The American Marketing Association defines marketing as: the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. A description of marketing should include a summary of the activities involved in the marketing process and the different types of companies that use marketing extensively, including both profit and nonprofit organizations. It is important to indicate that each element of the marketing mix includes several decisions. This reminder leads the way to identifying the text’s scope. The marketing mix point highlights that marketing communication is responsible for drawing attention to product, price and distribution elements in the message received by the audience.

Communicating Product—an organization exists because it has a product, service, idea or cause to offer. Discussion can focus on the value offered by the product and the fact that goods and services offer attributes and benefits that satisfy needs. Benefits are communicated as functional based on their features or attributes. They are also subjectively claimed in ads based on performance. And they are Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-1

IMC Exercise This exercise is designed to give the student the opportunity to think more about the concept of integrated marketing communications and how it might be used by a company. Choose a specific company and discuss how this firm can use the concept of integrated marketing communications in developing a promotional program for one of its products or services. Students should analyze all of the company’s promotional mix elements including advertising, direct marketing, interactive media, sales promotion, publicity/public relations and personal selling and discuss how each one is used in the marketing communications program. Students should also consider how other marketing mix elements such as the brand name, package, price and other factors communicate with the company’s target audience. Is this company using all the promotion mix programs in its marketing communications program? Are they integrated and sending a consistent image and message? IMC Comprehensive Project The purpose of the IMC comprehensive project is to allow a student (or student teams) develop an IMC plan for a product as they proceed through the course. The text is built around a model of the IMC planning process that is presented in Figure 1-7 that is used as a framework. Students update their plan as each chapter and topic area is covered. This encourages students to apply the course material and develop an appreciation for the process a product manager, account executive or marketing communications manager experiences. The project will also help students gain an appreciation for the sources of information used during the promotional planning process. At the conclusion of the project, each student (or team) should have a detailed notebook containing the plan for their product that is turned in for evaluation. Specific assignments for the IMC project occur with each chapter. IMC Project Assignment for Chapter 1 The assignment for Chapter 1 is to familiarize students with the IMC planning process presented in Figure 1-7. Students should study the IMC planning model so they can gain some insight as to what will be involved in developing the IMC project. Each student or team should choose a national, regional, or local brand a product or service for which they will be developing their IMC plan. Students should submit their choice to the instructor with a brief statement as to why they have chosen this brand. The instructor should approve the choice before beginning the project.

CHAPTER 2: WORKING WITH AGENCIES FOR IMC INSTRUCTOR’S MANUAL Chapter Overview The purpose of this chapter is to familiarize the student with the ways that organizations organize for purposes of developing and executing integrated marketing communications programs. The advertising agency industry is briefly identified. A description of the functions of advertising agencies is provided, as is an explanation of how agencies are compensated and evaluated. The chapter also discusses organizations that provide specialized integrated marketing communication services including direct-response, sales promotion, and interactive agencies as well as public relations firms. It is important for students to understand that a variety of different organizations contribute to the development of a company’s IMC program. Learning Objectives 1. Summarize the advertising agency industry. 2. Identify the services a full-service agency provides to its clients. 3. Describe methods for compensating and evaluating advertising agency. 4. Review the functions of specialized marketing communications organizations. 5. Evaluate issues regarding the agency-client relationship. Chapter and Lecture Outline I.

ADVERTISING AGENCIES

Companies work with agencies to develop their advertising programs since specialized creative skills are required to persuade target audiences. These skills require a team and are usually beyond the skills of most marketing managers. A.

Advertising Agency Decision—Companies employ the services of an external advertising agency or use an in-house agency. For an In-House Agency, companies set up their own internal operation, and the design varies from a small advertising department to a large external agency. In the former, the in-house agency operates as a separate entity, and control advertising and promotional expenditures in millions of dollars. This option is usually chosen so that costs are minimized and control over the agency’s activities is maximized. For the latter, organizations select outside agencies for: (1) the skills offered, (2) objectivity and (3) experience.

Advertising Agency Industry—Figure 2-1 captures the state of the major players in the Canadian advertising agency industry. Most agencies are an amalgamation of other agencies like sales promotion, digital, PR etc. and are part of large international consortiums. Not captured in the table are smaller regional or local agencies that remain independent. However, these firms in Figure 2-1 presumably represent a substantial portion of the money spent on agencies. Instructors can review the background and clients of ad agencies for student interest. Their websites show their work and are generally very creative. New trends highlighted in the chapter can be examined also.

II.

FULL-SERVICE ADVERTISING AGENCY

The section reviews the content of Figure 2-2 that reflects the organizational structure of a prototypical full-service advertising agency. Variation naturally exists. A.

Organizational Chart—Full-service agencies offer clients a full range of services in the following areas: client, planning and research, creative, digital creative, production, specialized (e.g., sales promotion, direct, PR, events), and media.

Client—Account executives serve as the liaison between the agency and client and are responsible for coordinating the agency's efforts in planning, creating, and producing ads.

Planning/Research—full-service agencies provide a variety of marketing services to their clients and maintain departments such as research, strategy, and planning. These departments assist the other services by ensuring that the marketing communication strategy addresses the communication issue accurately.

Creative—agency personnel in this department include artists and copywriters who are responsible for the creation and execution of the client’s advertising messages. Creative services may also include print and broadcast production departments, which are responsible for producing the advertising messages and putting them into final form.

Digital creative—these kinds of specialists are part of marketing communication plans as customized messages for Internet media are required.

Production—dedicated staff may be responsible for the physical development of ads in all or select formats. The traffic department coordinates all phases of production and sees that all ads are completed on time and deadlines for submitting the ads to the media are met.

Specialized—full-service agencies provide additional services clients so that a complete IMC plan can be delivered that includes all programs (e.g., sales promotion, PR, direct, digital).

Media—the media department is very important since clients are consolidating their media buying to save money and improve media efficiency. This department analyzes, selects, and contracts for media space and time on behalf of clients.

Organizational Systems—two types or agency organization structures exist. Under the departmental system each of the agency functions is set up as a separate department and is called upon to perform its specialty for all the agency’s clients. In the group system individuals from each department work together as teams to service a particular account. Clients prefer the group system because agency employees become very familiar with their business, and it ensures continuity in servicing the account. Various managers facilitate expected organizational departments (e.g., accounting, finance, human resources).

III.

AGENCY COMPENSATION & EVALUATION

The services that advertising agencies provide may be compensated in a variety of ways including: A.

Commissions from media—the agency is compensated based on the time or space it purchases for its client, historically 15%. The commission system is criticized since it ties agency compensation to media costs and encourages agencies to rely on commissionable media (i.e., TV) that is more expensive than non-commissionable media. However, some prefer this system because it is easy to administer and forces agencies to compete on advertising creative. A negotiated commission system takes the form of reduced percentage rates, variable commission rates and minimum and maximum compensation rates. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-14

Fee arrangements—the agency charges a monthly fee for its services and credits to the client any media commissions earned in a fixed-fee method, alternatively, the agency credits the media commissions received against the fee in a fee-commission combination method.

Cost-plus agreement—the client agrees to pay the agency a fee based on costs of its work plus an agreedon profit margin. This system requires detailed records of costs incurred in working on a client’s account.

Incentive-based compensation—while there are variations, the agency’s compensation level depends on how well it meets predetermined performance goals for its clients such as sales or market share. This is the basis of the performance by results system adopted in Canada a couple of decades ago.

