Marketing Intercept Theory

a tutorial by

Nick Bruser

Introduction

Have you ever opened up a Sunday’s newspaper and been overwhelmed by an enormous amount of brightly colored freestanding ads containing coupons? Or while shopping in your local grocery store, have you been accosted by floor-standing cardboard displays offering new flavors of Mountain Dew or Frito Lay potato chips at discounted prices? If the answer to any of these questions is yes, then you have been a victim of the marketing intercept strategy. The intercept strategy, also known as the capture strategy, is used by marketers to influence a purchase where limited decision-making is used (Hawkins et al). The optimum goal of this strategy is to intercept the customer during his or her search for information on the brands in his or her evoked set (Hawkins et al). Some examples of the marketing intercept strategy currently in practice include point of purchase displays, changes in package design, cooperative advertising, and the use of direct mail coupons.

Explanation of the Topic

To fully understand the marketing intercept theory it is imperative to understand the consumer’s basic search for information on a purchase to make a decision. This example will illustrate how a consumer shops and searches for a low involvement product such as toothpaste. The first step in this process is the internal search.

Internal search: An internal search begins when the consumer mentally gathers information based on the desired attributes or the needs that the consumer wants to be fulfilled. He or she will want to purchase an item that will fulfill those needs and that has those desired attributes. For example, the desired price of the toothpaste, the previous brand of toothpaste used, and the desired features of toothpaste will all be included in the internal search (Ex. whitening or tarter control). The next step in the information search process is the external search.

External Search: An external search will reveal information that is obtained from outside sources such as relatives or neighbors, the Internet, trials, or by observation. External search is usually necessary for high priced products and new or unfamiliar product categories.

Low involvement purchases are usually those that have the opportunity for repeat purchasing. Toothpaste is considered a low involvement purchase; therefore, the consumer may often make a repeated purchase. External search is very limited in this example. After the search process is complete the consumer compiles the brands and makes an evoked set.

Evoked Set
An evoked set consists of the set of brands a consumer considers during the information search process. The consumer is aware of these brands and would consider purchasing them based on their attributes. If the consumer previously used Crest or Colgate toothpaste and they provided a positive experience, then these are brands that the consumer would consider purchasing again. These brands would be in the consumer’s evoked set.

Inert Set
The inert set is a list of brands that the consumer is aware of, but has neither negative nor positive feelings about the products. The consumer has a lack of knowledge for these brands. Products under this category would include ones that the consumer has never used before or products that are new. Although a lack of knowledge about these brands often eliminates them as alternatives, these products can sometimes become substitutes for the evoked set brands with the right promotional activities (Ex. Aquafresh).

Real World Example

Now that the consumer’s search for information has been described, the marketing intercept theory will be integrated into the below example.

While reading the Sunday newspaper, a consumer comes across an ad for Aquafresh Whitening toothpaste (Inert Set product) with a coupon for $1.00 dollar off. The ad for toothpaste mentally triggers problem recognition for the consumer. He realizes that he is out of toothpaste and also, because of this ad, he now is aware of Aquafresh toothpaste and its brand attributes. Later on that day, the consumer goes to the local grocery store looking for Crest toothpaste (Evoked Set product) because that is his usual brand. In the path to the Crest toothpaste, the consumer runs into a brightly colored Aquafresh Whitening display. While at the display, the consumer notices that there is a special promotion for a 2-pack of Aquafresh toothpaste for the same price as his usual Crest toothpaste. The consumer compares the two products and determines that they both whiten teeth. The consumer chooses the Aquafresh toothpaste because of the increased value associated with the brand’s attributes.

In order to successfully guide the customer away from purchasing a product in their evoked set, the marketer has to be able to identify which media is the best choice for the advertising message. Below is a list of some of the attention grabbing techniques used in the marketing intercept theory.

Examples of media used

Coupons:

Coupons are the instruments most widely used by marketers in the intercept strategy. Coupons offer customers an opportunity to try new products or different brands that they normally wouldn’t purchase at full price. Consumers are using coupons more than ever before. In a survey that was conducted in 1993, 86% of the respondents believed that by using coupons they are saving money (Heller, 1993). While many consumers have favorable opinions on coupon usage, more than half of the consumers doubt that the time wasted clipping coupons is worth the money saved by using them. The Quiznos Sub coupon below is a perfect example of the marketing intercept strategy in practice today. This coupon was found in a coupon book mailer and it would easily persuade new customers to try Quiznos instead of their usual fast food restaurant.

