hierarchy-of-effects model

Examples of hierarchy-of-effects model in the following topics:

• Defining Campaign Objectives

  • The hierarchy-of-effects model clarifies the objectives of an advertising campaign and each individual advertisement.
  • You may market a certain brand of bottled water.
  • Among advertising theories, the hierarchy-of-effects model is predominant.
  • The hierarchy-of-effects model can be explained with the help of a pyramid.
  • Many marketers know the hierarchy-of-effects model, but usually by a different name.

• Consumer Influence

  • Marketers must understand what influences consumer behavior, such as the consumer buyer process, top influencers, and effective advertising.
  • According to the research done by multiple studies, Alcohol advertising that is available on college campuses in the United States does have an effect on students' consumption of alcohol; students were shown to have consumed more alcohol products including binge drinking when there were flyers, specials, promotions, coupons, giveaways, television, radio and other types of advertising on campuses.
  • A recent study found that 10% of consumers are influencing the buying decisions of a large chunk of other consumers, making them top influencers.
  • The Hierarchy of Effects Model - Effective advertising will aim to influence consumer behavior at each and every stage of the consumer buying process.
  • Radio advertising is a form of advertising via the medium of radio.

• Applying the Diffusion of Innovation Theory

  • There are categories of adopters that serve as a classification of individuals within a social system on the basis of innovativeness.
  • Research done in the early 1950s at the University of Chicago attempted to assess the cost-effectiveness of broadcast advertising on the diffusion of new products and services.
  • The findings were that opinion leadership tended to be organized into a hierarchy within a society, with each level having most influence over other members in the same level, and on those in the next level below it.
  • However, the study found that direct word of mouth were far more influential than broadcast messages, which were only effective if they reinforced the direct influences.
  • In her article, "Integrating Models of Diffusion of Innovations," Barbara Wejnert details two categories for consequences: public and private.

• AIDA Model

  • The AIDA model is an approach used by advertisers to describe the different phases of consumer engagement with an advertisement.
  • The system is used to guide marketers to target a market effectively.
  • Naturally, as organizations move through each step of the AIDA model, a percentage of initial prospects are lost throughout the sales cycle.
  • Car advertisements are prime examples of results stemming from the use of the AIDA model to narrow the target market .
  • Later developments also introduced more flexible uses of the AIDA model such as the reordering of steps for different consumer-to-product relationships.

• Understanding The Consumer + The Planning Process

  • She prefers brands with philanthropic models that minimize their packaging and don’t test on animals.
  • Jane prefers brands with philanthropic models that minimize their packaging and don’t test on animals.
  • If you’ve ever taken a psychology class you probably recognize this as the “Hierarchy of Needs” developed by Abraham Maslow.
  • But, Maslow’s Hierarchy of Needs remains the foundational tool for understanding human behavior. 
  • The consumer benefit (the positive effect the consumer will experience when utilizing the brand) plays a SIGNIFICANT role in the development of the advertising strategy.

• Social Classes

  • Perhaps the simplest model to define social class is a three-tiered approach that includes the rich, the middle class, and the poor.
  • Other models have as many as a dozen levels.
  • Social class can have a profound effect on consumer spending habits.
  • Perhaps the most obvious effect is the level of disposable income of each social class.
  • Social class has a profound effect on the types and quantity of consumer goods purchased.

• Strategy

  • Here, the needs, wants and limitations of end users of a product are given a great deal of attention at each stage of the design process.
  • These include Six Sigma , which aims to drive variation out of a process; Lean, which acts to drive out waste; and traditional project management and phased development systems (including the popular Phase–gate model, discussed next), which encourage upfront planning and following the plan.
  • Although these methodologies have strengths, their side effect is encouraging rigidity in a process that needs flexibility to be effective, especially for truly innovative products.
  • In a phase–gate model, also referred to as a phase–gate process, the process is divided into stages or phases, separated by gates.
  • The phase–gate model may also be known as stage-limited commitment or creeping commitment.

• Marketing Orientation

  • From the beginning of the Industrial Revolution until the 1950s, companies focused on maximizing economies of scale and minimizing production costs.
  • This was largely due to the growing numbers of affluent and middle class people that the rise of capitalism had created.
  • Throughout the 1950s and 1960s, companies responded by adopting a sales orientation model that concentrated first on making products, then selling them to customers.
  • Beginning in the 1970s, Harvard Professor Theodore Levitt and other academics argued that the sales orientation model was ill-equipped to deliver products tailored to customer wants and needs.
  • Using this customer intelligence, companies could produce products that supported their overall business strategy, competed effectively in an increasingly global and competitive market, and delivered solutions for current and future customer needs.

• Packaging Considerations

  • Package design and development are often thought of as an integral part of the new product development process.
  • An effective quality management system and verification and validation protocols are mandatory for some types of packaging and recommended for all.
  • The traditional "three R's" of reduce, reuse, and recycle are part of a waste hierarchy which may be considered in product and package development.
  • Usually, the energy content and material usage of the product being packaged are much greater than that of the package.
  • Minimization – (also known as "source reduction") The mass and volume of packaging (per unit of contents) can be measured and used as one of the criteria to minimize during the package design process.

• Development

  • This stage includes identifying the target market and the decision maker in the purchasing process, determining what features must be incorporated into the product and the most cost-effective way to produce it, and establishing what the actual cost of production will be.
  • The goal of this research is to construct a prototype model of the product that can be subjected to further study .
  • The product concept is a synthesis or a description of a product idea that reflects the core element of the proposed product.
  • The second aspect of market development involves consumer testing of the product idea.
  • This activity usually follows the construction of the prototype or limited production models.