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Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, Message and channel factors IMC/M2 1 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors What is communication? - passing of information - exchange of ideas - process of establishing a commonness of thought The function of all elements of the IMC program is to communicate. Some of the ways are through advertisements, brand names, logos, graphics, websites, press releases, package designs, promotions, visual images etc. IMC/M2 2 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors A model of the communication process Sender’s Field of experience Encoding Channel Message Decoding Receiver Response Feedback Source / Sender Receiver’s Field of experience IMC/M2 3 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Source Encoding The sender or source of a communication is the person/organization that has information to share with another person/group of people. The process of putting thoughts, ideas or information into a symbolic form by the use of words, symbols, pictures etc. is called encoding. The goal is to encode in such a way that will be understood by the audience. IMC/M2 4 Sharapova Yao Ming IMC/M2 5 Source Credibility Ethical Knowledgeable Skillful Trustworthy Source Believable Experienced Unbiased Honest Source Attractiveness Similarity Resemblance between the source and recipient of the message Familiarity Knowledge of the source through repeated or prolonged exposure Likeability Affection for the source resulting from physical appearance, behavior, or personal traits Source Power Perceived control Perceived concern Compliance Perceived scrutiny Sources IMC/M2 9 Advertising Risks of Using Celebrities The celebrity may overshadow the product being endorsed The celebrity may be overexposed, reducing his or her credibility The target audience may not be receptive to celebrity endorsers The celebrity’s behavior may pose a risk to the company Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Message Message can be verbal / nonverbal, oral / written or symbollic Semiotics – nature of meaning of words, gestures, signs, symbols etc. Marketers must consider the meanings consumers attach to the various signs and symbols. The message should be appropriate for the channel of communication being used. IMC/M2 11 Forms of Encoding Verbal • Spoken Word • Written Word • Song Lyrics Graphic • Pictures • Drawings • Charts Musical Animation • Arrangement • Action/ Motion • Instrumentation • Pace/ Speed • Voices • Shape/ Form Message Sidedness One Sideness Two Sideness Verbal vs. Visual Messages Message Appeal Choices Appeal to the logical, rational minds of consumers Appeal to both Appeal to the feelings and emotions of consumers Message Appeal Options Comparative Ads • Especially useful for new brands • Often used for brands with small market share Fear Appeals • May stress physical danger or threats to health • May identify social threats • Used often in • Can backfire if political advertising level of threat is too high Humor Appeals • Can attract and hold attention • Often the best remembered • Put consumers in a positive mood Pros Humor Appeals Cons Aids attention and awareness Does not aid persuasion in general May aid retention of the message May harm recall and comprehension Creates a positive mood and enhances persuasion May harm complex copy registration May aid name and simple copy registration Does not aid source credibility May serve as a distracter, reducing counterarguing Is not effective in bringing about sales May wear out faster than nonhumorous ads Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Channel Channel is the method by which the communication travels from the source or sender to the receiver. It can be broadly classified as: Personal Channels – face to face contact with people eg. Salespersons, word-of-mouth Nonpersonal Channels – no interpersonal contact eg. Mass media (print and broadcast) IMC/M2 18 Communication Channel Personal Channels Word of Mouth Nonpersonal Channels Personal Selling Print Media Broadcast Media Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Receiver/Decoding It is the process of transforming the sender’s message back into thought and this process is heavily influenced by the receiver’s frame of reference or ‘field of experience’ For effective decoding, there should be some ‘common ground’ (overlapping region) between the sender and the receiver Dilemma: Ad agency people Consumers IMC/M2 – urban, well educated, – rural, blue collared jobs 20 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Noise The message is subject to extraneous factor that can distort or interfere with its reception. It means unplanned interference or distortion. Eg. Signal distortion in TV or radio Lack of common ground in the fields of experience of sender and receiver also results in noise. Eg. A symbol used by the sender which is unfamiliar to the receiver. IMC/M2 21 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Response/Feedback A receiver’s set of reactions after seeing, hearing or reading the message is known as a response. Response can range from non-observable actions (storing in memory) to immediate action (calling a toll-free number) Feedback is important to marketers. They