Thursday 15 November 2012

Chapter 5 Summary


The Communication Process
The function of all elements of the promotional mix is to communicate, so promotional planners must understand the communication process. This process can be very complex; successful marketing communications depend on a number of factors, including the nature of the message, the audience’s interpretation of it, and the environment in which it is received. For effective communication to occur, the sender must encode a message in such a way that it will be decoded by the receiver in the intended manner. Feedback from the receiver helps the sender determine whether proper decoding has occurred or whether noise has interfered with the communication process.

Basic Model of Communication Process


          Source/Sender – the person or organization that has information to share
          Receiver – person(s) with whom the sender is sharing thoughts
          Message – the information the source hopes to convey
          Channel – method by which the communication travels from source to receiver  
          Encoding – putting thoughts, ideas, or information into symbolic form
          Decoding – transforming the senders message back into thought
          Response – receiver’s reactions after seeing, hearing, or reading the message
          Feedback – part of the receiver’s response that is communicated back to the sender  
          Noise – unplanned distortion or interference

Successful communication is accomplished when the marketer selects an appropriate source, develops an effective message or appeal that is encoded properly, and then selects the channels or media that will best reach the target audience so that the message can be effectively decoded and delivered.
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.

Identifying Target Audience
The marketing communications process 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 mass audience:

      Individuals – those with specific needs for whom a message must be specifically tailored
      Small groups – multiple people in the audience who are involved in the purchase decision such as families or people who members of a buying center
   Niche markets – smaller,  well-defined markets consisting of customers who have similar needs
    Market segments – broader classes of people who have similar needs and can be reached with similar messages
       Mass markets – markets consisting of large numbers of potential customers


The Response Process
The most important aspect of developing effective communication programs involves understanding the response process the receiver may go through in moving toward a specific behavior (like purchasing a product) and how the promotional efforts of the marketer influence consumer responses. In many instances, the marketer’s only objective may be to create awareness of the company or brand name, which may trigger interest in the product. In other situations, the marketer may want to convey detailed information to change consumers’ knowledge of and attitudes toward the brand and ultimately change their behavior.
The four models of the response process are:
          AIDA model – developed to depict the stages in the personal selling process
          Hierarchy of effects model – shows the process by which advertising works
          Innovation adoption model – shows the stages a consumers passes through in the process of adopting a new product
          Information processing model – a model of the process through which a consumer must pass to be influenced by advertising

Alternative Response Hierarchies
Michael Ray has developed a model of information processing that identifies three alternative orderings of the three stages based on perceived product differentiation and product involvement.  The three alternative hierarchies include:
    The Standard Learning Hierarchy = learnà feelà do sequence.  The consumer is viewed as an active participant and this sequence is likely when there is much differentiation among brands and the consumer is highly involved in the purchase process.
  The Dissonance/Attribution Hierarchy = doà feelà learn sequence.   Occurs when consumers must choose between two alternatives that are similar in quality but are complex and may have unknown attributes.  Focus of mass media should be on reducing dissonance after purchase.
   Low involvement Hierarchy = learnààdo àfeel sequence.  Occurs when involvement in the purchase decision is low, there are minimal differences among brand alternatives, and mass-media advertising is important.


The cognitive response approach
The cognitive response approach has been widely used in research by both academicians and advertising practitioners. Its focus has been to determine the types of responses evoked by an advertising message and how these responses relate to attitudes toward the ad, brand attitudes, and purchase intentions. The three basic categories of cognitive responses which the researchers have identified are:
          Product/message thoughts
          Source-oriented thoughts
          Ad execution thoughts



The cognitive response approach examines the thoughts evoked by a message and how they shape the receiver’s ultimate acceptance or rejection of the communication. The elaboration likelihood model of attitude formation and change recognizes two forms of message processing, the central and peripheral routes to persuasion, which are a function of the receiver’s motivation and ability to process a message. There are three critical intermediate effects between advertising and purchase including cognition, affect, and experience. Those responsible for planning the IMC program should learn as much as possible about their target audience and how it may respond to advertising and other forms of marketing communications. 

