IMC Session 3 4 5 | Marketing Communications | Advertising

IMC Integrated Marketing communication

Session 3-4-5 Developing a Theoretical understanding of Marketing Communication

Communication and Management
• Communication
– The sharing of information between two or more individuals or groups to reach a common understanding


• Importance of Good Communication
– Increased efficiency in new technologies and skills – Improved quality of products and services – Increased responsiveness to customers – More innovation through communication

The Communication Process
• Phases of the Communication Process:
– Transmission phase in which information is shared by two or more people. – Feedback phase in which a common understanding is assured.

Question?
What part of the communication process has the sender translating the message into symbols or language? A. Message B. Encoding C. Decoding D. Feedback

The Communication Process
• Sender – person wishing to share information with some other person • Message – what information to communicate • Encoding – sender translates the message into symbols or language • Noise – refers to anything that hampers any stage of the communication process


• Receiver – person or group for which the message is intended • Medium – pathway through which an encoded message is transmitted to a receiver • Decoding - critical point where the receiver interprets and tries to make sense of the message


• Feedback phase is initiated by the receiver • Receiver decides what message to send to the original sender • Feedback eliminates misunderstandings, ensures that messages are correctly interpreted

Verbal & Nonverbal Communication
• Verbal Communication
– The encoding of messages into words, either written or spoken

• Nonverbal
– The encoding of messages by means of facial expressions, body language, and styles of dress.

The Role of Perception in Communication
• Perception
– process through which people select, organize, and interpret sensory input to give meaning and order to the world around them


• Biases
– systematic tendencies to use information about others in ways that can result in inaccurate perceptions


• Stereotypes
– often inaccurate beliefs about the characteristics of particular groups of people – can interfere with the encoding and decoding of messages

The Dangers of Ineffective Communication
• When managers and other members of an organization are ineffective communicators, organizational performance suffers and any competitive advantage the organization might have is likely to be lost

Information Richness and Communication Media
• Managers and their subordinates can become effective communicators by:
– Selecting an appropriate medium for each message—there is no one “best” medium. – Considering information richness
• A medium with high richness can carry much more information to aid understanding.

Question?
What is the amount of information that a communication medium can carry? A. Channel capacity B. Information richness C. Bandwidth D. Message capacity

Information Richness
• The amount of information that a communication medium can carry • The extent to which the medium enables the sender and receiver to reach a common understanding

Information Richness of Communication Media

Communication Media
• Face-to-Face
– Has highest information richness. – Can take advantage of verbal and nonverbal signals.


• Face-to-Face
– Provides for instant feedback. – Management by wandering around takes advantage of this with informal talks to workers. – Video conferences provide much of this richness and reduce travel costs and meeting times.


• Spoken Communication Electronically Transmitted
– Has the second highest information richness. – Telephone conversations are information rich with tone of voice, sender’s emphasis, and quick feedback, but provide no visual nonverbal cues.


• Personally Addressed Written Communication
– Has a lower richness than the verbal forms of communication, but still is directed at a given person. – Personal addressing helps ensure receiver actually reads the message—personal letters and e-mail are common forms.

E-Mail Dos and Don’ts
• E-mail allows telecommuting employees to work from home and keep in contact. • The use of e-mail is growing rapidly and e-mail etiquette is expected:
– Typing messages in all CAPITALS is seen as “screaming” at the receiver. – Punctuate your messages for easy reading and don’t ramble on. – Pay attention to spelling and treat the message like a written letter.

Communication Media
• Impersonal Written Communication
– Has the lowest information richness. – Good for messages to many receivers where little or feedback is expected (e.g., newsletters, reports)


• Many managers do not have time to read all the electronic work-related information available to them • Problem with information overload is the potential for important information to be ignored or overlooked • Can result in lost productivity

Communication Networks
• Communication Networks
– The pathways along which information flows in groups and teams and throughout the organization.

• Type of communication network depends on:
– The nature of the group’s tasks – The extent to which group members need to communicate with each other to achieve group goals.

Communication Networks in Groups and Teams
Type of Network
Wheel Network Chain Network Information flows to and from one central member. Members communicate only with the people next to them in the sequence.

Wheel and chain networks provide little interaction. Circle Network All-Channel Network Members communicate with others close to them in terms of expertise, experience, and location. Networks found in teams with high levels of communications between each member and all others.

