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Advertising Strategy
Target Audience Behaviour
4
Percy and Elliott’s Five Steps…
Select the target audience
Understand target audience decision making
Determine the best positioning
Develop a communications strategy
Setting a media strategy
Percy and Elliott, 2017
Advertising is always to someone…
The brand and its target market are inextricably entwined
Even the largest, most popular brands are only
used by a minority of the population
Media audiences are segmented - need to match advertising target
audience with media audience
Products and services – including media – always designed for clearly
defined population sectors.
Market research allows advertisers to know who these consumers are
Fletcher (2010 pp 6 – 7)
How does the target audience make buying decisions?
Low involvement/high involvement (high risk/low risk)
Decision-making…
Need to know the where, how and who of decision making
Percy and Elliott (2017)
what is their role, who influences them, trade influence?
why are they the target audience?
Roles… Initiator, influencer, decider, purchaser, user…
Can link target marketing to target audience
response hierarchy models…
Attention
Desire
Interest
Action
Awareness
Interest
Evaluation
Trial
Adoption
Unawareness
Awareness
Comprehension
Conviction
Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
cognitive
affective
conative
AIDA
The Innovation-
Adoption Model
The Hierarchy-of-Effects
Model
DAGMAR
Colley, 1961 Lavidge and Steiner,
1961
Lewis, 1898 Rogers, 1962
…Consumer Decision-making
Problem/ Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Evaluation of Purchase
Blackwell et.al., 2001
Generic Consumer Decision-Making Model…
Need arousal
Usage
Brand consideration
4 stages in the decision-making…
Purchase
Percy and Elliott (2017)
At each decision stage we need to consider…
Who is involved – as ‘individuals’ and their role
The timing of the stage
How the stage is likely to occur
Where the stage is likely to occur
Percy and Elliott (2017)
Decision Stage… linked to advertising
Need Arousal Brand
Consideration
Purchase Usage
WHO -
Individuals
involved and
their decision
roles
WHERE -the
stage is likely to
occur
WHEN -Timing
of the stage
HOW - the
stage is likely to
occur
Generic Consumer Decision-Making Model…
…but these models can present problems
Thinking Feeling
LevelofInvolvement
HighLow
Informative (Thinker)
Car – House - Furniture
Affective (Feeler)
Jewelry – Cosmetics - Fashion
Model:
Possible
Implications
Test:
Media:
Creative:
Learn – Feel – Do
Recall, Diagnostics
Long Copy, Reflective
Specific Information,
Demonstration
Model:
Possible
Implications
Test:
Media:
Creative:
Feel – Learn – Do
Attitude Change, Emotional
Arousal
Large Space, Image Specials
Executional, Impact
Habit Formation (Doer)
Food – Household Items
Self Satisfaction (Reacter)
Cigarettes – Alcohol - Sweets
Model:
Possible
Implications
Test:
Media:
Creative:
Do – Learn – Feel
Sales
Small Space Ads, 10
second IDs, Radio, POS
Reminder
Model:
Possible
Implications
Test:
Media:
Creative:
Do – Feel – Learn
Sales
Billboards, Newspapers, POS
Attention
Adapted from FCB (Foote, Cone and Belding) Grid, Vaughn, 1980
strong and weak theories…
strong view… ads can increase sales through use of persuasive,
manipulative techniques, deployed against passive customers who do not process
information, such as the sequential models
weak view… Ehrenberg’s ATR‘N’ framework
(awareness-trial-reinforcement-nudge)
promotional messages do not make us buy products but
rather consumers are driven by habit
hence, it is only after trial that our attitudes are changed
Ehrenberg’s ‘nudge’ (weak) theory...
