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M2 Communication Final.ppt
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Leadership & Management
CONSUMER BEHAVIOR
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M2 Communication Final.ppt
- Communication and Consumer Behavior Manasa N 1
- Overview 1. Basic communication model 2. The source (Sender) 3. The receiver (target audience) 4. Media (channels for transmitting messages) 5. Designing persuasive communications 6. Advertising appeals 7. Feedback (determining effectiveness of communications) 2 Manasa N
- Which Type of Communication Is Featured in This Ad, and What Strategic Concept Does It Get Across? 3 Nonverbal What does this sign mean: In Egypt: Be patient In Italy: What exactly do you want? (a question) In Greece: That’s just perfect. Advertising messages should be consistent with the culture. Manasa N
- 1- Basic Communication Model 4 The source sends a message through a channel to a receiver, most likely the consumer. The model also shows that there is feedback from the receiver which tells the sender whether the message was received. Manasa N
- 2- The Source (Sender ) •Marketer or organization Formal Source •A parent, friend or other consumer Informal Source 5 5 Informal sources have become of interest to marketers as consumers look for product ratings from other consumers when taking in marketing information. Manasa N
- • Informal communications are a two-way process • Informal Sources such as friends, neighbors and relatives have a lot of influence on consumers because they appear to have nothing to gain from their recommendations. – Opinion leaders tend to be specialized in the areas in which they offer information and advice. – Word-of-Mouth – e- WOM (electronic word-of-mouth) – Social networks (such as Facebook and Twitter where people share information on products and consumption experiences and advices) – Brand communities (online forums that focus on a particular product or a brand) – Message boards (chat rooms) – Blogs 6 The source Informal communication sources (Opinion leaders and Word of Mouth) 6 Manasa N
- • Buzz Agents: Consumers who agreed to promote the products of an organization. They are often encouraged by receiving free samples. • Viral Marketing: e.g. forwarding email messages to others. Problem: Consumers get so many messages, it is often hard for them to decide which ones are worth forwarding to their friends. • Tackling negative rumors: Negative comments, or more dangerously, false rumors are very difficult for marketers to squelch online. Some experts think it is best to ignore the rumors, while other companies tackle them head on with statements and videos from company executives. 7 The Source (Word of Mouth – Strategic Applications) 7 Manasa N
- • Institutional advertising: To build their companies’ credibility and image, marketers will use institutional advertising (to promote the company not its products). • Publicity: In addition, they will focus on publicity and how they may be perceived by their many markets (publicity is more credible than advertising) • Endorsers: use a celebrity endorser (to help their message be more credible). The figure shows how much consumers give credibility to some actors and musicians. 8 The Source (Credibility of Formal Sources) 8 Manasa N
- Why Are Consumers Likely to Perceive This Ad as Credible? 9 A glamorous Celebrity Endorser is More Likely to be Perceived as a Credible Source, Especially for a Hedonistic Product (e.g. very expensive watch). Manasa N
- Types of Celebrity Appeals 10 Types Definition Testimonial Based on real personal usage, a celebrity attests to the quality of the product or service, especially if it is related to his/her career (e.g. and athlete recommends a specific brand of sport shoes). Endorsement Celebrity appears to advocate (support) and encourage consumers to buy a product or service with which may not be an expert. Actor Celebrity acts in a situation the product or service is presented. Spokesperson Celebrity represents the brand or company over an extended (long) period of time. 10 Manasa N
- The source (Credibility of Formal Sources Endorser Effectiveness) Effectiveness is related to the message and its ease of comprehension (understanding) Synergy between the endorser and the product types is important (e.g. cosmetics is endorsed by an attractive celebrity) Endorser’s demographic characteristics (e.g. age and social class) should be similar to the target audience Endorser credibility is not a substitute for corporate credibility Endorser’s words must be realistic 11 11 Manasa N
- Vendor Credibility • The reputation of the retailers Medium Credibility • The credibility of the magazine, website, or radio station Effects of time on source credibility • The sleeper effect phenomenon when the consumer does not remember the source credibility because of time Credibility of Formal Sources Other Credibility Sources 12 Manasa N
- 3- The Receivers (Target Audience) • The receiver must comprehend and decode the message. This differs based on: • Personal characteristics (e.g. personality, demographics, social class, lifestyle) and motives. • Involvement (how much attention it paid to the message and how carefully it is decoded) • Mood (e.g. cheerfulness or unhappiness) • Barriers to communication – Selective exposure to messages: Because of the clutter, we are very selective in what we allow ourselves to be exposed to – Psychological noise: happens in the form of consumer’s competing of the advertising messages during a commercial break , hindering consumer’s mind ability to interpret messages correctly. 13 Manasa N
