Tobacco Documents Online

1 2 3 4 5 6 7 8 9 I0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 10 here. If any at point there's another problem, please do not hesitate to stop us. Q. Dr. Semenik, I think we are talking about marketer-controlled information, and in the second paragraph of your expert statement you refer to the fact that consumer decision making is extremely complex, and that there are so many factors -- I'm paraphrasing -- that -- that that overrides, I guess, marketer-controlled information; is that correct? A. That's not totally correct.' The consumer decislon-making process is extremely complex and involves a large number of factors. Marketer-controlled information is one of those factors. Q. Okay. I guess what I'm trying to do here is I'm trying to isolate what you've written here, and what other factors would act upon the declsion-making process of the consumers that you're referring to, other than marketer-controlled information? A. In a any product or factor such as culture, broad consumer declsion-maklng process for service, for an individual consumer family, friends, .school, lifestyle, social influences, and potentially A. WILLIAM ROBERTS,. JR., & ASSOCIATES

1 2 3 5 6 8 9 10 11 12 14 15 16 17 18 19 20 21 22 23 24 25 dozens of others, can affect the decision that each consumer makes. Q. And so what you're lumping those into a category of the complex decision-making process of the consumers; is that fair to say? A. Yes. Q. And that category, for term -- and we'll Just call that declsion-making process -- the decision-making process cannot marketer-controlled information; you're suggesting? A. No. Not at all. consumers use information, lack of a better the consumer consumer be influenced by is that what The consumer -- such as advertising, such as coupons, as part of the way they go about the process of choosing brands. Q. When you say "are more powerful and have more influence than marketer-controlled information," how do you define "more powerful"? A. In the study of consumer behavior, when we examine consumers' choices regarding products to use, we find that broad in£1uences, such as culture powerful than an influencing that or friends or lifestyle, are more advertiser marketer's efforts in choice. A. WILLIAM ROBERTS, JR., & ASSOCIATES

12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Okay. How are you degree of power with respect information? A. Could able to quantify that to marketer-controlled you repeat the question for me, please. I want Q. Yes. degree of power, marketer-controlled about? to make sure I understand. How are you able to quantify the if that's possible, over the information that we've been talking A. The degree of power over marketer-controlled information relative to the broad social influences -- am I understanding your question correctly? Q. That's a good way to phrase it. A. Marketers are fully aware, as they study markets, that consumers need goods and services to lead their lives, and it is the marketer's challenge to try to use advertising, product design, package design, and other tools that we call marketing, to try to fit in lives and make their brands marketer's brand -- relevant consumer llves his or her life needs they have. Q. Okay. I guess what I'm trying to do is: with consumer -- that is the to the way the and the kind of A. WILLIAM ROBERTS, JR., & ASSOCIATES

13 1 2 3 4 5 6 7 8 9 I0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 You've made the comment in your statement that the decision-making process is more powerful -- the factors that influence the decision-making process is more powerful information. What much more powerful than marketer-controlled I'm trying to figure out is it, or do we know? is how A. We would only know that for any individual product situation, if we had very clear information. So we couldn't say, as a general rule, it is five percent, i0 percent. That would be impossible. Q. Okay. How do you know that it's more powerful? A. Well, I could give you an example. Q. Okay. A. I could be given the unfortunate challenge today of being told that it's my job to sell slide rules to engineers. The technological environment would be so overwhelmingly against me, that no amount of promotion, no amount of advertising, no amount of coupons would ~e more powerful than. computers and technological devices that engineers now have available relative to a slide rule. Q. I understand your example and that's a A. WILLIAM ROBERTS, JR., & ASSOCIATES

1 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 good example if someone has no background in a particular area, which might be one of the assumptions in your hypothetical, or if you were trying to sell a product that was hopelessly the outdated. But I would -- how would efficiency or -- or the degree you characte.rize of effectiveness with respect to the tobacco advertising in general. Is it quality stuff? MR. PURVIS: Object to the form. THE WITNESS: Could you rephrase please. MR. GONZALEZ: All right. If you were to compare different that, computers, or would you say vis-a-vis other people industries, let's say tobacco with major league sports, how effective their advertising people are in the industry. A. And by clarlfy that for ways we would make Judgments about advertising. the word "effective," could you me because there are different Q. Okay. And in terms of being able to accomplish what they set out to do with their advertising. A. Well, in that -- in that -- I'm sorry, A. WILLIAM ROBERTS, JR., & ASSOCIATES

