Chapter 10 Communication Communication

Can take many forms: verbal, visual, symbolic (e.g., unique logo) 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) What Is communication? What is it in the context of marketing? Example of a “unique logo”? Nike swoosh is so recognized the ads don’t even use the company name

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 There are two broad categories of communication They are…? Personal communication would include door-to-door sales sales at gatherings telemarketing, etc. Each has advantages and disadvantages relative to the other…

Advantages of mass communication Can reach a larger audience Is less expensive per capita Allows a marketer to do more with less What are some of them? A magazine or television ad may reach millions of readers Internet ad may be the most cost-effective of all

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 It’s not a “one size fits all” message Credibility is important and a distinct advantage, as we’ll see later in the semester

Stages of the communication process The source The message The medium The receiver Feedback Now we turn to the five “stages” of the communication process (though “stages” may be a misnomer)

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 Source is also known as the sponsor or initiator of the communication OK, here’s what the source has to do: First… What is encoding? How do you encode a message?

Marketers have many methods to encode their messages: words pictures music symbols spokespersons Example? Using violins to set a particular mood…

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 An important issue related to communication is the credibility of its source.. In other words, if the source is considered credible and trustworthy, message is more likely to be believed

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) Which type of source do you think is more credible? Is that totally true? As we’ll see later, they do profit psychologically—ego satisfaction in having someone take your advice Also, there may be some benefit to them in having someone else validate their decision by purchasing the same item What are formal sources? Ads; even articles in magazines that accept advertising BTW, marketers love to have their products touted in neutral publications for that reason; note that CR doesn’t allow use of their evaluations in advertising, which frustrates many (and has led to lawsuits against CR). That’s why you’ll see references like “ranked #1 in Consumers Digest” but never CR.

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 i.e., advertising Ben & Jerry’s has been the model for the last item (if not the next-to-last)

Explains why many companies spend money on institutional advertising Also explains why companies sponsor entertainment, sports and community events What is i.a.? Advertising designed to promote a favorable company image rather than promote specific products Examples? E.g., sponsoring Mozart festival This winter, some of the conference basketball tournaments were sponsored by corporations What do such activities say about a company? “We’re a good company, do business with us” Which, of course, begs the question of whether a company that sells products that are harmful (e.g., cigarettes) can “cleanse” their image

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 Sometimes companies try to improve their image through the people they hire to pitch the company or its products Does this work? Does it matter if the person is in some way related to the product or company? Examples? Tiger Woods is more effective endorsing golf balls than automobiles (esp. since people know he’s getting paid big bucks to drive a Buick) Are you likely to buy Nike balls because Tiger uses them? Are you likely to buy a Buick because Tiger drives one? Is Chuck Norris more effective than Christie Brinkley in Total Gym ads?

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 Merchants like LL Bean and Land’s End are highly credible because of reputation for product quality and customer service E.g., New York Times vs. National Enquirer; whether that’s true or not—some people used to believe the statement that “if it wasn’t true they couldn’t say it on television.”

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 What’s the message? E.g., if the target market is teen buyers, using middle-age celebrity endorser is a mistake (vs. Tony Hawk)

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 non-verbal messages is inconclusive However, it is clear that visual stimuli enhance recall of verbal messages Messages can be verbal or non-verbal, or both What is the common belief in terms of whether visual messages are more memorable than verbal ones? Common belief is that they are Is it correct? Yes! Why? Because… We have to intentionally look away from a visual message Examples? Absolut Vodka Tiger Woods bouncing a ball in his clubhead

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 What do the terms mean? Which is more effective?

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 Examples? Some OTC medications indicate that not everyone will benefit from them; better than to suggest it will or not say anything at all (“I guess I was just one of the 16%...)

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 Examples? See fig. 9.9 in Kanuk Currently Progresso vs. Campbell’s (noted in earlier class) Is it effective? Are there downsides?

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 Examples? lingerie (not surprising); beer (Swedish bikini team); mints (“ice”) Question of the decade: does it sell? Exceptions? Victoria’s Secret; also see Jockey ad in Kanuk 9-12; bathing suits

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 Some other aspects of sexual appeals-- Big surprise! …while women can

Fear appeals A common and effective advertising technique Three different types of fear appeal Physical risk (health and safety) Psychological risk (social approval and security) Financial risk (loss of income and savings) Another type of appeal beside sex is… Three different types of fear appeals identified in your book… Examples of each? Safe cars, burglar alarms, exercise equipment toothpaste, mouthwash, deodorants Health/life insurance, traveler’s checks (“don’t leave home without them”)

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 Do fear appeals work? Why? What is “cognitive dissonance”? “the discomfort or dissonance that consumers experience as a result of conflicting information” or Lack of harmony between thoughts and behavior Example? Cigarette warnings (I know smoking is harmful but I enjoy smoking/am addicted so I reject 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 For example, if you’ve identified physically active, sports-minded males in the 25-39 age group as your target market, what specific print medium might you choose? (Sports Illustrated; ESPN the Magazine) Electronic communication? (ESPN)

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 When would you want each of these? If you want to give a lot of information. Such as? Sales events Demonstration of food processor, snow-blower, etc.

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 For example, if they’ve had positive experience with mail order companies, they are more likely to respond favorably to a catalogue they receive in the mail, or some other mail offer. Conversely… This is particularly important in a diverse society where cultural mores may affect the way consumers interpret a message Even more so in a global marketplace

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 What type of communication provides the most immediate feedback? E.g., Door-to-door sale or in-store sale, seller can change his pitch as consumer reacts However… Is it easy to get feedback from mass communication? No How do you infer feedback? E.g., the target does or doesn’t buy the advertised product; does or doesn’t renew a subscription; does or doesn’t vote for a candidate (or respond positively to a poll) This is where having toll-free numbers and web sites that invite comment are useful