Chapter Two: Analysis of Marketing Communication Process

2.1. Basic model of communication

FEEDBACK

1. SENDER 3. RECEIVER
2.
Thought Encoding CHANNEL Receiving Decoding
message (Medium) message
(Informer persuading)
To transmit Understanding (on action)
the message

NOISE

Over the years a basic model of communications has evolved that represents the various
elements of the communications process. The elements of the model include:
A. Source/Encoding—the sender or source of a communication is the person or organization
who has information to share with another person or group. It should be noted that the
source can be an individual (e.g., salesperson or hired spokesperson) or a non-personal
entity such as the corporation or organization itself. The receivers’ perception of the
source influences the manner in which the communication is received, interpreted and
responded to.
Encoding is the process of putting together thoughts, ideas and information into a
symbolic form to communicate a message. The sender’s goal is to encode the message in
such a manner so as to ensure that it will be understood by the receiver.

B. Message—The encoding process leads to the development of a message that contains the
information or meaning the source or sender hopes to convey. Messages can take a
variety of forms and may include symbolic forms or signs. To better understand the
symbolic meaning that might be conveyed in a communication, many advertisers have
begun focusing attention on semiotics, which involves the study of the nature of
 meaning. From a semiotic perspective, every marketing message has three basic
components: an object, a sign or symbol and an interpretant. The object is the product
that is the focus of the message (e.g. Marlboro cigarettes). The sign is the sensory
imagery that represents the intended meaning of the object (e.g., the Marlboro cowboy).
The interpretant is the meaning derived (e.g., rugged, individualistic, American).
The message must be put into a transmittable form that is appropriate for the channel of
communication being used. Advertising messages range from simply written words or
copy that will be read or heard as a radio message to the expensive production of
elaborate television commercials with a great deal of visual impact and imagery.

C. Channel—The channel is the method or medium by which the communication travels

from source or sender to receiver. At the broadest level, channels of communication exist
as two types:
Personal Channels which involve direct interpersonal contact with target individuals or
groups. For example a salesperson serves as a personal channel of communication
when delivering a sales presentation.
Non-personal channels are those which carry a message without involving interpersonal
contact between sender and receiver. These channels are often referred to as the mass
media as messages transmitted through them are sent to many individuals at one
time. The two major categories of nonpersonal channels are print and broadcast
media.
D. Receiver/Decoding—The receiver is the person(s) with whom the sender shares thoughts
or information. Receivers are generally viewed as the consumers in the target audience
targeted by the firm’s marketing and promotional program. Decoding is the process of
transforming and interpreting the sender’s message back into thought and is heavily
influenced by the receiver’s frame of reference or field of experience. Effective
communication is more likely when common ground or shared meaning or
understanding exists or has been established between the sender and receiver.

E. Noise—throughout the communication process, the message is subject to extraneous

factors that can distort or interfere with its reception. This unplanned distortion or
 interference is known as noise. Errors or problems that occur in the encoding of the
message, distortion in a radio or television signal, or distractions at the point of reception
are examples of noise. When you are watching your favorite commercial on TV and a
problem occurs in the signal transmission, it will obviously interfere with your reception,
lessening the impact of the commercial.

Noise may also occur because the fields of experience of the sender and receiver don’t overlap.
Lack of common ground may result in improper encoding of the message— using a sign,
symbol, or words that are unfamiliar or have different meaning to the receiver. The more
common ground there is between the sender and the receiver, the less likely it is this type of
noise will occur.

F. Response/Feedback—

The receiver’s set of reactions after seeing, hearing, or reading the message is known as a
response. Receivers’ responses can range from nonobservable actions such as storing
information in memory to immediate action such as dialing a toll-free number to order a product
advertised on television. Marketers are very interested in feedback, that part of the receiver’s
response that is communicated back to the sender. Feedback, which may take a variety of forms,
closes the loop in the communications flow and lets the sender monitor how the intended
message is being decoded and received.

For example, in a personal-selling situation, customers may pose questions, comments, or

objections or indicate their reactions through nonverbal responses such as gestures and frowns.9
The salesperson has the advantage of receiving instant feedback through the customer’s
reactions. But this is generally not the case when mass media are used. Because advertisers are
not in direct contact with the customers, they must use other means to determine how their
messages have been received. While the ultimate form of feedback occurs through sales, it is
often hard to show a direct relationship between advertising and purchase behavior. So marketers
use other methods to obtain feedback, among them customer inquiries, store visits, coupon
redemptions, and reply cards. Research-based feedback analyzes readership and recall of ads,
message comprehension, attitude change, and other forms of response. With this information, the
advertiser can determine reasons for success or failure in the communication
process and make adjustments.

2.2. Analyzing receivers

To communicate effectively with their customers, marketers must understand who the target
audience is, what (if anything) it knows or feels about the company’s product or service, and
how to communicate with the audience to influence its decision-making process. Marketers must
also know how the market is likely to respond to various sources of communication or different
types of messages. Before they make decisions regarding source, message, and channel
variables, promotional planners must understand the potential effects associated with each of
these factors. This section focuses on the receiver of the marketing communication. It examines
how the audience is identified and the process it may go through in responding to a promotional
message.

Identifying the Target Audience

The marketing communication process really begins with identifying the audience that will be
the focus of the firm’s advertising and promotional efforts. The target audience may consist of
individuals, groups, niche markets, market segments, or a general public or mass audience.
Marketers approach each of these audiences differently.

The target market may consist of individuals who have specific needs and for whom the
communication must be specifically tailored. This often requires person-to person
communication and is generally accomplished through personal selling. Other forms of
communication, such as advertising, may be used to attract the audience’s attention to the firm,
but the detailed message is carried by a salesperson who can respond to the specific needs of the
individual customer. Life insurance, financial services, and real estate are examples of products
and services promoted this way.

