Chapter 2 - Analyzing The Marketing Communication Process

CHAPTER 2 ========= ANALYZING THE MARKETING COMMUNICATION PROCESS ============================================= - Basic model of communication - Analyzing receivers - The response process - Traditional response hierarchy models - Alternative response hierarchies - The...

CHAPTER 2 ========= ANALYZING THE MARKETING COMMUNICATION PROCESS ============================================= - Basic model of communication - Analyzing receivers - The response process - Traditional response hierarchy models - Alternative response hierarchies - The cognitive response approach - Controllable variables of the communication process - Analyzing source, message, and channel factors - Establishing communication goals and objectives - Allocating budget 1. **THE NATURE OF COMMUNICATION** 2. **A BASIC MODEL OF COMMUNICATION** Source/Encoding --------------- Message: It is actual advertisement that contains the intended message. Symbolic expression of the sender's thoughts -------------------------------------------------------------------------------------------------------------------- Channel: The channel is the method by which the communication travels from the source or sender to the receiver. At the broadest level Channels of communication are of two types, personal and non-personal. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- - **Personal channels of communication** are direct interpersonal (face-to-face) contact with target individuals or groups. - Salespeople serve as personal channels of communication when they delver their sales message to a buyer or potential customer. - Social channels of communication such as friends, neighbors, associates, co-workers, or family members are also personal channels. They often represent word-of-mouth communication, a powerful source of information for consumers. - **Non-personal channels of communication** are those that carry a message without interpersonal contact between senders and recover. Non-personal channels are generally referred to as the mass media or mass communications, since the message is sent to many individuals at one time. For example, a TV commercial broadcast on a primetime show may be seen by 20 million households in a given evening. Non-personal channels of communication consist of two major types, print and broadcast media include radio and television. - **Receiver/Decoding:** The receiver is the person(s) with whom the sender shares thoughts or information. Generally, recovers are the consumers in the target market or audience who read, hear, and/or see the marketer's message and decode it. Decoding is the process of transforming the sender's message back into thought. This process is heavily influenced by the receiver's frame of reference or filed of experience, which refers to the experiences, perception, attitudes, and values he or she brings to the communication situation. For effective communication to occur, the message decoding process of the recover must match the encoding of the sender. Effective communication is more likely when there is some common ground between the two parties. (This is represented by the overlapping of two circles.) The more knowledge the sender has about the recovers, the better the sender can understand their needs, empathize with them, and communicate effectively. While this notion of common ground between sender and recover may sound basic, it often causes great difficulty in the advertising communications process. Marketing and advertising people often have very different fields of experience from the consumers who constitute the mass markets with whom they must communicate. Noise ----- - Interference at some stage in communications process. - Competitive promotional messages - Misinterpretation of message or wrong receiver Response/Feedback: The receiver's set of reactions after seeing, haring, or reading the message is known as a response. Receivers' responses can range from nonverbal actions such as storing information in memory to immediate action such as dialing a toll-free number to order a product advertised on television. Marketers are very interested in feedback, that part of the receiver's response that is communicated back to the sender. Feedback, which may take a variety of forms, closes the loop in the communications flow and lets the sender monitor how the intended message is being decoded and received. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Successful communication is accomplished when the marketer selects an appropriate source, develops an effective message or appeal that is encoded properly, and then selects the channels or media that will best reach the target audience so that the message can be effectively decoded and delivered. In the next topic, we will examine the source, message, and channel decisions see how promotional planners work with these controllable variables to develop communication strategies. Since these decisions must consider how the target audience will respond to the promotional message, remainder of this chapter examines the receiver and the process by which consumers respond to advertising and other forms of marketing communications. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 3. **ANALYZING THE RECEIVER** To communicate effectively with their customers, marketers must understand who the target audience is, what (if anything) it knows or feels about the company's product or service, and how to communicate with the audience to influence its decision-making process. Marketers must also know how the market is likely to respond to various sources of communication or different types of messages. Before they make decisions regarding source, message, and channel variables, promotional planners must understand the potential effects associated with each of these factors. This section focuses on the receiver of the marketing communication. It examines how the audience is identified and the process it may go through in responding to a promotional message. **Identifying the Target Audience** The marketing communication process really begins with identifying the audience that will be the focus of the firm's advertising and promotional efforts. The target audience may consist of individuals, groups, niche markets, market segments, or a general public or mass audience. Marketers approach each of these audiences differently. - The target market may consist of ***individuals*** who have specific needs and for whom the communication must be specifically tailored. This often requires person-to person communication and is generally accomplished through personal selling. Other forms of communication, such as advertising, may be used to attract the audience's attention to the firm, but the detailed message is carried by a salesperson who can respond to the specific needs of the individual customer. Life insurance, financial services, and real estate are examples of products and services promoted this way. - A second level of audience aggregation is represented by the ***group**.