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Chapter 3: Organizing for Adversing and Promoon: The Role of Ad
Agencies and Other Markeng Communicaon Organizaons
Before discussing the specics of the industry, we’ll provide an overview of the enre system and
idenfy some of the players. As shown in Figure 3–1, parcipants in the integrated markeng
communicaons process can be divided into ve major groups: the adverser (or client), adversing
agencies, media organizaons, specialized communicaon services, and collateral services. Each group
has specic roles in the promoonal process.
Adversers, or clients, are the main parcipants in the integrated markeng communicaons
(IMC) process. They own the products or services and fund the IMC programs. Adversers are
responsible for developing markeng plans and making nal decisions on adversing and
promoons. While some organizaons handle these tasks internally, many rely on adversing
agencies that specialize in creang and placing communicaons. Agencies of record (AORs)
manage most IMC services for a company, but larger companies may have mulple AORs for
dierent brands.
Media organizaons play a crucial role by providing an environment for markeng messages,
aiming to aract consumers. They must have engaging content to encourage adversers to
buy ad space. Specialized markeng communicaon services include direct-markeng
agencies, sales promoon agencies, digital agencies, and public relaons rms, each focusing
on their areas of experse.
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Finally, collateral services support the adversing and promoonal funcons, helping with
planning and execuon. Each parcipant has a dened role that contributes to the overall
markeng process.
3.1 ORGANIZING FOR ADVERTISING AND PROMOTION IN THE FIRM: THE CLIENT’S ROLE
Almost every business ulizes markeng communicaon, but the organizaon of these eorts
varies based on factors like company size, product range, adversing budget, and markeng
structure. Markeng personnel play a key role in decision-making, providing input on
campaign plans and media strategies. Top management is also involved in adversing
decisions, reecng the rm's overall markeng strategy.
Direct responsibility for managing adversing typically lies with an adversing department
headed by a manager. Companies may adopt dierent structures: a centralized system, a
decentralized brand management system, or in-house agencies ( hệ thống tập trung, hthống
quản thương hiệu phân tán hoặc các quan nội bộ). In a centralized system, the adversing
manager oversees all promoonal acvies, coordinang with various departments and
outside agencies.
The manager's dues include organizing the department, supervising execuon, and ensuring
eecve communicaon with markeng research and sales. Centralized systems are common
in companies with fewer divisions, facilitang communicaon and ecient operaons.
However, they can lead to challenges, such as a lack of responsiveness to specic product
needs and dicules in understanding overall markeng strategies as companies grow.
3.2 THE CENTRALIZED SYSTEM
Markeng acvies are oen organized by funcon, with adversing linked to sales and
research. The adversing manager oversees promoons, including budgeng and media
planning. Key responsibilies include organizing the department, supervising execuon, and
coordinang with other departments and outside agencies.
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Centralized systems are common in companies with fewer divisions (bphận), facilitang
communicaon and decision-making (giúp tăng cường giao ếp ra quyết định). However,
challenges include slow responses to specic product needs and dicules in understanding
overall markeng strategies as companies grow.
The Decentralized System
In large corporaons with mulple divisions and diverse products, managing adversing and
promoonal funcons through a centralized department can be challenging. Instead, these
companies adopt a decentralized system, where brand managers are assigned to each product
or brand, responsible for planning, budgeng, and overall brand management. Companies like
Procter & Gamble and Unilever exemplify this approach.
Brand managers collaborate closely with outside adversing agencies to develop promoonal
programs. Each brand may have its own agency and compete internally against other brands.
The adversing department supports brand managers by assisng in planning and
coordinang integrated markeng communicaons.
Some companies implement a category management system, where category managers
oversee related groups of products, allowing for strategic coordinaon among brand
managers. This system can enhance protability and market share, as category managers may
have the authority to inuence brand adversing decisions.
The decentralized system oers advantages such as faster responses to market changes and
focused managerial aenon on each brand. However, challenges include potenal lack of
experience among brand managers, compeon for resources leading to rivalries, and
insucient authority to implement their plans eecvely. Crics argue that brand managers
may become too focused on internal issues and not enough on external market dynamics.
Addionally, brand managers must adapt to digital markeng trends and manage brand
identy across social media plaorms. They play crucial roles in developing social media
strategies and guidelines, ensuring eecve engagement with consumers.
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In-House Agencies
Many companies establish in-house adversing agencies to reduce costs and maintain greater
control over adversing acvies. An in-house agency is owned and operated by the
adverser, and while some funcon similarly to tradional adversing departments, others
have a disnct identy and handle signicant adversing budgets. Major brands like Hyundai,
Avon, and Revlon ulize in-house agencies, somemes in conjuncon with outside agencies.
The primary benets of in-house agencies include cost savings on media commissions and
fees, closer alignment with top management, and reduced turnover, which can strengthen
client-agency relaonships. In-house teams oen have beer market knowledge and can
respond more quickly to adversing needs.
However, crics of in-house agencies argue that they may lack the experience and creavity
of outside agencies. Outside rms oen have a broader range of specialists and can provide
diverse perspecves and strategic insights. As companies grow, they may nd it challenging to
manage all adversing internally and may hire outside agencies to enhance their markeng
eorts, as seen with Under Armour's partnership with Droga5.
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3.3 ADVERTISING AGENCIES The Ad Agency’s Role
Adversing agencies play a crucial role in helping companies develop, prepare, and execute
promoonal programs. While clients can perform these funcons themselves, many prefer to
use external agencies for their specialized skills. Agencies employ experts in various elds,
such as arsts, writers, and media analysts, providing clients with industry-specic insights
and an objecve perspecve.
Types of Adversing Agencies
Agencies range from small operaons to large full-service rms that oer a comprehensive
range of markeng, communicaon, and promoonal services. Full-service agencies include
departments for account management, creave services, media planning, and research.
Account Services
Account execuves act as liaisons between the agency and clients, understanding markeng
needs and coordinang agency eorts. They must possess strong markeng knowledge and
be adept at navigang the evolving adversing landscape.
Markeng Services Research has become increasingly important for agencies to
eecvely communicate with target audiences. Most full-service agencies maintain research
departments that gather and analyze data to inform adversing strategies. Account planners
play a vital role in understanding consumer behavior and guiding creave strategies.
Creave Services The creave department is responsible for designing and
execung adversements. Copywriters and art directors collaborate to develop ad concepts,
while producon departments oversee the execuon of these ideas. Coordinaon among
various teams is essenal to meet deadlines and ensure quality.
Agency Structure Agencies typically use a departmental or group system to organize their
operaons. The departmental system allows specializaon, while the group system fosters
collaboraon among dierent departments to service specic accounts eecvely. Each
structure has its advantages, depending on client needs and agency size.
Creave Bouques These are small agencies that focus solely on creave
services, employing writers and arsts but lacking media and research capabilies. They
cater to clients who want creave input while managing other markeng funcons
internally. Creave bouques oen deliver innovave work quickly, avoiding the
bureaucracy of larger rms. However, they face challenges compeng with larger agencies
and may need to expand their services to aract clients seeking more comprehensive
soluons.
Media Specialist Companies These agencies specialize in media buying
for television and digital adversing, responding to the complexity of fragmented media
audiences. Media buying services help clients execute their media strategies and benet
from discounts due to bulk purchasing. The rise of programmac buying, which automates
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media purchasing and opmizaon, is transforming the industry, expanding beyond digital
media to television.
Many large adversers, including brands like Nike and Revlon, are shiing their media buying
from full-service agencies to media specialists to increase eciency and reduce costs. These
media agencies are oen part of major agency holding companies, providing a streamlined
approach to global media buying. As the media landscape evolves, advancements in
technology and data analycs will further shape media planning and buying strategies, making
media specialists increasingly relevant.
3.4 AGENCY COMPENSATION Commissions from Media
The tradional method for ad agencies to earn money is through a commission system,
typically a 15% commission on media purchases made for clients. This system has been
standard for outdoor adversing but is also used in other media types, providing a
straighorward way for agencies to earn revenue.
Appraisal of the Commission System
The commission system, while historically the primary method of agency compensaon, has
faced signicant cricism over me. Crics argue that it incenvizes agencies to recommend
expensive media opons to maximize their commissions, even if those opons aren’t the best
t for the clients goals.
Fee, Cost, and Incenve-Based Systems
Agencies and clients have developed alternave compensaon methods to address the
shortcomings of the commission system, including fee arrangements, cost-plus agreements,
and incenve-based systems:
Fee Arrangement: This involves a straighorward fee—either xed or hourly—for the
agency’s services, agreed upon by both the agency and the client. The fee can be paid
monthly, annually, or per project, covering specic work like media planning or
creave development. This method ensures transparency, as the client knows exactly
what they’re paying for, and the agency’s compensaon isn’t ed to media costs.
