1. Chapter 10
Communication
Communication

2. 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

3. 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…

4. 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

5. 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

6. 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)

7. 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?

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

9. 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

10. 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.

11. 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)

12. 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

13. 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?

14. 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.”

15. 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)

16. 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

17. 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?

18. 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

19. 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%...)

20. 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?

21. 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

22. 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

23. 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”)

24. 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)

25. 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”

26. 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 age group as your target market, what specific print medium might you choose? (Sports Illustrated; ESPN the Magazine)
Electronic communication? (ESPN)

27. 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

28. 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.

29. 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

30. 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

31. 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