Advertising
&
Sales Promotion Management
Chapter 5
The Communication Process
Learning Objectives
• Understand the need for marketing
communications
• Assess the role of promotion in the context of
the marketing mix
• Get familiar with the basic elements of the
communications mix
• Identify the key characteristics of each major
tool in the communications
• Know about the various Response Hierarchies
• Appreciate the concept of IMC
5.1 Introduction
• Modern marketing is about communicating
with their present and potential customers, as
well as internally.
• Modern marketing companies manages
complex marketing communication system to
communicate with all stakeholders.
• Key issue however is to know what to say,
where, to whom and when.
• The primary role is to engage audiences and
promote organization and offerings.
5.1 Introduction
•
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Marketing communications efforts include;
Understanding the consumers
Establishing an identity of the company
Use cost effective advertising, publications
and publicity to generate awareness
‒ Build interest and building relationships in the
community and among key influencers
• The function of all elements of the marketing
communications tools is to communicate.
5.1 Introduction
• Organization (advertiser) sends
communications and messages in a variety of
ways – advertising, brand names, logos,
graphics, websites, package designs and more.
• In additions to the above, there are media in
which time and space can be bought to deliver
messages to target audiences.
• Appropriate mix of available tools needs to be
utilized to reach out to different audiences.
5.1 Introduction
• Essentially in the consumer markets;
‒ Advertising is used to build brands
‒ Sales promotions is used to encourage
customer action
‒ Public relations to generate goodwill and
interest
‒ Personal selling to promote brands in various
trade channels
‒ Direct marketing is to get sales on one on one
basis
5.1 Introduction
• Availability of internet, mobile connectivity
totally changed the platform and new forms of
communication channels are now available.
5.1 Introduction - Communication
• Communication has been defined as “the
passing of information, the exchange of ideas
or the process of establishing a commonness
or oneness of thought between a sender and
a receiver”.
• Success of communication process depends
on the nature of message, the audience’s
interpretation capabilities, and environment in
which it is received.
• Receiver’s perception f the source & the
medium also matters.
5.2 Defining Marketing
Communications
• Marketing communication or promotion is
one of the elements of the marketing mix
which is responsible for putting the marketing
offer to the target market.
• Defined as “All the promotional elements of
the marketing mix which involve the
communications between an organization and
its target audiences on all matters that affect
marketing performance”.
5.2 Defining Marketing Communications
• Also defined as “Persuasive communication
designed to send marketing related messages
to a selective target audience”.
• Target audience is defined as “Those
individuals or groups that are identified as
having a direct or indirect effect on business
performance, and are selected to receive
marketing communications”.
5.2 Defining Marketing Communications
• There are several reasons to communicate
with markets & audiences;
‒ Inform
‒ Persuade
‒ Image creation
‒ Reinforcement
5.3 Marketing Communications Mix
• Also known as Promotional Mix
• Consists of five elements;
1. Advertising
2. Sales Promotions
3. Public Relations
4. Direct Marketing
5. Personal Selling
• Can be used in various combination to
communicate with the consumers.
5.3 Marketing Communications Mix
• In addition to these elements of
communication, there are the media, or the
means by which marketing communications
messages are conveyed.
• Digital media space has opened new media
scenario.
• With internet and digital technologies,
INTERNACTIVE forms of communication
became possible.
• Thus promotional mix nowadays are direct
and targeted.
5.3 Marketing Communications Mix
• Thus promotional mix nowadays are direct
and targeted.
• It is also known as Below-The-Line
communications (BTL).
• Five major modes (elements) of MCM / PM;
‒ Advertising
‒ Sales Promotion
‒ Public Relations & Publicity
‒ Personal Selling
‒ Direct & Interactive Marketing
5.3.1 MCM - Advertising
• Advertising is a non-personal form of
communication.
• The prime objective – to build / maintain
awareness of a product / organization.
• It helps you to develop competitive
advantage.
• Widely used marketing communication tool –
to inform, persuade
5.3.1 MCM - Advertising
• Strengthens brand image and reinforce buyer
loyalty.
• Helps you to reach your target audience.
• All advertising requires a message and a
carrier to deliver the message to the receiver.
5.3.2 MCM – Sales Promotions
• Sales promotion delivers a call to action.
• Sales Promotion compliments advertising.
• Sales promotion works in short-term to create
sales as against advertising which seeks to
work over the long term to create awareness.
• Sales promotions cost much lower than the
advertising.
• Key characteristic of sales promotion – cause
response immediately.
• Effective as a ‘PUSH’ strategy @ trade.
