Index of Paper Presentations for the Parallel Sessions - Academy of ...

their products based primarily on demographic variables and control not only the content, but, the volume andtiming of marcom as well. (McCarthy 1964)Inherent in all these marketing communication approaches were the basic elements of persuasion. The goalof much marcom was to persuade customers or prospects to try the promoted product. The assumption was, once theuser had tried, they would be satisfied and would return for additional purchases. (McCarthy 1964) Thus, theestablished marketing communication model, developed some 75 or so years ago, is still the same as is in use today.Communicate, persuade, generate a purchase and let the product prove its value over time. This resultingacquisition-retention model drove the system. Thus, the basic marketing communication model was based onacquisition which could be achieved through persuasion and occasional reminders.In spite of the major economic, distribution and technological changes that have occurred, that marcommodel still describes the marketing communication system used by large number of consumer product companies inestablished markets in the 21 st century. (Schultz and Schultz 1998) The basic premise of marketing communicationmanagers seems to be: if it is still working, why change?Since the basic model of marketing communication was customer acquisition, generated through customertrial and product performance, the persuasion model made inherent good sense. Consumers had little informationabout the product other than what the marketer provided and had even more limited recourse in talking back to themarketer. Accordingly, customer-focused persuasion models were built which generally assumed that customers orprospects moved through some type of communication process on the way to a purchase decision. One simplemodel was the AIDA approach (Attention, Interest, Desire and Action) of the early 1900s. (Schultz and Kitchen2000) More sophisticated models, based on assumptions inherent in western-based behavioral consumer psychology,developed in the middle of the 20 th century such as the Hierarchy of Effects. The Hierarchy of Effects modelassumes marketers drive customers through a purchasing process, using multiple communication tools, deliveredthrough various forms of outbound message and incentive delivery systems. (Lavidge and Steiner 1961) Based onthe messages delivered, marketers could influence the ―consumer purchase process‖ and, as important, measure theprogress of the program through various, generally attitudinally- based, -research techniques.A stylized model of the Hierarchy of Effects model is shown in Exhibit Two.Exhibit Two Goes About HereHierarchy of Effects ModelThe support for the Hierarchy of Effects approach is based on a theoretical concept articulated by Lavidge andSteiner (1961) in the early 1960s. (Lavidge and Steiner 1961)The model assumes that consumers move throughsome type of communication process on the way to a purchase decision. The movement through thatpersuasion/communication model is controlled by the marketing organization. That is, by investing in marketingcommunications, the marketer ―pushes‖ the customer or prospect through the process, on the way to a purchase. Asshown, the consumer or prospect moves from awareness to knowledge to preference to conviction. And, at somepoint, a purchase may actually be made, although the Hierarchy is essentially a communication model. (Lavidge andSteiner 1961) The business-to-business marcom managers have adapted this same approach with their ―funnelsystem‖.As shown, the L&S model is linear, one way, outbound and assumes that the marketer is in control of all thevariables, that is, the 4Ps (product, price, place and promotion) which influence the consumer‘s purchase decision.While there are challenges to the Hierarchy model, (Barry 1987) it continues to be the most well established andaccepted in key marketing organizations around the world.To summarize, the traditional marketing communication system being used in established markets todayassumes (a) willing and interested prospects with disposable incomes who (b) are served by third party channels and