* Marketers often must communicate with a group of people who make or influence the purchase decision. For example, Companies marketing their products and services to other businesses or organizations must understand who is on the purchase committee, what aspect of the decision each individual influences, and the criteria each member uses to evaluate a product. Advertising may be directed at each member of the buying center, and multilevel personal selling may be necessary to reach those individuals who influence or actually make decisions. - Marketers look for customers who have similar needs and wants and thus represent some type of market segment that can be reached with the same basic communication strategy. Very small, well-defined groups of customers are often referred to as ***market*** ***niches**.* They can usually be reached through personal-selling efforts or highly targeted media such as direct mail. - The next level of audience aggregation is ***market segments**,* broader classes of buyers who have similar needs and can be reached with similar messages. As market segments get larger, marketers usually turn to broader-based media such as newspapers, magazines, and TV to reach them. - Marketers of most consumer products attempt to attract the attention of large numbers of present or potential customers **(*mass markets*)** through mass communication such as advertising or publicity. Mass communication is a one-way flow of information from the marketer to the consumer. Feedback on the audience's reactions to the message is generally indirect and difficult to measure. Studies by Jacob Jacoby and Wayne D. Hoyer have shown that nearly 20 percent of all print ads and even more TV commercials are miscomprehended by readers. 4. **THE RESPONSE PROCESS** Perhaps the most important aspect of developing effective communication programs involves understanding the ***response process*** the receiver may go through in moving toward a specific behavior (like purchasing a product) and how the promotional efforts of the marketer influence consumer responses. In many instances, the marketer's only objective may be to create awareness of the company or brand name, which may trigger interest in the product. In other situations, the marketer may want to convey detailed information to change consumers' knowledge of and attitudes toward the brand and ultimately change their behavior. The response process - Traditional response hierarchy models - Alternative response hierarchies - The cognitive response approach 1. **Traditional Response Hierarchy Models** A number of models have been developed to depict the stages a consumer may pass through in moving from a state of not being aware of a company, product, or brand to actual purchase behavior. The following Figure shows four of the best-known response hierarchy models. While these response models may appear similar, they were developed for different reasons. The traditional response hierarchy models comprises the following models - **AIDA model** - **Hierarchy of effects model** - **Innovation Adoption Model** - **Information processing model** **The AIDA model:** was developed to represent the stages a salesperson must take a customer through in the personal-selling process. This model depicts the buyer as passing successively through ***attention, interest, desire***, and ***action***. The salesperson must first get the customer's attention and then arouse some interest in the company's product or service. Strong levels of interest should create desire to own or use the product. The action stage in the AIDA model involves getting the customer to make a purchase commitment and closing the sale. To the marketer, this is the most important stage in the selling process, but it can also be the most difficult. Companies train their sales reps in closing techniques to help them complete the selling process. **Hierarchy of effects model**: The model developed by Robert Lavidge and Gary Steiner as a paradigm for setting and measuring advertising objectives. Their **hierarchy of effects model** shows the process by which advertising works; it assumes a consumer passes through a series of steps in sequential order from initial awareness of a product or service to actual purchase. A basic premise of this model is that advertising effects occur over a period of time. Advertising communication may not lead to immediate behavioral response or purchase; rather, a series of effects must occur, with each step fulfilled before the consumer can move to the next stage in the hierarchy. **Innovation Adoption Model: It was** evolved from work on the diffusion of innovations. This model represents the stages a consumer passes through in ***adopting a new product or service***. Like the other models, it says potential adopters must be moved through a series of steps before taking some action (in this case, deciding to adopt a new product). The steps preceding adoption are awareness, interest, evaluation, and trial. The challenge facing companies introducing new products is to create awareness and interest among consumers and then get them to evaluate the product favorably. The best way to evaluate a new product is through actual use so that performance can be judged. Marketers often encourage trial by using demonstration or sampling programs or allowing consumers to use a product with minimal commitment. After trial, consumers either adopt the product or reject it. **Information processing model: This model is** advertising effect model, developed by William McGuire. This model assumes the receiver in a persuasive communication situation like advertising is an information processor or problem solver. McGuire