Evaluation of agencies—the client formally evaluates the agency with financial audits and qualitative audits. These audits could be consistent with the PBR of the incentive system. The text offers reasons as to why agencies lose clients. Current issues of Strategy Magazine are useful in providing the instructor with examples of account changes and the reasons the clients decided to change agencies.

III.

SPECIALIZED SERVICES

In addition to advertising agencies, other organizations provide marketers with specialized services that are important in developing and executing integrated marketing communication programs. Instructors can also review websites of specialized service agencies or review a few new developments shown in the chapter. A.

Creative Boutiques—specialize in and provide only advertising creative services. Because of their specialty of creative ideas, clients look to these agencies for new inspiration to portray their brands or for specific messages to more focused target audiences.

Media Buying Services—work with media companies and package offering to clients to meet their media strategy and tactic decisions.

Sales Promotions Agencies—provide promotional services that include promotional planning, creative, research, tie-in coordination, fulfillment, premium design, and contest/sweepstakes management.

Public Relations Firms—develop and implement programs to manage an organization’s publicity, image, and affairs with consumers and other relevant publics including employers, suppliers, stockholders, government, labour, and the public.

Direct Response Agencies—provide their clients services such as data base development and management, direct mail, research, media services, and creative and production capabilities.

Digital Agencies—develop web sites, Internet ads, and other forms of interactive advertising.

IV.

IMC PLANNING: AGENCY RELATIONSHIPS

A trend in the advertising industry is to combine all the above services under one roof. These one-stop service agencies bring together service providers so that the client needs only to use their firm to receive all required marketing services. Advantages and disadvantages of these arrangements include: A.

Integrated IMC Services—The advantages and disadvantages of the one-stop shop include: Advantages of integrated services: 

Greater control of the promotional process allows for more synergy among each of the communication program elements. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-15



More convenient for clients to coordinate all promotional efforts with one agency.



Agencies with IMC capabilities can create a single image for the client.

Disadvantages of integrated services: 

Synergy and economies of scale are often not achieved by a single agency handling all communication areas.



Internal conflicts often arise within various departments within a large agency over areas such as advertising, public relations, or sales promotion.



Limits client’s ability to take advantage of specialists in IMC areas.

Agency-Client Responsibility—Another topic covered in this section is whether the client or advertising agency should have the primary responsibility for planning and coordinating the IMC process. Most marketers believe it is their responsibility to set strategy for and coordinated integrated campaigns while agency executives see this as their domain. The major barrier is a lack of people in agencies with the broad perspective and skills needed to make IMC work effectively. Internal turf battles, agency egos, and fear of budget reductions are also cited as major barriers to successful integrated marketing campaigns.

Agency-Client Relationships—A summary of recent research on the nature of agency-client relationships is presented with a few survey findings. This material can be selectively used to give an idea as to the present situation.

Teaching Suggestions Students may be interested in working for an advertising agency. This chapter familiarizes them with other major participants in the IMC process. While most students are familiar with advertising agencies, they are less likely to know anything about direct response and sales promotion agencies, public relations firms, and digital agencies. You might note that there are some excellent career opportunities available in these areas. It is important for the instructor to keep up to date with current events. Good sources of information on advertising are publications such as Strategy, Advertising Age, AdWeek, and BrandWeek. For excellent articles and sources of information on sales promotion students should be referred to Promo magazine. Students are usually interested in identifying and seeing current advertisements by various agencies. Most agencies have websites that show examples of their advertising, information about their advertising philosophy, approaches to branding and other IMC content. Vignette 1.

What is your opinion of the creative process Rethink follows for its clients? This question gets to the heart of the matter regarding why advertising is creative. Clearly, there is no right answer, but students have an opportunity to develop arguments as to why Rethink’s approach is successful. Astute students will recognize that creative is a lot of hard work with the generation of 100 creative ideas and that the agency and client require a positive relationship for such a thorough process is to occur. Instructors are encouraged to show Ikea ads to understand why Rethink is so successful with unique creatives.

IMC Perspective 2-1 1.

What ideas from this chapter are inferred from these scenarios? These examples illustrate that clients value the creative talent of the agencies. In addition, the examples show how clients are interested in “one-stop-shop” agencies to handle multiple IMC programs for greater efficiency Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-16

and effectiveness. These items reflect a handful of reasons highlighted in Figure 2-5. Instructors could use this figure as a way of guiding a lecture or discussion on how and why these clients changed agencies. An additional key point for students to realize that some of the most creative communication observed in Canada is the work of marketing suppliers (i.e., agencies) and not the actual managers of the products advertisers. While this is relatively elementary of instructors, it is quite illustrative for unfamiliar students. The question encourages an open-ended debate to generate discussion that hopefully would lead to some consensus on the criteria for selecting creative campaigns. It acts as an entry point for much of the material over the next few chapters and can generate some excitement for the early material in the text and the course. IMC Perspective 2-2 1.

Which agency is the most appealing for a student’s first advertising job? Explain your reasoning. These indie examples show the diversity of the agency industry. The examples also allow students to project their career aspirations in many directions. From another point of view, the projection question lets student see how creative services are delivered from many different avenues. Instructors are encouraged to visit the websites of indie agencies to show their work and illustrate how smaller organization perspectives could be quite fruitful when hiring an agency.

Answers to Review Questions 1.

What types of agencies exist in the advertising industry? Students should realize a few distinctions; internal vs. external, independent vs. conglomerate; Canadian vs. International, local vs. national, full-service vs. specialized, small vs. large. Some of these variables are not entirely independent and the characteristics overlap. Instructors might also highlight agencies specialize in specific types of clients like consumer-market vs. business market, and that some agencies win awards more often than others.

How are the characteristics of a full-service agency contrasted with the characteristics of specialized communication agencies? Full-service agencies provide clients with services including planning, creating, and producing the advertising, account planning, marketing research, developing media strategies and selecting and purchasing media. Some full-service agencies also provide non-advertising related services including strategic market planning, direct marketing, promotional programs, interactive marketing and web site design, and public relations. The importance of the services provided by a full-service agency depend upon the client. Some companies want agencies that are very strong in the creative area and can develop ads that strike a responsive chord with consumers. Companies that are competing in markets where brand image and identity is very important may put a major emphasis on creative capabilities in selecting an agency. Some companies want agencies that are very strong in media strategy and buying and can maximize their media expenditures. Specialized agencies offer services that clients may value over the same service provide by a full-service agency due to stronger competency, such as creative boutiques. These smaller agencies turn out excellent creative work and do not have the bureaucracy and politics of larger agencies. Companies also feel that by working with a smaller creative boutique they can get more attention and better access to creative talent than they would at a larger agency. Another reason a company might use a creative boutique is that there are companies available to handle other parts of the advertising and promotional program. Similarly, media specialist companies provide an important service by specializing in the analysis and purchasing of media time and space. Also, because media specialist companies purchase large amounts of Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-17

Group Decision Making Marketers must understand the various roles in the group decision making process such as initiator, information provider, influencer, decision maker, purchaser and user or consumer. They must also determine who is responsible for the roles in the decision making process so messages can be targeted to them. Messages must also be designed so as to appeal to the appropriate member(s). Figure 3-4 shows an application of this with the example of family decision-making. Other applications could include households in which people are not related (e.g., college and university students).

II.

TARGET AUDIENCE DECISION

The target audience decision is akin to the target market decision. Both relay on segmentation variables to define the particular group a promotional program or a marketing program is directed. The distinction between the two is a difficult task and tricky so see when observing what brands do in the market place. These variables and their application for each decision is topic instructors would likely revisit throughout the course. A.

Marketing planning process—involves the steps shown in Figure 3-5. The marketing strategy is directed towards the target market. Selection of the target market is an important for a firm’s marketing strategy, and it has implications for advertising and promotional strategy and tactics since it guides the target audience decision, a primary consideration at the start of the promotional planning process.

Segmentation Variables—segmentation involves the identification of the needs and wants of specific groups of people for the purpose of selecting a target, for either marketing strategies or marketing communication strategies. Several ways of segmentation are available (Figure 3-6).

Geographic—market is divided into geographic units with alternative marketing strategies directed to each

Demographic—division involves demographic variables such as gender, age, birth era, life stage, or household size.

Socioeconomic—division involves variables such as income, education, and occupation.

Psychographic—markets are divided based on the lifestyle, values, personality, culture, and social class. 1.

Lifestyle—activities, interests, opinions (AIO) as measured by commercial applications such as VALS and PRIZIM.

Values—a broad typology from an academic review of many decades of research organizes values along four dimensions comprising ten values.

Personality—enduring characteristics, e.g., introvert and extrovert.

Culture—culture refers to the complexity of learned meanings, values norms, and customs shared by members of a society. Subcultures refer to smaller groups or segments in a society that possess similar characteristics that set them apart from the larger cultural mainstream. Subcultures may be based on age, geography, race, religion, racial, lifestyles, and ethnicity.

Social Class—social class refers to relatively homogenous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviours can be grouped. Social class structures in Canada are based on occupational status, educational attainment, and source of income. Social class is important to marketers because consumers within social stratums often exhibit similar values, life styles and buying behaviour and provide a natural basis for market segmentation. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-24

Behaviour—this form of segmentation divides consumers into groups according to their brand loyalty, category use, usage rate, situation or benefits sought. These characteristics are then usually combined with one of the previously mentioned bases to develop segment profiles. Behaviouristic segmentation also considers both the purchase and the usage situation.

Promotional Planning Process—the promotional planning process uses segmentation variables to identify the target audience. Marketing communication is directed to groups of consumers within the decisionmaking process stages necessitating specific messages or IMC programs to persuade and influence attitudes and behaviours. Instructors should be careful to point out the similarities and difference of target market and target audience and how they may be identical in some circumstances and completely different in others.

III.

TARGET AUDIENCE OPTIONS

R&P state that the primary and most logical factor for initially defining a target audience is the current behaviour of consumers. R&P identified two customer groups and three non-customer groups. A.

Brand-Loyal Customers—direct communication to brand loyal customers who regularly buy their firm’s product.

Favourable Brand Switchers— consumers habitually purchase from a few favourites or those brands within their evoked set for some product categories; thus, favourable brand switchers are a second customer group highlighted by R&P.

New Category Users—New category users are those customers that are not yet purchasing within a product category.

Other Brand Switchers— Other brand switchers purchase a few different brands within a category.

Other Brand Loyals— Other brand loyals purchase only one brand and are completely loyal.

Examples of ads are useful to demonstrate how this approach works. It is fairly obvious to discern whether a message is directed to customers or non-customers, however some students have difficulty making the distinction. Discussion allows instructors to also note examples where it may be less obvious. The additional profiling variables of demographic and other segmentation variables can be highlighted. Multiple examples from one brand can show how a firm could have more than one target audience to reinforce the point in Chapter 1. IV.

IMC PLANNING: TARGET AUDIENCE PROFILE

The implications of consumer behaviour and target audience decision are summarized with a conclusion on the importance of using the segmentation variables appropriately to give direction for decisions in the areas for message creation, media placement and IMC usage. This planning section allows students to see how the IMC plan will unfold with a complete profile of the target audience. Teaching Suggestions Because of the consumer emphasis dictated by the marketing concept, consumer behaviour has increased in importance, and has found its way into virtually every aspect of marketing, including advertising and promotion. Thus, it is very important for the student to understand that advertising and promotion strategies are designed for the purpose of influencing customer behaviour. Promotional planners require understanding of consumer behaviour including the way consumers relate to products and services, the goals and motives they seek to achieve and satisfy, and the process by which they make purchase decisions. You should emphasize that the success Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-25

marketers have in influencing the purchase behaviour of their target customers depends in large part on how well they understand their purchase patterns and behaviour. The chapter links consumer behaviour with the target audience decision. Segmentation approaches are reviewed as the concepts are relevant for both marketing and promotion decisions. Students will be familiar with using segmentation for target market decisions of a marketing plan; however, promotion often requires more precise identification and profile for its intended recipient, or target audience. This important distinction is highlighted and the instructor should be careful to use examples where a specific target audience is in the ad, that is obviously consistent with who the brand may be targeting with its overall marketing plan. Some students may have covered some of this material in a basic marketing or consumer behaviour class. However, this chapter will still be valuable to them since it discusses how this material is used in the development of advertising and promotional programs. Vignette 1. Does it look like Ikea’s new approach for its advertising will encourage consumers to continue shopping at the store? Ikea’s history of minimal use of resources in the production and delivery of furniture is a significant competitive advantage that its advertising often communicated as a key differential advantage (i.e., chapter 6 positioning). The ads identified show continued commitment in this direction, and given the current social environment, it appears to be a key message to communicate to encourage consumers to continue visiting. Of course there are other characteristics about the store to emphasize, but the environmental point or re-use point is certainly very salient for many segments. Instructors are encouraged to show the ads described, and other Ikea ads like it, and link the topic back to the chapter 2 vignette since Ikea’s agency is Rethink! IMC Perspective 3-1 1.

Do you expect future advertising for FinTech brands will be significantly different than current advertising for established financial services brands? Asking students in the early years of learning marketing and advertising to predict the future of advertising in a product category is an ambitious question to address. Instructors might want to show both FinTech and established bank ads so students can understand the current similarities and differences. Probing questions along the lines of how the FinTech brands could continue to differentiate vs. banks to influence various segments is one topic to explore. Additionally, instructors could focus on how the FinTech brands and bank brands both try to influence consumer behaviour along the decision-making process to relate this material to the previous chapter.

IMC Perspective 3-2 1.

Would a comparative ad message to sway loyal Beyond Meat customers be effective for one of these brands? This perspective allows instructors an opportunity to illustrate target audience selection points. The new meat substitutes featuring new brands need to influence consumers of other types or products from a variety of consumptions situations. This implies considerable switching behaviour for some audiences – get chicken meat eaters to try a plant-based chicken variation or get heavy eat meat eaters to eat less with a substitute plantbased alternative. It also implies the potential of attracting new category users – get non-meat eaters to try this variation of a meat-like product!

Answers to Review Questions 1.

What are the stages of the consumer decision-making model? Why are they important for planning marketing communication? Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-26

Marketing communication can be directed to each stage of the model. Ads can highlight need recognition initially (e.g., TV) while additional information can be found at the brand’s website (e.g., information search). Comparisons with other brands could be obtained at independent review website (e.g. JD Power) that influence the alternative evaluation stage. Finally, direct communication on mobile devices indicating a promotional offer from GPS alerts could influence purchase while direct mail pieces can maintain satisfaction levels after purchase. Furthermore, the nature of the message can evolve at each stage as well. Thus, the model is useful for planning the basic marketing communication decisions of message and media, that can be extended to other IMC programs including events etc. 2.

