Attitudes to advertising - CW1 - Advertising Strategy

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Attitudes To Advertising - CW1 – Advertising strategy

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Introduction Advertising model has been developed over the decades to try to quantify, scale and understanding the process that is very much complex because the consumers mind is constantly changing and evolving. The report will review and place context to the adverting models that are widely known within the industry. These model will then be applied the Nestle brand KitKat to show how macro PESTEL influences effected advertising. “I do not regard advertising as entertainment or an art form, but as a medium of information.” David Ogilvy AIDA is a response hierarchy model and is used by advertisers to try separate the various stages a consumer goes through when buying a product or service. (P R Smith & Jonathan Taylor 2006) AIDA was developed in 1898 by an American salesman named E. St. Elmo Lewis to explain the process of communications in advertising. (Yeshin, 1998) Each step was a logical consequence of what had gone before. This principle of sequential activity or learning is used commonly in marketing models such as hierarchy of effects. The model can be seen in (Appendix 1) it implies that advertising is a linear process. 1898 was before the turn of big economic and social changes of the next century. The consumer was naive and lacked the experience of comparing products. The choice of chocolates was low, a product was on the market and it solved that problem for example Hoover for hoovering. (Leiss and Botterill, 2005) During 1890-1920 the advertising was focused on the useful characteristics of the goods themselves. Newspapers/Magazine were the only way of communicating to consumers at scale so advertising was predominantly personal face-to-face interactions in local markets or local shops. 1935 Rowntree's Chocolate Crisp launched originally advertised as "the biggest little meal" and "the best companion to a cup of tea” the product only had the name and the type of food. See (Appendix 5) in the iconic red today. (Leiss and Botterill, 2005) emphasises above all the useful characteristics of the goods themselves; when images of persons appear they are highly stylised drawings. This can be seen with an example of Kit Kat in 1937 after the name change (Nestleprofessional.com, 2004) See (Appendix 4) This advertisement explains the fine details even down to how to eat and why. This is because at the time people had to be told how these new products worked and how they provided a use. Shannon and Weaver model was made in 1949 to show the transfer of information from one place to another. The way this applies to advertising, is the ’noise’ section in the process as seen in (Appendix 2) Because of a linear approach the information does not take into account the meaning of the message. Another point is the meaning of the medium, for example the type of newspaper to a modern day tweet. The model is one way, so if the receiver is responding how will this effect the noise variables? This model could be seen as deceptive as time has not been taken into account. The decade before saw the development of mass communication due to propaganda, also technological with the need to send messages to the front line. During this time Kit Kat was depicted as a valuable wartime food, with the slogan "what active people need” This is referencing to women helping the war effort with a “We Can Do It!” as seen (Appendix 6) During the Second World War due to a shortage of ingredients including milk, Rowntree altered the recipe of Kit Kat Chocolate Crisp to dark chocolate. The wrapper was changed to blue and the oval logo was removed along with the Chocolate Crisp. As seen (Appendix 7). In 1949 the packaging returned to red this was released with 'Kitty the Kat’ a name used for a small period to emphasise the "rich full cream milk" qualities of the bar and, thanks to contemporary improvements in production methods, also highlighted the new and improved 'snap' by responding to a biscuit being broken off screen. This shows that Rowntree’s was starting to add characteristics to the brand to make it different from competitors.