suggests the series of steps a receiver goes through in being persuaded constitutes a response hierarchy. The stages of this model are similar to the hierarchy of effects sequence; attention and comprehension are similar to awareness and knowledge, and yielding is synonymous with liking. McGuire's model includes a stage not found in the other models: ***retention***, or the receiver's ability to retain that portion of the comprehended information that he or she accepts as valid or relevant. This stage is important since most promotional campaigns are designed not to motivate consumers to take immediate action but rather to provide information they will use later when making a purchase decision. Each stage of the response hierarchy is a dependent variable that must be attained and that may serve as an objective of the communication process. As shown in Figure 5-4, each stage can be measured, providing the advertiser with feedback regarding the effectiveness of various strategies designed to move the consumer to purchase. The information processing model may be an effective framework for planning and evaluating the effects of a promotional campaign. **Implications of the Traditional Hierarchy Models** The hierarchy models of communication response are useful to promotional planners from several perspectives. - First, they delineate the series of steps potential purchasers must be taken through to move them from unawareness of a product or service to readiness to purchase it. - Second, potential buyers may be at different stages in the hierarchy, so the advertiser will face different sets of communication problems. For example, a company introducing an innovative product like Zenith's plasma high-definition television (HDTV) may need to devote considerable effort to making people aware of the product, how it works, and its benefits (Exhibit 5-5). **Evaluating Traditional Response Hierarchy Models** As you saw in Figure 5-3, the four models presented all view the response process as consisting of movement through a sequence of three basic stages. - The ***cognitive stage*** represents what the receiver knows or perceives about the particular product or brand. This stage includes awareness that the brand exists and knowledge, information, or comprehension about its attributes, characteristics, or benefits. - The ***affective stage*** refers to the receiver's feelings or affect level (like or dislike) for the particular brand. This stage also includes stronger levels of affect such as desire, preference, or conviction. - The ***conative*** or ***behavioral** **stage*** refers to the consumer's action toward the brand: trial, purchase, adoption, or rejection. All four models assume a similar ordering of these three stages. Cognitive development precedes affective reactions, which precede behavior. One might assume that consumers become aware of and knowledgeable about a brand, develop feelings toward it, form a desire or preference, and then make a purchase. While this logical progression is often accurate, the response sequence does not always operate this way. Over the past two decades, considerable research in marketing, social psychology, and communications has led to questioning of the traditional cognitive →affective → behavioral sequence of response. Several other configurations of the response hierarchy have been theorized. 2. **Alternative Response Hierarchies** Michael Ray has developed a model of information processing that identifies three alternative orderings of the three stages based on ***perceived product differentiation*** and ***product involvement***. These alternative response hierarchies are the - Standard learning, - Dissonance/attribution, and - Low-involvement models **The Standard Learning Hierarchy (*Learn → Feel → Do)*** In many purchase situations, the consumer will go through the response process in the sequence depicted by the traditional communication models. Ray terms this a **standard learning model,** which consists of a ***learn → feel → do*** sequence. Information and knowledge ***acquired*** or ***learned*** about the various brands are the basis for developing ***affect, or feelings**,* that guide what the consumer will ***do*** (e.g., actual trial or purchase). - *Ray suggests the standard learning hierarchy is likely when the **consumer is highly involved** in the purchase process and there is **much differentiation among competing brands.** High-involvement purchase decisions such as those for industrial products and services and consumer durables like personal computers, printers, cameras, appliances, and cars are areas where a standard learning hierarchy response process is likely. Ads for products and services in these areas are usually very detailed and provide customers with information that can be used to evaluate brands and help them make a purchase decision.* **The Dissonance/Attribution Hierarchy (Do →Feel→Learn)** Involves situations where consumers first behave, then develop attitudes or feelings as a result of that behavior, and then learn or process information that supports the behavior. This **dissonance/attribution model,** or **do →feel→learn**, occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes. The consumer may purchase the product on the basis of a recommendation by some non-media source and then attempt to support the decision by developing a positive attitude toward the brand and perhaps even developing negative feelings toward the rejected alternative(s). This reduces any *post purchase dissonance* or anxiety the consumer may experience resulting from doubt over the purchase. Dissonance reduction involves ***selective learning**,* whereby the consumer seeks information that supports the choice made and avoids information that would raise doubts about the decision. According to this model, marketers need to recognize that in some situations, attitudes develop *after* purchase, as does learning from the mass media. - *Ray suggests that in these situations the main effect of the mass media is not the promotion of original choice behavior and attitude change but rather the reduction of dissonance by reinforcing the wisdom of the purchase or providing supportive information. For example, the ad reinforces consumers' decisions to purchase a product by showing the number of awards the brand has received for customer satisfaction.