ads just provide reinforcement to stimulate habitual buyers into more
frequent purchases of the brand from their repertoire
so the role of advertising is not to inform but to get lapsed or potentia
users to try the brand, to ‘nudge’ us into buying
Decision Stage… linked to advertising
Do Feel-Learn
Awareness Trial Reinforcement -
Nudge
Problem
recognition
Information search/
evaluation of
alternatives
Purchase Post-purchase
evaluation
Need Arousal Brand Consideration Purchase Usage
WHO - Individuals
involved and their
decision roles
WHERE -the stage is
likely to occur
WHEN -Timing of the
stage
HOW - the stage is
likely to occur
Generic Consumer Decision-Making Model… Adapted from Percy and
Elliott (2017)
Heuristics
…mental shortcuts
…cognitive bias
…aid in problem solving
McKinsey model of consumer decision-making
Adapted from Court, Elzinger, Mulder and Vetcik, 2009
Role in the
Decision
Communications’ Objectives Action
Initiator Brand Awareness, Initial
Brand Attitude
Suggests purchase
Influencer Brand Attitude Recommends or
discourages
Decider Brand Attitude and Brand
Purchase Intention
Makes the choice
Purchaser Brand Purchase Intention Actually purchases
User Brand Attitude Consumer or uses the
product
…who?
Percy and Elliott (2017)
We can keep it really simple
What is the target audience action objective?
Trial Purchase – Non-users
Repeat purchase - Users
…who?
…who?
…where?
…difference between real and probable locations
Better informed via research
…home, someone else’s home, work/study, in store,
commuting/travelling…
Mintel, 2019
…this links to the journey in terms of location
…where?
…when?
Key to determine media scheduling…
Is there a need to preempt the decision to consume/serve?
Concentrated or extended decision?
Time of day, week, month, year may all be relevant…
consider frequency of purchase and category need
…how?
How does the need occur? What is the stimulus?
What happens at purchase?
Where, how and why is the product consumed?
Where is information sourced from?
What influences the need?
hunger, convenience, situation/location, socio-cultural factors, distracted, hedonistic…
Adapted from Hess, Jonnalagadda and Slavin, 2016
Decision Stage… linked to advertising
Do Feel-Learn
Awareness Trial Reinforcement -
Nudge
Problem
recognition
Information search/
evaluation of
alternatives
Purchase Post-purchase
evaluation
Need Arousal Brand Consideration Purchase Usage
WHO - Individuals
involved and their
decision roles
WHERE -the stage is
likely to occur
WHEN -Timing of the
stage
HOW - the stage is
likely to occur
Generic Consumer Decision-Making Model… Adapted from Percy and
Elliott (2017)

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AMS Lecture 4

  • 2. Percy and Elliott’s Five Steps… Select the target audience Understand target audience decision making Determine the best positioning Develop a communications strategy Setting a media strategy Percy and Elliott, 2017
  • 3. Advertising is always to someone… The brand and its target market are inextricably entwined Even the largest, most popular brands are only used by a minority of the population Media audiences are segmented - need to match advertising target audience with media audience Products and services – including media – always designed for clearly defined population sectors. Market research allows advertisers to know who these consumers are Fletcher (2010 pp 6 – 7)
  • 4. How does the target audience make buying decisions? Low involvement/high involvement (high risk/low risk) Decision-making… Need to know the where, how and who of decision making Percy and Elliott (2017) what is their role, who influences them, trade influence? why are they the target audience? Roles… Initiator, influencer, decider, purchaser, user… Can link target marketing to target audience
  • 6. …Consumer Decision-making Problem/ Need Recognition Information Search Evaluation of Alternatives Purchase Decision Evaluation of Purchase Blackwell et.al., 2001
  • 7. Generic Consumer Decision-Making Model… Need arousal Usage Brand consideration 4 stages in the decision-making… Purchase Percy and Elliott (2017)
  • 8. At each decision stage we need to consider… Who is involved – as ‘individuals’ and their role The timing of the stage How the stage is likely to occur Where the stage is likely to occur Percy and Elliott (2017)
  • 9. Decision Stage… linked to advertising Need Arousal Brand Consideration Purchase Usage WHO - Individuals involved and their decision roles WHERE -the stage is likely to occur WHEN -Timing of the stage HOW - the stage is likely to occur Generic Consumer Decision-Making Model…
  • 10.