However, determining a fair fee requires careful assessment of the work’s scope and
the agencys costs.
Cost-Plus Agreement: In this system, the client agrees to cover the agency’s costs (e.g.,
sta me, overhead) plus an addional percentage as prot, oen around 15%. This
is frequently used alongside commissions. For example, if an agency’s costs for a
campaign are $83,300, the client pays that amount plus a prot margin, totaling
$98,300. This method requires detailed cost tracking by the agency, which can be
challenging for clients to verify, potenally leading to disputes over transparency.
Incenve-Based Compensaon (Bồi thường dựa trên khuyến khích):
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This method es agency compensaon to performance outcomes, such as achieving
sales targets, increasing brand awareness, or meeng other measurable goals.
Incenve systems encourage agencies to align their eorts with client goals, but they
require clear, measurable objecves. For instance, if an agency helps a client exceed a
sales target, they might earn a bonus, but if they fall short, their compensaon could
be reduced.
Percentage Charges
In addion to commissions or fees, agencies oen apply a markup, typically 17.65% to 20%,
on services they outsource, such as artwork, photography, or prinng. For example, if a clients
bill for these services totals $100,000, the agency might add a 17.65% markup, increasing the
cost to $117,650. This markup, which covers 17.65% to 20% of the clients overall bill, helps
agencies cover overhead costs and earn a prot on outsourced work. While this method
supplements other compensaon, it can raise concerns about transparency if clients aren’t
fully aware of the markup.
EVALUATING AGENCIES Evaluang Agencies
With signicant spending on adversing and promoon, accountability for these expenditures
has become crucial. Agencies are evaluated through two main assessments: nancial audits
and qualitave audits. Financial audits focus on the agencys management of costs, expenses,
personnel hours, and payments to media and suppliers, ensuring transparency in billing.
Qualitave audits assess the agencys eecveness in planning, developing, and execung the
clients adversing campaigns. Evaluaons are oen subjecve and informal, especially for
smaller companies with limited budgets or where adversing isn’t a priority. However, larger
companies with substanal budgets emphasize formal evaluaon systems. The study noted
that formal reviews are less common for digital, public relaons, and mulcultural agencies.
Gaining and Losing Clients
The evaluaon process provides feedback to both agencies and clients, highlighng areas for
improvement in their relaonship and performance. However, many successful relaonships
end due to various factors. For instance, Campbell Soup ended its 1954 relaonship with
BBDO in 2018 to modernize its markeng, while John Hancock ended its 32-year partnership
with Hill Holliday due to global creave shis. The fast-food chain Jack in the Box also parted
ways with Secret Weapon Markeng aer 20 years, cing its role in the chain’s growth.
Agencies oen switch due to creave needs, management changes, or markeng strategy
shis. Companies like Samsung, IBM, and Colgate consolidate their markeng eorts with one
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agency for consistency, while others, like Procter & Gamble (P&G), reduce agency numbers—
P&G cut from 6,000 to 2,500 agencies by 2018, saving over $1 billion. Common reasons for
losing clients include poor performance, communicaon issues, unrealisc client demands,
personality conicts, personnel changes, agency-client size mismatches, conicts of interest,
shis in markeng strategy, declining sales, compensaon disagreements, policy changes, and
lack of integrated markeng capabilies.
Why Agencies Lose Clients
Agencies lose clients due to several recurring issues:
Poor Performance or Service: Clients become dissased with the quality of
adversing or agency services.
Poor Communicaon: Lack of eecve communicaon between agency and client
personnel hinders collaboraon.
Unrealisc Demands: Clients impose demands that exceed the agencys
compensaon or capacity.
Personality Conicts: Misalignment between client and agency teams disrupts
teamwork.
Personnel Changes: New leadership at the agency or client may prefer dierent
partners.
Size Mismatch (Không phù hợp về quy mô): The client outgrows the agency, or the
agency becomes too large for the clients needs.
Conicts of Interest: Agencies cannot manage compeng accounts due to ethical or
compeve concerns.
Strategy Shis: Changes in the clients markeng or corporate strategy require new
agency capabilies.
Declining Sales: Poor sales performance may be aributed to adversing, prompng
a switch.
Compensaon Disputes (Tranh chấp bồi thường): Disagreements over payment or
compensaon models create tension.
Policy Changes: Mergers, acquisions, or policy shis may lead to agency reevaluaon.
Markeng/Creave Disagreements: Conicts over strategy or creave direcon strain
the relaonship.
Lack of Integrated Markeng Capabilies: Clients seek agencies with broader
experse across IMC disciplines.
Agencies must address these issues to retain clients, as some factors are manageable
while others, like mergers or sales declines, may be beyond their control.
How Agencies Gain Clients
Agencies gain clients through referrals from exisng clients, media, or other agencies, and by
maintaining strong relaonships with these stakeholders. Solicitaon (Việc mời chào) is
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another common method, with smaller agencies relying on direct outreach and larger
agencies using business development teams to pitch to prospecve clients. The process oen
begins with a Request for Informaon (RFI), followed by a speculave presentaon where
agencies showcase their capabilies. Despite the me and cost, many agencies parcipate in
these “spec” presentaons, though some refuse due to the lack of guaranteed success. Public
relaons, civic involvement, and industry recognion through awards (e.g., Ee Awards,
Cannes Lions) also enhance an agency’s reputaon, aracng new clients. Exhibit 3-11
highlights Cashmere’s recognion as the 2019 Mulcultural Agency of the Year by Adversing
Age, showcasing how awards boost visibility.
Public Relaons
Agencies oen engage in public relaons and civic acvies, such as pro bono work for
charies or professional associaonS. These eorts build community goodwill and enhance
the agencys reputaon, indirectly aracng new clients through posive visibility in the
industry and media.
Image and Reputaon
A strong reputaon is crical for agencies to aract clients. Recognion through awards like
the Ee Awards, Cannes Lions, and CLIO Awards highlights an agency’s creave and strategic
excellence across areas like media planning, digital, and public relaons.
3.5 SPECIALIZED SERVICES Direct-Markeng Agencies
Direct markeng is one of the fastest-growing areas of integrated markeng communicaons
(IMC), ulizing methods like telemarkeng, direct mail, the Internet, and other direct-
response adversing to reach consumers. As this sector expands, many companies have
turned to specialized direct-markeng agencies to leverage their experse. Services provided
by direct-markeng agencies include database analycs and management, direct mail,
research, media services, creave producon, and digital markeng. A key focus is developing
and managing databases to aract new customers and foster loyalty among exisng ones.
These agencies typically have three main departments: account management (to oversee
client relaonships and markeng programs), creave (for copywring and producon of
direct-response messages), and media (for ad placement). Direct-markeng agencies acvely
seek new business through performance reviews with exisng clients and are generally
compensated on a fee basis.
Sales Promoon Agencies
Sales promoon agencies specialize in developing and managing programs such as contests,
sweepstakes, refunds, rebates, premium oers, and sampling iniaves (rút thăm trúng
thưởng, hoàn ền, chiết khấu, ưu đãi cao cấp các sáng kiến lấy mẫu), which are oen
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complex and require experse. Services include promoonal planning, creave research, e-
in coordinaon, fulllment, premium design, catalog producon, and contest/sweepstakes
management. Many agencies are also expanding into digital and direct/database markeng
to enhance their IMC oerings.
Public Relaons Firms
Large companies oen employ both an adversing agency and a public relaons (PR) rm to
manage their public image and relaonships with stakeholders like consumers, employees,
suppliers, government, and the public. PR rms analyze client relaonships, develop
strategies, and execute programs using tools like publicity, lobbying, public aairs, community
events, news releases, and crisis management. As companies adopt IMC, PR rms increasingly
integrate their eorts with adversing and other promoonal acvies to ensure consistent
messaging and cost eciency.
Digital Agencies
The rapid growth of the Internet and digital media has led to the rise of specialized digital
agencies, as marketers increasingly rely on digital tools like website design, apps, search
engine opmizaon (SEO), banner ads, video, mobile markeng, and social media campaigns.
Digital agencies require experse in digital media, content markeng, email markeng, lead
generaon, database management, and customer relaonship management (CRM). The
growth of digital and social media markeng is driving more companies to rely on these
agencies for integrated campaigns across plaorms like Facebook, Twier, Instagram, and
Snapchat.
Collateral Services
These services include markeng research companies, package design rms, consultants,
photographers, graphic design companies, talent agencies, video producon houses, and
event markeng rms. Among these, markeng research rms are one of the most widely
ulized, as companies increasingly rely on them to beer understand their target audiences
and gather valuable insights for designing and evaluang adversing and promoonal
programs. These rms conduct both qualitave research, such as in-depth interviews and
focus groups, and quantave studies, like market surveys, to provide aconable data for
adversers. As digital markeng becomes a larger part of integrated markeng
communicaons (IMC) programs, new markeng technology services have emerged to
support areas like mobile markeng, content markeng, email markeng, social media,
programmac media buying, customer experience, and analycs.