When defining a target audience for communications, why is it a good idea to use consumer behaviour with respect to your brand as the primary variable before using variables such as demographics or lifestyle? The behavioural variable is considered first for two reasons. First, it links the communication plan to the marketing plan more specifically. Secondly, actual behaviour signals or leads to sales, something to which most advertising campaigns hope to achieve as an end result. Most good advertising reflects the underlying purchase motive of the target audience. The purchase motive is related to behaviour because consumers act upon their needs during a goal seeking decision process. Thus, the expected behaviour of the target audience is a prime consideration.

What are the five customer groups? Explain in terms of beverage products like soft drinks or beer. From the point of view of Coca-Cola, advertising could be directed to those who only drink Coca-Cola when drinking a cola product (e.g., brand loyals). Alternatively, the brand could target those who regularly switch between Coca-Cola and Pepsi (e.g., favourable brand switchers). Looking at the other side of customer groups, Coca-Cola could target Pepsi drinkers (e.g., other brand loyals) or those who drink Pepsi and RC Cola, or perhaps a generic cola product like PC (e.g., other brand switchers). Finally, those who do not drink cola may be targeted (e.g., new category users), or those who do not even drink soft drinks (e.g., new category user). Of course these two non-category user groups are derived from different market partitions. An important point to note is that specific brands should be identified so that there is an application of the model.

Why is a complete profile of a target audience important for marketing communication? A complete profile of a target audience is necessary for message, media, and IMC program decisions. Knowing the background of the target audience in terms of specific segmentation variable (e.g., psychographic) allows the planner to know how to construct the persuasive message with accurate visuals and imagery that will resonate. Similarly, knowing the background on variables like geography or usage allows managers to know which media and media vehicles to use to reach the target audience for exposure purposes. Finally, knowing other variables like lifestyle allows the planner to estimate the correct IMC program to use in terms of public relations or social media.

Answers to Applied Questions 1.

Explain the difference between functional, performance, and experiential benefits. Why might the messages recommended in the IMC plan for smartphones focus on each separately or together? Functional benefits are concrete outcomes of product usage that are tangible and objectively related to the purpose of the product. Performance benefits are less tangible and more subjective product usage outcomes based on how the product attributes abstractly affect a consumer. Experiential benefits are related to how consumers feel while consuming the product. These emotions can be psychologically or socially based. Managers deciding upon the messages can select any of the three to emphasize or show the connection among them. Auto commercials are an effective way to explore this point. For example, instructors can highlight ads that communicate the existence of safety features, like the example of air bags in the subcompact car. Other ads could demonstrate how a safety feature works for example (performance). Finally, Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-27

another ad might show the reassurance (feelings) of the safety feature. It is important for students to see that for virtually any message, there is an alternative that could have been considered which opens debate as to whether the most effective was selected. 2.

In what situations is the target audience and the target market the same? In what situations is the size of the target audience larger or smaller than the target market? The target market is the focus of the entire marketing mix while the target audience is the focus of a particular communication program. In some instances, the target audience is smaller than the target market. For example, if a firm runs an ad and promotion to entice consumers to switch to their brand, they are not reaching the complete target market since this would include its own customers. For small firms or firms with a brand new product, both the target market and target audience may be exactly the same. In this case, the firm is not trying to advertise to a particular target audience to increase their usage or alter their purchasing behaviour. The target audience is often larger than the target market for a product in public relations activities. By their very nature, public relations often times attempt to influence a broad community, of which numerous people would not be actual purchasers of the product.

Examine the ads in this chapter and identify the target audience the ad is directed toward using the model of five customer groups. Suggest other relevant segmentation variables to further profile the target audience. Also identify the relevant segmentation variable to pinpoint the target market. This question raises the point that marketers use a variety of segmentation variables to identify their target market, and that many can be considered for executing their marketing strategy. Likely, students will be able to observe that some variables tend to be more common. Furthermore, while a variable or two may be used for segmenting, additional variables are relevant to further describe the market to give more precision for the marketing decisions. For target audience, if students adhere to the R&P idea, they will begin to realize that the customer status (i.e., customer or non-customer) is a strong way to begin one’s promotional planning since the content of the message can be executed more exactly to influence the next purchase.

Which segmentation variables are more useful or appropriate for profiling a target market for an automobile like the Mini? Similarly, which are more useful or appropriate for profiling the target audience for an automobile like the Mini? This question extends the points made in question 5 with an additional application with a particular brand. The exact target market variables selected is reasonably varied and the point to make is that the student should use some information to make a logical conclusion. One might suggest that personality or values may play a prominent role, as would geography as city a consumer maybe most likely. Mini has such low volume it must resort to always targeting new customers in its communication, so it will likely try to attract other brand switchers. Although a good case could be made that much of their advertising encourages those with a certain personality to purchase a brand new car for the first time.

Additional Discussion Questions (not in text) A. After buying a new car, a customer receives direct mail such as a driving magazine or information on automobile care from the manufacturer. Explain why this is effect or ineffective communication. This is likely to be highly effective communication as it contributes to building the relationship between the care company and its current customer. The customer is further informed about the features and benefits of their purchase and the customer receives important information for maintaining the value of their asset in a very significant financial investment. Most customers would likely be interested in articles or pictures of newer car models despite owning their current car since the purchase is typically extensive problem-solving activity that one would like to be prepared for. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-28

Use the model of consumer decision making to analyze the purchase process a consumer would go through in purchasing a laundry detergent versus a new computer. Discuss the role advertising and other forms of promotion would play at each stage of the decision process. The purchase of laundry detergent would be characterized by routine response behaviour since this is a product the consumer has probably purchased many times before. The decision making process would consist of little more than recognizing that one is running low on detergent and replenishing the supply during a shopping trip. The consumer will spend little effort engaging in external search or alternative evaluation as the purchase process for such products is relatively automatic. Decision making will be minimal if the consumer is loyal to a particular brand of detergent. If the consumer is not loyal to any particular brand, they may be influenced at the actual point-of-purchase through shelf displays, price deals or other types of promotion. Advertising will be important in getting a brand of detergent into the consumers evoked set and keeping it there. For a new brand, advertising may be particularly important in generating awareness and interest. Sale promotion techniques such as samples and coupons will also be used to encourage consumers to try new brands or switch brands. The purchase of a new computer will be characterized by limited or extended problems solving, depending on the consumers level of prior knowledge or familiarity with alternative brands. The consumer goes through each stage of the consumer decision making process and spend considerable time and effort on external information search and in identifying and evaluating alternatives. Advertising is important in providing consumers with information about computers and what they should be looking for in evaluating alternatives. Direct marketing may also be used to send consumers information that will be helpful in evaluating a brand and making the purchase decision. Personal selling efforts by in-store sales personnel will also be very important since consumers may rely on knowledgeable sale people to learn about the alternatives and make a choice.

How is it possible for a brand to communicate to both customers and non-customers in an IMC plan? Brands can select different media for advertising or different IMC programs entirely to reach customers and non-customers. For example, if a customer’s personal information is in a data-base, customized promotional offers or advertising messages can be delivered directly. Alternatively, television or other media that reaches a wider audience that would include many non-customers can be used to attract those not currently buying the brand. In each of these cases, the selling message can be tailored specifically. For example, references to past experiences can be part of the message to customers while messages to non-customers might make competitive references or mention sources of dissatisfaction for those considering switching from their current brand.