  • 11. …but these models can present problems
  • 12. Thinking Feeling LevelofInvolvement HighLow Informative (Thinker) Car – House - Furniture Affective (Feeler) Jewelry – Cosmetics - Fashion Model: Possible Implications Test: Media: Creative: Learn – Feel – Do Recall, Diagnostics Long Copy, Reflective Specific Information, Demonstration Model: Possible Implications Test: Media: Creative: Feel – Learn – Do Attitude Change, Emotional Arousal Large Space, Image Specials Executional, Impact Habit Formation (Doer) Food – Household Items Self Satisfaction (Reacter) Cigarettes – Alcohol - Sweets Model: Possible Implications Test: Media: Creative: Do – Learn – Feel Sales Small Space Ads, 10 second IDs, Radio, POS Reminder Model: Possible Implications Test: Media: Creative: Do – Feel – Learn Sales Billboards, Newspapers, POS Attention Adapted from FCB (Foote, Cone and Belding) Grid, Vaughn, 1980
  • 13. strong and weak theories… strong view… ads can increase sales through use of persuasive, manipulative techniques, deployed against passive customers who do not process information, such as the sequential models weak view… Ehrenberg’s ATR‘N’ framework (awareness-trial-reinforcement-nudge) promotional messages do not make us buy products but rather consumers are driven by habit hence, it is only after trial that our attitudes are changed
  • 14. Ehrenberg’s ‘nudge’ (weak) theory... ads just provide reinforcement to stimulate habitual buyers into more frequent purchases of the brand from their repertoire so the role of advertising is not to inform but to get lapsed or potentia users to try the brand, to ‘nudge’ us into buying
  • 15. Decision Stage… linked to advertising Do Feel-Learn Awareness Trial Reinforcement - Nudge Problem recognition Information search/ evaluation of alternatives Purchase Post-purchase evaluation Need Arousal Brand Consideration Purchase Usage WHO - Individuals involved and their decision roles WHERE -the stage is likely to occur WHEN -Timing of the stage HOW - the stage is likely to occur Generic Consumer Decision-Making Model… Adapted from Percy and Elliott (2017)
  • 17. McKinsey model of consumer decision-making Adapted from Court, Elzinger, Mulder and Vetcik, 2009
  • 18. Role in the Decision Communications’ Objectives Action Initiator Brand Awareness, Initial Brand Attitude Suggests purchase Influencer Brand Attitude Recommends or discourages Decider Brand Attitude and Brand Purchase Intention Makes the choice Purchaser Brand Purchase Intention Actually purchases User Brand Attitude Consumer or uses the product …who? Percy and Elliott (2017)
  • 19. We can keep it really simple What is the target audience action objective? Trial Purchase – Non-users Repeat purchase - Users
  • 22. …where? …difference between real and probable locations Better informed via research …home, someone else’s home, work/study, in store, commuting/travelling… Mintel, 2019 …this links to the journey in terms of location
  • 24. …when? Key to determine media scheduling… Is there a need to preempt the decision to consume/serve? Concentrated or extended decision? Time of day, week, month, year may all be relevant… consider frequency of purchase and category need
  • 25. …how? How does the need occur? What is the stimulus? What happens at purchase? Where, how and why is the product consumed? Where is information sourced from? What influences the need? hunger, convenience, situation/location, socio-cultural factors, distracted, hedonistic… Adapted from Hess, Jonnalagadda and Slavin, 2016
  • 26. Decision Stage… linked to advertising Do Feel-Learn Awareness Trial Reinforcement - Nudge Problem recognition Information search/ evaluation of alternatives Purchase Post-purchase evaluation Need Arousal Brand Consideration Purchase Usage WHO - Individuals involved and their decision roles WHERE -the stage is likely to occur WHEN -Timing of the stage HOW - the stage is likely to occur Generic Consumer Decision-Making Model… Adapted from Percy and Elliott (2017)