Chapter 4 Summary


Chapter 4 Summary
Perspectives on Consumer Behaviour
This chapter deals with the field of consumer behaviour and examined its relevance to promotional strategy. Consumer behaviour is best viewed as the process and activities that people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs and desires.
A five-stage model of the consumer decision-making process consists of problem recognition, information search, alternative evaluation, purchase, and post purchase evaluation. Internal psychological processes that influence the consumer decision-making process include motivation, perception, attitude formation and change, and integration processes.

This was followed by in-depth discussion of each stage.
Problem Recognition & Motivation
Various sources of problem recognition, both internal and external, were discussed. The sources are:
·         Out of stock
·         Dissatisfaction
·         New Needs/Wants
·         Related Products/Purchases
·         Marketer-Induced Problem Recognition
·         New Products
Information Search & Perception
The second stage in the consumer decision-making process is information search. Once consumers perceive a problem or need that can be satisfied by the purchase of a product or service, they begin to search for information needed to make a purchase decision.
The initial search effort often consists of an attempt to scan information stored in memory to recall past experiences and/or knowledge regarding various purchase alternatives. This information retrieval is referred to as internal search. For many routine, repetitive purchases, previously acquired information that is stored in memory (such as past performance or outcomes from using a brand) is sufficient for comparing alternatives and making a choice.
If the internal search does not yield enough information, the consumer will seek additional information by engaging in external search. External sources of information include:
o   Personal sources, such as friends, relatives, or co-workers.
o   Marketer-controlled (commercial) sources, such as information from advertising,
o   Salespeople, or point-of-purchase displays and the Internet.
o   Public sources, including articles in magazines or newspapers and reports on TV.
o   Personal experience, such as actually handling, examining, or testing the product.

Alternative Evaluation & Attitude Formation
After acquiring information during the information search stage of the decision process, the consumer moves to alternative evaluation. In this stage, the consumer compares the various brands or products and services one has identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process.
The various brands identified as purchase options to be considered during the alternative evaluation process are referred to as the consumer’s evoked set.
Purchase Decision & Integration
At some point in the buying process, the consumer must stop searching for and evaluating information about alternative brands in the evoked set and makes a purchase decision. As an outcome of the alternative evaluation stage, the consumer may develop a purchase intention or predisposition to buy a certain brand. Purchase intentions are generally based on a matching of purchase motives with attributes or characteristics of brands under consideration. Their formation involves many of the personal sub-processes discussed in this chapter, including motivation, perception, attitude formation and integration.
A purchase decision is not the same as an actual purchase. Once a consumer chooses which brand to buy, he or she must still implement the decision and make the actual purchase. Additional decisions may be needed, such as when to buy, where to buy, and how much money to spend. Often, there is a time delay between the formation of a purchase intention or decision and the actual purchase, particularly for highly involved and complex purchases such as automobiles, personal computers, and consumer durables.


Post-purchase Evaluation & Learning
The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. Satisfaction occurs when the consumer’s expectations are either met or exceeded; dissatisfaction results when performance is below expectations. The post-purchase evaluation process is important because the feedback acquired from actual use of a product will influence the likelihood of future purchases.
Positive performance means the brand is retained in the evoked set and increases the likelihood it will be purchased again. Unfavorable outcomes may lead the consumer to form negative attitudes toward the brand, lessening the likelihood it will be purchased again or even eliminating it from the consumer’s evoked set.


The decision process model views consumer behaviour primarily from a cognitive orientation. The chapter considered other perspectives by examining various approaches to consumer learning and their implications for advertising and promotion. Behavioural learning theories such as classical conditioning and operant (instrumental) conditioning were dis-cussed. Problems with behavioural learning theories were noted, and the alternative perspective of cognitive learning was discussed.
The chapter also examined relevant external factors that influence consumer decision making.
Culture, subculture, social class, reference groups, and situational determinants were discussed, along with their implications for the development of promotional strategies and programs. The chapter concluded with an introduction to alternative perspectives on the study of consumer behaviour.