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Lavidge and Steiner (1961) is another hierarchy model as seen in (Appendix 8) The model offers targeted advertising for each stage individually, each stage follows the next or the desired outcome or it will not be accomplished (Yeshin, 2006). With this model there are no time parameters, as this model incorporates different types of exposure. For example emotion, this model also links to the hierarchy of effects that are later resulted into contemporary psychological thinking. DAGMAR is another hierarchical communications model made by J Colley in 1961. Defining, Advertising, Goals and measured advertising results. (Feldwick, P 1990) and seen in (Appendix 9). What is different with this model is that the focus was away from just sales but also other outcomes like awareness. The model adds scale and contribution to the process, by setting precise time scales determined for the achievement of the objectives set. (Yeshin, 2006) This model stresses the importance of benchmarking and understanding the target audience to help with the strategic communication. This said the model is for implying that consumers are essentially passive in the marketing communication process. The 1960s show a rise of prosperity, Harold Macmillan Conservative Prime Minister during this decade ‘You've never had it so good’ (Middleton, 1996). From the 1950 to the 1970 onwards the ease of access to mass communication technology like radio and television supported advertising, this also led to the person/consumer coming to the fore front in ads predicting are personalised in terms of feelings such as romance, sensuality, and self-transformation. (Leiss and Botterill, 2005) A key date for many modern day Kit Kat consumers is 1966. Kit Kat had an ad depicting the moment in the World Cup Final where Russian linesman awarded England a controversial goal against W Germany, showing him eating a Kit Kat insinuating he was Having a brake. The ad used emotional aspects linking to cultural and current topics within their advertising. (KitKat Russian Linesman, 2006) Another key develop of the brand, is during the late 1963 when Rowntree’s started targeting not the individual worker but towards the family when releasing family packs as depicted in (Appendix 10) and (Appendix 11). Professor Andrew Ehrenberg’s proposed a model in 1974 rejecting earlier models challenging the traditional notion that advertising “works by any strong form of persuasion or manipulation” called the Awareness Trail Reinforcement (ATR) Model (1974) (Warc.com, 1997) This model proposes that advertising worked not by changing attitudes, but by reinforcing attitudes already held by a consumer who had extensive usage experience and knowledge of products, providing reinforcement. (Heath and Br et al., 2006, p. 410) In 1997 Ehrenberg’s developed this model to add ‘Nudge’ as the last stage explaining that the consumer can be ‘Nudged' into buying the product again for repeat purchases. (Smith and Zook, 2011) Another key point to Ehernberg’s model is that is shows that buying behavior is complex, and that is it often misleading to think of people as neatly divided into buyers and non buys of a brand. The model can be seen (Appendix 12) The 1970s saw a wide range of political and social change, for example the landmark of Equal Pay Act advancing the cause of women’s equality. This can be referenced with the following KitKat ad (YouTube b, 2011) it portrays a housewife listening to a workers campaign, might be CND and or Anti-Apartheid portents. She switches off the radio, its time for a break. Another point is that even after 35 years at this time, the ad references to eating with a cup of tea, building on the heritage aspect, reinforcing the position of the product in a users life. Technological advances saw Kit Kat have its first colour advert in 1969, letting people see the colour red of the wrapper. Communications were strictly one-way as advertisers communicated and consumers were passive recipients of information. (Hbs.edu, 2008) The FCB model developed by Dave Berger and Richard Vaughn in 1980. As seen (Appendix 14). This model isn’t based on the hierarchy steps of ‘think – feel – do’ the model involves high and low risk involvement, which is depicted with the different products on offer. High involvement products would be a service such as life insurance where as a low involvement product may be toilet roll. (Vaughn 1980) This model develops a more complex view of the consumer to understand how such advertising will work with a particle consumer of the advertisement. Vaughn states in his paper ‘further proposes that over time, there is movement from thinking toward feeling” This

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can be seen with the KitKat brand, as the brand has become more iconic the consumers feel they want a KitKat instead of the previous decade when the bar was eaten for energy between meals. (Vaughn, 1980) This development of understanding how high involvement can develop into low involvement because the consumer understand what the product can do, this can then produce repeat purchases. This model helps to isolate specific categories for strategy planning, not seen in details with communication models. Nicholas Negroponte Director of the Media Lab at the Massachusetts Institute of Technology (MIT) presented a prediction in 1980 The Model of Convergence as seen in (Appendix 15) this model indicates three areas of Communications, Content and Computing converging. This model gained visibility in the late 1980s and early 1990s because of the development of ease of access to rich media like transferable data through disc but also computers and the Internet. (Dubberly, 2011) “Like air and drinking water, being digital will be noticed only by its absence not is presence” Nicholas Negroponte The Elaboration Likelihood Model (ELM) as seen in (Appendix 16) The model is based on the idea that attitudes are based on information processing and persuasion. The model features two routes of persuasive influence: central and peripheral. ELM takes into consideration of several factors such as consumers’ prior opinion, personal relevance, expertise, need for cognition and so on. The model is effective in showing the difference between (high elaboration) to peripheral issues such as source expertise or attractiveness (low elaboration), shapes its persuasiveness. For the message to be centrally processed, a person must have the ability and motivation (dependent on personal relevance) this element has not be touched on before with previous models, if the person has the motivation to process or simply ignore the persuasive communication. Peripheral-route processes do not involve elaboration of the message through cognitive processing of an argument's merits. It relays on the message's environmental characteristics: the perceived credibility of the source, message presentation quality. This is an interesting dynamic that was picked up in the analysis of the Shannon and Weaver model, that the medium is the message. 1980s in the height of Thatcherism saw the rise of cult of individualism but the collapse of mining and large-scale manufacturing resulting in a fragmented of society (Pettinger, 2013) and (History.org.uk, 2011). With the invention of desktop computers and the Internet publishing and how consumers access information was changing. For example a news report based in America saw the first change for publishers letting readers access their newspaper from home. (YouTube d, 2013). Advertising has seen a development with ever access to media further developing a less naive consumers, this led to questioning companies and how they operated. Development of this 1970-1990 consumer advertising was focused on social grouping as its core representation, and products form the emblems of various group consumptions practices. (Leiss and Botterill, 2005) These qualities can be reflected within Kit Kats 80s ad (YouTube c, 2013) where younger and older generation had a cultural split with music and clothes choice, but also on (YouTube e, 2013) the divide of British and Russian foreign diplomats wouldn’t talk. But the common ground was the chocolate bar, the universal taking a brake that relates them, very timely for the second ad because during 1989 the collapse of communism in Russia, fall of the iron Curtain. In 1987 Kit Kat had one its most famous ads of pandas in a zoo (YouTube f, 2013) it was different and creative for the time but still had the core messages. This ad later came 30th in Channel 4's "100 Greatest Adverts" poll in 2000. During this time consumer response was more apparent the industry evolved with call centers and response vehicles that allowed marketers to hear from consumers. (Hbs.edu, 2008) Five stages of marketing evolution by Mary Goodyear was based off research carried out in 1999. The five stages can be found (Appendix 17) The goodyear model is effective as it shows the progression, also leaves up the opportunities for different products and sectors where the different type of marketing and branding communications are relative. The 1990s saw an increase in a connected society with people, travelling more and communicating through different means. Britain had prosperity of the majority and eastern Europeans arrive in large numbers as