D. Discuss the three variations of the consumer decision-making process. What is the importance of communications in each type? Three decision making process are (1) routine response, (2) limited problem solving and (3) extensive problem solving. Marketing communications differ in each. Routine response behaviours are close to habits. As a result, they require little external search (if any) and there is little or no reliance on communications. Advertising and promotions reinforce and reminds the consumer that it is time to purchase, and there is less need for providing information for evaluation. Limited problem solving involves both internal and external search behaviours. As a result, marketing communication requirements increase. Consumers are more likely to have recognized the problem, and are using advertising and other forms of communication to provide information for evaluation. Consumers are also more likely to employ a variety of sources of information in the process, and the marketer wants to be sure that his/her product is considered in the evoked set. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-29

The consumer’s most extensive use of communications is likely to occur in the extensive problem solving situation. Decisions are given much more thought, external search is more involved, and there is a much greater reliance on advertising, sales persons, friends, family, etc. as input into the decision. As a result, the responsibility of communications is increased as the marketer wants to have the information readily available to consumers when and where they want it. E.

Explain the concept of an evoked set. Why is this concept important to marketers? Give examples of an evoked set, and how marketers might attempt to influence consumers to gain consideration. The numerous options for purchase in any product category direct consumers to consider only a subset of the alternatives available, leading to an evoked set. Often referred to as a consideration set, this subset of brands are those that will be actively considered in the purchase decision process. This is important since if a brand does not get included in the evoked set, it is not likely to be purchased. Consider the purchase of a new car. The choice of alternatives runs from low end entries like Hyundai, Kia, etc. to expensive luxury and sports cars—not to mention SUV’s and others. It is highly unlikely that a consumer would consider the entire range of possibilities. The list would be narrowed down given decision criteria to a much smaller grouping, based on purchase criteria. It may lead to consideration of only Japanese cars, American cars or German cars. It might be limited based on price or past experiences. Whatever the criteria used, the entire list of cars will not be considered.

IMC Exercise Have the class collect ads that reflect some of the aspects of consumer behaviour discussed in the text such as stages of the decision process, Have them bring the ads to class and explain which aspect it reflects and how marketers might be appealing to this aspect of consumer behaviour. Each of the so-called generations— Generation Y and X have their own unique values, lifestyles, etc. Have students discuss these, and then bring in examples of ads designed to appeal to each. IMC Comprehensive Project At this stage of the project students should be analyzing the consumer decision making process for their product or service and considering different segmentation variables that will be useful. IMC Project Assignment for Chapter 3 Analyze the marketing situation analysis for the product or service you have chosen. You can use the marketing and promotions process model shown in Figure 3-5 as well as some of the factors shown in Figure 1-5 from Chapter 1 as a guideline to conduct your situation analysis. For the consumer analysis, describe the consumer decision process for your product/service as shown in Figure 3-1. Explain what factors are relevant at each stage. What are the implications of your situation analysis for the development of your IMC plan? How will the market for your product/service be segmented? Which segments will be targeted and why? What will be your target audience for your IMC programs?

CHAPTER 4: COMMUNICATION RESPONSE MODELS INSTRUCTOR’S MANUAL Chapter Overview This chapter examines the communication process by introducing the student to the fundamentals of communication and examining models and perspectives of how consumers respond to advertising messages. A model of communication is presented which introduces the controllable elements of the communications process—source, message, channel, and receiver. The chapter is devoted to examining the target audience or receiver and the process by which consumers respond to advertising and other promotional messages. The response process is analyzed in terms of traditional response hierarchy models as well as alternative response models. Attention is given to comparing alternative response models such as the standard learning versus low involvement models. The chapter also examines the cognitive response approach and Elaboration Likelihood Model to show how more detailed analyses can be made of receivers’ cognitive processing of marketing communications. The end of the chapter attempts to resolve the debate with a model more suitable for decision-making. Learning Objectives 1. Explain the elements of the communication process and identify the role of marketing communication. 2. Contrast traditional and alternative response hierarchy models and identify their implications for advertising. 3. Review the specifics of the receiver’s processing of marketing communication. 4. Illustrate a response model for managerial decision making. 5. Construct ideas on how the knowledge of response models is used for IMC planning. Chapter and Lecture Outline I.

COMMUNICATION PROCESS MODEL

A commonality shared by all elements of the promotional mix is that their function is to communicate. Thus, it is important that advertising and promotional planners understand the communication process. Communication is defined as the “passing of information,” the “exchange of ideas,” or the “process of establishing a commonness or oneness of thought between a sender and a receiver.” For communication to occur there must be some common thinking or ground between the two parties and a passing of information. The communications process is often very complex with success depending on factors such as the nature of the message, audience interpretation and the environment in which it is received along with the receiver’s perception of the source and medium. A model of communication that represents the elements of the communications process is shown as Figure 4-1 that include: A.

Source—the sender or source of a communication is the person or organization that has information to share with another person or group. It should be noted that the source is an Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-31

individual (e.g., hired spokesperson) or a nonpersonal entity (e.g., brand, organization). The receivers’ perception of the source influences how the ad received and interpreted. B

Encoding—the process of putting together thoughts, ideas and information into a symbolic form to communicate a message. The sender’s goal is to encode the message in such a manner so as to ensure that it will be understood by the receiver.

Message—the encoding process leads to the development of message content that contains the information/meaning the source/sender conveys. Messages take many forms and symbols. The message content decision is found the creative strategy decisions of Chapter 7. The message is put into a transmittable form that is appropriate for the channel of communication. Advertising messages range from simple written words that are read or heard to the expensive production of elaborate television commercials with a visual impact and imagery. Two components, message structure and message design, are additional decisions reviewed in Chapter 8.

Non-Personal Channel—those which carry a message without involving interpersonal contact between sender and receiver. These channels are referred to as the mass media as messages transmitted through them are sent to many individuals at one time.

Personal Channel—involve direct interpersonal contact with target individuals or groups. For example a salesperson serves as a personal channel of communication when delivering a sales presentation. The growth of social media heightened the influence of personal channels that are mediated by digital communication devices.

Receiver—the receiver is the person(s) with whom the sender shares thoughts or information. Receivers are generally viewed as the consumers in the target audience targeted by the firm’s marketing and promotional program. The target audience may consist of individuals, groups, niche markets, market segments, or a general public or mass audience.

Decoding is the process of transforming and interpreting the sender’s message back into thought and is heavily influenced by the receiver’s frame of reference or field of experience. Effective communication is more likely when common ground or shared meaning or understanding exists or has been established between the sender and receiver.

Noise—throughout the communications process the message is subject to noise which refers to factors that can distort or interfere with adequate reception or comprehension. Noise can occur during the encoding, transmission, or decoding of a message. Noise can also occur because of a lack of common ground or understanding between the sender and receiver.

Response—refers to the reaction the receiver has after seeing, hearing and/or reading the message. These responses can range from non-observable actions such as storing information in memory to taking immediate actions such as ordering a product seen in a direct response ad.

Feedback is the part of the receiver’s response that is communicated back to the sender and takes a variety of forms. Feedback provides the sender with a way of monitoring how the message is being decoded and received by the target audience.

