Models and Models and Concepts of Concepts of

CommunicationCommunicationObjectiveObjective: : Introducing different models and Introducing different models and

theories of communications. In the end of this theories of communications. In the end of this part, students will also understand the effects part, students will also understand the effects

of communications. of communications.

Marketing communicationsMarketing communications aim to (1) aim to (1) inform, (2) persuade, or (3) remind. inform, (2) persuade, or (3) remind.

Informative Informative communicationcommunication;; tells the market about a new producttells the market about a new product informs the market of a price changeinforms the market of a price change explains how the product worksexplains how the product works describes available servicesdescribes available services corrects false impressionscorrects false impressions reduces consumer’s fearsreduces consumer’s fears builds a company imagebuilds a company image

ObjectivesObjectives of of CommunicationCommunication

Persuasive Persuasive communicationcommunication; ; builds brand preferencebuilds brand preference encourages switching to the brand of the encourages switching to the brand of the

companycompany persuades customers to purchase now or persuades customers to purchase now or

make a sales callmake a sales call Reminder Reminder communicationcommunication;;

keeps the product in customer’s mind keeps the product in customer’s mind during off-seasonduring off-season

maintains the product’s top-of-mind maintains the product’s top-of-mind awarenessawareness

remind consumers where to buy the remind consumers where to buy the productproduct

Models and Concepts of Models and Concepts of Communications TheoriesCommunications Theories

Four basic perspectives to Four basic perspectives to communication theories;communication theories; MechanisticMechanistic; communication goes from ; communication goes from

sender to receiversender to receiver PsychologicalPsychological; considers the subjective ; considers the subjective

elements (e.g. emotions) in the elements (e.g. emotions) in the interpretation of the messagesinterpretation of the messages

SociologicalSociological; focuses on the social context in ; focuses on the social context in which communications are sent and receivedwhich communications are sent and received

Systems and networksSystems and networks; views ; views communication as complex system of communication as complex system of circulating messagescirculating messages

Communications ModelsCommunications Models

To communicate effectively, marketers must To communicate effectively, marketers must first understand how communication works.first understand how communication works. Early Mass Communications ModelsEarly Mass Communications Models

Schramm model of mass communicationSchramm model of mass communication The Shannon-Weaver model of communicationThe Shannon-Weaver model of communication The Osgood-Schramm model of communicationThe Osgood-Schramm model of communication

Marketing Communications Transmission ModelsMarketing Communications Transmission Models Multi-modal Communications ModelsMulti-modal Communications Models Relational and Network Models of Relational and Network Models of

CommunicationsCommunications

Early Mass Early Mass Communications ModelsCommunications Models

basic models of mass communication.basic models of mass communication. based on a linear process in which the based on a linear process in which the

communication is between a source and a communication is between a source and a receiver.receiver.

the source is responsible for the the source is responsible for the production of an “encoded” message production of an “encoded” message which is distributed to a receiver.which is distributed to a receiver.

in more advance models, the role of the in more advance models, the role of the receiver is recognized; “decoding”.receiver is recognized; “decoding”.

These models also recognise the “noise”.These models also recognise the “noise”.

Marketing Communications Marketing Communications Transmission ModelsTransmission Models

recognize the differences between persons recognize the differences between persons and in their interpretations.and in their interpretations.

the model of Fill (2005) specifically relates to the model of Fill (2005) specifically relates to marketing communications and marketing communications and organizational goals, therefore introduces organizational goals, therefore introduces “feedback”.“feedback”.

also stresses the importance of “noise”; the also stresses the importance of “noise”; the influence of which should be minimised.influence of which should be minimised.

noise can occur due to either cognitive or noise can occur due to either cognitive or physical factors.physical factors.

successful communication can occur when successful communication can occur when the source understands the receiver. the source understands the receiver.

Multi-modal Multi-modal Communication ModelsCommunication Models

recognizerecognize the social processes involved the social processes involved in the production and interpretation of in the production and interpretation of messagesmessages; the communication process is ; the communication process is under the influence of other people in under the influence of other people in society.society.

The message sent through mass media The message sent through mass media reaches some targeted audiences, but at reaches some targeted audiences, but at the same time reaches the “opinion the same time reaches the “opinion leaders” who then reach other leaders” who then reach other audiences; therefore these models audiences; therefore these models recognizes the important role of peer recognizes the important role of peer groups; networks of people. groups; networks of people.