* As with the standard learning model, this response hierarchy is likely to occur when the consumer is involved in the purchase situation; it is particularly relevant for post-purchase situations. For example, a consumer may purchase tires recommended by a friend and then develop a favorable attitude toward the company and pay close attention to its ads to reduce dissonance. **The Low-Involvement Hierarchy (*learn→ do → feel)*** The most interesting of the three response hierarchies proposed by Ray is the **low-involvement hierarchy,** in which the receiver is viewed as passing from cognition to behavior to attitude change. This ***learn→ do → feel*** sequence is thought to characterize situations of low consumer involvement in the purchase process. - Ray suggests this hierarchy tends to occur when involvement in the purchase decision is low, there are minimal differences among brand alternatives, and mass-media (especially broadcast) advertising is important. The notion of a low-involvement hierarchy is based in large part on Herbert Krugman's theory explaining the effects of television advertising. Krugman wanted to find out why TV advertising produced a strong effect on brand awareness and recall but little change in consumers' attitudes toward the product. He hypothesized that TV is basically a low-involvement medium and the viewer's perceptual defenses are reduced or even absent during commercials. In a low-involvement situation, the consumer does not compare the message with previously acquired beliefs, needs, or past experiences. The commercial results in subtle changes in the consumer's knowledge structure, particularly with repeated exposure. This change in the consumer's knowledge does not result in attitude change but is related to learning something about the advertised brand, such as a brand name, ad theme, or slogan. According to Krugman, when the consumer enters a purchase situation, this information may be sufficient to trigger a purchase. The consumer will then form an attitude toward the purchased brand as a result of experience with it. Thus, in the low-involvement situation the response sequence is as follows: ***Message exposure under low involvement** →**Shift in cognitive structure** →**Purchase**→* ***Positive or negative experience** →**Attitude formation*** **Implications of the Alternative Response Models** Advertising and consumer researchers recognize that not all response sequences and behaviors are explained adequately by either the traditional or the alternative response hierarchies. Advertising is just one source of information consumers' use in learning about products, forming attitudes, and/or making a purchase decision. Consumers are likely to integrate information from advertising and other forms of marketing communication as well as direct experience in forming judgments about a brand. 3. **The Cognitive Response Approach** One of the most widely used methods for examining consumers' cognitive processing of advertising messages is assessment of their **cognitive responses,** the thoughts that occur to them while reading, viewing, and/or hearing a communication. These thoughts are generally measured by having consumers write down or verbally report their reactions to a message. The assumption is that these thoughts reflect the recipient's cognitive processes or reactions and help shape ultimate acceptance or rejection of the message. The focus of cognitive response approach is to determine the types of responses evoked by an advertising message and how these responses relate to attitudes toward the ***ad, brand attitudes*,** and ***purchase intentions*.** 1. **Product/Message Thoughts** The first category of thoughts comprises those directed at the product or service and/or the claims being made in the communication. Much attention has focused on two particular types of responses*,* counterarguments and support arguments. **Counterarguments** are thoughts the recipient has that are opposed to the position taken in the message. Other consumers who see this ad may generate **support arguments,** or thoughts that affirm the claims made in the message. The likelihood of counter arguing is greater when the message makes claims that oppose the receiver's beliefs. Counterarguments relate negatively to message acceptance; the more the receiver counter argues, the less likely he or she is to accept the position advocated in the message. Support arguments, on the other hand, relate positively to message acceptance. Thus, the marketer should develop ads or other promotional messages that minimize counter arguing and encourage support arguments. 2. **Source-Oriented Thoughts** A second category of cognitive responses is directed at the source of the communication. One of the most important types of responses in this category is **source derogations,** or negative thoughts about the spokesperson or organization making the claims. Such thoughts generally lead to a reduction in message acceptance. If consumers find a particular spokesperson annoying or untrustworthy, they are less likely to accept what this source has to say. Of course, source-related thoughts are not always negative. Receivers who react favorably to the source generate favorable thoughts, or **source bolsters.** As you would expect, most advertisers attempt to hire spokespeople their target audience likes so as to carry this effect over to the message. 3. **Ad Execution Thoughts** The third category of cognitive responses consists of the individual's thoughts about the ad itself. Many of the thoughts receivers have when reading or viewing an ad do not concern the product and/or message claims directly. Rather, they are affective reactions representing the consumer's feelings toward the ad. These thoughts may include reactions to ad execution factors such as ***the creativity of the ad***, ***the quality of the visual effects***, ***colors***, - **Ad execution-related thoughts** can be either favorable or unfavorable. They are important because of their effect on attitudes toward the advertisement as well as the brand. In recent years, much attention has focused on consumers' affective reactions to ads, especially TV commercials. - ***Attitude toward the ad** (A→ ad) represents the receivers' feelings of favorability or un-favorability toward the ad. Advertisers are interested in consumers' reactions to the ad because they know that affective reactions are an important determinant of advertising effectiveness, since these reactions may be transferred to the brand itself or directly influence purchase intentions. One study found that people who enjoy a commercial are twice as likely as those who are neutral toward it to be convinced that the brand is the best.