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Chapter 4 The communication process Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-1 Learning objectives 1. To understand the basic elements of the communication process and the role of communication in marketing. 2. To examine various models of the communication process. 3. To analyse the response processes of receivers of marketing communication, including alternative response hierarchies and their implications for integrated marketing communication planning and strategy. 4. To examine the nature of consumers’ cognitive processing of marketing communication. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-2 Who What Cognitive response Communication Response process How Whom Traditional models AIDA How they work Innovation adoption Elaboration likelihood Response hierarchies Alternative models Information processing Standard learning Central or peripheral Hierarchy of FX Dissonance attribution Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Low involvement 4-3 What’s the buzz? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-4 The nature of communication Communication has many diverse definitions. Typical definitions involve the ‘exchange of ideas’ 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. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-5 Language and communication Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-6 The communications process Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-7 Source factors Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-8 Forms of encoding Encoding Verbal •Spoken word •Written word •Song lyrics Graphic Musical • Pictures • Arrangement • Drawings • Instrumentation • Charts • Voices • Symbols Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Animation • Action/ motion • Pace/speed • Shape/form 4-9 Louis Vuitton Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-10 Message factors The message contains the information or meaning the source intends to convey. 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 individuals trained in semiotics and cultural anthropology to understand conscious and subconscious meanings. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-11 The semiotic perspective Three components to every message Object (e.g. brand or product attribute) Interpretant (e.g. sexy, glamorous, individualistic) Sign or symbol (representing intended meaning) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-12 Nicabate Valentines’ Day Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-13 Communication channels Personal selling Personal channels Word of mouth Print media Broadcast media Non-personal channels Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-14 Receiver/decoding factors The receiver is the person or persons with whom the sender wishes to communicate. Decoding is the process used to understand the message. Communication is heavily influenced by the receiver’s frame of reference. Advertisers spend many millions of dollars investigating the audience’s reference frames. Pre-testing advertisements also provide insights into how messages may be received. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-15 Experiential overlap Different frames of reference Sender experience Receiver experience Moderate commonality Sender experience Receiver experience High commonality Receiver Sender Experience experience Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Receiver experience 4-16 Noise factors Noise refers to any unplanned distortion to the message. Sources of noise White noise (signal transmission) Situational factors (distractions) Clutter (competitive messages) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-17 Response/feedback The set of receiver’s reactions after receiving a message is known as the response. Response may include both non-observable and observable actions. Feedback closes the loop and allows marketers to monitor message effectiveness. Advertisers spend many millions of dollars investigating the audience’s reference frames. Pre-testing advertisements also provide insights into how messages may be received. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-18 Feedback Feedback refers to the receiver’s set of reactions after being exposed to an advertising message. Receiver’s responses can be observable or non-observable Observable feedback sales, purchasing or shopping behaviour Non-observable feedback advertising/brand awareness; advertising/brand attitude Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-19 Feedback (cont.) Receiver’s responses Purchasing behaviours Observable feedback Nonobservable feedback Sales/enquiries Coupon redemptions Research-based measures Recall/awareness Message comprehension Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-20 Analysing the receiver The marketing communication process begins when the marketer identifies the audience that will be the focus of the message. Marketing communication may be directed at different audience levels: advertising—mass markets personal sales—individual customers direct response—receptive groups. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-21 Levels of audience aggregation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-22 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. Mapping consumer touch-points allows marketers to determine when and where to communicate with the customer in an integrated manner. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-23 Consumer-initiated marketing communications Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-24 Who What Cognitive response Communication Response process How Whom Traditional models AIDA How they work Innovation adoption Elaboration likelihood Response hierarchies Alternative models Information processing Standard learning Central or peripheral Hierarchy of FX Dissonance attribution Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Low involvement 4-25 Models of the response process Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-26 Models of obtaining feedback Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-27 Information processing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-28 Implications of response models All response models see consumers as moving through a series of stages (cognitive, conative and affective). 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 to determine each segment’s levels of awareness, liking, etc. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-29 Awareness Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-30 Alternative response hierarchies Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-31 Standard learning hierarchy Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-32 Low-involvement hierarchy Cognitive (learn) Conative (do) Affective (feel) In low-involvement situations: the consumer engages in passive learning and random information catching rather than active information seeking. consumers do not compare the message with previously acquired beliefs, needs or past experiences. the consumer’s perceptual defenses are reduced or absent advertising results in subtle changes to consumers’ knowledge structure. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-33 IMC implications for lowinvolvement products Message exposure (under low involvement) Shift in cognitive structure Brand experience (Positive or negative) Purchase Attitude formation 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-34 Foote, Cone & Belding Grid Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-35 Foote, Cone & Belding Grid (cont.) Thinking High involvement 1 Informative The thinker Car-house-furnishings-new products Model: Learn-feel-do (economic?) Possible implications Test: Media: Creative: Recall diagnostics Long copy format Reflective vehicles Specific information Demonstration Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-36 Foote, Cone & Belding Grid (cont.) Emotional and rational connections Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-37 Foote, Cone & Belding Grid (cont.) Feeling High involvement 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-38 Foote, Cone & Belding Grid (cont.) Thinking Low involvement 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-39 Foote, Cone & Belding Grid (cont.) Feeling Low involvement 4 Self-satisfaction The reactor Cigarettes, liquor, candy Model: Do-feel-learn (social?) Possible implications Test: Media: Creative: Sales Billboards Newspapers Point of sale Attention Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-40 Cognitive response A method for examining consumers’ cognitive processing of advertising messages by looking at their cognitive responses to hearing, viewing or reading communications. Examines types of thoughts that are evoked by an advertising message. Consumers write down or verbally report their reactions to a message. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-41 A model of cognitive response Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-42 Cognitive response categories Product/message thoughts Counterarguments Support arguments Source-oriented thoughts Source derogation Source bolstering Ad execution thoughts Thoughts about the ad itself Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Affect attitude toward the ad 4-43 Counter arguments • Insert Exhibit 4.10 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-44 Who What Cognitive response Communication Response process How Whom Traditional models AIDA How they work Innovation adoption Elaboration likelihood Response hierarchies Alternative models Information processing Standard learning Central or peripheral Hierarchy of FX Dissonance attribution Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Low involvement 4-45 Elaboration likelihood model (ELM) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-46 Elaboration likelihood model (ELM) (cont.) Focuses on the way consumers respond to persuasive messages based on the amount and nature of elaboration or processing of information Routes to attitude change Central route Ability and motivation to process a message is high and close attention is paid to message content Peripheral route Ability and motivation to process a message is low and receiver focuses more on peripheral cues than message content Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-47 Celebrity endorsers as peripheral cues Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-48 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. 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. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-49 How advertising works Advertising input Message content, media scheduling, repetition Filters Motivation, ability, (involvement) Consumer Cognition, affect, experience Consumer behaviour Choice, consumption, loyalty, habit, etc. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-50 Summary and conclusions 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. Many different models explain consumer information processing activities. 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. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 4-51