II.

RECIEVER’S RESPONSE

An important aspect of developing effective communication involves understanding the receiver’s response to marketing communication so that promotional planners can design message to persuade and influence a member of the target audience. This section covers three traditional response hierarchy models and then discusses alternative models of the receiver’s response. A.

Traditional Response Hierarchy Models—Figure 4-2 shows three response hierarchy models. These models are discussed giving attention to their origin and implications and include: 1. The AIDA Model (attentioninterestdesireaction) 2. The Hierarchy-of-Effects Model (awarenessknowledgelikingpreferenceconvictionpurchase 3. The Information-Processing Model (presentationattentioncomprehensionyieldingretentionbehaviour)

Implications of the Traditional Hierarchy Response Models—the hierarchy models are useful to promotional planners since they delineate the series of stages potential purchasers experience, moving from a state of no or little awareness to the point where they are ready to purchase. The hierarchy models can also be useful as “intermediate” measures of communication effectiveness. Knowing where potential buyers are with respect to the stages of the hierarchy helps the marketers know the specific communication task that must be performed. All these models view the response process as consisting of movement through a sequence of stages and assume a similar ordering whereby cognitive development precedes affective reaction which in turn precedes behaviour. While this is a logical progression that may be accurate in many situations, the response sequence may not always operate this way which gives rise to alternative response hierarchy models.

Alternative Response Hierarchy Models—research and theorizing led to a questioning of the cognitive  affective  conative sequence of the response process and resulted in the development of alternative orderings of these stages based on perceived product differentiation and product involvement, shown in Figure 4-3. The concept of involvement explains the way consumers process information and make purchase decisions. However, a problem that has plagued the study of involvement has been defining and measuring the construct. 1. Standard learning model—in many purchase situations consumers go through the response process in the manner depicted by the traditional communications models or a “learn  feel  do” sequence or hierarchy. Under this hierarchy the receiver is viewed as an active participant in the communications process who actively seeks or gathers information through “active learning.” 2. Dissonance/attribution model—in some situations consumers may behave first then develop attitudes or feelings as a result of that behaviour and learn or process information that supports their attitudes and behaviour. The dissonance or attributional hierarchy consists of a “do  feel  learn” sequence. This hierarchy may occur when consumers are Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-33

trying to reduce post-purchase dissonance or anxiety that results from doubt or concern over a purchase. This dissonance reduction process involves “selective learning” whereby the receiver seeks information that supports the choice made and avoids information that does not bolster the wisdom of the decision. 3. Low-involvement model—the low involvement hierarchy is thought to characterize situations of low consumer involvement in the purchase process. The response hierarchy under low involvement consists of a “learn  do  feel” sequence and the receiver is viewed as engaging in “passive learning” and “random information catching” rather than active information seeking. D.

Implications of the Alternative Response Hierarchy Models—Promotional planners consider which of the three models is most relevant for describing how their target audience responds to marketing communication. Subsequently, they would set the most realistic objective and make the most logical promotional decisions in terms of message, media and IMC programs.

III.

RECEIVER’S PROCESSING OF COMMUNICATIONS

The hierarchical response models were the primary focus of approaches to studying receivers’ responses to marketing communications for decades. However, the inability of these approaches to explain what might be causing or determining these reactions to the message has led to an interest in understanding the nature of processing of advertising and other persuasive communication. This section reviews the perceptual system to understand how receivers process advertising messages and two models designed to explain what occurs during the processing of ad messages. Processing refers to the time duration when a receiver is watching a video ad message on TV or virtually, reading a display ad in print or online, or listening to an audio message on the radio or digitally (e.g., podcast). Processing concerns how external information (such as an advertising message) is transformed into meanings or patterns of thought and how these meanings are combined to form judgments. A.

Processing of Ad Messages—perception is the process by which an individual receives selects, organizes, and interprets information to create meaning. There are a number of processes involved in perception which determine how marketing information will be received: 1. Selective exposure—consumers choose to make themselves available to information. After sensing ad exposure. 2. Selective attention—consumer focuses attention on certain stimuli while excluding others. 3. Selective comprehension—interpreting information on the basis of the consumer’s own attitudes, beliefs, motives and experiences. 4. Selective retention—consumers do not remember all information they receive and store the most relevant and essential information in their memory.

Cognitive Response Model—a method used for examining consumers processing of advertising messages is through the assessment of their cognitive responses or thoughts that occur to them while reading, viewing, and/or hearing the communication. The focus of this approach, which is commonly used by academic researchers as well as practitioners, is to determine the types of thought evoked by an advertising message and how these responses relate to traditional “outcome” measures such as attitude toward the ad, brand attitudes and purchase intention. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-34

The model shown in Figure 4-4 depicts the three types of cognitive responses and their relationship to attitude the brand, attitude to the ad and purchase intention: 1. Product/Message thoughts—counterarguments and support arguments. 2. Source-oriented thoughts—source derogations and source bolsters. 3. Ad execution thoughts— positive or negative thoughts individuals have toward the ad itself. 4. Attitude to Brand—overall evaluation of the brand. 5. Attitude to Ad—overall evaluation of the ad 6. Purchase Intention—self-instruction to buy the brand. C.

Elaboration Likelihood Model—the Elaboration Likelihood Model (ELM) is a way of analyzing differences in the way consumers process and respond to persuasive messages. The ELM is presented in Figure 4-5 of the text. According to the ELM, there are two processes or routes to persuasion, which are based on motivation and ability to process the message. Under the central route to persuasion the receiver is viewed as a very active and involved participant in the communications process whose ability and motivation to attend, comprehend and evaluate a message are very high. Under the peripheral route to persuasion the receiver is viewed as lacking motivation or ability to process information and is not likely to engage in detailed cognitive processing. The receiver may use “peripheral cues” such as focusing on the message source or executional elements of the ad rather than message content. Classical conditioning, known as a behavioural learning theory, helps explain how the peripheral route works. Behavioural learning theory emphasizes the how external or environmental stimuli causes behaviour while minimizing the significance of internal psychological processes. Classical conditioning assumes that learning is an associative process whereby the relationship between an unconditioned stimulus and conditioned stimulus develops through repetition and contiguity. Classical conditioning has applications in advertising as products become associated with perceptions, images, and emotions that evoke favorable reactions from consumers.

Conclusion of Processing Models— A review of how advertising works concluded that there is little support for the concept of a hierarchy of effects in the sense of a temporal sequence. A key conclusion is that individual responses to advertising should be evaluated based on product category experience and brand experience in addition to cognitive and affective responses as demonstrated in the processing models.

IV. RESPONSE MODEL FOR MANAGERIAL DECISION MAKING This chapter continues with Rossiter and Percy’s perspective presents a managerial framework to make promotional decisions that account for the academic and practitioner research on advertising over the past fifty years. Its similarity to the more theoretical conclusion is readily observed. The experience element is captured by R&P’s view that the target audience based on previous purchase behaviour of a brand be the foremost characteristic initially considered in establishing a communications plan. A.

Processing of Messages— The processing of marketing communication messages is illustrated in Figure 4-6. Moreover, the cognition and affect considerations are noted in the processing stage Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-35

as are the high and low involvement processing consistent with the more recent approaches for understanding audience responses to marketing communication messages. B.