* Consumers' feelings about the ad may be just as important as their attitudes toward the brand (if not more so) in determining an ad's effectiveness. The importance of affective reactions and feelings generated by the ad depend on several factors, among them the nature of the ad and the type of processing engaged in by the receiver. Many advertisers now use emotional ads designed to evoke feelings and affective reactions as the basis of their creative strategy. The success of this strategy depends in part on the consumers' involvement with the brand and their likelihood of attending to and processing the message. We end our analysis of the receiver by examining a model that integrates some of the factors that may account for different types and levels of cognitive processing of a message. 5. **Source, Message, and Channel Factors** To develop an effective advertising and promotional campaign, a firm must select the right spokesperson to deliver a compelling message through appropriate channels or media. Source, message, and channel factors are controllable elements in the communications model. The **persuasion matrix** helps marketers see how each controllable element interacts with the consumer's response process. The matrix has two sets of variables. *Independent variables* are the controllable components of the communication process,; *dependent variables* are the steps a receiver goes through in being persuaded. Marketers can choose - The person or source who delivers the message, - The type of message appeal used, and - The channel or medium. - Select their target audience The following examples, which correspond to the numbers in Figure 6-1, illustrate decisions that can be evaluated with the persuasion matrix. - ***Receiver/comprehension**: Can the receiver comprehend the ad?* Marketers must know their target market to make their messages clear and understandable. The more marketers know about the target market, the more they see which words, symbols, and expressions their customers understand. - ***Channel/presentation**: Which media will increase presentation?* Atop-rated, prime-time TV program, its coverage, reach and frequency. - ***Message/yielding**: What type of message will create favorable attitudes or feelings?* Marketers generally try to create agreeable messages that lead to positive feelings toward the product or service. Humorous messages, Music ads, explicit sexual appeals. - ***Source/attention:** Who will be effective in getting consumers' attention?* Marketers deal with this problem by using sources who will attract the target audience's attention---actors, athletes, rock stars, or attractive models. **Source Factors** The source component is a multifaceted concept. We use the term **source** to mean the person involved in communicating a marketing message, either directly or indirectly. - A ***direct source*** is a spokesperson that delivers a message and/or demonstrates a product or service, like tennis star Andre Agassi who endorses Head tennis rackets. - An ***indirect source**,* say, a model, doesn't actually deliver a message but draws attention to and/or enhances the appearance of the ad. Companies are very careful when selecting individuals to deliver their selling messages. They recognize that the characteristics of the source affect the sales and advertising message. Marketers try to select individuals whose traits will maximize message influence. The source may be knowledgeable, popular, and/or physically attractive; typify the target audience; or have the power to reward or punish the receiver in some manner. Herbert Kelman developed three basic categories of source attributes: Each influences the recipient's attitude or behavior through a different process. +-----------------------------------+-----------------------------------+ |  **Source** attribute  | Process  | +===================================+===================================+ | - Credibility | - Internalization  | +-----------------------------------+-----------------------------------+ | - Attractiveness  | - Identification  | +-----------------------------------+-----------------------------------+ | - **Power**  | - **Compliance** | +-----------------------------------+-----------------------------------+ 1. **Source** **Credibility:** is the extent to which the Source is seen as having: Knowledge , Skill, Expertise and the information is perceived as being: Trustworthy , Unbiased , Objective information 2. **Source** **Attractiveness ** - - - - **Endorsements:** The celebrity, whether an expert or not, merely agrees to the use of his or her name and image in the promotion of the product. - **Testimonials:** The celebrity, usually an expert with experience with the product, attests to its value and worth. - **Dramatizations:** Celebrity actors or models portray the brand in use during dramatic enactments designed to show the goods. - The celebrity may overshadow the product - The celebrity may be overexposed which reduces 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 3. **Source Power** A source has power when he or she can actually administer rewards and punishments to the receiver. As a result of this power, the source may be able to induce another person(s) to respond to the request or position he or she is advocating. The power of the source depends on several factors. - The source must be perceived as being able to administer positive or negative sanctions to the receiver *(perceived control),* - The receiver must think the source cares about whether or not the receiver conforms *(perceived* *concern) and* - The receiver's estimate of the source's ability to observe conformity is also important *(perceived scrutiny).* When a receiver perceives a source as having power, the influence process occurs through a process known as **compliance.