5.3.3 MCM – Public Relations &
Publicity
• PR is responsible with the management of
relationships between organizations and their
stakeholders.
• PR influences opinion about the company.
• Thus it needs to work towards closing the gap
between how its key public sees the
organization and how the organization would
like to be seen by its key public.
5.3.3 MCM – Public Relations & Publicity
• PR is responsible about the long term
goodwill.
• PR is also responsible to guide the company
through crises without too much damage to
its reputation.
• PR is relatively cost-effective as it gives free
coverage among masses.
• However, PR has little control over media –
they may publish what they find and not what
PR gives it to them.
5.3.4 MCM – Personal Selling
• It’s one-to-one approach to have two way
communications, facilitate demo and maintain
and establish a long-term relationship.
• Only tool in which there is a possibility of
feedback and evaluation.
• Here sales person can adapt message to the
type of customer he is dealing with.
• Misunderstandings are minimal.
5.3.4 MCM – Personal Selling
• Negotiations possible.
• It needs higher cost and has higher turn
around.
• Reach and frequency is lower due to higher
cost.
5.3.5 MCM – Direct & Interactive
Marketing
• Uses DIRECT MEDIA to reach target audience.
• Direct medias like mailing, telephone,
internet, posters, catalogue etc are used.
• Here dealing is direct bypassing intermediaries
like dealers or retailers.
• It allows you to create and sustain a personal
communication with customers / prospects.
5.3.5 MCM – Direct & Interactive Marketing
• Generally used as direct sales channel to get
orders.
• It helps sales team as it prepares and
stimulate sales.
• It can be used to follow-up, up-sale, crosssale.
• It helps in customer retention and building
customer loyalty (repeat and word of mouth,
referral sale).
5.4 The Marketing Communication
Process
• Wilbur Schramm’s Model of Communications
Sender
Message
Receiver
• Modified Communication Model
‒ Sender = The initiator of a message
‒ Encoding = Creating a brand message to
convey an intended meaning and elicit a
certain type of response
‒ For Encoding we use words, pictures, visuals,
actions, symbols and / or events
5.4 The Marketing Communication Process
• Modified Communication Model
‒ Receiver = Anyone who is exposed to a
message
‒ Decoding = Receiver needs to decode to
understand.
‒ Decoding is the process of interpreting what a
message means.
‒ After decoding, customers responds in some
way. Actions reveals lot about the message.
5.4 The Marketing Communication Process
• Modified Communication Model
‒ Feedback = Customer’s response indicating to
what extent the message was received,
properly decoded or not, its persuasiveness
‒ Noise = Environment in which communication
process happens along with other ongoing
things – other brand messages, distractions,
thoughts within the minds of consumers
‒ Noise is also interferences and distractions
that can affect the transmission and reception
of a message
5.4 The Marketing Communication Process
• Modified Communication Model
‒ Feedback = Customer’s response indicating to
what extent the message was received,
properly decoded or not, its persuasiveness
‒ Noise = Environment in which communication
process happens along with other ongoing
things – other brand messages, distractions,
thoughts within the minds of consumers
‒ Noise is also interferences and distractions
that can affect the transmission and reception
of a message
5.4 The Marketing Communication Process
• Modified Communication Model
‒ Noise is also interferences and distractions
that can affect the transmission and reception
of a message
• In short, brand messages must have impact,
get attention as well as memorable to create
recall.
5.4 Elements in the Communication Process
Noise
5.4.1 The Source and Encoding
• Sender starts marketing communication by
sending a message.
• Message caries brand name.
• Advertising as a source of message gets less
credibility than publicity.
• Perceived integrity of send is crucial.
• Received knows while decoding that seller
wants to sell.
• So when ads are decoded, consumers are
cautious.
5.4.1 The Source and Encoding
• This natural consumer cautiousness is the
reason why building brand trust is important.
• The ‘Encoding’ is generally the responsibility
of marketing communication agencies.
• Message is a derivative of brand position and
target audience. However, encoding depends
on vehicle chosen – TV, Radio, Print etc.
• During encoding, agency must be clear that
target audience understand words, pictures
and other cues used in messages.
5.4.2 Brand Messages
• Defined as “All the information and
experiences that impact how customers and
other stakeholders perceive a brand”.
• Various medium through message can be sent
– Print, Broadcast, Internet etc.
• Should reach large target audience group and
connect well.
• Engage customer and build a better brand
positioning.
5.4.2 Brand Messages
•
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Brand messages role is to;
Introduce new product
Create awareness
Building brand image
Make promotional offers
Develop equity
Build relationship
5.4.3 Media Channels
• It’s the method / mode by which the
communication travels from the sender to the
receiver.