take it through sales customer inquiries store visits reply cards research based feedback IMC/M2 22 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Effective communication occurs when: The marketer selects an appropriate source, develops an effective message that is encoded properly and then selects the channels / media that will best reach the target audience so that the message can be effectively decoded and delivered. The target audience should be clearly defined… IMC/M2 23 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Levels of target audience Mass markets and audiences Market Segments Niche Markets Individual & Group Audiences IMC/M2 24 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Communication Response Models The most important aspect of developing effective communication program is the understanding of response process of consumers. A consumer may pass through several stages from not being aware about the product / brand to the actual purchase. The response models can be classified as: IMC/M2 25 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Communication Response Models Traditional Response Hierarchy Models Alternative Response Hierarchies 1. AIDA model 1. Standard learning hierarchy 2. Hierarchy of effects model 2. Dissonance/Attribution hierarchy 3. Innovation adoption model 3. Low involvement hierarchy 4. Information processing model IMC/M2 26 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors AIDA model – stages a salesperson must take a customer through in the personal selling process Stages learn feel do Cognitive Stage Affective Stage Behavioral Stage AIDA model Attention Interest Desire Action IMC/M2 27 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Hierarchy of effects model – process by which advertising affects the consumer response. Series of steps from initial awareness to purchase. Stages learn Cognitive Stage Hierarchy of effects model Awareness Knowledge Liking feel Affective Stage Preference Conviction do Behavioral Stage Purchase IMC/M2 28 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Innovation adoption model stages a consumer passes through in adopting a new product or service. After trial, the consumer either adopts or rejects the product Stages learn Cognitive Stage feel Affective Stage do Behavioral Stage Innovation adaption model Awareness Interest Evaluation Trial Adoption IMC/M2 29 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Information processing model – It says that the receiver of persuasive communication is a processor of information Stages learn feel do Cognitive Stage Information processing model Presentation Attention Comprehension Yielding Affective Stage Retention Behavioral Stage Behavior IMC/M2 30 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Standard learning hierarchy Consumer involvement in purchase Perceived product differentiation Learn (cognitive) Feel (affective) - HIGH - HIGH Do (conative) Eg. Buying high-involvement products like industrial products, computers, cars etc. IMC/M2 31 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Dissonance/Attribution theory Consumer involvement in purchase Perceived product differentiation Do (conative) Feel (affective) - HIGH - LOW Learn (cognitive) Consumer may buy the product on recommendation from a nonmedia source and then attempt to support the decision by developing a positive attitude or even a negative attitude towards other brands. IMC/M2 32 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Low-involvement Hierarchy Consumer involvement in purchase Perceived product differentiation Learn (cognitive) Do (conative) - LOW - LOW Feel (affective) Consumer engages in passive learning and random information catching rather than active information seeking. IMC/M2 33 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Consumer Involvement Involvement is a variable that can help explain how consumers process advertising information and how this information might affect the message recipients. Advertising managers must be able to determine targeted consumers’ involvement levels with their products. IMC/M2 34 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Foote, Cone & Belding (FCB) grid Antecedents of Involvement Person Factors -Needs -Importance -Interest -Values Object or stimulus Factors -Differentiation of Alternatives -Source of Communication -Content of communication Situational Factors -Purchase / use -Occasion Possible results Of involvement Involvement Counter arguments To ads Effectiveness of ad To induce purchase With advertisements With products Relative importance Of product class Perceived differences In product attributes Preference of brand With purchase decisions Influence of price on Brand choice Time spent choosing Alternatives IMC/M2 Amount of information search 35 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Elaboration Likelihood Model :- Central route to Persuasion receiver is very active, involved participant in the communication and attend, comprehend and evaluate with interest. :- Peripheral Route to Persuasion Rather than evaluating the information presented in the message, the receiver relies on peripheral cues such celebrity, music, theme song, jingles, visual imagery These cues can lead to the acceptance or rejection of the message.