1. IMC/M21 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, Message and channel factors

2. IMC/M22 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors What is communication? - passing of information - exchange of ideas - process of establishing a commonness of thought The function of all elements of the IMC program is to communicate. Some of the ways are through advertisements, brand names, logos, graphics, websites, press releases, package designs, promotions, visual images etc.

3. IMC/M23 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors A model of the communication process Source / Sender Channel Message Receiver Encoding Decoding Sender’s Field of experience Receiver’s Field of experience Response Feedback

4. IMC/M24 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Source Encoding The sender or source of a communication is the person/organization that has information to share with another person/group of people. The process of putting thoughts, ideas or information into a symbolic form by the use of words, symbols, pictures etc. is called encoding. The goal is to encode in such a way that will be understood by the audience.

5. IMC/M25 SharapovaYao Ming

6. Source Credibility Source Ethical Honest Unbiased Believable Knowledgeable Trustworthy Skillful Experienced

7. Source Attractiveness Resemblance between the source and recipient of the message Similarity Knowledge of the source through repeated or prolonged exposure Familiarity Affection for the source resulting from physical appearance, behavior, or personal traits Likeability

8. Source Power Perceived control Perceived concern Perceived scrutiny Compliance

9. Sources IMC/M29

10. Advertising Risks of Using Celebrities The celebrity’s behavior may pose a risk to the company The celebrity may overshadow the product being endorsed The celebrity may be overexposed, reducing his or her credibility The target audience may not be receptive to celebrity endorsers

11. IMC/M211 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Message Message can be verbal / nonverbal, oral / written or symbollic Semiotics – nature of meaning of words, gestures, signs, symbols etc. Marketers must consider the meanings consumers attach to the various signs and symbols. The message should be appropriate for the channel of communication being used.

12. Forms of Encoding Graphic Pictures Drawings Charts Pictures Drawings Charts Verbal Spoken Word Written Word Song Lyrics Spoken Word Written Word Song Lyrics Musical Arrange- ment Instrum- entation Voices Arrange- ment Instrum- entation Voices Animation Action/ Motion Pace/ Speed Shape/ Form Action/ Motion Pace/ Speed Shape/ Form

13. Message Sidedness One Sideness Two Sideness

14. Verbal vs. Visual Messages

15. Message Appeal Choices Appeal to the logical, rational minds of consumers Appeal to both Appeal to the feelings and emotions of consumers

16. Message Appeal Options Fear Appeals Fear Appeals May stress physical danger or threats to health May identify social threats Can backfire if level of threat is too high May stress physical danger or threats to health May identify social threats Can backfire if level of threat is too high Comparative Ads Comparative Ads Especially useful for new brands Often used for brands with small market share Used often in political advertising Especially useful for new brands Often used for brands with small market share Used often in political advertising Humor Appeals Humor Appeals Can attract and hold attention Often the best remembered Put consumers in a positive mood Can attract and hold attention Often the best remembered Put consumers in a positive mood

17. Humor Appeals Does not aid persuasion in general Cons May harm recall and comprehension May harm complex copy registration Does not aid source credibility Is not effective in bringing about sales May wear out faster than non- humorous ads Aids attention and awareness Pros May aid retention of the message Creates a positive mood and enhances persuasion May aid name and simple copy registration May serve as a distracter, reducing counterarguing

18. IMC/M218 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Channel Channel is the method by which the communication travels from the source or sender to the receiver. It can be broadly classified as: Personal Channels – face to face contact with people eg. Salespersons, word-of-mouth Nonpersonal Channels – no interpersonal contact eg. Mass media (print and broadcast)

19. Communication Channel Personal Channels Personal Selling Word of Mouth Nonpersonal Channels Print Media Broadcast Media

20. IMC/M220 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Receiver/Decoding It is the process of transforming the sender’s message back into thought and this process is heavily influenced by the receiver’s frame of reference or ‘field of experience’ For effective decoding, there should be some ‘common ground’ (overlapping region) between the sender and the receiver Dilemma: Ad agency people– urban, well educated, Consumers – rural, blue collared jobs

21. IMC/M221 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Noise The message is subject to extraneous factor that can distort or interfere with its reception. It means unplanned interference or distortion. Eg. Signal distortion in TV or radio Lack of common ground in the fields of experience of sender and receiver also results in noise. Eg. A symbol used by the sender which is unfamiliar to the receiver.