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Chapter 4: Perspecves on Consumer Behavior
4.2 THE CONSUMER DECISION-MAKING PROCESS
Problem Recognion
Problem recognion, the rst stage in the consumer decision-making process, occurs when a
consumer perceives a need and becomes movated to address it, triggering subsequent
decision-making stages. This stage arises from a discrepancy between the consumers ideal
state (what they want) and actual state (what they currently have), where the “problem” can
involve achieving a more posive situaon, not just resolving a negave one (iai đoạn này phát
sinh từ sự khác biệt giữa trạng thái lý tưởng (những gì họ muốn) và trạng thái thực tế (những
gì họ hiện có), trong đó “vấn đề” thể liên quan đến việc đạt được một nh huống ch cực
hơn, không chỉ giải quyết một nh huống êu cực). Several factors can cause problem
recognion:
Out of Stock: Consumers recognize a need when they deplete their stock of a product,
prompng a roune purchase of a familiar or trusted brand.
Dissasfacon: Dissasfacon with a current product or situaon, such as
uncomfortable or outdated snow boots, drives problem recognion.
New Needs/Wants: Life changes, such as new jobs, nancial shis, or having a baby,
create new needs (e.g., a new wardrobe or family car). Wants, unlike needs, are desires
for non-essenal items that consumers sll seek to fulll.
Related Products/Purchases: Buying one product can trigger the need for related
items, such as purchasing an iPhone leading to a need for accessories like chargers or
apps, or an iPad prompng the purchase of a cover or screen cleaner.
Marketer-Induced Problem Recognion: Marketers can smulate problem
recognion by creang dissasfacon with the consumers current state. Ads for
personal hygiene products (e.g., mouthwash, deodorant) or fashion (e.g., Splat
encouraging hair color changes in Exhibit 4-3) oen create insecuries or percepons
of being outdated, movang consumers to act.
4.3 EXAMINING CONSUMER MOTIVATIONS
Marketers recognize that problem recognion is oen a simple process, but movaon can
signicantly inuence how consumers proceed. For example, one consumer may buy a watch
for its funconality, while another focuses on its design and brand as a status symbol.
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Understanding these underlying movaons is key for marketers. Two prominent theories
explain consumer movaons:
Hierarchy of Needs
Psychoanalyc Theory (lý thuyết phân tâm học)
Sigmund Freud’s psychoanalyc theory explores the unconscious moves (động lực vô thức)
behind consumer behavior, suggesng that purchases are driven by deep, oen hidden
movaons. While complex and unclear to casual observers, these moves can be uncovered
through in-depth research. Movaon research, using methods like in-depth interviews and
focus groups, helps marketers uncover these moves.
Movaon Research in Markeng
Movaon research employs methods like in-depth interviews, projecve techniques,
associaon tests, and focus groups to uncover consumers’ underlying moves. Examples
include a man associang a high-priced fur with protecon for his wife, or women linking
perfume to aracng a partner.
Despite its insights, movaon research is controversial due to skepcism and small sample
sizes, though major corporaons connue to use it to understand consumer behavior.
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Problems and Contribuons of Psychoanalyc Theory and Movaon Research
Psychoanalyc theory, while insighul, is cricized for its vagueness, reliance on small
samples, and diculty in validang results. Movaon research also faces skepcism but
remains valuable for uncovering deep consumer feelings. Methods like focus groups and in-
depth interviews help marketers understand emoons and desires, though they may not
capture broader populaon trends.
INFORMATION SEARCH
The second stage in the consumer decision-making process is informaon search, which
begins once a consumer recognizes a problem or need. Inially, consumers rely on internal
search, recalling past experiences or knowledge stored in memory to evaluate purchase
alternaves, especially for roune or repeve purchases where prior outcomes are sucient
for decision-making. If internal search does not provide enough informaon, consumers turn
to external search, ulizing sources such as:
Internet Sources: Websites, consumer reviews, and organizaons like Angie’s List or
Yelp (Exhibit 4-7) provide valuable informaon.
Personal Sources: Friends, relaves, co-workers, or markeng-controlled sources like
adversing, salespeople, and packaging.
Public Sources: Arcles, TV reports, or newspaper content.
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Personal Experience: Hands-on interacon with the product, such as tesng or
examining it.
The extent of external search depends on factors like the importance of the purchase, the
eort required, the perceived risk, and past experiences. For example, a simple decision like
choosing a movie might involve checking a friend’s recommendaon or an app, while a
complex purchase like a car might require reviewing Kelley Blue Book, Consumer Reports, or
test-driving vehicles.
PERCEPTION (Nhận thức)
Percepon is the process by which consumers acquire, select, and interpret informaon from
external sources, inuenced by factors like their beliefs, needs, and experiences. It involves
three key processes: sensaon, interpretaon, and selecve percepon.
Sensaon (Cản nhận)
Sensaon refers to the immediate sensory response (taste, sight, touch, hearing, smell) to a
smulus like an ad, package, or brand name. Marketers use sensory elements to aract
aenon.
Selecng Informaon
Sensory inputs are crucial, but psychological factors like personality, needs, moves, and
experiences also determine what informaon consumers focus on. Selecve percepon lters
out irrelevant smuli, focusing on what aligns with a consumers needs. For instance, someone
shopping for a smartphone will pay more aenon to related ads than unrelated ones,
highlighng the challenge for marketers to break through this lter.
Interpreng the Informaon (Diễn giải thông n)
Interpretaon involves organizing, categorizing, and assigning meaning to informaon,
inuenced by individual beliefs and expectaons. Ads with clear messages are easier to
interpret, but ambiguous ones rely on the consumers subjecve interpretaon. Selecve
percepon, as shown in Figure 4-4, includes: Selecve Exposure: Consumers choose
whether to engage with informaon (e.g., changing TV channels during commercials).
Selecve Aenon: Consumers focus on smuli relevant to their needs.
Selecve Comprehension (Diễn giải thông n): Consumers interpret informaon
based on their beliefs, oen in a biased way.
Selecve Retenon (Giữ lại chọn lọc): Consumers retain informaon that aligns with
their atudes, as seen in Exhibit 4-9, where an American Associaon of Adversing
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Agencies ad reminds consumers of their needs, or in Exhibit 4-10, where Coca-Cola
uses color to aract aenon.
Subliminal Percepon (Nhận thức ềm thc)
Subliminal percepon refers to perceiving smuli below the conscious thức) level, a
controversial tacc in adversing. While it may inuence behavior subconsciously, research
shows mixed results, and consumers generally oppose its use due to ethical concerns. Despite
interest in subliminal adversing, its eecveness remains limited, and ethical implicaons
deter widespread adopon.
ALTERNATIVE EVALUATION
Aer gathering informaon during the informaon search stage, consumers proceed to
alternave evaluaon, where they assess various brands or products to address their
recognized need. The brands or products considered as purchase opons form the consumers
evoked set.
The Evoked Set (Tập được kích hoạt)
The evoked set includes a limited number of brands the consumer is aware of and considers
during evaluaon. Its size varies based on factors like the importance of the purchase and the
consumers me and energy. Marketers aim to ensure their brands are part of the evoked set
by increasing awareness among consumers. Established brands with large adversing budgets
oen maintain high awareness levels, making it more likely for consumers to consider them.
New or lesser-known brands struggle to enter the evoked set. Marketers use strategies like
adversing, point-of-purchase materials, and promoonal techniques to encourage
consumers to consider their brands.
Evaluave Criteria and Consequences (Tiêu chí đánh giá và hậu quả)
Consumers evaluate the brands in their evoked set using a list of evaluave criteria, which are
the dimensions or aributes they consider important. These criteria can be objecve (e.g.,
price, warranty, fuel economy for a car) or subjecve (e.g., image, styling, performance).
Marketers oen view products as bundles of aributes but must consider the funconal
consequences (tangible outcomes like a so drink’s taste or internet speed) and psychosocial
consequences (intangible outcomes like how a product makes the consumer feel or how
others perceive them). For example, a cars fuel economy is a funconal consequence, while
its styling might inuence social percepon.
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Psychosocial Consequences
Psychosocial consequences are subjecve and personal, focusing on how a product makes the
consumer feel or how others perceive them. These outcomes signicantly inuence atudes
and purchase decisions. Two key sub processes occur during alternave evaluaon: (1) the
formaon, reinforcement (củng cố), or change of consumer atudes toward brands, and (2)
the decision rules or integraon strategies consumers use to compare brands, which are
explored further below.