** The receiver accepts the persuasive influence of the source and acquiesces to his or her position in hopes of obtaining a favorable reaction or avoiding punishment. The receiver may show public agreement with the source's position but not have an internal or private commitment to this position. Persuasion induced through compliance may be superficial and last only as long as the receiver perceives that the source can administer some reward or punishment. **Message Factors ** The way marketing communications are presented is very important in determining their effectiveness. Promotional managers must consider not only the content of their persuasive messages but also how this information will be structured for presentation and what type of message appeal will be used. This section examines the structure of messages and considers the effects of different types of appeals used in advertising. 1. **Message Structure** - ***Order of presentation*** (primacy vs. recency). Should the most important message points be placed at the beginning of the message - ***Conclusion drawing*** (open vs. closed end). Marketing communicators must decide whether their messages should explicitly draw a firm conclusion or allo0w receivers to draw their own conclusions - **Message *sidedness (one vs. two-sided*):** A one-sided message mentions only positive attributes or benefits or a two-sided message presents both good and bad points - ***Refutation***. In a special type of two-sided message known as a refutaitionl appeal, the communicator presents both sides of an issue and then refutes the opposing viewpoint - ***Verbal vs. visual*** 2. **Message Appeals**  - **Comparative Advertising.** It is the practice of either directly or indirectly naming competitors in and ad and comparing one or more specific attributes. - May be especially useful for new brands - Often used for brands with small market share - Frequently use in political advertising - **Fear Appeals**. Fear is an emotional response to a threat that expresses, or at least implies, some sort of danger. Ads sometimes use fear appeals to evoke this emotional response and arouse individuals to take steps to remove the threat. - May stress physical danger or threats to health - May identify social threats: disapproval or rejection - May backfire if the level of threat is too high - **Humor Appeals.** Humorous ads are often the best known and best remembered of all advertising messages. - They can attract and hold attention - They are often the best remembered - They put the consumer in a positive mood **Channel Factors** The final controllable variable of the communication process is the channel, or medium, used to deliver the message to the target audience. While a variety of methods are available to transmit marketing communications, they can be classified into two broad categories, personal and non-personal media. **Personal versus Non-personal Channels** - There are a number of basic differences between personal and non-personal communications channels. Information received from personal influence channels is generally more persuasive than information received via the mass media. Reasons for the differences are summarized in the following comparison of advertising and personal selling: - From the standpoint of persuasion, a sales message is far more flexible, personal, and powerful than an advertisement. An advertisement is normally prepared by persons having minimal personal contact with customers. The message is designed to appeal to a large number of persons. **Effects of Alternative Mass Media** - The various mass media that advertisers use to transmit their messages differ in many ways, including the number and type of people they **reach**, **costs**, **information** **processing** **requirements**, and **qualitative factors.** The mass media's costs and efficiency in exposing a target audience to a communication will be evaluated in Chapters 10 through 12. However, we should recognize differences in how information is processed and how communications are influenced by context or environment. 1. **Differences in Information Processing** There are basic differences in the manner and rate at which information from various forms of media is transmitted and can be processed. - Information from ads in print media, such as newspapers, magazines, or direct mail, is ***self-paced**;* readers process the ad at their own rate and can study it as long as they desire. - In contrast, information from the broadcast media of radio and television is ***externally** **paced**;* the transmission rate is controlled by the medium. The difference in the processing rate for print and broadcast media has some obvious implications for advertisers. Self-paced print media make it easier for the message recipient to process a long, complex message. Advertisers often use print ads when they want to present a detailed message with a lot of information. Broadcast media are more effective for transmitting shorter messages or, in the case of TV, presenting pictorial information along with words. While there are limits to the length and complexity of broadcast messages, advertisers can deal with this problem. One strategy is to use a radio or TV ad to get consumers' attention and direct them to specific print media for a more detailed message. **Effects of Context and Environment** Interpretation of an advertising message can be influenced by the context or environment in which the ad appears. A **qualitative media effect** is the influence the medium has on a message. The image of the media vehicle can affect reactions to the message. For example, an ad for a high-quality men's clothing line might have more of an impact in a fashion magazine like *GQ* than in *Sports Afield.* **A media environment** can also be created by the nature of the program in which a commercial appears. One study found that consumers reacted more positively to commercials seen during a happy TV program than a sad one. **Clutter** Another aspect of the media environment, which is important to advertisers, is the problem of **clutter,** which has been defined as the amount of advertising in a medium. However, for television, clutter is often viewed as including all the non-program material that appears in the broadcast environment---commercials, promotional messages for shows, public service announcements (PSAs), and the like. Clutter is of increasing concern to advertisers since there are so many messages in various media competing for the consumer's attention. Half of the average magazine's pages contain ads and in some publications the ratio of ads to editorial content is even higher. On average, around a quarter of a broadcast hour on TV is devoted to commercials, while most radio stations carry an average of 10 to 12 minutes of commercial time per hour. The high level of advertising often annoys consumers and makes it difficult for ads to communicate effectively. The problem is not likely to go away, however, and advertisers will continue to search for ways to break through the clutter, such as using humor, celebrity spokespeople, or novel, creative approaches. 