15 1 2 3 4 5 6 7 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 but I wouldn't know what any individual ad was meant to accomplish, so in terms of effectiveness I wouldn't be able to judge that particular kind of effectiveness until I knew what their goals were. Q. Okay. Let's go into your background just a little bit. Apparently you've been a -- you earned your Ph.D. in 1976 in marketing; is that correct? A. Yes. Q. Okay. And your MBA from Michigan State University. Was there a particular emphasis there at all? A. NOt in the MBA program, no. Q. Okay. And then you had a business background from the University of Michigan in 1970, is that correct? A. Yes. Q. And you've been a professor for marketing -- the marketing department here at the for the last five years? I started my career here in 1976. I've been a full professor for the last years. Q. Okay. As a full professor, what classes do you teach? University of Utah A. Actually five kinds of A. WILLIAM ROBERTS, JR. , & ASSOCIATES

1 2 3 4 5 6 7 8 9 i0 11 12 13 14 15 16 17 18 19 21 22 23 24 25 A. I teach marketing and advertising classes. Q. And do any of those classes have specific names? A. Yes. The introduction to marketing class is Marketing 301; the introduction to advertising class, which is now Marketing 450; I have taught consumer behavior, which is -- our numbers have changed because of a recent curriculum review -~ it used to be 385; Marketing Research, 345; Marketing Management, 670; and a course called Executive Protocol, Marketing 500. Those would in the last five or six years. Q. What is executive protocol? A. Executive protocol is a course where students take it as a credit/no-credit course, I try to teach them about aspects that will be important to their career, such as hosting a business dinner, being a guest at a business dinner, traveling internationally, howto use different forms of communication appropriately: fax versus a cell phone versus a regular corded phone; stationery. a way of teaching courses. Things that we just don't in our regular structured so be and have A. WILLIAM ROBERTS, JR., & ASSOCIATES

1 2 3 5 6 7 8 10 II 12 13 14 15 16 17 18 20 21 22 23 25 17 Q. Your marketing management course, what is the focus of that course? A. That's an advanced course for MBA students, which presumes they have a fairly high level knowledge of basic marketing, and typically will study much more advanced often using cases as a teaching method. we strategies, Q. When you say strategies and case studies, can you give me an example of maybe two of your consumer for two years cases -- with either a favorite cases that you use in class. A. Since I haven't taught that I can tell you generally the kinds of Q. Okay. A. -- if you wouldn't mind. A case would typically deal products company -- maybe Nike or Proctor & Gamble -- or an industrial products company like Digital Equipment; and the case would set a scenario facing the company that's a problem for the company -- maybe a product that's competltively inferior, may be opening up another international market; the case would provide students with information about the company's financial situation, its personnel, its competitors, the technological environment, the A. WILLIAM ROBERTS, JR., & ASSOCIATES

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 cultural environment -- the kinds of things we spoke of a moment ago -- and present students with a problem such as: Which international market would you enter first, given what you know about technology in these markets, the infrastructure of the market. So we try to give students a very broad challenge and try to help them understand the complex process of designing marketing strategies. Q. Now advertising would be a subset within the -- the -- I guess the -- the term marketing; is that correct? A. That is correct. Q. Okay. And marketing could include marketing channels which might be the distribution and delivery system of a product, correct? A. Yes. Q. So you would have distribution, you have advertising is another area that falls within marketing. What I guess I want you to do is: Have you ever taught any courses, other than the introduction to advertising, that focus specifically on advertising? A. And I think I can answer that this way: A. WILLIAM ROBERTS, JR., & ASSOCIATES

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 In every course -- the advertising course deals the advertising introductory marketing course sequence which deals with The marketing management course from beginning to end with process. The three-chapter advertising. have a section on advertising in terms of how use advertising to strategically support the overall marketing plan. The consumer behavior would also about advertising and how consumers use as part of the information available as has a would we talk advertising they make decisions about brands in the marketplace. Q. Your introductory advertising course, what do you do there, in that course, with your students? A. That course is a course that is attended by marketing students -- excuse me, business school typically marketing students, students journalism school, students from consumer There are five or six departments that as a recommended course for their program students, from the studies. have that study. effects We begin with understanding the economic of advertising, the social effects of A. WILLIAM ROBERTS, JR., & ASSOCIATES