• Media channels link companies to their
customers – newspapers, magazine, TV, Radio
• Innovation is expected – In cinema, digital.
• Word of mouth and packaging also play the
role of media channel.
5.4.4 Noise
• Environment with distractions all around in
which communication takes place is
considered as NOISE.
• Noise can be at the encoding stage or
decoding stage also.
• Throughout the communication process, the
message is subject to extraneous factors that
can distort transmission or reception.
• It is essential in advertising to look as noise as
CLUTTER.
5.4.4 Noise
• Due to clutter particular brand message has a
threat to get lost, not noticed.
• Clutter is due to competitive product /
substitute products.
• It is important o note that competition clutter
needs to be understood – what they are
saying, when and where they are saying,
noticeability etc.
5.4.5 The Receiver and Decoding
• Intended receiver is the target audience.
• Sender and media channel can only ensure
that message reaches the receiver.
• It’s receiver which decodes the message.
• Thus it is receiver which interprets what
source is trying to communicate.
• If he understands, he decides to take action.
• Pre-test is therefore very essential and critical.
5.4.6 Feedback
• Defined as “Receiver’s set of reactions to
marketing message is known as a response.
• Marketers are very keen for feedback.
• It lets the sender monitor how the intended
message is being decoded and received.
• Feedback also gives chance to know how the
noise is handled during delivery process.
• Call of action also gives feedback to advertiser.
• Marketers often needs to use other feedback
determination methods.
5.4.6 Feedback
• Depending on feedback, success or failure in
marketing communication is concluded reason and future adjustments needed.
• Successful marketing communication needs;
‒ Select an appropriate source
‒ Develop an effective message
‒ Encode message properly
‒ Select the channel to reach target audience
‒ Ensure delivery and decoding
5.5 The Consumer Response Models
• Important aspect of developing effective
communication programs involves;
‒ Understanding the response process the
‘receiver’ may go through in moving towards a
specific behavior
‒ How the promotional efforts of the marketer
influence consumer responses.
5.5 The Consumer Response Models
•
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Marketers may have following objectives;
Create awareness
Trigger interest in the product
Grab lucrative offer
Convey detailed information to change
consumers’ attitudes
‒ Change behavior
• Number of models depict the stages a
consumer may pass through in moving from a
state of not being aware to actual purchase.
5.5 The Consumer Response Models
5.5 The Consumer Response Models
5.5.1 AIDA Model
• Represents Personal Selling model in which
salesman needs to take his customers
through;
‒ Attention
‒ Interest
‒ Desire
‒ Action
• It starts with engagement with the
advertisement.
5.5 The Consumer Response Models
5.5.1 AIDA Model
• Attention grabbing is imperative to gaining
interest in the product.
• Interest needs to be established.
• Post interest, customers must desire the
product enough to take action desired.
• Interest can be crafted through product demo,
information and advertisements.
• Persuasive message to build desire.
5.5 The Consumer Response Models
5.5.1 AIDA Model
• Make customer take expected call to action
through promotions, discounts and calling out
of features or benefits.
• Move advertisement;
‒ Family melodrama – Attention
‒ Loving care by husband – Interest
‒ Face with relieving expression - Desire
‒ Punch line - Action
5.5 The Consumer Response Models
5.5.2 Hierarchy of Effects Model
• Developed for and found to be effective in
setting and measuring advertising objectives.
• Highlights six steps between noticing an
advertisement to product purchase.
• Consumer passes through a series of steps
sequentially.
• Known as ‘hierarchy’ because the number of
consumers moving through one stage to the
next reduces.
5.5 The Consumer Response Models
5.5.2 Hierarchy of Effects Model
• Advertiser must try utmost to get customers
from conviction to complete the final stage of
purchase.
‒ Awareness
‒ Knowledge
‒ Liking
‒ Preference
‒ Conviction
‒ Purchase
5.5 The Consumer Response Models
5.5.2 Hierarchy of Effects Model
• Advertising makes consumers aware.
• Prospects starts gaining knowledge. Your
product information shall be easily available.
• Later ensure customer likes the product.
Essential that they disconnect from
competition and develops preference towards
your brand.
• This is possible by highlighting USP, benefits.
5.5 The Consumer Response Models
5.5.2 Hierarchy of Effects Model
• Nest step is conviction by creating a desire to
purchase.
• Test drive, sampling are some methods
through which this step is achieved.
• Finally it is expected that consumer will buy
the product.
• Advertisers does all these as he expects
consumers to finally buy the product.