6. **Establishing and Allocating the promotional Budget** - **Establishing the budget** - **Theoretical issues in budget setting** - **Additional factors in budget setting** - **Budgeting Approaches** **Top-Down approaches** - **The Affordable method:** sets the budget at an affordable level Ignores the effects of promotion on sales - **Arbitrary Allocation.** Perhaps an even weaker method than the affordable method for establishing a budget is arbitrary allocation, in which virtually not theoretical basis is considered and the budgetary amount is often set by flat. That is the budget is determined by management solely on the basis of what is felt to be necessary. - **Percentage-of-sales** **method** sets the budget at a certain percentage of current or forecasted sales or unit sales price - Easy to use and helps management think about the relationship between promotion, selling price, and profit per unit - Wrongly views sales as the cause than the result of promotion - **Competitive-parity method** sets the budget to match competitor outlays - Represents industry standards - Avoids promotion wars - **Return on investment. Advertising and promotions are considered** investments, like plant and equipment. Thus the budgetary appropriation (investment) leads to certain returns. **Build-up approaches** - **Objective-and-task method** sets the budget based on what the firm wants to accomplish with promotion and includes: - - - **Objective-and-task method** forces management to spell out its assumption about the relationship between outlays and results but is difficult to use ***Shaping the Overall Promotion Mix*** - - **Establishing Objectives and Budgeting for the Promotional Program** - **The value of Objectives** - Communications - Planning and decision making - Measurement and evaluations of results - **Determining Promotional Objectives** - Marketing Objectives - Generally stated in the firm's marketing plan - Achieved through the overall marketing plan - Quantifiable, such as sales, market share, ROI - To be accomplished in a given period of time Must be realistic and - Communications Objectives - Derived from the overall marketing plan - More narrow than marketing objectives - Based on particular communications tasks - Designed to deliver appropriate messages - Focused on a specific target audience - **Sales versus Communications Objectives** - Using Sales as a Communications Objective. Factors that affect sales - 2. **Problems with Using Sales as a Communications Objective** - - Many experts believe the effects of advertising can occur over an extended period. - Money spent on advertising does not necessarily have an immediate impact on sales. - - - Nature of the message the company hopes to communicate. - The intended audience. - The particular effect or response sought. 3. **When Are Sales Objectives Appropriate?** - - Other marketing or environmental factors are not influencing sales. - Carryover effect is not occurring. - Managers involved do not require guidance. - 4. **Communication Objectives** - - - - On the particular communication tasks required to deliver the appropriate messages to the specific target audience. - At a relevant point within the target market's purchase decision-making process and consumption experience. - **DAGMAR: An Approach to Setting Objectives** DAGMAR Model ============ Introduction ------------ DAGMAR is **D**efining **A**dvertising **G**oals for **M**easured **A**dvertising **R**esults. It is basically an approach to advertising planning and a precise method for selecting and quantifying goals and for using those goals to measure performance. An advertising objective involves a communication task, intended to create awareness, impart information, develop attitudes or induce action. In the DAGMAR approach, the communication task is based on a specific model of the communication process, as shown below.  **Communication Process in DAGMAR Approach** The model suggests that before the acceptance of a product by an individual, there is a series of mental steps which the individual goes through. At some point of time, the individual will be unaware of the product or offer in the market. The initial communication task of the advertising activity is to increase consumer awareness of the product or offer. The second step of the communication process is comprehension of the product or offer and involves the target audience learning something about the product or offer. What are its specific characteristics and appeals, including associated imagery and feelings? In what way does it differ from its competitors? Whom is it supposed to benefit? The third step is the attitude (or conviction) step and intervenes between comprehension and final action. The action phase involves some overt move on the part of the buyer such as trying a brand for the first time, visiting a showroom, or requesting information. The whole communication process is a bit more complex. And under different circumstances, it may differ slightly, but the basic concept revolves around what is mentioned in the paragraphs above. The DAGMAR approach emphasizes the communication task of advertising. The second important concept of the approach is that the advertising goal be specific. It should be a written, measurable task involving a starting point, a defined audience, and a fixed time period. Now that the basic theory is told, how to apply in your specific situation? We are mainly traders dealing with products from other reputed and not so reputed companies and sitting here, we cannot dictate the company\'s advertising strategy. So, we look forward to developing a model which can reasonably applied in our case. Let\'s build your scenario and have the advertising brief: You are a dealer or distributor and want to sell products of a reputed