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their countries join the European Union. With such quick changes in these consumer lives they had access to a wide selection of alternative media. With services like Sky providing an expanding portfolio for channels for consumers. In terms of marketing there was a development of a two-way communication. In the 1990s, a dialogue began between consumers and marketers. (Hbs.edu, 2008) 1995, Nestlé sought to trademark the "Have a break" portion. After a ten year legal battle, which was contested by rival Mars, the European Court of Justice ruled on 7 July 2005 to send the case back to the British courts. (New York times, 2005) In regards to relating the Mary Goodyear steps of marketing to the Kit Kat brand it would follow. 1. Commodity selling – 1935-1955 – Name, Basic promotion only promotion like price. Examples (Appendix 17) and (Appendix 5) 2. Marketing; 1954–1959 Brand as personality, lifestyle advertising, product with a brand name. Example (Appendix 18) (Yorkshirefilmarchive.com, n.d.) 3. Classic branding; Brand as personality, affective research. 1960–1965 (Appendix 10) (Appendix 11) 4. Customer driven branding; 1966–1985 Brands is iconic, saturated market place, segmentation by user-type, symbolic advertising, through the line creative, integrated research (Appendix 18) (Appendix 19) 5. Postmodern marketing. 1986–current (YouTube f, 2013) 2000 to current day has seen greater need to understand consumers; this is due to the access of technology for consumers and the impact of having an overload of messages being given to them. Community communications has been the focus because of social media. Building on the Shannon and weaver model a multi-step communication model as seen in the (Appendix 3) might be more appropriate as the same message can be used for mass communications. (P R Smith & Jonathan Taylor 2006) "model where you control what your audience sees to that of curating, collaborating with, and responding to how your customers react to your brand experiences? It's about what they feel, rather than what you say.” September 2013 it was announced that version 4.4 of Google's Android mobile operating system would be named "KitKat”. (Nestle, 2013) Google is licensing the name from Nestlé, with no money changing hands. A promotion will be run in numerous countries with specially branded Android Kit Kat bars to win Nexus 7 devices & Google Play Store credit. Nestle’s Kit Kat and Google android have developed a nine-month campaign cobranded operating system. (BBC News, 2013) On Nestlé's side they have positioned the Kit Kat brand for the new-media age, where the young, digitally-savvy audience are more likely to log-in than take time out. On Google’s side the operating system will be places in all new android phones and older generation that upgrade their software. The Advertisement itself is a parody of Apples own product videos (Prasad, 2013) the direct competitor of Google android operating system. (YouTube f, 2013) The ads style reflects this style in a humor way with ‘The future of confectionery has arrived’ with the same medium shots of employees talking and emotive hand movements. Throughout the Kit Kat is referred and referenced to as a piece of technology. This may be a rolling joke, however it still gives connotations of quality and when to eat it. The ad also displays a Google nexus tablet and then the new designed bars for the campaign, with a call to action at the end ‘Search Android Kit Kat’. The clever aspect about this campaign is that the technology community is vibrant, open and drives conversation. The campaign ran by JWT successfully got top-trending topic on Twitter within 48 minutes of its introduction. And it remained in the top ten rankings for 12 hours, and went on to generate 1.3 billion impressions. A YouTube launch video also accrued two million views in 72 hours, and traffic to KitKat's website surged by an astonishing 80,000%. "What's interesting is that no money changed hands," said Blackshaw. "I think it really underscores the power of owned media. To some extent, the packaging is part of what really, really brought value to the table. It's thinking differently about your assets as you try to build your brand franchises.” (Warc.com a, 2013) What is apparent in this campaign is the significance of owned, earned and paid media but how in which this is converged. (Chaffey,

