1 5-1 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Chapter 5 The communication process 5-2 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e 5.1 To understand the basic elements of the communication process and the role of communication in marketing. 5.2 To analyse the receiver of the message, as key to understanding effective communication. 5.3 To examine various response models in the communication process. Learning objectives continued 5-3 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Learning objectives (cont.) 5.4 To analyse the response processes of receivers of marketing communication, including alternative response hierarchies and their implications for integrated marketing communication planning and strategy. 5.5 To examine the nature of consumers’ cognitive processing of marketing communication. 5-4 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Chapter 5 map2 5-5 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e How word of mouth still works 5-6 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e The nature of communication • Communication has many diverse definitions. • It is commonly defined as the passing of information, the exchange of ideas, or the process of establishing a commonness or oneness of thought between a sender and a receiver. • Marketing communication is a complex process. • Effective communication depends on many factors, including: − the nature of the message − the audience’s interpretation of it − the environment in which it is received. 5-7 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Language and communication Using language and communication to target the Chinese market 5-8 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e A basic model of communication3 5-9 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Source encoding 5-10 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Message • A message is a communication containing information or meaning that a source wants to convey to a receiver. • Messages must be put into a transmittable form appropriate to the channel. • Messages communicate meaning at multiple levels: − literal meaning (conscious) − symbolic meaning (subconscious). • Marketers use people trained in semiotics and cultural anthropology to understand conscious and subconscious meanings. 5-11 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e The semiotic perspective Object (e.g. brand or product attribute) Sign or symbol (representing intended meaning) Three components to every message Interpretant (e.g. sexy, glamorous, individualistic) 5-12 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Quilton4 5-13 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Channel Personal selling Word of mouth Broadcast media Personal channels Print media Non-personal channels • Channel is the method by which the communication travels from the source or sender to the receiver. 5-14 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Receiver/decoding • Receiver: the person with whom the sender shares thoughts or information. • Decoding: the process of transforming the sender’s message back into thought. • This process is heavily influenced by the receiver’s frame of reference or field of experience (the experiences, perceptions, attitudes and values they bring to the communication situation). continued 5-15 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Receiver/decoding (cont.) • Advertisers spend many millions of dollars investigating the audience’s reference frames. • Pretesting advertisements also provides insights into how messages may be received. 5-16 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Noise Noise: extraneous factors that create unplanned distortion or interference in the communications process. Sources of noise White noise (signal transmission) Situational factors (distractions) Clutter (competitive messages) Lack of common ground (improper encoding)5 5-17 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Response/feedback • Response refers to the set of reactions the receiver has after seeing, hearing or reading a message. − Response may include both non-observable and observable actions. • Feedback is part of the message recipient’s response that is communicated back to the sender. It can take various forms and provides the sender with a way of monitoring how an intended message is decoded and received. − Feedback closes the loop and allows marketers to monitor message effectiveness. 5-18 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Analysing the receiver • The marketing communication process begins when the marketer identifies the audience that will be the focus of the message. Marketers approach each of these audiences differently. 5-19 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Levels of audience aggregation 5-20 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e The customer-initiated marketing communication model6 5-21 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Brand touch points • Brand touch points refer to those occasions when a customer (or potential customer) comes into contact with the brand. • Touch points planning recognises that consumers may assume responsibility for initiating the flow of communications. continued 5-22 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Brand touch points (cont.) • Mapping consumer touch points allows marketers to determine when and where to communicate with the customer in an integrated manner. 5-23 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Models of the response process 5-24 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Methods of obtaining feedback7 5-25 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Implications of the traditional learning hierarchy models • The hierarchy models of communication response are useful to marketing communication planners from several perspectives. − All response models see consumers as moving through a series of stages (cognitive, affective and behavioural). − This suggests that advertisers face potential buyers at different stages of the hierarchy. − Each stage of the hierarchy poses different communication challenges. − Research may be useful in determining each segment’s levels of awareness, liking, etc. 5-26 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Awareness 5-27 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Alternative response hierarchies 5-28 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e IMC implications for lowinvolvement products Advertisers of low-involvement goods use: • repetition of product claims • copy elements that do not require significant levels of information processing − simple benefits or umbrella concepts − catchy jingles. Message exposure Purchase (under low involvement) Shift