company. You don\'t have to worry about the image and perception of the brand. You are just worried that customers might not want to buy from you. And, instead, buy from a competiting shop next to yours dealing with the same kinds of products. In such a case, what should be done? What should be your advertising objective? Should you have a advertising strategy? What would be the ingredients of such an advertising plan? What should be the budget? Let\'s discuss some of the issues related to your promotion/advertising related activity. You must first distinguish between advertising from your marketing objectives. And DAGMAR is aimed at setting your advertising goals/ plannings and not marketing goals. **A Measurable Objective** -------------------------- The DAGMAR approach sounds impractical once we talk of measurements, surveys, questionnaires and all that staff. After all, who\'d go for a survey! But, as the approach emphasises the importance of objectives, we must have some form of measurement to indicate the effectiveness of the advertising/ promotional campaign. So if you are thinking of a promotional campaign, **it must have an objective**. And an objective that is **measurable**. For a yellow page advertisement, the measurement could be the number of phone calls received before and after the ad was published or the number of referrals through yellow pages. Many of our advertisers are pleasantly surprised by orders/ offers received through phone calls, which were later found to be through advertisements in yellow pages. Now, the question is, if they did not advertise in the yellow pages, would they have received those orders/ offers? That\'s another matter, though. Your measurable objective must be written, clear and unambiguous. Goals like \'Improve store image\'/Increase awareness of our store\' etc are too vague and do not lead to anywhere. A good starting point to work on the goal would be: *Increase awareness of our store by 10%* Notice the missing full stop? We still have to construct our campaign objective. **A Conceivable Benchmark** --------------------------- When we talk of measurement, it's both current and future. We must, first, know where we stand now, and know in quantitative terms. The current position is your starting point which will help in establishing a goal and selecting a campaign to reach it. Getting more customers into your store might not be an optimal goal, if you already receive a large number of visitors. So, have an objective analysis of where you are and then start working on your objective. If you know that already many customers are visiting your store, you may probably have some idea of their behavior related to purchases. (If you don\'t, that\'s a pity). Now you know that your advertising can be aimed at converting your visitors to customers. Let\'s reconstruct our goal now: *Increase awareness of our store from the current level of 20% to 30%* Well-Defined Target Audience ---------------------------- Perhaps, the first lesson you should learn in marketing is target audience. Not everyone is going to buy your product. Not everyone needs your product, its another matter that some needs are latent and needs to be aroused. So, identify your target audience, to whom you are going to aim your ad campaign. Most likely, this is going to be your user segment as well. As an example, if you are selling premium car accessories, you should target customers who are stylish, sophisticated or own premium cars. Working further on the advertising goal, we now have: *Increase awareness of our store from the current level of 20% to 30% among the owner of product X* Fixed time period ----------------- Your advertising campaign should not run for eternity, without having milestones to achieve over the future time frame. You should have a fixed time period, six months or a year, within which you should aim at attaining certain goals. There should also be some time allocated td to test the campaign, make amendments, if required to the campaign. A time should be fixed upon the arrival of which the campaign can be evaluated. So, we finally have our advertising goal as follows: *Increase awareness of our store from the current level of 20% to 30% among the owner of product X before the launch of product Y which is expected within the next six months* **A New IMC Approach** Traditional Advertising-Based Views of Marketing Communications Planning Zero-Based Communications Planning - Involves determining: - What tasks need to be done? - Which marketing communications functions should be used? - To what extent. **R&P Perspective of Setting IMC Objectives** - Directly connects target audience decision and the type of communication objectives required to each target audience. - Provides guidelines for communication objectives which are more managerially useful and do not rely on a set hierarchy of events. - Provides guidelines for behavioral or action objectives not fully specified in previous approaches. **R&P Perspective** Objectives Related to behavior or communication **Behavioral Objectives** - The link between attitude toward the brand (communication objective) and sales (marketing objective). - Must have a clear behavioral objective for each target audience. **Options for Behavioral Objectives** 1. **Trial** - Consumer's first purchase of focal brand. - Brand trial objectives - Retrial objectives - Brand-switching objectives - Category trial objectives 2. **Repeat Purchase** - A consumer's continued purchase of a focal brand within a specified time period. - Repeat-purchase objectives 3. **Purchase-Related Behavior** - An action taken by consumers which will lead to a higher probability of purchasing the brand. - Consumer seeks some amount of information about, or experience with, the brand. - Purchase-related behavior objectives 4. **Repeat Consumption** - The continued consumption of a brand once purchased. - Repeat-consumption objectives **Options for Communication Objectives** - Can be viewed as a universal framework for: - A specific communication One print ad or television commercial - A specific campaign Advertising or sponsorship - A complete IMC program All promotional tools 1. Category need - Whether the target audience feels the need to purchase within the actual product category. 2. Brand awareness 3. Brand attitude 4. Brand purchase intention 5. Brand purchase facilitation