22. IMC/M222 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Response/Feedback A receiver’s set of reactions after seeing, hearing or reading the message is known as a response. Response can range from non-observable actions (storing in memory) to immediate action (calling a toll-free number) Feedback is important to marketers. They take it through sales customer inquiries store visits reply cards research based feedback

23. IMC/M223 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Effective communication occurs when: The marketer selects an appropriate source, develops an effective message that is encoded properly and then selects the channels / media that will best reach the target audience so that the message can be effectively decoded and delivered. The target audience should be clearly defined…

24. IMC/M224 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Levels of target audience Mass markets and audiences Market Segments Niche Markets Individual & Group Audiences

25. IMC/M225 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Communication Response Models The most important aspect of developing effective communication program is the understanding of response process of consumers. A consumer may pass through several stages from not being aware about the product / brand to the actual purchase. The response models can be classified as:

26. IMC/M226 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Communication Response Models Traditional Response Hierarchy Models Alternative Response Hierarchies 1.AIDA model 2.Hierarchy of effects model 3.Innovation adoption model 4.Information processing model 1.Standard learning hierarchy 2.Dissonance/Attribution hierarchy 3.Low involvement hierarchy

27. IMC/M227 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors AIDA model – stages a salesperson must take a customer through in the personal selling process StagesAIDA model Cognitive Stage Attention Affective Stage Interest Desire Behavioral Stage Action learn feel do

28. IMC/M228 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Hierarchy of effects model – process by which advertising affects the consumer response. Series of steps from initial awareness to purchase. Stages Hierarchy of effects model Cognitive Stage Awareness Knowledge Affective Stage Liking Preference Conviction Behavioral Stage Purchase learn feel do

29. IMC/M229 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Innovation adoption model stages a consumer passes through in adopting a new product or service. After trial, the consumer either adopts or rejects the product Stages Innovation adaption model Cognitive Stage Awareness Affective Stage Interest Evaluation Behavioral Stage Trial Adoption learn feel do

30. IMC/M230 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Information processing model – It says that the receiver of persuasive communication is a processor of information Stages Information processing model Cognitive Stage Presentation Attention Comprehension Affective Stage Yielding Retention Behavioral Stage Behavior learn feel do

31. IMC/M231 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Standard learning hierarchy Consumer involvement in purchase - HIGH Perceived product differentiation - HIGH Eg. Buying high-involvement products like industrial products, computers, cars etc. Learn (cognitive) Feel (affective) Do (conative)

32. IMC/M232 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Dissonance/Attribution theory Consumer involvement in purchase - HIGH Perceived product differentiation - LOW Consumer may buy the product on recommendation from a nonmedia source and then attempt to support the decision by developing a positive attitude or even a negative attitude towards other brands. Learn (cognitive) Feel (affective) Do (conative)

33. IMC/M233 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Low-involvement Hierarchy Consumer involvement in purchase - LOW Perceived product differentiation - LOW Consumer engages in passive learning and random information catching rather than active information seeking. Learn (cognitive) Feel (affective) Do (conative)

34. IMC/M234 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Consumer Involvement Involvement is a variable that can help explain how consumers process advertising information and how this information might affect the message recipients. Advertising managers must be able to determine targeted consumers’ involvement levels with their products.

35. IMC/M235 Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Foote, Cone & Belding (FCB) grid Antecedents of Involvement Person Factors -Needs -Importance -Interest -Values Object or stimulus Factors -Differentiation of Alternatives -Source of Communication -Content of communication Situational Factors -Purchase / use -Occasion Involvement With advertisements With products With purchase decisions Possible results Of involvement Counter arguments To ads Effectiveness of ad To induce purchase Relative importance Of product class Perceived differences In product attributes Preference of brand Influence of price on Brand choice Time spent choosing Alternatives Amount of information search

36. Integrated Marketing Communications Module 2: Understanding communication process Concept 1: Source, message and channel factors Elaboration Likelihood Model :- Central route to Persuasion receiver is very active, involved participant in the communication and attend, comprehend and evaluate with interest. :- Peripheral Route to Persuasion Rather than evaluating the information presented in the message, the receiver relies on peripheral cues such celebrity, music, theme song, jingles, visual imagery These cues can lead to the acceptance or rejection of the message.