Marketing Communications
• MARKETER INITIATED TECHNIQUES USED TO SET UP CHANNELS OF INFORMATION AND PERSUASION WITH TARGETED AUDIENCES TO INFLUENCE ATTITUDES AND BEHAVIOR “Promotion”  Message and Media • MARKETING COMMUNICATIONS MIX “Tool Box” of Media and Techniques  Integration and Coordination  Based on Communications Model

MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS

Informing

Persuading

Reminding

MARKETING COMMUNICATIONS OBJECTIVES
• • • • • • • • • • • • • • • Increase Market Penetration Develop Repeat Purchase Behavior Establish Customer Relationships Increase Rate of Consumption Encourage Product Trial Stimulate Impulse Buying Stimulate Demand Differentiate the Product Establish a Product Image Influence Sales Volume Establish, Modify, or Reinforce Attitudes Develop Sales Leads Stimulate Interest Establish Understanding Build Support & Acceptance

ELEMENTS OF THE MARKETING COMMUNICATIONS MIX
1. Advertising 5. Direct Marketing

2. Public Relations

4. Personal Selling

3. Sales Promotion

MARKETING COMMUNICATIONS PLANNING
Marketing Plan Review Situation Analysis Communications Process Analysis Budget Development Program Development Integration & Implementation Monitoring, Evaluating, Controlling

Multistep Flow Model of Communication

Consumer response in Persuasive Communications
• Advertising is not an entertainment or an art form. It is persuasive communication, directly affecting the consumers‟ actions. • So, the goals set for advertising are communication tasks—to reach a defined audience, to a given degree, and during a given time period. • About 75 percent of the rupees spent for advertising messages are invested in six medias— newspapers, TV, direct mail, magazines, radio, and outdoor, in that order.


• Advertising flourishes mainly in free-market, profitoriented countries. It is one of the most important factors in accelerating the distribution of products and in helping to raise the standard of living. • Advertising is one of the most important techniques of modern business enterprise. • A company’s decisions about advertising affect its product development, packaging, pricing, distribution and retailing. • In turn, a company’s advertising affects consumers‟ decisions as to what to buy or not to buy.

Easily Persuaded?
• So consumers react to advertising emotionally at first—then objectivity sets in. • They do not often change suddenly from uninterested individuals to convinced purchasers. • In most cases, they go through several steps before buying a product or service. • The message must appeal to their senses, such as stroking them in some way with the message. • Then, they move from that initial awareness of the product or service to knowledge, liking, preference, acceptance (or conviction), and then to purchase of the product or service.


• The evidence seems to indicate quite clearly that people are very capable of resisting attempts to change their attitudes and behavior. • So, a great deal of advertising must function either to reinforce existing attitudes and behavior, or to stimulate or activate people who are already predisposed to act in the desired manner.

No More Mass Marketing?
• Marketers—retailers and manufacturers—employ a variety of demand figures to define markets. • They commonly use income, age, location, education, and other criteria. In the last twenty years, an important market segment has been added to the categories—youth. • Seemingly overnight, marketers became aware that the youth market had desires for goods, and the money to back them up.

Consumers Dictate An Image
• Consumers not only have forced marketers to adjust their market segments, but contribute to the market measures of control over the image-building process. • Product and brand images arise out of a complex interaction between marketer messages and consumer creativity. • People differ in the priority of information at their disposal and in their creative ability to elaborate an image. • A product or brand is a combination of attributes, and one person might construct his image on the basis of one feature and another person on a different one.

Marketing Communication Models
• Marketing communication models act as important tools in understanding how communications work in real life marketing situations and for developing a communication strategy. • Communication strategy can make or break a brand by creating an image or perception in the minds of customers positively and they may make a purchase.

… objectives

• • • • • • The objectives are : examine the concept of exchange in the marketing context; assess the role of promotion in the context of the marketing mix; consider the range and potential impact of marketing communications; identify the key characteristics of each major tool in the communications mix; examine the effectiveness of each communication tool; establish a need for marketing communications; compare marketing communications in the consumer and business markets.

… Response Hierarchy Models
• Although the ultimate objective for most marketing managers is to build repeat purchases from profitable customers, there are many stages between creating problem recognition or need arousal and purchase. • The communication models shows what are bought to be sequence of mental stages through which a buyer passes on his journey towards a purchase.


AIDA Model a Hierarchy-ofEffects Model b Awareness Awareness Knowledge Affective stage Interest Liking Interest InnovationAdoption Model c Communications Model d Exposure Reception Cognitive response Attitude

Cognitive stage Attention

Preference
Conviction Purchase Evaluation Trial Behavior

Intention

Desire Action Behavior stage

Adoption

Designing the Message
Message Content Rational Appeals Emotional Appeals Moral Appeals Message Structure Draw Conclusions Argument Type Argument Order Message Format Layout, Words, & Sounds, Body Language Message Source Expertise, Trustworthiness, Congruity

Message Problems
Selective Attention

Selective Distortion

Selective Retention

Select Communications Channel
• Select Communications Channel
Personal Communication Channels Nonpersonal Communication Channels

Establish the Budget

Affordable

% Of Sales

Competitive Parity

Objective & Task

Decide on Communications Mix
Advertising
Public, Pervasive, Expressive, Impersonal

Sales Promotion
Communication, Incentive, Invitation

Public Relations & Publicity
Credibility, Surprise, Dramatization

Personal Selling
Personal Confrontation, Cultivation, Response

Direct Marketing
Nonpublic, Customized, Up-to-Date, Interactive

… FCB Planning Model
• This model builds on traditional response theories, such as the hierarchy of effects model and its variants, and research on high and low involvement. They added the dimensions of thinking versus feeling at each involvement level.