in cognitive structure Brand experience (Positive or negative) Attitude formation8 5-29 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Visual image personality 5-30 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Implications of the alternative response models • It is recognised that not all response sequences and behaviours are explained adequately by any of the response hierarchies. − Marketing communication is just one source of information consumers use in learning about products, forming attitudes and making a purchase decision. continued 5-31 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Implications of the alternative response models (cont.) • Consumers are likely to integrate information from all forms of marketing communication as well as direct experience in forming judgments. • From a marketing communication planning perspective, it is important that marketers examine the communication situation for their product or service and determine which type of response process is most likely to occur. 5-32 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e The FCB planning model continued9 5-33 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Foote, Cone & Belding Grid (cont.) 1 Informative The thinker Car–house–furnishings–new products model: Learn–feel–do (economic?) Possible implications Test: Recall Diagnostics Media: Long copy format Reflective vehicles Creative: Specific information Demonstration High involvement Thinking continued 5-34 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Emotional level with rational message Foote, Cone & Belding Grid (cont.) continued 5-35 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e 2 Affective The feeler Jewellery-cosmetics-fashion goods Model: Feel-learn-do (psychological?) Possible implications Test: Attitude change Emotional arousal Media: Large space Image specials Creative: Executional Impact High involvement Feeling Foote, Cone & Belding Grid (cont.) continued 5-36 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e 3 Habit formation The doer Food-household items Model: Do-learn-feel (responsive?) Possible implications Test: Sales Media: Small space ads 10-second IDs Radio; point of sale Creative: Reminder Thinking Low involvement Foote, Cone & Belding Grid (cont.) continued10 5-37 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e 4 Self-satisfaction The reactor Cigarettes, alcohol, confectionery Model: Do-feel-learn (social?) Possible implications Test: Sales Media: Billboards Newspapers Point of sale Creative: Attention Feeling Low involvement Foote, Cone & Belding Grid (cont.) 5-38 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e The cognitive response approach A method for examining consumers’ cognitive processing of advertising messages by looking at their cognitive responses to hearing, viewing or reading communications. Examines the types of thoughts that are evoked by an advertising message. Consumers write down or verbally report their reactions to a message. 5-39 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e A model of cognitive response 5-40 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Cognitive response categories Counterarguments Support arguments Source derogation Source bolstering Thoughts about the ad itself Affect attitude towards the ad Product/message thoughts Source-orientated thoughts Ad execution thoughts11 5-41 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Counter arguments 5-42 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Elaboration likelihood model (ELM) of persuasion continued 5-43 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e • The ELM shows that elaboration likelihood is a function of two elements: motivation and ability. 1. Motivation to process the message depends on such factors as involvement, personal relevance and individuals’ needs and arousal levels. 2. Ability depends on the individual’s knowledge, intellectual capacity and opportunity to process the message. For example, an individual viewing a humorous message or one containing an attractive model may be distracted from processing the information about the product. • Some believe that opportunity should be included as a third element. Elaboration likelihood model (ELM) (cont.) continued 5-44 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Elaboration likelihood model (ELM) (cont.) Peripheral route Ability and motivation to process a message is low and receiver focuses more on peripheral cues than message content. Central route Ability and motivation to process a message is high and close attention is paid to message content. Routes to attitude change Focuses on the way consumers respond to persuasive messages based on the amount and nature of elaboration or processing of information.12 5-45 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Celebrity endorsers as peripheral cues 5-46 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Implications of ELM • ELM is a model of attitude formation and change that recognises two forms of information processing. • Level of consumer involvement is directly related to information processing. continued 5-47 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Implications of ELM (cont.) • In low-involvement situations consumers may rely on peripheral cues rather than detailed message arguments. • In high-involvement situations consumers are motivated to process detailed message arguments. 5-48 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e How communication works13 5-49 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Summary and conclusions • Successful marketing communication depends on a number of factors, including the nature of the message, the audience’s interpretation of it, and the environment in which it is received. • IMC planning begins with the receiver or target audience, as marketers must understand how the audience is likely to respond to various sources of communication or types of messages. continued 5-50 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Summary and conclusions (cont.) • A number of models of the response process have been developed including the AIDA, hierarchy of effects, innovation adoption and information processing model. • The cognitive response approach and elaboration likelihood model are also used to examine how marketing communication works. continued 5-51 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Belch, Advertising: An Integrated Marketing Communication Perspective 3e Summary and conclusions (cont.) • There are three critical intermediate effects between marketing communication and purchase: cognition, affect and experience. • Advertisers need to learn as much as possible about their target audiences and how they respond to marketing communications.