Como funciona el GRID de la agencia FCB

1. HOW ADVERTISING WORKS
JOMC 170
04HowAdvWorks.ppt

2. Readings
• How Advertising Works: A Planning Model
Revisited
– By: Vaughn, Richard. Journal of Advertising Research,
Feb/Mar86, Vol. 26 Issue 1, p57.
• How Advertising Works: What Do We Really
Know?
– By: Vakratsas, Demetrios; Ambler, Tim. Journal of
Marketing, Jan99, Vol. 63 Issue 1, p26-43.
• Advertising's Role in Capitalist Markets: What Do
We Know and Where Do We Go from Here?
– By: Tellis, Gerard J.. Journal of Advertising Research,
Jun2005, Vol. 45 Issue 2, p162-170.

3. How Advertising Works:
A Planning Model Revisited
• Classic model used by Foote, Cone &
Belding.
• First proposed in 1980.
• Notes that context determines effects.

4. FCB Grid (Richard Vaughn, 1980)
THINK FEEL
HIGH
INVOLVEMENT 1 2
LOW
INVOLVEMENT
3 4

5. Quadrant 1:
FCB Grid THINK / HIGH INVOLVEMENT
• INFORMATIVE (economic)
• Classical hierarchy-of-effects:
• Awareness
→Knowledge
→Liking
→Preference
→Conviction
→Purchase
• Learn →Feel →Do.

6. Quadrant 2:
FCB Grid FEEL / HIGH INVOLVEMENT
• AFFECTIVE (psychological)
• Products fulfilling self-esteem,
subconscious, ego-related
impulses.
• Requires perhaps more emotional
communication.
• Feel →Learn → Do.

7. Quadrant 3:
FCB Grid THINK / LOW INVOLVEMENT
• HABITUAL (responsive)
• Routine consumer behavior.
• Learning occurs most often after
exploratory trial purchase.
• Learning by doing.
• Do → Learn → Feel.

8. Quadrant 4:
FCB Grid FEEL / LOW INVOLVEMENT
• SATISFACTION (social)
• Personal taste
• “Life’s little pleasures”
• Peer-oriented items.
• Do → Feel →Learn.

9. FCB Grid
THINK FEEL
HIGH
INVOLVEMENT 1 2
LOW
INVOLVEMENT
3 4

10. FCB Grid
THINK FEEL
2
INFORMATIVE
HIGH
INVOLVEMENT (economic)
Learn →Feel →Do
LOW
INVOLVEMENT
3 4

11. FCB Grid
THINK FEEL
1
AFFECTIVE
HIGH
INVOLVEMENT (Psychological)
Feel → Learn →Do
LOW
INVOLVEMENT
3 4

12. FCB Grid
THINK FEEL
HIGH
INVOLVEMENT 1 2
HABITUAL
LOW
INVOLVEMENT (Responsive)
Do → Learn →Feel
4

13. FCB Grid
THINK FEEL
HIGH
INVOLVEMENT 1 2
SATISFACTION
LOW
INVOLVEMENT
3 (Social)
Do → Feel → Learn

14. FCB Grid
THINK FEEL
INFORMATIVE AFFECTIVE
HIGH
INVOLVEMENT (economic) (Psychological)
Learn →Feel →Do Feel → Learn →Do
HABITUAL SATISFACTION
LOW
INVOLVEMENT (Responsive) (Social)
Do → Learn →Feel Do → Feel → Learn

16. FCB Grid
• “We may not now, or ever, know
definitively how advertising works.”
• “But we do know it works in some
definable ways well enough to make
more effective advertising.”

17. How Advertising Works:
What Do We Really Know?
• Reviews 250+ articles / books
• 7 types of models & findings
– Example: FCB Grid would be an integrative
model ([C][A][E])
• 5 generalizations about how advertising
works
• Directions for future research

18. Generalization 1
• Experience (E), affect (A), and cognition
(C) are the three intermediate
advertising effects, and the omission of
any one can lead to overestimation of
the effect of the others
 Demonstrated in the evolution of
models from simple (C) to more
complex ([C][A][E]).