ATTITUDES
Atudes are learned predisposions (khuynh hướng) to respond to an object and are crical
in consumer behavior. They summarize a consumers overall feelings or evaluaons toward
objects like brands (e.g., Cheerios, AT&T, Nike). Marketers aim to create, reinforce, or change
atudes to favor their brands.
Mô hình thái độ đa thuộc nh (Mularibute Atude Models)
hình thái độ đa thuộc nh giúp các nếp thhiểu thái độ của người êu dùng bằng cách
xem một thương hiệu như một tập hợp các thuộc nh. Theo mô hình này, người êu dùng có
niềm n về các thuộc nh cụ thcủa thương hiệu (B_i) gán mức độ quan trọng (E_i) cho
mỗi thuộc nh. Thái độ đối với thương hiệu (A_B) được nh bằng tổng của niềm n về mỗi
thuộc nh nhân với mức độ quan trọng của nó: A_B = (B_i × E_i). Ví dụ, một người êu dùng
có thể nΣ rằng một loại kem đánh răng ngăn ngừa sâu răng tốt nhưng không ngăn ngừa cao
răng, trong khi đánh giá cao việc ngăn ngừa sâu răng hơn. Cha mthể ưu ên ngăn nga
sâu răng cho trẻ em, trong khi thanh thiếu niên có thể coi trọng hơi thở thơm tho, ảnh hưởng
đến sở thích thương hiệu của họ. Các nhà ếp thị phải xác định các niềm n nổi bật tầm
quan trọng của chúng qua các phân khúc thị trường và nh huống.
Atude Change Strategies
Mularibute models help marketers diagnose consumer atudes and develop strategies to
inuence them, including:
Increasing/Changing Belief Rangs: Enhancing the belief rang of a brand on an
important aribute.
Changing Aribute Importance: Altering consumers’ percepons of an aribute’s
value.
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Adding New Aributes: Introducing new aributes to the evaluaon process (e.g.,
Clorox promong environmental friendliness).
Changing Competor Percepons: Adjusng percepons of competors’ brands.
Marketers oen focus on reinforcing an aribute’s importance or adding new ones to
inuence atudes.
INTEGRATION PROCESSES & DECISION RULES
Integraon processes combine product knowledge, meanings, and beliefs to evaluate
purchase alternaves. Consumers use decision rules to make choices, oen employing
heuriscs (phán đoán đơn giảN) for simpler decisions (e.g., buying the cheapest brand or
choosing based on promoons). For familiar products, consumers might use eecve referral
(tham chiếu cảm xúc) rules, relying on overall impressions of brands, especially for well-known
brands. Marketers must understand which aributes and rules consumers priorize to provide
relevant informaon.
PURCHASE DECISION
At some point, consumers stop evaluang alternaves and make a purchase decision,
matching their moves with the brand’s aributes. The decision involves not just selecng a
brand but also addional choices like where to buy and how much to spend. A me delay
oen occurs between the purchase intenon and the actual purchase, especially for complex
purchases like cars or computers.
For nondurable goods (e.g., packaged items), the me between decision and purchase is
short, and consumers oen develop brand loyalty—a preference for a specic brand—due to
repeated sasfacon. Marketers aim to build and maintain brand loyalty through reminder
adversing, prominent shelf posions, and promoons.
POST PURCHASE EVALUATION
Aer using a product or service, consumers compare its performance to their expectaons.
Sasfacon occurs if expectaons are met or exceeded; dissasfacon happens if
performance falls short. This evaluaon aects future purchases: posive outcomes increase
the likelihood of repurchasing, while negave ones may lead to negave atudes, reducing
future purchases. Cognive dissonance, a feeling of doubt aer a tough choice, can occur,
especially if the unchosen opon had desirable features. Consumers may reduce dissonance
by seeking reassurance, ignoring conicng informaon, or focusing on supporve ads
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VARIATIONS IN CONSUMER DECISION - MAKING
Consumers don’t always follow all ve decision-making stages (problem recognion,
informaon search, alternave evaluaon, purchase decision, post purchase evaluaon) with
the same intensity. For low-involvement, roune purchases (e.g., cheap, frequent items),
stages are minimized. Marketers of such products maintain brand awareness through ads and
promoons to stay in the evoked set (e.g., Ally Bank in Exhibit 4-14). New brands use
promoons like free samples to break into rounes. High-involvement purchases require more
extensive decision-making, needing detailed informaon on aributes and distribuon.
4.4 THE CONSUMER LEARNING PROCESS
BEHAVIOURAL LEARNING THEORY
Behavioral learning focuses on external smuli and responses. Two main theories are:
Classical Condioning (Điều Kiện Hóa CĐiển): This involves associang a smulus
with a response through repeon. In markeng, brands use classical condioning to
associate products with posive emoons, like pairing a perfume with the sweetness
of lollipops (e.g., Mariah Carey’s Lollipop Bling).
Operant Condioning (Điều Kiện Hóa Tác Nhân): This theory emphasizes acve
parcipaon in learning through rewards or punishments. Posive reinforcement
(e.g., a coupon aer a purchase) increases the likelihood of repeat behavior, while
negave reinforcement encourages behavior to avoid unpleasant outcomes.
Applying Classical Condioning
Marketers use classical condioning to create favorable associaons with their products. For
example, pairing a product with music or emoons can enhance recall and inuence
consumer preferences.
Applying Operant Condioning
Operant condioning in markeng involves rewarding desired behaviors to encourage repeat
purchases. Marketers also use shaping (gradual reinforcement) (định hình (củng cố dần dần)
to guide consumers toward a desired behavior, such as oering escalang discounts to
encourage larger purchases.
Cognive Learning Theory (Lý Thuyết Học Hỏi Nhận Thức)
Cognive learning focuses on internal processes like thinking and percepon, rather than
external smuli. It views consumers as acve decision-makers who use knowledge to make
choices. This approach is crucial for understanding complex purchase decisions involving
beliefs, atudes, and preferences, as seen in the ve-stage decision process model.
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4.5 ENVIRONMENTAL INFLUENCES ON CONSUMER BEHAVIOR
Environmental Inuences on Consumer Behavior
Consumer behavior is inuenced by external factors beyond their control. These include
culture, subculture, social class, reference groups, and situaonal determinants, each playing
a role in shaping purchase decisions.
Culture
Culture, the broadest external factor, encompasses shared values, norms, and customs within
a society. It guides consumer behavior, and marketers must adapt to cultural shis to remain
relevant. For instance, American culture inuences adversing strategies, but marketers must
also consider cultural dierences in diverse markets to tailor their programs eecvely.
Subcultures (Tiểu Văn Hóa)
Subcultures are smaller groups within a culture, dened by factors like age, ethnicity, or
geography. Examples include African Americans, Hispanics, and Asian Americans in the U.S.
Subcultures inuence purchasing paerns, and marketers design specic campaigns to target
these groups.
Social Class
Sociees are divided into social classes (upper, middle, lower in the U.S.), which inuence
consumer lifestyles, values, and purchasing habits. Social class aects product preferences
and media consumpon, so marketers tailor strategies accordingly.
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Reference Groups (Nhóm Tham Chiếu)
Reference groups are those that inuence an individual’s behavior through shared norms and
values, such as peers, family, or coworkers. They shape purchase decisions by providing social
validaon.
Family Decision Making
Families play a key role in purchase decisions, with roles varying by member (e.g., iniator,
inuencer, decision-maker). For instance, a mother may iniate a car purchase, while the
family collecvely decides. Marketers must understand these dynamics to target the right
family member in their campaigns.
Situaonal Determinants
Situaonal factors, such as the product’s usage context, me, and communicaon
environment, impact purchase decisions. For example, a car purchase may dier based on
urgency or social context. Marketers must consider these factors to enhance the eecveness
of their strategies.
4.6 ALTERNATIVE APPROACHES TO CONSUMER BEHAVIOR
Alternave Approaches to Consumer Behavior
Consumer behavior studies have evolved beyond tradional psychological perspecves to
include insights from disciplines like economics, sociology, anthropology, philosophy,
semiocs, neuroscience, and history. These crossdisciplinary approaches provide a broader
understanding of consumer decisionmaking processes. Addionally, advancements in
technology have introduced new methods to explore consumer behavior more eecvely.
New Methodologies (Phương Pháp Mới)
Tradional psychological studies oen focus on controlled sengs, but sociologists and
anthropologists (nhân học) use qualitave methods like interviews, parcipant observaon,
and ethnographies to capture social, cultural, and environmental inuences on consumer
behavior. These methods oer deeper insights into how societal and cultural factors shape
consumer acons, oen proving more eecve than convenonal surveys for understanding
complex behaviors.