Relational and Network Relational and Network Models of CommunicationsModels of Communications

recognize the importance of “context”; not only recognize the importance of “context”; not only social background but also social context.social background but also social context.

also recognize the importance of relationship also recognize the importance of relationship between the sender and the receiver; strong and between the sender and the receiver; strong and trusting relationships. trusting relationships.

CRM is used to establish deep and loyal CRM is used to establish deep and loyal relationships; more cost-effective relationships; more cost-effective communication.communication.

““connective” relationships help firms to serve connective” relationships help firms to serve their customers better; therefore communication their customers better; therefore communication does not only consists of advertisingdoes not only consists of advertising,, but also but also impersonal mass communications. impersonal mass communications.

individuals participate in the network and individuals participate in the network and exchange and spread communications depending exchange and spread communications depending on how “connected” and “integrated” they are in on how “connected” and “integrated” they are in the network. the network.

Elements of Elements of CommunicationCommunication

SenderSender: the party sending the message.: the party sending the message. EncodingEncoding: the process of putting the : the process of putting the

message (information) into symbolic form.message (information) into symbolic form. MessageMessage: the set of symbols in which the : the set of symbols in which the

sender transmit the information.sender transmit the information. MediaMedia: the communication channels : the communication channels

through which the message moves from through which the message moves from sender to receiver.sender to receiver.

DecodingDecoding: the process by which the : the process by which the receiver assigns meaning to the encoded receiver assigns meaning to the encoded symbols.symbols.

ReceiverReceiver: the party receiving the : the party receiving the message.message.

ResponseResponse: the reactions of the receiver : the reactions of the receiver after interpreting the message.after interpreting the message.

FeedbackFeedback: receiver’s response : receiver’s response communicated back to the sender.communicated back to the sender.

NoiseNoise: the unplanned distortion during : the unplanned distortion during the communication process that the communication process that influences how receiver gets a different influences how receiver gets a different message than the one sent by the message than the one sent by the sender.sender.

Steps in Developing Steps in Developing Effective CommunicationsEffective Communications

1.1. Identify the target Identify the target audienceaudience

2. Determine the 2. Determine the response soughtresponse sought

3. Choose a message3. Choose a message

4. Choose the media 4. Choose the media through which to through which to send the messagessend the messages

5. Collect5. Collect feedbackfeedback

Identifying the Target Identifying the Target AudienceAudience

The target audience would be the potential The target audience would be the potential buyers or the current users of the product.buyers or the current users of the product.

The target audience affects the The target audience affects the communicator’s decisions oncommunicator’s decisions on;; what will be saidwhat will be said how will it be saidhow will it be said when it will be saidwhen it will be said where it will be saidwhere it will be said who will say itwho will say it

Determining the Response Determining the Response SoughtSought

Of Of course, the final response is purchase. course, the final response is purchase. Purchase is the result of a long process of Purchase is the result of a long process of consumer decision making. The marketing consumer decision making. The marketing communicator need to know where the communicator need to know where the target audience now stands, therefore, to target audience now stands, therefore, to what stage it needs to be moved.what stage it needs to be moved.

If the target market is totally unaware of If the target market is totally unaware of the product, knows only its name or knows the product, knows only its name or knows ver little about it, the communicator must ver little about it, the communicator must first build first build awarenessawareness andand knowledgeknowledge..

If the target market knows the product, the If the target market knows the product, the marketer must develop marketer must develop likingliking (feeling (feeling favorable about the product), favorable about the product), preferencepreference (prefering the product over the other (prefering the product over the other products), and products), and convictionconviction (believing that the (believing that the product is the best for them) product is the best for them)

If the target market is convinced about the If the target market is convinced about the product, the marketer must push the product, the marketer must push the consumers to do the consumers to do the purchasepurchase..

If the target market has started to forget the If the target market has started to forget the product, the marketer must product, the marketer must remindremind them them again.again.

Choosing a MessageChoosing a Message

The communicator must develop an effective The communicator must develop an effective message in order to get the desired audience message in order to get the desired audience response. Ideally the message should; response. Ideally the message should; get Attentionget Attention hold Interesthold Interest arouse Desirearouse Desire obtain Action (known as the AIDA model)obtain Action (known as the AIDA model)

In putting the message together, the In putting the message together, the marketing communicator must decide (1) marketing communicator must decide (1) what to say (what to say (message contentmessage content) and (2) how to ) and (2) how to say it (say it (message structure and formatmessage structure and format).).