5.5 The Consumer Response Models
5.5.2 Hierarchy of Effects Model
• Basic premise of this model;
‒ Advertising effects occur over a period of time
‒ Advertising communication may not lead to
immediate behavioral response
‒ Series of effects must occur
‒ Each steps needs to be fulfilled sequentially
5.5 The Consumer Response Models
5.5.3 Innovation Adoption Model
• Relates to NEW PRODUCTS / INNOVATION.
• Potential adopters must be moved through a
series of steps before taking some action.
‒ Awareness
‒ Interest
‒ Evaluation
‒ Trial
‒ Adoption
5.5 The Consumer Response Models
5.5.3 Innovation Adoption Model
• Marketing challenge is to make people
EVALUATE the product.
• Marketing meets such challenge;
‒ Encourage trials by demonstration
‒ Sampling
‒ Actually use with minimal commitment
5.5 The Consumer Response Models
5.5.4 The Information Processing Model
• Response hierarchy stages are almost similar
to ‘Hierarchy of Effects Model’.
‒ Attention
= Awareness
‒ Comprehension
= Knowledge
‒ Yielding
= Liking
‒ Retention
‒ Behavior
= Preference, Conviction,
Purchase
5.5 The Consumer Response Models
5.5.4 The Information Processing Model
• Response hierarchy stages are almost similar
to ‘Hierarchy of Effects Model’.
‒ Retention = Receiver’s ability to retain
information that he accepts as valid.
‒ Thus it is important that most promotional
campaign should be designed to provide
information, which can be used later while
making a purchase decision
5.6 Evaluating Traditional Response
Hierarchy Model
• 4 models presented gives understanding
about consumer response – Process as
consisting of movement through a sequence
of three basic stages from consumer side.
‒ The Cognitive (Thinking) Stage
‒ The Affective (Feeling) Stage
‒ The Conative (Behavior) Stage
5.6 Evaluating Traditional Response
Hierarchy Model
• The Cognitive (Thinking) Stage
‒ In this stage consumer’s mind builds a picture
about the brand based on what he knows or
perceives
‒ Thus marketers should develop positive
awareness, information, knowledge by
bringing in front a) attributes b)
characteristics c) benefits
5.6 Evaluating Traditional Response
Hierarchy Model
• The Affective (Feeling) Stage
‒ In this stage, stimulus in the mind of receiver
develops feelings for the particular brand.
‒ Thus marketers should develop in receiver
feelings like desire, preference or conviction.
5.6 Evaluating Traditional Response
Hierarchy Model
• The Conative (Behavior) Stage
‒ In this stage consumers looks for the
opportunity to convert his conviction in to
action.
‒ Thus marketers should facilitate – trial,
purchase, adoption or rejection.
5.6 Evaluating Traditional Response
Hierarchy Model
• All four models assume a similar ordering of
these three stages.
‒ Cognitive development precedes affective
reaction, which precedes behavior
‒ In short, consumers become aware of and
knowledgeable about a brand, develop
feelings towards it, form a desire or
preference and then make a purchase
5.7 Integrated Marketing
Communications (IMC)
• Earlier, the promotional tools were seen as
separate functions that were handled by
separate departments.
• This led to un-coordinated / inconsistent
communication
5.7 Integrated Marketing Communications (IMC)
Un-coordinated / inconsistent communication
5.7 Integrated Marketing Communications (IMC)
• When you achieve co-ordinated
communication concept, you have practiced
INTEGRATED MARKETING
COMMUNICATIONS (IMC).
• Harmony between different media channels /
promotional mix is essential to deliver one
message IMPACTFULLY.
• Overall all the messages from the
organization tell the same story.
5.7 Integrated Marketing Communications (IMC)
Creating a process that makes it easier to
use and design IMC programs is a key
5.7 Integrated Marketing Communications (IMC)
5.7 Integrated Marketing Communications (IMC)
5.7 Integrated Marketing Communications (IMC)
• Under IMC;
‒ Advertising can be used for building
awareness
‒ Sales Promotions to generate inquiries
‒ Direct mail for providing info / knowledge
sharing
‒ Personal selling to complete the transaction
• IMC brings synergy to create competitive
advantage, boost inquiries and sale.
5.7 Integrated Marketing Communications (IMC)
• Under IMC;
‒ Unified message has more impact and is able
to cut through the noise of thousands of
message across several communication tools.
‒ However, IMC limits creativity, need different
promotional mix to do specific task thus needs
more budget, cross functional thus speed of
response is slower, ownership and
responsibility trap.
THANK YOU