New Insights
Alternave perspecves, such as those from the humanies (ngành nhân văn), emphasize
cultural and historical contexts in consumer research. For example, historians and
semiocians analyze the symbolic meanings of adversing messages, while cultural studies

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Chapter 3: Organizing for Advertising and Promotion: The Role of Ad
Agencies and Other Marketing Communication Organizations
Before discussing the specifics of the industry, we’ll provide an overview of the entire system and
identify some of the players. As shown in Figure 3–1, participants in the integrated marketing
communications process can be divided into five major groups: the advertiser (or client), advertising
agencies, media organizations, specialized communication services, and collateral services. Each group
has specific roles in the promotional process.
Advertisers, or clients, are the main participants in the integrated marketing communications
(IMC) process. They own the products or services and fund the IMC programs. Advertisers are
responsible for developing marketing plans and making final decisions on advertising and
promotions. While some organizations handle these tasks internally, many rely on advertising
agencies that specialize in creating and placing communications. Agencies of record (AORs)
manage most IMC services for a company, but larger companies may have multiple AORs for different brands.
Media organizations play a crucial role by providing an environment for marketing messages,
aiming to attract consumers. They must have engaging content to encourage advertisers to
buy ad space. Specialized marketing communication services include direct-marketing
agencies, sales promotion agencies, digital agencies, and public relations firms, each focusing on their areas of expertise. lOMoAR cPSD| 61408350
Finally, collateral services support the advertising and promotional functions, helping with
planning and execution. Each participant has a defined role that contributes to the overall marketing process.
3.1 ORGANIZING FOR ADVERTISING AND PROMOTION IN THE FIRM: THE CLIENT’S ROLE
Almost every business utilizes marketing communication, but the organization of these efforts
varies based on factors like company size, product range, advertising budget, and marketing
structure. Marketing personnel play a key role in decision-making, providing input on
campaign plans and media strategies. Top management is also involved in advertising
decisions, reflecting the firm's overall marketing strategy.
Direct responsibility for managing advertising typically lies with an advertising department
headed by a manager. Companies may adopt different structures: a centralized system, a
decentralized brand management system, or in-house agencies ( hệ thống tập trung, hệ thống
quản lý thương hiệu phân tán hoặc các cơ quan nội bộ). In a centralized system, the advertising
manager oversees all promotional activities, coordinating with various departments and outside agencies.
The manager's duties include organizing the department, supervising execution, and ensuring
effective communication with marketing research and sales. Centralized systems are common
in companies with fewer divisions, facilitating communication and efficient operations.
However, they can lead to challenges, such as a lack of responsiveness to specific product
needs and difficulties in understanding overall marketing strategies as companies grow.
3.2 THE CENTRALIZED SYSTEM
Marketing activities are often organized by function, with advertising linked to sales and
research. The advertising manager oversees promotions, including budgeting and media
planning. Key responsibilities include organizing the department, supervising execution, and
coordinating with other departments and outside agencies. lOMoAR cPSD| 61408350
Centralized systems are common in companies with fewer divisions (bộ phận), facilitating
communication and decision-making (giúp tăng cường giao tiếp và ra quyết định). However,
challenges include slow responses to specific product needs and difficulties in understanding
overall marketing strategies as companies grow.
The Decentralized System
In large corporations with multiple divisions and diverse products, managing advertising and
promotional functions through a centralized department can be challenging. Instead, these
companies adopt a decentralized system, where brand managers are assigned to each product
or brand, responsible for planning, budgeting, and overall brand management. Companies like
Procter & Gamble and Unilever exemplify this approach.
Brand managers collaborate closely with outside advertising agencies to develop promotional
programs. Each brand may have its own agency and compete internally against other brands.
The advertising department supports brand managers by assisting in planning and
coordinating integrated marketing communications.
Some companies implement a category management system, where category managers
oversee related groups of products, allowing for strategic coordination among brand
managers. This system can enhance profitability and market share, as category managers may
have the authority to influence brand advertising decisions.
The decentralized system offers advantages such as faster responses to market changes and
focused managerial attention on each brand. However, challenges include potential lack of
experience among brand managers, competition for resources leading to rivalries, and
insufficient authority to implement their plans effectively. Critics argue that brand managers
may become too focused on internal issues and not enough on external market dynamics.
Additionally, brand managers must adapt to digital marketing trends and manage brand
identity across social media platforms. They play crucial roles in developing social media
strategies and guidelines, ensuring effective engagement with consumers. lOMoAR cPSD| 61408350 In-House Agencies
Many companies establish in-house advertising agencies to reduce costs and maintain greater
control over advertising activities. An in-house agency is owned and operated by the
advertiser, and while some function similarly to traditional advertising departments, others
have a distinct identity and handle significant advertising budgets. Major brands like Hyundai,
Avon, and Revlon utilize in-house agencies, sometimes in conjunction with outside agencies.
The primary benefits of in-house agencies include cost savings on media commissions and
fees, closer alignment with top management, and reduced turnover, which can strengthen
client-agency relationships. In-house teams often have better market knowledge and can
respond more quickly to advertising needs.
However, critics of in-house agencies argue that they may lack the experience and creativity
of outside agencies. Outside firms often have a broader range of specialists and can provide
diverse perspectives and strategic insights. As companies grow, they may find it challenging to
manage all advertising internally and may hire outside agencies to enhance their marketing
efforts, as seen with Under Armour's partnership with Droga5. lOMoAR cPSD| 61408350
3.3 ADVERTISING AGENCIES The Ad Agency’s Role
Advertising agencies play a crucial role in helping companies develop, prepare, and execute
promotional programs. While clients can perform these functions themselves, many prefer to
use external agencies for their specialized skills. Agencies employ experts in various fields,
such as artists, writers, and media analysts, providing clients with industry-specific insights and an objective perspective. Types of Advertising Agencies
Agencies range from small operations to large full-service firms that offer a comprehensive
range of marketing, communication, and promotional services. Full-service agencies include
departments for account management, creative services, media planning, and research. Account Services
Account executives act as liaisons between the agency and clients, understanding marketing
needs and coordinating agency efforts. They must possess strong marketing knowledge and
be adept at navigating the evolving advertising landscape. Marketing
Services Research has become increasingly important for agencies to
effectively communicate with target audiences. Most full-service agencies maintain research
departments that gather and analyze data to inform advertising strategies. Account planners
play a vital role in understanding consumer behavior and guiding creative strategies. Creative
Services The creative department is responsible for designing and
executing advertisements. Copywriters and art directors collaborate to develop ad concepts,
while production departments oversee the execution of these ideas. Coordination among
various teams is essential to meet deadlines and ensure quality.
Agency Structure Agencies typically use a departmental or group system to organize their
operations. The departmental system allows specialization, while the group system fosters
collaboration among different departments to service specific accounts effectively. Each
structure has its advantages, depending on client needs and agency size. Creative
Boutiques These are small agencies that focus solely on creative
services, employing writers and artists but lacking media and research capabilities. They
cater to clients who want creative input while managing other marketing functions
internally. Creative boutiques often deliver innovative work quickly, avoiding the
bureaucracy of larger firms. However, they face challenges competing with larger agencies
and may need to expand their services to attract clients seeking more comprehensive solutions. Media Specialist
Companies These agencies specialize in media buying
for television and digital advertising, responding to the complexity of fragmented media
audiences. Media buying services help clients execute their media strategies and benefit
from discounts due to bulk purchasing. The rise of programmatic buying, which automates lOMoAR cPSD| 61408350
media purchasing and optimization, is transforming the industry, expanding beyond digital media to television.
Many large advertisers, including brands like Nike and Revlon, are shifting their media buying
from full-service agencies to media specialists to increase efficiency and reduce costs. These
media agencies are often part of major agency holding companies, providing a streamlined
approach to global media buying. As the media landscape evolves, advancements in
technology and data analytics will further shape media planning and buying strategies, making
media specialists increasingly relevant.
3.4 AGENCY COMPENSATION Commissions from Media
The traditional method for ad agencies to earn money is through a commission system,
typically a 15% commission on media purchases made for clients. This system has been
standard for outdoor advertising but is also used in other media types, providing a
straightforward way for agencies to earn revenue.
Appraisal of the Commission System
The commission system, while historically the primary method of agency compensation, has
faced significant criticism over time. Critics argue that it incentivizes agencies to recommend
expensive media options to maximize their commissions, even if those options aren’t the best fit for the client’s goals.
Fee, Cost, and Incentive-Based Systems
Agencies and clients have developed alternative compensation methods to address the
shortcomings of the commission system, including fee arrangements, cost-plus agreements, and incentive-based systems:
Fee Arrangement: This involves a straightforward fee—either fixed or hourly—for the
agency’s services, agreed upon by both the agency and the client. The fee can be paid
monthly, annually, or per project, covering specific work like media planning or
creative development. This method ensures transparency, as the client knows exactly
what they’re paying for, and the agency’s compensation isn’t tied to media costs.
However, determining a fair fee requires careful assessment of the work’s scope and the agency’s costs.