- Overcoming Psychological Noise Repeating exposure to advertising messages Contrast to break through clutter Customized promotion messages Effective positioning Unique Offering and benefits 14 14 Manasa N
- • Mass Media: transmit the same message to all members of the audience (e.g. newspaper, T.V., radio, and outdoor media) • Nontraditional (New) Media (digital technologies such as cell phones and computers) which are often more focused, individualized, and targeted to the audience. • Characteristics of new media: 15 Addressable • Customized and addressed to particular receivers Interactive • Receivers can interact with the sender Response measurable • Receiver's response can be measured 15 4- Media (Channels for transmitting messages) Manasa N
- Nontraditional Media • Out-of-home and On-the-go – Advertising screens in buildings and transit vehicles (e.g. taxis, trains and busses) – Digital billboards on roads – Ambient (surrounding) advertising (experiential advertising). Example: Kraft’s warm bus in winter to make consumers feel warm when eating their food. • Online and Mobile: Narrowcast messages (versus broadcast) • Interactive TV (iTV): Combines TV programming and the interactivity of the Web. (http://www.youtube.com/watch?v=5WXL5EiYKBA) 16 16 Manasa N
- 5- Designing Persuasive Communications • Advertising Resonance • Message framing • One-Sided versus Two- Sided Messages • Order Effects • Wordplay • Used to create a double meaning • when used with a relevant picture, it is more likely that the ad will be noticed and remembered. Message Structure and Presentation 17 Manasa N
- Which Advertising Technique Is Used in the Ad, and How So? 18 18 Resonance Manasa N
- Designing Persuasive Communications • Resonance • Message framing • One-Sided versus Two- Sided Messages • Order Effects • Positive framing: advertisers will often stress the benefits to be gained by using a product • Negative framing: the consumer is shown what they will lose by NOT using the product Message Structure and Presentation 19 Manasa N
- Designing Persuasive Communications • Resonance • Message framing • One-Sided versus Two-Sided Messages • Order Effects • marketers only present one side of the product, its all benefits, as well as neglecting the competing products benefits • In a two-sided message, a marketer might mention the competitor or the risks a consumer might take with his product (more credible). • Choosing of them Depends on nature of the audience (e.g. education level) and nature of competition (e.g. advertising campaign). Message Structure and Presentation 20 Manasa N
- Designing Persuasive Communications • Resonance • Message framing • One-Sided versus Two- Sided Messages • Order Effects • Primacy effect (the first ad in a commercial break) • Recency effect (the last ad in a commercial break) • Research has shown that for television, the ads shown first are recalled the best. Magazine advertisers know the covers are the best since they are often the only parts of the magazine seen many times by the readers. • Order of benefits: If consumers’ interest is low, benefits should come first to attract attention. • Brand name: it should come first to enhance brand recall and message persuasiveness Message Structure and Presentation 21 Manasa N
- 6- Advertising Appeals • Comparative advertising • Fear • Humor • Abrasive (unpleasant or annoying): ad for pharmaceutical companies. • Sex • Audience participation • Timely (tied into political issues or seasonal activities) • Celebrities 22 22 Manasa N
- Which Two Advertising Appeals Are Shown in This Ad? 23 Manasa N Humor and Fear Appeal
- 7- Feedback (Determining Effectiveness) • How many consumers received the message? Exposure effects • Was the message received and interpreted correctly? Persuasion effects • Did the ads increase sales? Sales effects 24 Manasa N
Editor's Notes
- Here is an outline for the topics in Chapter Nine.
- It is important to understand that the sender of the message can be a formal or an informal source. Informal sources have become of interest to marketers as consumers look online to find ratings from other consumers when taking in marketing information.
- Informal sources have a lot of influence on consumers because they appear to have nothing to gain from their recommendations. Opinion leaders tend to be category specific and specialize in the areas in which they offer information and advice. Word of Mouth is actually a two-way process that commonly takes place online through social networks, brand communities, and message boards and blogs. Blogs are so popular, in fact, that there are several search engines for blogs.
- Marketers realize the power of word-of-mouth (WOM) but also the difficulty in creating opinion leaders and being overly involved on WOM creation. Their strategy so far has focused on the strategies on this slide. P&G has been most active in the use of buzz agents (consumers agreed to promote the products), as you can see on this web link to tremor.com. Viral marketing has some challenges due to the mass amount of clutter in email. Consumers get so many messages, it is often hard for them to decide which ones are worth forwarding to their friends. WOM has created many marketing nightmares for students. Negative comments, or more dangerously, false rumors are very difficult for marketers to squelch online. Some experts think it is best to ignore the rumors, while other companies tackle them head on with statements and videos from company executives.
- Here are some common ways in which celebrities are used in advertising appeals. You can probably remember seeing at least one ad for each one of these. Maybe this shows that the use of celebrities helps retention.
- Studies on the effectiveness of spokespeople and endorsers have found the following issues to be very important in credibility. The next time you see an advertisement with a celebrity endorser, try to remember this list and see how many of these points the marketer has followed.
- In addition to a celebrity or spokesperson, there are other credibility issues that affect the consumer. Sometimes a product or brand is more credible if the retailer or vendor is well known and trusted for buying quality goods. In addition, we know there are certain magazines or other media where we can not believe a thing we read or hear – how much credibility can your ad have when placed in one of these media? Finally, the credibility from a celebrity, source, or vendor is often forgotten over time; this is known as the sleeper effect.
- The receiver must comprehend and decode the message. This differs based on the issues stated on this slide. Let’s look at them individually to understand why they are important. Each consumer is very different as described in earlier chapters. Their personal characteristics, including personality, demographics, social groups, and lifestyle will impact how the message is received. In addition, consumers have different levels of motivation and involvement for different product groups and brands. This involvement and congruency are related in determining the types of ads consumers would prefer. A given consumer can differ in their mood when viewing an ad, and positive moods are likely to increase a consumer’s reaction to the ad. Finally, there are barriers to communication that may make the message difficult to decode. The first is that as consumers, we are bombarded with advertising messages. Because of this clutter, we are very selective in what we allow ourselves to be exposed to. We have pop-up blockers on our computers and caller ID on our phones. Psychological noise happens in the form of consumer competing of the ad message or distracting thoughts.
- There are many tactics marketers can use to overcome the psychological noise experienced by consumers. Breaking through is often done by contrast, repeated exposure, customized messages, effective positioning, and unique offers and benefits.
- Mass media that transmit the same message to all members of the audience (e.g. newspaper, T.V., radio, and outdoor media) has been highly used by marketers over time but is quickly being replaced by new media The new media can be more customized, allows the consumer to interact, and is measureable for the marketer.
- There are three big areas of nontraditional media presented on this slide. The first, out-of-home, includes all the posters, billboards, and ads you see as you are walking, driving, and taking public transportation. There are even ads placed in subway tunnels which give the illusion of a moving picture. The web link on this page goes to sub-media, one of the leading firms in this business. We are all aware of the growth in Internet and mobile spending by marketers and the interest in getting messages that are relevant and useful to our cell phones or smartphone. Finally, interactive TV is the goal of many advertisers where you can interact directly with a television show and send and receive information on related products and services. In which viewers can customize the advertising they with to receive as to get additional information.
- A message can be verbal or nonverbal. Basically, it is the thought, idea, attitude, image, or other information that the sender wants to convey. So how can they do it successfully, to make it persuasive? The first thing could be advertising resonance or wordplay. Examples of this are seen on the following slide.
- In some instances, marketers only present one side of the product, its all benefits, neglecting the competing products benefits. In a two-sided message, a marketer might mention the competitor or the risks a consumer might take with the product. Choosing one sided over two can be a difficult decision for marketers and depends on whether the audience is friendly, their educational level, and the competitor’s current advertising campaign.
- Advertisers are always trying to figure out if they are better off as the first ad in a commercial break, or nearer the front of a magazine. Research has shown that for television, the ads shown first are recalled the best. Magazine advertisers know the covers are the best since they are often the only parts of the magazine seen many times by the readers. But what about during an ad? When should the benefits be listed, at the beginning or the end? This depends on how interested the audience is with the ad. If interest is low, benefits should come first. The same with brand name – it should come first to enhance brand recall and message persuasiveness if interest and involvement are low.
- These are the major types of advertising appeals. Let’s look at them one by one. Comparative advertising is very commonly used. Some say it helps the viewer remember the competitor’s brand and that might reduce its effectiveness. Fear is effective but only if the threat is strong enough to actually make the consumer response. Humor is the most popular appeal because it is believed that it increases acceptance and persuasiveness. In fact, studies show that humor attracts attention, increases liking of the product, does not make an ad hard to understand, and is better for low-involvement products. Believe it or not, abrasive or unpleasant ads are sometimes effective if they are well targeted. Sex in advertising seems to be on the rise. They do get attention but studies show that they rarely encourage actual consumption. In fact, these appeals often detract consumers from the message and comprehension is reduced. Audience participation will almost always help the receiver internalize the information. Appeals can also be very timely with ties into political issues or seasonal activities. Celebrities are also used as was discussed earlier in the chapter.
- When determining feedback, the marketer most wants to know who received the message, did they understand it, and was it effective in increasing sales of their product or service?
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