Point of purchase displays:

Point of purchase displays are the most successful forms of sales promotion to the consumer. A typical POP display is made of brightly colored cardboard, which results in increased attraction by the consumer. When retailers place these displays in front of the consumers, studies show that they are more likely to make frequent impulse purchases and they are more willing to try the new displayed product as an alternative to their usual brand (Tempocreative.com). Another reason point of purchase displays are so successful at steering away the customer from their evoked brands is their interaction. “Since we are social creatures we like to be involved in interactive experiences. POP displays are engaging and allow the customer to participate in the purchasing process” (Tempocreative.com). In the example of the potato chips to the right, this display would be more successful in a main aisle in a supermarket than just displaying the potato chips in the chips aisle because the POP display entices the customer with a message of TRY ME!

Changes in package design:
A change in package design is another way to gain a consumer’s attention about a product.

These two examples above are great examples of a promotional change in the package design. If a customer was shopping for mouthwash (which is a low involvement product) there is a greater chance that the customer would purchase one of these products above instead of their evoked product (Listerine) because there is a greater value offered. Another from of package design change that is an everyday practice is using a larger box with a sign across the front telling you as the customer that there is now 20% more free. This example of promotional design change could persuade the consumers that they are getting a better value for this product over the benefits of their evoked products.

Cooperative Advertising:

Cooperative advertising is a growing form of media used in the intercept strategy. In this type of advertising the manufacturer agrees to reimburse a portion of the retailers advertising expense if the retailer only displays the manufactures brands (Clow, 2004). This form of media is used intensively at Sears and J.C. Penney. For example, a customer is performing a search for information on a pair of Tommy Hilfiger jeans (evoked set brand). While searching for a location to purchase these jeans, the customer came across an ad for Levi’s jeans (inert set brand) that could be purchased at Sears. The Sears ad illustrates the features of Levi jeans and as a result has moved the Levi’s brand to an evoked set brand.

Different Types of Customers

Not all customers will respond to a marketer’s attempts to convince them to purchase another brand. A transactional customer can be easily persuaded to choose another low involvement product over their evoked brand. A transactional customer “thinks short term and hinges transactions solely on price” (Williams, 2004). Whereas, a relational customer seldom chooses an unknown inert product. A relational customer “considers today’s transaction to be one in a series of many and fears making a poor choice” (Williams, 2004). Since relational customers make repeated purchases these consumers are poor targets for the marketing intercept theory.

Relevant Web Sites

http://www.tempocreative.com/pop-displays.htm (Company that designs and creates POP displays)

http://www.entrepreneur.com/article/0,4621,317810,00.html (Wow Customers With Your Ad’s)

http://www.findarticles.com/p/articles/mi_m3374/is_n11_v15/ai_13947018 (Carolina Manufacturers Service Research on Coupon Usage)

http://www.findarticles.com/p/articles/mi_hb272/is_198505/ai_hibm1G13770907 (Sales Tools for Synergists. Cooperative Advertising)

References

Clow, Kenneth E., & Donald Baack (2004). IMC Promotional Tools: Trade Promotions. In (Ed.), Integrated Advertising, Promotion, and Marketing Communications (2nd ed., pp. 316-317). Upper Saddle River, NJ: Pearson Prentice Hall.

Everett, Martin (1986). Sales Tool for Synergists. Sales & Marketing Management, May 1.

Hawkins, Del I., Roger J. Best, and Kenneth A. Coney. Consumer Behavior: Building Marketing Strategy. Ninth Edition. New York, McGraw - Hill. 2004.

Heller, Al (1993). A lesson for marketers seeking redemption - Carolina Manufacturers Service research on coupon usage. Drug Store News, June 7.

Tempo Creative, Inc. (2004). Top 10 Reasons to use POP Displays. Retrieved October 17, 2004 from Web site: http://www.tempocreative.com/pop-displays.htm

Williams, R (2004, November). Wow Customers With Your Ads. Retrieved October 15, 2004 from Entrepreneur, Web site: http://www.entrepreneur.com/article/0,4621,317810,00.html

Test for Understanding

1. Which types of decisions is the marketing intercept theory used for?

A. Low involvement decisions

B. High involvement decisions

C. Technical product decisions

D. Repeat purchase decisions

2. The marketing intercept theory persuades consumers to purchase products that are not in their ______?

A. Evoked set

B. Inept set

C. Inert set

D. Outside set

3. Which type of media is the most widely used when implementing the intercept theory?

A. POP Displays

B. Cooperative Advertising

C. Product design changes

D. Coupons

4. Which type of media results in increased impulse purchases and new product trial within a retail environment?

A. Coupons

B. POP displays

C. Product design change

D. Cooperative advertising

5. A customer that is heavily influenced by price is a ________?

A. Relational customer

B. Brand loyal customer

C. Transactional customer

D. Repeat purchaser

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Answers to Questions

1.    A
2.    A
3.    D
4.    B
5.    C