Cost-Plus Agreement: In this system, the client agrees to cover the agency’s costs (e.g.,
staff time, overhead) plus an additional percentage as profit, often around 15%. This
is frequently used alongside commissions. For example, if an agency’s costs for a
campaign are $83,300, the client pays that amount plus a profit margin, totaling
$98,300. This method requires detailed cost tracking by the agency, which can be
challenging for clients to verify, potentially leading to disputes over transparency.
Incentive-Based Compensation (Bồi thường dựa trên khuyến khích): lOMoAR cPSD| 61408350
This method ties agency compensation to performance outcomes, such as achieving
sales targets, increasing brand awareness, or meeting other measurable goals.
Incentive systems encourage agencies to align their efforts with client goals, but they
require clear, measurable objectives. For instance, if an agency helps a client exceed a
sales target, they might earn a bonus, but if they fall short, their compensation could be reduced. Percentage Charges
In addition to commissions or fees, agencies often apply a markup, typically 17.65% to 20%,
on services they outsource, such as artwork, photography, or printing. For example, if a client’s
bill for these services totals $100,000, the agency might add a 17.65% markup, increasing the
cost to $117,650. This markup, which covers 17.65% to 20% of the client’s overall bill, helps
agencies cover overhead costs and earn a profit on outsourced work. While this method
supplements other compensation, it can raise concerns about transparency if clients aren’t fully aware of the markup.
EVALUATING AGENCIES Evaluating Agencies
With significant spending on advertising and promotion, accountability for these expenditures
has become crucial. Agencies are evaluated through two main assessments: financial audits
and qualitative audits.
Financial audits focus on the agency’s management of costs, expenses,
personnel hours, and payments to media and suppliers, ensuring transparency in billing.
Qualitative audits assess the agency’s effectiveness in planning, developing, and executing the
client’s advertising campaigns. Evaluations are often subjective and informal, especially for
smaller companies with limited budgets or where advertising isn’t a priority. However, larger
companies with substantial budgets emphasize formal evaluation systems. The study noted
that formal reviews are less common for digital, public relations, and multicultural agencies.
Gaining and Losing Clients
The evaluation process provides feedback to both agencies and clients, highlighting areas for
improvement in their relationship and performance. However, many successful relationships
end due to various factors. For instance, Campbell Soup ended its 1954 relationship with
BBDO in 2018 to modernize its marketing, while John Hancock ended its 32-year partnership
with Hill Holliday due to global creative shifts. The fast-food chain Jack in the Box also parted
ways with Secret Weapon Marketing after 20 years, citing its role in the chain’s growth.
Agencies often switch due to creative needs, management changes, or marketing strategy
shifts. Companies like Samsung, IBM, and Colgate consolidate their marketing efforts with one lOMoAR cPSD| 61408350
agency for consistency, while others, like Procter & Gamble (P&G), reduce agency numbers—
P&G cut from 6,000 to 2,500 agencies by 2018, saving over $1 billion. Common reasons for
losing clients include poor performance, communication issues, unrealistic client demands,
personality conflicts, personnel changes, agency-client size mismatches, conflicts of interest,
shifts in marketing strategy, declining sales, compensation disagreements, policy changes, and
lack of integrated marketing capabilities.
Why Agencies Lose Clients
Agencies lose clients due to several recurring issues:
Poor Performance or Service: Clients become dissatisfied with the quality of
advertising or agency services.
Poor Communication: Lack of effective communication between agency and client
personnel hinders collaboration.
Unrealistic Demands: Clients impose demands that exceed the agency’s compensation or capacity.
Personality Conflicts: Misalignment between client and agency teams disrupts teamwork.
Personnel Changes: New leadership at the agency or client may prefer different partners.
Size Mismatch (Không phù hợp về quy mô): The client outgrows the agency, or the
agency becomes too large for the client’s needs.
Conflicts of Interest: Agencies cannot manage competing accounts due to ethical or competitive concerns.
Strategy Shifts: Changes in the client’s marketing or corporate strategy require new agency capabilities.
Declining Sales: Poor sales performance may be attributed to advertising, prompting a switch.
Compensation Disputes (Tranh chấp bồi thường): Disagreements over payment or
compensation models create tension.
Policy Changes: Mergers, acquisitions, or policy shifts may lead to agency reevaluation.
Marketing/Creative Disagreements: Conflicts over strategy or creative direction strain the relationship.
Lack of Integrated Marketing Capabilities: Clients seek agencies with broader
expertise across IMC disciplines.
Agencies must address these issues to retain clients, as some factors are manageable
while others, like mergers or sales declines, may be beyond their control.
How Agencies Gain Clients
Agencies gain clients through referrals from existing clients, media, or other agencies, and by
maintaining strong relationships with these stakeholders. Solicitation (Việc mời chào) is lOMoAR cPSD| 61408350
another common method, with smaller agencies relying on direct outreach and larger
agencies using business development teams to pitch to prospective clients. The process often
begins with a Request for Information (RFI), followed by a speculative presentation where
agencies showcase their capabilities. Despite the time and cost, many agencies participate in
these “spec” presentations, though some refuse due to the lack of guaranteed success. Public
relations, civic involvement, and industry recognition through awards (e.g., Effie Awards,
Cannes Lions) also enhance an agency’s reputation, attracting new clients. Exhibit 3-11
highlights Cashmere’s recognition as the 2019 Multicultural Agency of the Year by Advertising
Age, showcasing how awards boost visibility. Public Relations
Agencies often engage in public relations and civic activities, such as pro bono work for
charities or professional associationS. These efforts build community goodwill and enhance
the agency’s reputation, indirectly attracting new clients through positive visibility in the industry and media. Image and Reputation
A strong reputation is critical for agencies to attract clients. Recognition through awards like
the Effie Awards, Cannes Lions, and CLIO Awards highlights an agency’s creative and strategic
excellence across areas like media planning, digital, and public relations.
3.5 SPECIALIZED SERVICES Direct-Marketing Agencies
Direct marketing is one of the fastest-growing areas of integrated marketing communications
(IMC), utilizing methods like telemarketing, direct mail, the Internet, and other direct-
response advertising to reach consumers. As this sector expands, many companies have
turned to specialized direct-marketing agencies to leverage their expertise. Services provided
by direct-marketing agencies include database analytics and management, direct mail,
research, media services, creative production, and digital marketing. A key focus is developing
and managing databases to attract new customers and foster loyalty among existing ones.
These agencies typically have three main departments: account management (to oversee
client relationships and marketing programs), creative (for copywriting and production of
direct-response messages), and media (for ad placement). Direct-marketing agencies actively
seek new business through performance reviews with existing clients and are generally compensated on a fee basis.
Sales Promotion Agencies
Sales promotion agencies specialize in developing and managing programs such as contests,
sweepstakes, refunds, rebates, premium offers, and sampling initiatives (rút thăm trúng
thưởng, hoàn tiền, chiết khấu, ưu đãi cao cấp và các sáng kiến lấy mẫu), which are often lOMoAR cPSD| 61408350
complex and require expertise. Services include promotional planning, creative research, tie-
in coordination, fulfillment, premium design, catalog production, and contest/sweepstakes
management. Many agencies are also expanding into digital and direct/database marketing
to enhance their IMC offerings. Public Relations Firms
Large companies often employ both an advertising agency and a public relations (PR) firm to
manage their public image and relationships with stakeholders like consumers, employees,
suppliers, government, and the public. PR firms analyze client relationships, develop
strategies, and execute programs using tools like publicity, lobbying, public affairs, community
events, news releases, and crisis management. As companies adopt IMC, PR firms increasingly
integrate their efforts with advertising and other promotional activities to ensure consistent
messaging and cost efficiency. Digital Agencies
The rapid growth of the Internet and digital media has led to the rise of specialized digital
agencies, as marketers increasingly rely on digital tools like website design, apps, search
engine optimization (SEO), banner ads, video, mobile marketing, and social media campaigns.
