62054572-Hierarchy-of-Effects-Monitoring-and-Maximizing-Your-Marketing-Efforts-Hausman-Marketing-Let

This preview shows page 1 - 4 out of 10 pages.

AboutResume – Angela Hausman, PhDDefinition of MarketingMarketing SlidesMarketing TranscriptsMarketing VideosHire UsStrategic Marketing Consulting: Internet and Offline Complete Marketing SolutionsSpeakingContact UsJobsMarketing JobsMarketingMarketing ToolsWhat is Marketing ?Marketing ResearchMarketing PlanMarketing Strategiese-Mail MarketingFacebook Business MarketingMarketing on the InternetSocial Media MarketingRSS :PostsCommentsEmailHausman Marketing LetterMarketing Answers-From Marketing ExpertsSocial Media MarketingGoogle+Marketing StrategyInnovation MarketingFacebook Business MarketingMarketing AnalyticsMarketing ResearchHire UsSpeakingStrategic Marketing Consulting: Internet and Offline Complete Marketing SolutionsContact UsMarketing JobsAbout
1Retw eetRetw eetResume – Angela Hausman, PhDType and hit enter to SearcWritten on April 26, 2011 at 4:25 pm byAngela Hausman, Ph. D.Hierarchy of Effects: Monitoring andMaximizing Your Marketing EffortsFiled underMarketing Analytics,Marketing Research,Marketing Strategy{11 comments}The hierarchy of effects is:Marketingterm for the sequence of fivestepsaconsumerpasses through from theinitialexposureto aproductoradvertisementto thepurchasedecision: (1)awareness, (2)interest, (3)evaluation,(4)conviction, and (5) purchase.Why we should care about the hierarchy of effectsRecently, I wrote a post suggesting thatmeasuring ROI is stupidgiven the hierarchy of effects necessary to drivepurchase behavior (among other reasons).As you look at the model to the left, you can see that assessments ofROI only capture the last in a chain of events leading to sales.Assessing marketing efforts based solely on ROIassumes theother stages in the hierarchy of effects are unimportant in achieving future salesand thatcouldn’t be farther from the truth. Ignoring the impact of your marketing efforts on each stage of the hierarchy ofeffects is lazy, short-sighted, and will likely lead to inaccurate decisions.In fact, you can findinaccurate advicegiven all over the internet and in books simply because sales can’t betracked to specific marketing actions. A study by Foresee, for instance, shows only 1% of website visits aremotivated by social media.This data is used to argue that firms are wasting their time and money on socialmedia.What isn’t measured in this study is the enormous impact of social media on creating brand awareness— not only that, but social media creates positive affect.Social media drives consumers far down the hierarchy of effects by creating liking, preference, and conviction
that the brand is “for them” based on the engagement of their friends with the brand.To ignore the impact ofmarketing on the hierarchy of effects is senseless.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 10 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
N/A
Tags
Marketing, Dr Angela Hausman

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture