Levels of InvolvementThere are three levels of importance of the product to the consumerNo involvementNo interest in the product categoryNo purchase behaviorLow involvementProduct is usedCareful brand evaluations are not madeHigh involvementThe product is usedConsumer engages in careful brand evaluation prior to purchaseHierarchy of EffectsThe series of stages a consumer passes from unawareness to brand loyalty.High Involvement HierarchyAwarenessKnowledge that the product existsAttitudesOpinions about the productCould be positive, negative or neutralBehaviorLow Involvement HierarchyAwarenessTrial BehaviorAction related to the product without the formation of attitudeTesting of the product to see if they can become highly involvedAttitudeThe way the person feels about the product this is usually formed after the trial behavior period.Repeat BehaviorSubsequent action based on positive attitudeIf they like the trial, they will be more likely to try it again.Schramm’s One Way CommunicationSource Encodes Signal Decodes DestinationAdvertiser puts together as which is understood by the target marketPotential Problems with ONE WAY CommunicationEncodingThe source perceives the problem incorrectly, then encodes the wrong conceptSignalThe source understand the problem, but sends a signal that does not communicate the intended messageDecodingThe receiver misunderstand or misinterprets the messageDestinationThe receiver understands the message butForgetsIgnoresAdvertising Agency OrganizationAccount servicingLiaison between the agency and the clientOften involved in new business developmentStrategy developmentResearchInvolved in a project throughout the entire processFirst people to be involved in a projectSituation analysisConcept testingEvaluationStrategic planningDevelops creative direction of campaignBased on consumer research findingsCreativeDevelops verbal message (copy)Develops visual message (Layout, art direction)MediaDelivery of the messageStriving for most efficient use of moneyProductionTranslates the copy and layout into finished formTrafficControls the entire process to insure that each department meets deadlinesTypes of AgenciesFull ServiceComplete serviceResearchCreativeMediaOther potential servicePublic relationsSales promotionSocial MediaMedia buying serviceMedia buying onlySpecialistOften purchase in bulkCreative BoutiqueSmall specialty agencyPrint, broadcast, or InternetSometimes just concept developmentIn-HouseAgency operated within the corporationSome function outsourcedGetting to Know YouConsumer SegmentationSituation AnalysisA research based analysis of all the internal and external factors that affect the organizationADV 3008 Lecture 2 Outline of Last Lecture I. Cont. of Promotions Mix II. The beginning of Advertising a. Advantagesb. Disadvantages III. Decision Sequence Model Outline of Current LectureIV. Levels of Involvement a. No involvementb. High involvement c. Low Involvement V. Types of Agencies Current Lecture← Levels of Involvement There are three levels of importance of the product to the consumero No involvement No interest in the product category No purchase behavior o Low involvement Product is used Careful brand evaluations are not madeo High involvement The product is used Consumer engages in careful brand evaluation prior to purchase ←Hierarchy of Effects The series of stages a consumer passes from unawareness to brand loyalty. High Involvement Hierarchy o Awareness Knowledge that the product existso Attitudes Opinions about the product Could be positive, negative or neutralo Behavior Any action related to the product Low Involvement Hierarchy o Awarenesso Trial Behavior Action related to the product without the formation of attitude Testing of the product to see if they can become highly involvedo Attitude The way the person feels about the product this is usually formed after the trial behavior period. o Repeat Behavior Subsequent action based on positive attitude If they like the trial, they will be more likely to try it again.← Schramm’s One Way Communication ←← Source Encodes Signal Decodes Destination←← Advertiser puts together as which is understood by the target market ← Potential Problems with ONE WAY Communication - Encoding o The source perceives the problem incorrectly, then encodes the wrong concept - Signal o The source understand the problem, but sends a signal that does not communicate the intended message - Decodingo The receiver misunderstand or misinterprets the message - Destination o The receiver understands the message but Forgets Ignores← Advertising Agency Organization- Account servicing o Liaison between the agency and the client o Often involved in new business development o Strategy development - Research o Involved in a project throughout the entire processo First people to be involved in a project Situation analysis Concept testing Evaluation - Strategic planningo Develops creative direction of campaign o Based on consumer research findings- Creative o Develops verbal message (copy)o Develops visual message (Layout, art direction)- Media o Delivery of the message o Striving for most efficient use of money Production o Translates the copy and layout into finished form - Traffico Controls the entire process to insure that each department meets deadlines ← Types of Agencies - Full Service o Complete service Research Creative Mediao Other potential service Public relations Sales promotion Social Media - Media buying service o Media buying only o Specialist o Often purchase in bulk - Creative Boutique o Small specialty agency o Print, broadcast, or Internet o Sometimes just concept development - In-House o Agency operated within the corporation o Some function outsourced ←Getting to Know You Consumer Segmentation ← Situation AnalysisA research based analysis of all the internal and external factors that affect the
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