Digital agencies require expertise in digital media, content marketing, email marketing, lead
generation, database management, and customer relationship management (CRM). The
growth of digital and social media marketing is driving more companies to rely on these
agencies for integrated campaigns across platforms like Facebook, Twitter, Instagram, and Snapchat. Collateral Services
These services include marketing research companies, package design firms, consultants,
photographers, graphic design companies, talent agencies, video production houses, and
event marketing firms. Among these, marketing research firms are one of the most widely
utilized, as companies increasingly rely on them to better understand their target audiences
and gather valuable insights for designing and evaluating advertising and promotional
programs. These firms conduct both qualitative research, such as in-depth interviews and
focus groups, and quantitative studies, like market surveys, to provide actionable data for
advertisers. As digital marketing becomes a larger part of integrated marketing
communications (IMC) programs, new marketing technology services have emerged to
support areas like mobile marketing, content marketing, email marketing, social media,
programmatic media buying, customer experience, and analytics. lOMoAR cPSD| 61408350
Chapter 4: Perspectives on Consumer Behavior
4.2 THE CONSUMER DECISION-MAKING PROCESS Problem Recognition
Problem recognition, the first stage in the consumer decision-making process, occurs when a
consumer perceives a need and becomes motivated to address it, triggering subsequent
decision-making stages. This stage arises from a discrepancy between the consumer’s ideal
state (what they want) and actual state (what they currently have), where the “problem” can
involve achieving a more positive situation, not just resolving a negative one (iai đoạn này phát
sinh từ sự khác biệt giữa trạng thái lý tưởng (những gì họ muốn) và trạng thái thực tế (những
gì họ hiện có), trong đó “vấn đề” có thể liên quan đến việc đạt được một tình huống tích cực
hơn, không chỉ giải quyết một tình huống tiêu cực). Several factors can cause problem recognition:
Out of Stock: Consumers recognize a need when they deplete their stock of a product,
prompting a routine purchase of a familiar or trusted brand.
Dissatisfaction: Dissatisfaction with a current product or situation, such as
uncomfortable or outdated snow boots, drives problem recognition.
New Needs/Wants: Life changes, such as new jobs, financial shifts, or having a baby,
create new needs (e.g., a new wardrobe or family car). Wants, unlike needs, are desires
for non-essential items that consumers still seek to fulfill.
Related Products/Purchases: Buying one product can trigger the need for related
items, such as purchasing an iPhone leading to a need for accessories like chargers or
apps, or an iPad prompting the purchase of a cover or screen cleaner.
Marketer-Induced Problem Recognition: Marketers can stimulate problem
recognition by creating dissatisfaction with the consumer’s current state. Ads for
personal hygiene products (e.g., mouthwash, deodorant) or fashion (e.g., Splat
encouraging hair color changes in Exhibit 4-3) often create insecurities or perceptions
of being outdated, motivating consumers to act.
4.3 EXAMINING CONSUMER MOTIVATIONS
Marketers recognize that problem recognition is often a simple process, but motivation can
significantly influence how consumers proceed. For example, one consumer may buy a watch
for its functionality, while another focuses on its design and brand as a status symbol. lOMoAR cPSD| 61408350
Understanding these underlying motivations is key for marketers. Two prominent theories explain consumer motivations: Hierarchy of Needs
Psychoanalytic Theory (lý thuyết phân tâm học)
Sigmund Freud’s psychoanalytic theory explores the unconscious motives (động lực vô thức)
behind consumer behavior, suggesting that purchases are driven by deep, often hidden
motivations. While complex and unclear to casual observers, these motives can be uncovered
through in-depth research. Motivation research, using methods like in-depth interviews and
focus groups, helps marketers uncover these motives.
Motivation Research in Marketing
Motivation research employs methods like in-depth interviews, projective techniques,
association tests, and focus groups to uncover consumers’ underlying motives. Examples
include a man associating a high-priced fur with protection for his wife, or women linking
perfume to attracting a partner.
Despite its insights, motivation research is controversial due to skepticism and small sample
sizes, though major corporations continue to use it to understand consumer behavior. lOMoAR cPSD| 61408350
Problems and Contributions of Psychoanalytic Theory and Motivation Research
Psychoanalytic theory, while insightful, is criticized for its vagueness, reliance on small
samples, and difficulty in validating results. Motivation research also faces skepticism but
remains valuable for uncovering deep consumer feelings. Methods like focus groups and in-
depth interviews help marketers understand emotions and desires, though they may not
capture broader population trends. INFORMATION SEARCH
The second stage in the consumer decision-making process is information search, which
begins once a consumer recognizes a problem or need. Initially, consumers rely on internal
search, recalling past experiences or knowledge stored in memory to evaluate purchase
alternatives, especially for routine or repetitive purchases where prior outcomes are sufficient
for decision-making. If internal search does not provide enough information, consumers turn
to external search, utilizing sources such as:
Internet Sources: Websites, consumer reviews, and organizations like Angie’s List or
Yelp (Exhibit 4-7) provide valuable information.
Personal Sources: Friends, relatives, co-workers, or marketing-controlled sources like
advertising, salespeople, and packaging.
Public Sources: Articles, TV reports, or newspaper content. lOMoAR cPSD| 61408350
Personal Experience: Hands-on interaction with the product, such as testing or examining it.
The extent of external search depends on factors like the importance of the purchase, the
effort required, the perceived risk, and past experiences. For example, a simple decision like
choosing a movie might involve checking a friend’s recommendation or an app, while a
complex purchase like a car might require reviewing Kelley Blue Book, Consumer Reports, or test-driving vehicles.
PERCEPTION (Nhận thức)
Perception is the process by which consumers acquire, select, and interpret information from
external sources, influenced by factors like their beliefs, needs, and experiences. It involves
three key processes: sensation, interpretation, and selective perception.
Sensation (Cản nhận)
Sensation refers to the immediate sensory response (taste, sight, touch, hearing, smell) to a
stimulus like an ad, package, or brand name. Marketers use sensory elements to attract attention. Selecting Information
Sensory inputs are crucial, but psychological factors like personality, needs, motives, and
experiences also determine what information consumers focus on. Selective perception filters
out irrelevant stimuli, focusing on what aligns with a consumer’s needs. For instance, someone
shopping for a smartphone will pay more attention to related ads than unrelated ones,
highlighting the challenge for marketers to break through this filter.
Interpreting the Information (Diễn giải thông tin)
Interpretation involves organizing, categorizing, and assigning meaning to information,
influenced by individual beliefs and expectations. Ads with clear messages are easier to
interpret, but ambiguous ones rely on the consumer’s subjective interpretation. Selective
perception, as shown in Figure 4-4, includes: ● Selective Exposure: Consumers choose
whether to engage with information (e.g., changing TV channels during commercials).
Selective Attention: Consumers focus on stimuli relevant to their needs.
Selective Comprehension (Diễn giải thông tin): Consumers interpret information
based on their beliefs, often in a biased way.
Selective Retention (Giữ lại chọn lọc): Consumers retain information that aligns with
their attitudes, as seen in Exhibit 4-9, where an American Association of Advertising lOMoAR cPSD| 61408350
Agencies ad reminds consumers of their needs, or in Exhibit 4-10, where Coca-Cola
uses color to attract attention.
Subliminal Perception (Nhận thức tiềm thức)
Subliminal perception refers to perceiving stimuli below the conscious (ý thức) level, a
controversial tactic in advertising. While it may influence behavior subconsciously, research
shows mixed results, and consumers generally oppose its use due to ethical concerns. Despite
interest in subliminal advertising, its effectiveness remains limited, and ethical implications deter widespread adoption. ALTERNATIVE EVALUATION
After gathering information during the information search stage, consumers proceed to
alternative evaluation, where they assess various brands or products to address their
recognized need. The brands or products considered as purchase options form the consumer’s evoked set.
The Evoked Set (Tập được kích hoạt)
The evoked set includes a limited number of brands the consumer is aware of and considers
during evaluation. Its size varies based on factors like the importance of the purchase and the
consumer’s time and energy. Marketers aim to ensure their brands are part of the evoked set
by increasing awareness among consumers. Established brands with large advertising budgets
often maintain high awareness levels, making it more likely for consumers to consider them.
New or lesser-known brands struggle to enter the evoked set. Marketers use strategies like
advertising, point-of-purchase materials, and promotional techniques to encourage
consumers to consider their brands.
Evaluative Criteria and Consequences (Tiêu chí đánh giá và hậu quả)
Consumers evaluate the brands in their evoked set using a list of evaluative criteria, which are
the dimensions or attributes they consider important. These criteria can be objective (e.g.,
price, warranty, fuel economy for a car) or subjective (e.g., image, styling, performance).
Marketers often view products as bundles of attributes but must consider the functional
consequences (tangible outcomes like a soft drink’s taste or internet speed) and psychosocial
consequences (intangible outcomes like how a product makes the consumer feel or how
others perceive them). For example, a car’s fuel economy is a functional consequence, while
its styling might influence social perception. lOMoAR cPSD| 61408350
Psychosocial Consequences
Psychosocial consequences are subjective and personal, focusing on how a product makes the
consumer feel or how others perceive them. These outcomes significantly influence attitudes
and purchase decisions. Two key sub processes occur during alternative evaluation: (1) the
formation, reinforcement (củng cố), or change of consumer attitudes toward brands, and (2)
the decision rules or integration strategies consumers use to compare brands, which are explored further below. ATTITUDES
Attitudes are learned predispositions (khuynh hướng) to respond to an object and are critical
in consumer behavior. They summarize a consumer’s overall feelings or evaluations toward
objects like brands (e.g., Cheerios, AT&T, Nike). Marketers aim to create, reinforce, or change
attitudes to favor their brands.