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2012) The way in which they use their earned media is interesting because they invest this into their vibrant social media sites like Facebook page for content. The role the advertising played in this campaign was awareness and engaging a new community, a community that might already have their favorites in confectionery. The campaigns plays on the strings of the modern day consumers, they use their phones for a number of different tasks and with the rise of smart phone games many ‘take a brake’. Even now this campaign will run for nine-months the effects will be far reaching on an international level where Nestle brands may not be current, as the software will be distributed all over the world. The ad can be analyzed using the elements of brand heritage model by (Urde et al. 2007) Track record and Longevity of the brand can be seen because the ad isn’t a ‘hard sell’ it is a simple En reinforcement Conclusions The main points to the report is that there isn’t a model or a formula to advertising, people are individuals and have millions of attributes to their decision making. Most of the model above in particular sees the consumer as passive and make decisions within a linear model. These different attributes evolve over time and can be impacted by nearly anything; the key for consumer researchers is finding the points that connect at that time and place (context messaging). This involves a number of areas of research that develop a better understanding of not the conscious level but the submarines, this involves neuroscience but still at the experimental level. The process of advertising will always need to be planned and executed, and the outcomes evaluated because of how important it places in the overall marketing mix and then the effects it has for companies. To be more effective in advertising, it still comes to understanding the customer, who they are, where they are as people and what will help them develop a decision.

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Appendix Appendix 1 AIDA Awareness/Attention - This is the cognitive ‘knowing’ of a product or service existence. Interest - This step is understanding what the product or service can provide like benefits. Desire - The wanting or need for the product or service Action Source: Appendix 2 Shannon and Weaver model was made in 1949 to show the communication process and what impacts this transfer of information from the information source to the receiver.

Shannon and Weaver model was made in 1949 to show the communication process and what impacts this transfer of information from the information source to the receiver. This linear approach to information/data transfer shows in a simple model that a transfer of information can be altered due to a number of factors named as ‘noise’ Shannon and Weaver argued that there were three levels of problems of communication. First the technical problem, how accurately can the message be transmitted? Secondly the semantic problem: how precisely is the meaning 'conveyed’? Finally the effectiveness problem: how effectively does the received meaning affect behaviour? Source: Appendix 3

(P R Smith & Jonathan Taylor 2006) Appendix 4

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(Source: NewsComAu a, 2013) Appendix 5

Source: Appendix 6

(Source: Pophistorydig.com, 2012) Appendix 7

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(Source: NewsComAu b, 2013) Appendix 8 Lavidge and Steiner (1961)

(Source: Superbrand.net, 2013) Appendix 9 DAGMAR Unawareness of the product or service. Awareness - To know the product and service. Comprehension - To understand the benefits of the product/service. Conviction - To the next step of buying the product or service. Action - The buying of the product. Appendix 10

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(Source: NewsComAu c, 2013) Appendix 11

(Source: NewsComAu d, 2013) Appendix 12 Ehrenberg's Reinforcement (ATR) Model (1974)

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(Source: Smith and Zook, 2011) Appendix 13

(Source: Warc.com, 1997) Appendix 14

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Appendix 15 Nicholas Negroponte Director of the Media Lab at the Massachusetts Institute of Technology (MIT) presented a prediction in 1980 The Model of Convergence

Source: Appendix 16

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(Source: Petty, R.E., Kasmer, J., Haugtvedt, C. & Cacioppo, J. 1987) Appendix 17 Five stages of marketing evolution by Mary Goodyear It was to show to progression of the type of marketing that a business will carry out when the consumer becomes sophisticated and savvy. The transition from one stage to another is based on a discrete and real 'mutation' of the existing process. 1. Commodity selling; Name, basic promotion like price, basic demographic targeting. 2. Marketing; Brand as personality, intense competitor, targeting psychographics, lifestyle advertising, affective research, product with a brand name. 3. Classic branding; Brand as personality, intense competitor, targeting psychographics, lifestyle advertising, affective research. 4. Customer driven branding; Brands as icons, saturated market place, segmentation by user-type, symbolic advertising, through the line creative, integrated research 5. Postmodern marketing. Complex brands, cynical consumers, needs-based segmentation, deconstructed advertising, direct observation, electronic data capture. (Source: Goodyear, 1999, pp. 6-11) Appendix 17

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(Source: Eureferendum.blogspot.co.uk, 2010) Appendix 18

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(Source: NewsComAu e, 2013) Appendix 18 The elements of brand heritage

(Source: Urde et al. 2007) Appendix 18

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(NewsComAu f, 2013) Appendix 19

(NewsComAu g, 2013)

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