Communication Effects of Messages—The communication effect of marketing communication messages are also shown in Figure 4-6 indicating once again the relevance of cognition and affect as the brand attitude effect is comprised of both elements in its measurement. It is also evident in category need, and need fulfillment is energized via consumer motivation; a psychological process with strong emotion. The brand components shows the managerial applicability with specific effects for an individual brand manager rather than communication in general.

Teaching Suggestions This chapter is designed to introduce the student to the fundamentals of communication. It is the most theoretical chapter in the text. However, this material is very important as it presents the basic elements of communication and provides a detailed examination of the process by which consumers respond to marketing communications. The material also provides the student with a foundation that is important for subsequent chapters of the text. It is very important to stress to the student that communication is the common goal of all promotional mix elements. They must have a solid foundation in this area if they are to evaluate other areas of advertising and promotion such as creative strategy, media strategy and alternatives and effectiveness measurement. It is helpful to emphasize to students that decisions about the controllable elements of the communication program, such as selecting a source, developing a message strategy and appeal, and selecting advertising media, cannot be made unless the promotional planner has some insight into how members of the target audience will respond to these factors. Students need to understand the traditional hierarchical response models including their implications and limitations. It is also important to point out the limitations of the traditional cognitive affective  conative sequence assumed by these models and to cover the alternative response hierarchies. After reviewing the alternative models of the response process, it should be apparent to the student that the traditional standard learning hierarchy may not be appropriate in many communication situations. The final sections show the current direction of advertising theory that accounts for processing and communication effects in which both exhibit cognitive and affective elements, and there is no prescribe hierarchy of the receiver’s response. Vignette 1. What other advertising opportunities might arise within the metaverse in the future? A high percentage of students participate in aspects of social media or online consumption, such as watching video games played on Twitch. .They likely experienced different branded marketing communication in the metaverse and can explain these new “ads” as a way of adding the examples identified in the vignette. Instructors could point out that the exposure of this brand stimuli retains similar communication principles even though the media and message diverge from historic exposures. From this, instructors lead a brain-storming exercise on how these ideas could go in new directions for future applications in this new digital world. IMC Perspective 4-1 Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-36

1. How would you assess the campaign with Jon Hamm in terms of the response hierarchy models? Instructors might like to show the ads as an introduction to the discussion. An important point to raise is how the ads conveyed aspects of the service, particularly the variety of food delivered. Instructors could draw on the approach used to evaluate the Second Cup ad in the text by illustrating how each model provides direction for understanding how the campaign is effective or ineffective. Students could decide which offers a more thorough evaluation and why. The discussion could focus on why the company dropped the agency and the campaign, and figure out if either model offers an answer. IMC Perspective 4-2 1. Would you have continued the GOOAT campaign for the 2021 and 2022 models of the Outback? Why or why not? This opinion-oriented question could potentially present a lively discussion. Some students will find the goat comparison as a genius creative idea to facilitate brand communication effects, while others conclude that the whole idea is completely silly for a major purchase. It is important to point out that the ads are encouraging those in the market to research the Outback and to visit a dealership. While clever, the idea is likely one-year campaign to communicate that the Outback had a major model redesign, something that all car brands do every three to five years. However, the alternative case can be made and instructors could use this direction to brainstorm more creativity. Answers to Review Questions 1. Recall the elements of Figure 4-1 and identify them for all aspects on an IMC plan – advertising, sales promotion, direct marketing, public relations, and Internet marketing. The elements of the communications process include the sender or source, the message, the channel, the receiver, noise, and feedback. The sender or source of a communication is the person or organization that has information to share with another person or group. The source may be an individual such as a salesperson or spokesperson who appears in a company’s advertisements or a nonpersonal entity such as a company or organization itself. The message is the information or meaning the source hopes to convey and may be verbal or nonverbal, oral, written, or symbolic. The channel is the method by which the communication travels from the source or sender to the receiver. At the broadest level there are two types of channels, personal and nonpersonal. Personal channels involve direct interpersonal contact with the receiver while nonpersonal channels carry a message without interpersonal contact between the sender and receiver. Nonpersonal channels are generally referred to as the mass media. The receiver is the person(s) with whom the sender shares thoughts or information. Generally receivers are the customers in the target market or audience who read, hear, and/or see the marketer’s message. Noise refers to extraneous factors in the communications process that can distort or interfere with the communication of a message. Errors or problems in that occur in the encoding of the message, distortions in the transmission of the message, and distractions at the point of reception are possible sources of noise. Feedback refers to the part of the receiver’s response that is communicated back to the sender and may take a variety of forms such as response hierarchy measures including Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-37

awareness, knowledge, attitudes, purchase intentions, preferences and behaviour. The form of feedback of ultimate interest to marketers is, of course, sales. Students should be encouraged to find an example of a current advertising campaign and to analyze it with respect to elements of the communications process. They might evaluate the source being used as a spokesperson in the campaign, the type of message being used, the channels or media where the ads appear, the target audience for the campaign, and the type of feedback that might be used to monitor the effectiveness of the campaign. 2. Explain why the three response models of Figure 4-2 are limited in planning for an IMC campaign? The three models assume a strict order of cognition, affect, and behaviour, something a major review article in Journal of Marketing cited in the chapter suggests is not supported in numerous studies. In addition, the models do not indicate when the stages are occurring, such as when the message is received (i.e., watching television) or when consumers are going about their day-to-day lives. Both of these criticisms are addressed in the subsequent models presented in the chapter. Another way to see how the models are in effective is to consider the following. Each of the response processes could occur at each of the decision-making stages. For example, consumers could see some ads while at the need recognition stage and have a cognitive and affective response and then plan to look at the product in the store. This decision towards a store visit is the behaviour which is actually occurring at the information search stage, the one after the need recognition stage. Consumers could receive a brochure at the store, read it at home and continue along in their information search stage. Again, responding to the communication occurred while in a particular stage of the decision-making process. 3.

Explain what is meant by a central versus peripheral route to persuasion and the factors that would determine when each might be used by consumers in response to an advertisement. Under the central route to persuasion the message recipient is viewed as a very active and involved participant in the communications process whose ability and motivation to process a message are very high. The recipient will pay close attention to message content and will carefully scrutinize the communication for the cogency or quality of the message claims. Under the peripheral route to persuasion the message recipient is viewed as lacking the motivation or ability to process the message and is not likely to engage in any detailed level of cognitive processing. Rather than thinking about or evaluating the information content of the message, the receiver will rely on “peripheral cues” such as an attractive source or other executional factors. Factors that would determine when each might be used by consumer in response to an advertisement include the involvement level of the consumer which will be a function of the nature of the product being purchased, the importance of the product/service being purchased to the individual, the needs of the individual, and the motivation and ability of the consumer to process the message.