Mô hình thái độ đa thuộc tính (Multiattribute Attitude Models)
Mô hình thái độ đa thuộc tính giúp các nhà tiếp thị hiểu thái độ của người tiêu dùng bằng cách
xem một thương hiệu như một tập hợp các thuộc tính. Theo mô hình này, người tiêu dùng có
niềm tin về các thuộc tính cụ thể của thương hiệu (B_i) và gán mức độ quan trọng (E_i) cho
mỗi thuộc tính. Thái độ đối với thương hiệu (A_B) được tính bằng tổng của niềm tin về mỗi
thuộc tính nhân với mức độ quan trọng của nó: A_B = (B_i × E_i). Ví dụ, một người tiêu dùng
có thể tinΣ rằng một loại kem đánh răng ngăn ngừa sâu răng tốt nhưng không ngăn ngừa cao
răng, trong khi đánh giá cao việc ngăn ngừa sâu răng hơn. Cha mẹ có thể ưu tiên ngăn ngừa
sâu răng cho trẻ em, trong khi thanh thiếu niên có thể coi trọng hơi thở thơm tho, ảnh hưởng
đến sở thích thương hiệu của họ. Các nhà tiếp thị phải xác định các niềm tin nổi bật và tầm
quan trọng của chúng qua các phân khúc thị trường và tình huống.
Attitude Change Strategies
Multiattribute models help marketers diagnose consumer attitudes and develop strategies to influence them, including:
Increasing/Changing Belief Ratings: Enhancing the belief rating of a brand on an important attribute.
Changing Attribute Importance: Altering consumers’ perceptions of an attribute’s value. lOMoAR cPSD| 61408350
Adding New Attributes: Introducing new attributes to the evaluation process (e.g.,
Clorox promoting environmental friendliness).
Changing Competitor Perceptions: Adjusting perceptions of competitors’ brands.
Marketers often focus on reinforcing an attribute’s importance or adding new ones to influence attitudes.
INTEGRATION PROCESSES & DECISION RULES
Integration processes combine product knowledge, meanings, and beliefs to evaluate
purchase alternatives. Consumers use decision rules to make choices, often employing
heuristics (phán đoán đơn giảN) for simpler decisions (e.g., buying the cheapest brand or
choosing based on promotions). For familiar products, consumers might use effective referral
(tham chiếu cảm xúc) rules, relying on overall impressions of brands, especially for well-known
brands. Marketers must understand which attributes and rules consumers prioritize to provide relevant information. PURCHASE DECISION
At some point, consumers stop evaluating alternatives and make a purchase decision,
matching their motives with the brand’s attributes. The decision involves not just selecting a
brand but also additional choices like where to buy and how much to spend. A time delay
often occurs between the purchase intention and the actual purchase, especially for complex
purchases like cars or computers.
For nondurable goods (e.g., packaged items), the time between decision and purchase is
short, and consumers often develop brand loyalty—a preference for a specific brand—due to
repeated satisfaction. Marketers aim to build and maintain brand loyalty through reminder
advertising, prominent shelf positions, and promotions.
POST PURCHASE EVALUATION
After using a product or service, consumers compare its performance to their expectations.
Satisfaction occurs if expectations are met or exceeded; dissatisfaction happens if
performance falls short. This evaluation affects future purchases: positive outcomes increase
the likelihood of repurchasing, while negative ones may lead to negative attitudes, reducing
future purchases. Cognitive dissonance, a feeling of doubt after a tough choice, can occur,
especially if the unchosen option had desirable features. Consumers may reduce dissonance
by seeking reassurance, ignoring conflicting information, or focusing on supportive ads lOMoAR cPSD| 61408350
VARIATIONS IN CONSUMER DECISION - MAKING
Consumers don’t always follow all five decision-making stages (problem recognition,
information search, alternative evaluation, purchase decision, post purchase evaluation) with
the same intensity. For low-involvement, routine purchases (e.g., cheap, frequent items),
stages are minimized. Marketers of such products maintain brand awareness through ads and
promotions to stay in the evoked set (e.g., Ally Bank in Exhibit 4-14). New brands use
promotions like free samples to break into routines. High-involvement purchases require more
extensive decision-making, needing detailed information on attributes and distribution.
4.4 THE CONSUMER LEARNING PROCESS
BEHAVIOURAL LEARNING THEORY
Behavioral learning focuses on external stimuli and responses. Two main theories are:
● Classical Conditioning (Điều Kiện Hóa Cổ Điển): This involves associating a stimulus
with a response through repetition. In marketing, brands use classical conditioning to
associate products with positive emotions, like pairing a perfume with the sweetness
of lollipops (e.g., Mariah Carey’s Lollipop Bling).
● Operant Conditioning (Điều Kiện Hóa Tác Nhân): This theory emphasizes active
participation in learning through rewards or punishments. Positive reinforcement
(e.g., a coupon after a purchase) increases the likelihood of repeat behavior, while
negative reinforcement encourages behavior to avoid unpleasant outcomes.
Applying Classical Conditioning
Marketers use classical conditioning to create favorable associations with their products. For
example, pairing a product with music or emotions can enhance recall and influence consumer preferences.
Applying Operant Conditioning
Operant conditioning in marketing involves rewarding desired behaviors to encourage repeat
purchases. Marketers also use shaping (gradual reinforcement) (định hình (củng cố dần dần)
to guide consumers toward a desired behavior, such as offering escalating discounts to encourage larger purchases.
Cognitive Learning Theory (Lý Thuyết Học Hỏi Nhận Thức)
Cognitive learning focuses on internal processes like thinking and perception, rather than
external stimuli. It views consumers as active decision-makers who use knowledge to make
choices. This approach is crucial for understanding complex purchase decisions involving
beliefs, attitudes, and preferences, as seen in the five-stage decision process model. lOMoAR cPSD| 61408350
4.5 ENVIRONMENTAL INFLUENCES ON CONSUMER BEHAVIOR
Environmental Influences on Consumer Behavior
Consumer behavior is influenced by external factors beyond their control. These include
culture, subculture, social class, reference groups, and situational determinants, each playing
a role in shaping purchase decisions. Culture
Culture, the broadest external factor, encompasses shared values, norms, and customs within
a society. It guides consumer behavior, and marketers must adapt to cultural shifts to remain
relevant. For instance, American culture influences advertising strategies, but marketers must
also consider cultural differences in diverse markets to tailor their programs effectively.
Subcultures (Tiểu Văn Hóa)
Subcultures are smaller groups within a culture, defined by factors like age, ethnicity, or
geography. Examples include African Americans, Hispanics, and Asian Americans in the U.S.
Subcultures influence purchasing patterns, and marketers design specific campaigns to target these groups. Social Class
Societies are divided into social classes (upper, middle, lower in the U.S.), which influence
consumer lifestyles, values, and purchasing habits. Social class affects product preferences
and media consumption, so marketers tailor strategies accordingly. lOMoAR cPSD| 61408350
Reference Groups (Nhóm Tham Chiếu)
Reference groups are those that influence an individual’s behavior through shared norms and
values, such as peers, family, or coworkers. They shape purchase decisions by providing social validation. Family Decision Making
Families play a key role in purchase decisions, with roles varying by member (e.g., initiator,
influencer, decision-maker). For instance, a mother may initiate a car purchase, while the
family collectively decides. Marketers must understand these dynamics to target the right
family member in their campaigns.
Situational Determinants
Situational factors, such as the product’s usage context, time, and communication
environment, impact purchase decisions. For example, a car purchase may differ based on
urgency or social context. Marketers must consider these factors to enhance the effectiveness of their strategies.
4.6 ALTERNATIVE APPROACHES TO CONSUMER BEHAVIOR
Alternative Approaches to Consumer Behavior
Consumer behavior studies have evolved beyond traditional psychological perspectives to
include insights from disciplines like economics, sociology, anthropology, philosophy,
semiotics, neuroscience, and history. These crossdisciplinary approaches provide a broader
understanding of consumer decisionmaking processes. Additionally, advancements in
technology have introduced new methods to explore consumer behavior more effectively.
New Methodologies (Phương Pháp Mới)
Traditional psychological studies often focus on controlled settings, but sociologists and
anthropologists (nhân học) use qualitative methods like interviews, participant observation,
and ethnographies to capture social, cultural, and environmental influences on consumer
behavior. These methods offer deeper insights into how societal and cultural factors shape
consumer actions, often proving more effective than conventional surveys for understanding complex behaviors. New Insights
Alternative perspectives, such as those from the humanities (ngành nhân văn), emphasize
cultural and historical contexts in consumer research. For example, historians and
semioticians analyze the symbolic meanings of advertising messages, while cultural studies