A second level of audience aggregation is represented by the group. Marketers often must
communicate with a group of people who make or influence the purchase decision. For example,
organizational purchasing often involves buying centers or committees that vary in size and
composition. Companies marketing their products and services to other businesses or
organizations must understand who is on the purchase committee, what aspect of the decision
each individual influences, and the criteria each member uses to evaluate a product.

Advertising may be directed at each member of the buying center, and multilevel personal
selling may be necessary to reach those individuals who influence or actually make decisions.
Marketers look for customers who have similar needs and wants and thus represent some type of
market segment that can be reached with the same basic communication strategy. Very small,
well-defined groups of customers are often referred to as market niches. They can usually be
reached through personal-selling efforts or highly targeted media such as direct mail. The next
level of audience aggregation is market segments, broader classes of buyers who have similar
needs and can be reached with similar messages.

Effective communication is more likely when there is some common ground between the two
parties. (This is represented by the overlapping of the two circles.) The more knowledge the
sender has about the receivers, the better the sender can understand their needs, empathize with
them, and communicate effectively.
While this notion of common ground between sender and receiver may sound basic, it often
causes great difficulty in the advertising communications process. Marketing and advertising
people often have very different fields of experience from the consumers who constitute the mass
markets with whom they must communicate.

To communicate effectively, marketers must have an understanding of who their target audience
is and how they need to be communicated with to influence their decision-making process. The
relevant audience must be identified as well as the process consumers go through in responding
to a promotional message. Understanding the target audience and their response process serves
as an important foundation for evaluating decisions regarding the controllable communication
variables (source, message, channel).

2.3. The response process

An important aspect of developing effective communication involves having an understanding of
the response process the receiver may go through and how the promotional efforts of the market
might influence this process. 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:Traditional response

hierarchy modes alternative response

hierarchy models

This section begins by covering four traditional response hierarchy models and then discussing
alternative models of the response process.

2.3.1. Traditional response hierarchy models

A. Traditional Response Hierarchy Models— shows four of the best-known response

hierarchy models. These models are discussed giving attention to their origin and
implications and include:
 The AIDA Model
(attentionàinterestàdesireàaction)
Stages AIDA model Learn

Attention
Cognitive

Stage

Interest
Affective
Desire
Stage

Behavioral

Stage
Action

Feel

do

 The Hierarchy-of-Effects Model

(awarenessàknowledgeàlikingàpreferenceàconvictionàpurchase
 Learn
Stages Hierarchy of effects model

Cognitive Awareness
Stage Knowledge
Liking
Affective Stage Preference Feel
Conviction

Behavioral
Stage
Purchase
do

 The Innovation-Adoption Model

(awarenessàinterestàevaluationàtrialàadoption)

Learn
Stages Innovation adaption model

Awareness
Cognitive
Stage

Interest
Affective
Evaluation
Stage
Feel

Behavioral
Stage Trial
Adoption
do

 The Information-Processing Model

(presentationàattentionàcomprehensionàyieldingàretentionàbehavior)
 Learn
Stages Information processing model

Presentation
Cognitive
Attention
Stage
Comprehension

Affective Yielding
Stage Retention
Feel
Behavioral
Stage
Behavior

do

1. Implications of the traditional hierarchy models—The hierarchy models are useful to

promotional planners from several perspectives. They delineate the series of steps or
stages potential purchasers often must be taken through to move them from a state of
no or little awareness to the point where they are ready to purchase. The hierarchy
models can also be useful as “intermediate” measures of communication
effectiveness. Knowing where potential buyers are with respect to the various stages
of the hierarchy helps the marketers know the specific communication task that must
be performed.
 2. Evaluating traditional response hierarchy models—All four of these models view the
response process as consisting of movement through a sequence of stages and assume
a similar ordering whereby cognitive development precedes affective reaction which
in turn precedes behavior. While this is a logical progression that may be accurate in
many situations, the response sequence may not always operate this way. Thus,
attention needs to be given to alternative orderings of the response hierarchy.

2.3.2. Alternative response hierarchies

Alternative Response Hierarchy Models—Research and theorizing over the past two decades has
led to a questioning of the cognitive à affective à conative sequence of the response process
and has resulted in the development of alternative orderings of these stages. Michael Ray’s
“three-orders” model of information processing, identifies three alternative orderings of these
stages based on perceived product differentiation and product involvement. These include the:

1. Standard learning hierarchy—In many purchase situations consumers go through the

response process in the manner depicted by the traditional communications models or
a “learn à feel à do” sequence or hierarchy. Under this hierarchy the receiver is
viewed as an active participant in the communications process who actively seeks or
gathers information through “active learning.” i.e
 Consumer involvement in purchase - HIGH
 Perceived product differentiation - HIGH

2. Dissonance/attribution hierarchy—In some situations consumers may behave first

then develop attitudes or feelings as a result of that behavior and learn or process
information that supports their attitudes and behavior. The dissonance or attributional
hierarchy consists of a “do à feel à learn” sequence. This hierarchy may occur
when consumers are trying to reduce post-purchase dissonance or anxiety that results
from doubt or concern over a purchase. This dissonance reduction process involves
 “selective learning” whereby the receiver seeks information that supports the choice
made and avoids information that does not bolster the wisdom of the decision.
 Consumer involvement in purchase - HIGH
 Perceived product differentiation - low
3. Low-involvement hierarchy—The low involvement hierarchy is thought to
characterize situations of low consumer involvement in the purchase process. The
response hierarchy under low involvement consists of a “learn à do à feel”
sequence and the receiver is viewed as engaging in “passive learning” and “random
information catching” rather than active information seeking.
 Consumer involvement in purchase - low
 Perceived product differentiation - low