4. What are the key difference between the traditional response models and the response model shown in Figure 4-6? The primary difference is that the former assumes a similar cognition-affect-behaviour response sequence while the latter presents a contingency model where by the sequence is influenced by the topical involvement and the perceived product differentiation. The key implication of the sequence Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-38

change is that advertising and promotion have different primary effects depending upon whether the consumer responded one way versus the other. The R&P model build on the previous models by clearly articulating the difference between the immediate reactions of the receiver while experiencing the message and the longer-term results of the communication of the brand. Consequently, there is a need to conceptually represent both dimensions of attitude theory at both places in time. 5. Why is it important to use a response model that is more applicable to managerial decision making? Planning for advertising is dependent on understanding how the target audience will respond to the marketing communication message, however a manager needs to translate or view these responses as potential options to influence when making marketing communication decisions. Furthermore, marketers require a degree of parsimony in using an approach that is clear for focus decisionmaking. Academic contingencies and fine embellishments of model may help explain some variation across major samples to generalize theory, but in the end a manager needs to make concrete decisions. Answers to Applied Questions 1. Consider ads found in social media like Facebook, Twitter and YouTube and assess whether the model in Figure 4-1 is useful for explaining how marketing communication works in these digital contexts. As argued in the text, Figure 4-1 still stands the test of time and is still very applicable for digital media since it has the clear feedback and response mechanism. Students should be able to apply all aspects of the model to any form of digital communication, it is only a matter of seeing how it work by thinking through problem like this to see that the key parts remains. 2. Assume that you are the marketing communications manager for a brand of paper towels. Discuss how the low involvement hierarchy could be of value in developing and advertising and promotion strategy for this brand. For a company selling a low-involvement product such as a paper towel, the consumer is likely to go through a learndo feel response hierarchy whereby some minimal level of awareness or passive learning may precede purchase and attitudes are formed after using the product. An advertiser of a low involvement product must recognize that consumers are less likely to give attention to actual message content and may focus more on non-message elements such as music, characters, slogans or jingles. Advertisers may want to use catchy slogans or jingles that will stick in consumers’ minds and become salient when they are in the actual purchase situation. The use of short messages and heavy repetition schedules will also be important. Advertisers may also use VIPs or visual image personalities that may lead to more involvement with and higher identification and retention of advertisements. Sales promotion techniques such as sampling and coupons may also be used to encourage first time trial. Point-of-purchase displays and advertising might also be used to encourage trial of the brand. If the product performs well the consumer should form a favorable attitude the probability of repurchasing it will increase. 3. Select an ad you think would be processed by a central route to persuasion and one where you think the peripheral processing would occur. Show the ads to several people and ask them to write down Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-39

the thoughts they have about each ad. Analyze their thoughts using the cognitive response categories discussed in the chapter. Under the central route to persuasion the message recipient is viewed as a very active and involved participant in the communications process whose ability and motivation to process a message are very high. The recipient will pay close attention to message content and will carefully scrutinize the communication for the cogency or quality of the message claims. Under the peripheral route to persuasion the message recipient is viewed as lacking the motivation or ability to process the message and is not likely to engage in any detailed level of cognitive processing. Rather than thinking about or evaluating the information content of the message, the receiver will rely on “peripheral cues” such as an attractive source or other executional factors. Students should be encouraged to select examples of advertisements that they feel are representative of each route to persuasion and to explain why the ads would be processed either centrally or peripherally. They should also show the ads to some friends and have them write down what thoughts they were having as they looked at the ad. They might then try to analyze these cognitive responses by categorizing them as product/message related thoughts (counterarguments or support arguments), ad execution related thoughts, or source-oriented thoughts (bolsters or derogations). You might have a few students show the examples they have chosen of ads that might be processed by a central or peripheral route and have the class analyze the cognitive responses they gathered for these ads. 4. Find an example of a print ad and evaluate it using the cognitive response model shown in Figure 46. Identify the specific types of cognitive responses that the ad might elicit from consumers and discuss why these might occur. Students should be encouraged to find a print ad and evaluate it using the cognitive response model shown in Figure 4-6. They might show the ad to their friends or fellow students and have them write down what thoughts they were having as they looked at the ad. They might then try to analyze these cognitive responses by categorizing them as product/message related thoughts (counterarguments or support arguments), ad execution related thoughts, or source-oriented thoughts (bolsters or derogations). You might have a few students show the examples of ads they have chosen and present their analysis of the cognitive responses given in reaction to these ads. They might also discuss why these responses were generated. Similarly, students might find their sample described the emotions experienced when viewing the ads. Students should try to accurately identify the emotions and to assess how strongly felt the emotions experience are. 5. Red Bull has numerous IMC activities including its TV advertising, events, and promotional activities. Check the Red Bull website and any other online material for background, and apply them to the matrix in Figure 4-7 to validate whether each activity assists in planning for IMC. Red Bull presents an interesting example to apply Figure 4-7. Across its IMC programs there is a distinct source, message, and channel to a multitude of target audiences. For example the imagery of its TV ads with cartoons is distinctly different that the imagery of Red Bull Crashed Ice. Furthermore, the exposure procedures and the type of processing and resulting communication effects are correspondingly appropriate for each program as well. In short this planning matrix allows managers to see which the controllable decisions are to influence outcomes that the manager deems important. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-40

Additional Discussion Questions (not in text) A. What is meant by encoding? Discuss how the encoding process differs for radio versus television commercials. Encoding refers to the process by which the sender of a communication puts thoughts, ideas, or information into a symbolic form using words, symbols, pictures, and the like. The encoding of a television commercial involves the use of visual images, sound, motion, color, and words, which provide advertisers with the opportunity to develop very creative messages. The encoding of a radio commercial is limited to the use of sound, which usually comes in the form of words read by an announcer and/or music. However, some astute advertisers may use a process called image transfer whereby the images from a TV commercial are planted in a radio spot by using similar, or even the same, audio portion. The idea is that when consumer hears the radio message, they will make the connection to the TV commercial thus reinforcing the video images. B. Explain the processes of selective perception described in the chapter. Provide examples. Selective exposure – Consumers may selectively decide what they will allow themselves to be exposed to. For example, if a consumer knows information will be provided that may lead to dissonance or the potential for inconsistency, they may consciously avoid the information. If one just purchased a new Ford, having selected this model over Chevrolet, they may avoid advertisements for Chevy’s to not create further dissonance. Changing stations during commercial breaks on television or radio, or leaving the room, skipping over ads in magazines, or simply ignoring banner ads are all forms of selective exposure. On the other hand, consumers may actually seek out information as well. Accessing the Internet to obtain more information, reading Consumer Reports, etc. are also forms of selective exposure. Selective attention—some consumers may stay in the room during commercials, but not pay attention to them. Consumers will be more inclined to pay attention to ads when they are in a search and/or evaluation stage of the decision process and the ad is relevant to this decision. For example, if you were in the market for a new car stereo, you might be more inclined to pay attention to commercials, print ads and publicity regarding brands, sales, etc. Once the purchase has been made, the consumer may engage in selective attention to these messages. Selective comprehension—there is no guarantee that the information provided by an advertiser will be comprehended in the manner intended. Consumers may distort information to meet their needs, or take away a different meaning than intended. For example, a consumer is torn between two attractive alternative automobiles. One gets 9.2 litres per 100 kilometres highway, the other 7.8. Depending on which car is purchased, the differences in gas mileage may be distorted. If the higher of the two was bought, the 9.2 may be made out to be significantly higher than 7.8. If the lower mpg car was purchased, the difference would seem to be much less. Selective retention—using the example of the two cars just above, what is remembered may be a result of selective retention. “Oh, I don’t remember the difference in mpg, but I recall it was only slightly higher” or “I remember there was a significant difference. My car got 1.4 litres per 100 kilometres more, and over a year this would amount to $200 in savings”. Consumers have a tendency to forget that information that is inconsistent or contrary to what they want to believe, and may be more likely to recall that that reinforces their existing beliefs, values, and/or attitudes. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-41