• The model is known as the FCB grid and delineates four primary advertising planning strategies:
– Informative – for highly involved purchases where rational thinking and economic considerations prevail. – Affective – for highly involved/feeling purchases. These types of products should be advertised stressing psychological and emotional motives. – Habit formation – for low involvement/thinking products where routine behavior patterns and learning occurs most often after purchase. – Self-satisfaction – low involvement/feeling products where appeals to sensory pleasures and social motives are important

The FCB Planning Model
Thinking High Involvement Feeling

1
Informative The Thinker

2
Affective The Feeler

Low Involvement

3
Habit Formation The Doer

4
SelfSatisfaction The Reactor

Developing Promotional Strategies
• Ad options based on the FCB grid
– Rational versus emotional appeals – Increasing involvement levels – Evaluation of a think-type product on the basis of feelings

A Model of Cognitive Response


• Cognitive responses are the thoughts that occur while reading, viewing, and/or hearing a communication. The assumption is that these thoughts reflect the recipient’s reactions and help shape ultimate acceptance or rejection of a message. • The categories of cognitive responses include:
– Product/message thoughts – Source-oriented thoughts – Ad execution thoughts

Cognitive Response Categories
Product/Message Thoughts Counterarguments Source-Oriented Thoughts Support arguments

Source derogation

Source bolstering

Ad Execution Thoughts Thoughts about the ad itself Affect attitude toward the ad


• Product/message thoughts – directed at the product or service and/or claims being made in the communication. These types of thoughts include: – Counterarguments – thoughts the recipient has that are opposed to the position taken in the message – Support arguments – thoughts that affirm or support the claims made in the message


• Source-oriented thoughts – directed at the source of the communication and include: – Source derogations – negative thoughts about the spokesperson or organization making the claims – Source bolsters – favorable thoughts about the spokesperson or organization making the claims


• Ad execution thoughts – thoughts about the ad itself, including execution factors such as creativity, quality, colors, or voice tones. Affect/attitude toward the ad represents the receivers’ feeling of favorability or unfavorability toward the ad.

Source Credibility
• The extend to which the source is seen as having: –Knowledge –Skill –Expertise • And the source is perceived as being: –Trustworthy –Unbiased –Objective

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

Message Factors
• • • • • • Message Structure Order of presentation (primacy vs. recency) Conclusion Drawing (open vs. closed end) Message sidedness (one vs. two-sided) Refutation Verbal vs. visual


Message Appeals • Comparative Advertising • Fear Appeals • Humor Appeals

Channel Factors
• Personal versus non personal channels • Effects of alternative mass media –Externally paced media (broadcast) –Internally paced media (print, direct mail, Internet) • Effects of Context and Environment –Qualitative media effect –Media environment (mood states) • Clutter

Case Study

Color PlusRedefining the Rules of Promoting Apparel

Abstract
• The case let presents an overview of the evolution of ColorPlus from a small apparel brand, in 1993, to a leading premium casual wear brand in India by the time it was acquired by Raymond, in 2002. • The case let also throws light on the marketing strategy adopted by the company to make the brand successful. • The case let also provides a detailed description of the innovative print communication strategy adopted by the company, a first in apparel advertising.

Issues
• Copy writing in print advertising • Promotion of apparel brands in India • Product innovation and quality in apparel industry • Importance of perceived quality in enhancing the brand equity • Product focus as a communications strategy

Introduction
• Color Plus, an unknown entity in 1993, had become a leading apparel brand by the time leading textile company Raymond acquired a majority stake in the company Color Plus Fashions (owner of the brand) in 2002.


• Color Plus - Premium casual wear brand in high quality natural fibres like cotton and linen, in superior mixed and performance oriented weaves.


• The Color Plus brand was created by the copromoters of Ambattur Clothing Limited (ACL), Vijay Mahtaney and Rajendra Mudaliar, along with Kailash Bhatia.


• In 1993, ACL was a leading garment manufacturer and exporter supplying to some of the leading international casual-wear brands such as Banana Republic, Ralph Lauren, Eddie Bauer, and Gap.

Questions for Discussion
1. The success of the print ad campaign could be attributed to the creative format used in the print ads. Evaluate the extent to which the layout used in the Color Plus ad campaigns helped focus attention on the colors, fabrics, designs, and finish of the brand?


2. Color Plus adopted an innovative marketing communication strategy of using only the print medium to promote its products. It also refrained from using any models in these ad campaigns. How do you view this kind of persistence in the context of increased competition from domestic and foreign apparel brands in the market? Do you feel this kind of strategy is sustainable in the long run?


3. According to Peter Drucker, “Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for.” How do you think Color Plus has managed to make the customers perceive value in the product through its communications campaigns when perceived quality has a direct impact on customer purchase decisions?

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