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Chapter 10 Communication Communication The process of exchanging information and conveying meaning between a sender and a receiver through a chosen medium A unique tool that marketers use to persuade consumers to act in a desired way (e.g., to vote, to make a purchase or donation, to visit a retail store) Can take many forms: verbal, visual, symbolic (e.g., unique logo) Types of communication Mass communication uses the mass media (newspapers, television, magazines, internet) to disseminate information Personal communication involves two or more individuals interacting directly with each other face-to-face speaker to audience over the phone Advantages of mass communication Can reach a larger audience Is less expensive per capita Allows a marketer to do more with less Advantages of personal communication Feedback is immediate Is more flexible, allowing adaptation of the message to a specific audience or situation Information is generally considered more credible Stages of the communication process 1. 2. 3. 4. 5. The source The message The medium The receiver Feedback 1. The source of the communication Decides to whom the message should be sent (target audience) Determines what meaning it should convey Encodes message so that it is interpreted by target audience as intended Encoding is presenting an object or idea through words or visual images Marketers have many methods to encode their messages: words pictures music symbols spokespersons Source credibility Perceived honesty and objectivity of the source influences acceptance of the message Most important factor determining credibility is the perceived intention of the source i.e., the consumer asks: “what does he or she stand to gain if I do what is suggested”? The greater the perception of gain by the source, the more suspect the message Credibility of formal and informal sources Friends, neighbors and relatives are considered to have nothing to gain and thus word-of-mouth has great influence on receiver behavior Formal sources generally have less credibility Exceptions: Not-for-profit organizations “Neutral” sources (e.g., Consumer Reports) Since consumers inherently suspect commercial sources, they judge commercial source credibility on other factors: Past performance Kind and quality of service they are known to provide Quality and image of other products they make Image and attractiveness of the spokesperson Position in the community Explains why many companies spend money on institutional advertising Also explains why companies sponsor entertainment, sports and community events Credibility of spokespersons and endorsers Consumers sometimes regard the spokesperson as the source of the message That person has a major influence on message credibility Thus marketers are more and more turning to celebrities to give testimonials and endorsements More effective if what is said is within the celebrity’s recognized competence Credibility of the retailer who sells the product has a major influence on message credibility Reputation of the medium carrying the message also affects the credibility of the message Medium’s reputation for honesty and objectivity affects believability of the advertisement 2. The message Thought, idea, attitude, image, or other information the sender wishes to convey Critical that the sender encode the message in a way the audience will understand In order to do so, sender must know Exactly what it is trying to say The personal characteristics of the target audience Must then design a message strategy that will be perceived and interpreted (decoded) accurately Verbal vs. non-verbal stimuli Illustrations attract attention in a way that words do not Most effective ads combine visual and verbal message in a complementary manner Research on proportion of verbal to nonverbal messages is inconclusive However, it is clear that visual stimuli enhance recall of verbal messages One-sided vs. two-sided messages One-sided messages tell only the good points about a product Two-sided messages also disclose negative aspects of the product Effectiveness depends upon Nature of the audience Nature of the competition One-sided messages Are more effective where the audience Is friendly (e.g., it uses the product) Initially favors the communicator’s position; or Is unlikely to hear an opposing argument When competition does exist and is likely to be vocal, one-sided messages lose credibility Two-sided messages Are more effective where the audience Is critical or unfriendly (e.g., uses competitor’s products) Is well educated; or Is likely to hear opposing claims In general, are more credible because acknowledge product has shortcomings Also lower expectations for the product, lessening likelihood of dissatisfaction Comparative advertising Widely used marketing strategy in which a marketer claims product superiority for its brand over one or more explicitly or implicitly identified competitors, either on an overall basis or on selected product attributes Research supports effectiveness, especially when used by an “underdog” brand to compete with a leading brand Assists in recall of competitor’s name May be perceived as less likable/believable Sexual appeals Use of sex in ads has increased dramatically in recent years, beyond traditional categories of fragrance and fashion While it does bring attention to the ad, research indicates it rarely draws attention to the product When sex is relevant to the product, it can be extremely powerful Men and women respond differently Men respond more positively than women to nudity (both in terms of the ad and the brand) Romantic content is more attractive to women Men who view ads that stimulate a high level of sexual arousal cannot remember anything about the product Fear appeals A common and effective advertising technique Three different types of fear appeal 1. 2. 3. Physical risk (health and safety) Psychological risk (social approval and security) Financial risk (loss of income and savings) Mild fear appeals tend to be more effective than strong ones A number of explanations have been given Strong fear appeals create cognitive dissonance Consumers seek to resolve the conflict by either rejecting the message or giving up the behavior If the behavior is comfortable/habit, consumers more likely to ignore the message A recent study of adolescent responses to fear communications found they are more persuaded to avoid drug use by messages that depict negative social consequences rather than physical threats to their body High sensation-seekers (personality variable) are more likely to use substances and react negatively to anti-substance messages because of the feeling they are “immortal” 3. The medium Media strategy is an essential component of any communication plan Involves placement of ads in the specific media read, viewed or heard by the target markets To accomplish this, marketers develop a consumer profile of their target market that includes the specific media they read or watch In considering media selection, marketers must consider the elements of Reach--total number exposed to an ad in a particular medium at any given time Frequency--number of times an individual is exposed to an ad Impact--effectiveness of the medium in delivering the message Marketer’s goal is to maximize all three Media effectiveness Numerous studies have compared effectiveness of various media outlets Findings have been inconclusive Which media is better depends on the product and nature of the message Print media permits lengthier verbal message Newspapers allow timely announcements Television allows for visual demonstration of what a product can do 4. The receiver Receivers decode the messages they receive based on their personal experience and characteristics Thus it’s critical that marketers understand the experiences and characteristics of the target market 5. Feedback—the receiver’s response The ultimate test of the success of the marketing communication Thus essential for sender to obtain feedback promptly and accurately Sender can then adjust message for future campaigns Interpersonal v. mass communication Interpersonal communication provides immediate feedback Feedback is equally important in mass communication because of the cost It is rarely direct; usually must be inferred Sender infers how persuasive the message was by the resulting action (or inaction) They then act as quickly as possible to correct any problems