19. Generalization 2
• Short-term advertising elasticities are
small and decrease during the product
life cycle.
 Lower than promotions
 Weaker than product usage (E) effects
 Greater for new brands

20. Generalization 3
• In mature, frequently purchased
packaged goods markets, returns to
advertising diminish fast. A small
frequency, therefore (1-3 per purchase
cycle), is sufficient for advertising an
established brand.
 Diminishing returns
 First exposure is most influential.

21. Generalization 4
• The concept of a space of intermediate
effects is supported, but a hierarchy
(sequence) is not.
 Significance of intermediate effects (C,
A, and E) depends on context.
 Hierarchy framework does not allow for
interactions between effects.

22. Generalization 5
• Cognitive bias interferes with affect
measurement.
 Affect can be more important than
cognition.
 Cognitive bias understates the role of
affect and misreports reality.

23. Advertising's Role in Capitalist
Markets: What Do We Know and
Where Do We Go from Here?
• 9 misconceptions about advertising.
• Advertising is essential for free markets.
• Where do we go from here?

24. Misconception 1: Advertising is a powerful
force in shaping consumer preferences.
• Some advertisements are.
• Potential is there.
• Most advertising is lost in the noise (or
worse, adds to the noise).
• Even success is quickly imitated.
 This is the nature of a free, competitive
market.

25. Misconception 2: Even if advertising does
not work immediately, repetition will ensure
its ultimate effectiveness.
• Consumers haven’t seen it, they need
more time, etc.
• “Escalation of commitment”
 If advertising doesn’t work in a
reasonably short time it is unlikely to
ever work.

26. Misconception 3:
Advertisements take time to wearin.
• “Wearin” = improvement of
effectiveness during first few weeks.
• “Wearout” = decline in effectiveness as
campaign ages.
 “Wearin” is short or nonexistent and
“wearout” starts right away.

27. Misconception 4: The effects of advertising
last for years and even decades.
• We remember old ads.
• Old research used inappropriate data.
 Effects of advertising are rather fleeting.

28. Misconception 5: Even if advertising seems
ineffective, stopping would be dangerous.
• Argue that suspension could be
disastrous.
• Or that competitors’ ads would be more
effective.
 Argument is not tested.

29. Misconception 6:
Weight (or intensity or frequency) is critical.
• The most expensive item in the ad budget is
the advertising buy expressed as weight.
 Big changes in weight may not result in even
small changes in effectiveness.
 Changes in target segments, media,
message, and especially creative content
result in biggest change in effects.
 Ad response is highest for product
improvement or new products.

30. Misconception 7:
Advertising is highly profitable.
• Spurious correlation between
advertising intensity and market share.
 Because of the competitive activity,
much advertising cancels out.
 Beware over-advertising: adding to
costs more than to profits.

31. Misconception 8: Logic or argument is the
most effective advertising appeal.
• Consumers like to think of themselves
as rational decision makers who make
good if not wise decisions.
 Emotional ads are more interesting,
more easily remembered, more prone
to lead to action, and less likely to
arouse consumers’ defenses.

32. Misconception 9: Advertising is amoral in its
practice, corrupts people’s values, or is
unnecessary for free markets.
 As a relatively weak market force (see
misconceptions 1-8), advertising
probably has little effect on values.
 Essential for free markets: the means
by which an innovative firm can
communicate its brands competitive
superiority to consumers.

33. Where do We Go from Here?

34. Effects on mental processes
• Multiple routes to persuasion
ELM (central vs. peripheral processing)
• Power of emotional appeals.
• Consistency of cues enhances
persuasion.
• Difficult translating/integrating lab
results to the field.

35. Effect on sales / market share
• Move away from aggregate data.
• Focus on content, message, cues, and
creativity rather than message weight.

36. Versus sales promotion
• Misses two key points:
• How to use both jointly.
• Discount price may be competitive
price.

37. Advertising and pricing
• Advertising may
• Increase price competition.
• Lower prices.
• Increase consumers’ price elasticity.

38. Advertising and brand equity
• How and when does this process work?