Message ContentMessage Content

The communicator must create an appeal or The communicator must create an appeal or theme that would produce the desired theme that would produce the desired response. There are three types of appeals;response. There are three types of appeals; rational appealsrational appeals; relate to the audience’s self-; relate to the audience’s self-

interest. They show that the product will produce interest. They show that the product will produce the desired benefits. Messages include product’s the desired benefits. Messages include product’s quality, economy, value, or performance. E.g. quality, economy, value, or performance. E.g. Mercedes “engineered like no other car in the Mercedes “engineered like no other car in the world”. world”.

emotional appealsemotional appeals; attempt to st; attempt to stir up either negative ir up either negative (such as fear, guilt, shame) or positive (such as love, (such as fear, guilt, shame) or positive (such as love, humor, pride, joy) emotions that can motivate humor, pride, joy) emotions that can motivate purchase. purchase.

E.g. Crest in its toothpaste ads “there are E.g. Crest in its toothpaste ads “there are some things you just can’t afford to gamble some things you just can’t afford to gamble with”. with”.

moral appealsmoral appeals; are directed to the ; are directed to the audience’s sense of what is right and audience’s sense of what is right and proper.Messages include social issues such proper.Messages include social issues such as cleaner environment, equal rights for as cleaner environment, equal rights for women, aid to the needy...women, aid to the needy...

Message StructureMessage Structure

Regarding messages, the Regarding messages, the communicator must also decide;communicator must also decide; whether to draw a conclusion or leave it whether to draw a conclusion or leave it

to the audience.to the audience. whether to present a one-or-two sided whether to present a one-or-two sided

argument.argument. whether to present the strongest whether to present the strongest

arguements first or last.arguements first or last.

Message FormatMessage Format

The marketing communicator also needs The marketing communicator also needs a strong format for the message.a strong format for the message.

In a print ad, advertisers can use novelty, In a print ad, advertisers can use novelty, contrast, eye-catching pictures and contrast, eye-catching pictures and headlines, distinctive formats, message headlines, distinctive formats, message size and position, colour, shape and size and position, colour, shape and movement.movement.

In a radio ad, words, sounds, and voices.In a radio ad, words, sounds, and voices. On TV or in person, facial expressions, On TV or in person, facial expressions,

gestures, dress, posture and hair style...gestures, dress, posture and hair style...

Choosing MediaChoosing Media

After the message is chosen, the After the message is chosen, the communicator must select channels communicator must select channels of communication. There are two of communication. There are two broad types of communication broad types of communication channels;channels;

personalpersonal nonpersonalnonpersonal

Personal Communication Personal Communication ChannelsChannels

In personal communication channels, two In personal communication channels, two or more people communicate directly or more people communicate directly (face to face, over the telephone, or even (face to face, over the telephone, or even through mail) with each other. through mail) with each other.

Personal communication channels are Personal communication channels are effective because they allow for personal effective because they allow for personal addressing and feedback.addressing and feedback.

Besides company salespeople, consumer Besides company salespeople, consumer buying guides etc, neighbours, friends, buying guides etc, neighbours, friends, family members, family members,

and associates may communicate with the and associates may communicate with the target buyers. This is known as word-of-target buyers. This is known as word-of-mouth influence.mouth influence.

Personal communication is more important Personal communication is more important for expensive, risky or highly visible products for expensive, risky or highly visible products e.g. automobiles for which consumers seek e.g. automobiles for which consumers seek opinions of knowledgeable people. opinions of knowledgeable people.

Companies can create Companies can create opinion leadersopinion leaders (people whose opinions are sought by others) (people whose opinions are sought by others) to make them work for the company by to make them work for the company by supplying those opinion leaders with the supplying those opinion leaders with the product on attractive terms. Opinion leaders product on attractive terms. Opinion leaders would be radio personalities, heads of would be radio personalities, heads of organizations ….organizations ….

Nonpersonal Communication Nonpersonal Communication ChannelsChannels

Nonpersonal communication channels are Nonpersonal communication channels are media that carry messages without personal media that carry messages without personal contact or feedback. contact or feedback.

They include media, atmosphere and events.They include media, atmosphere and events. MediaMedia; include print media (newspaper, magazines, ; include print media (newspaper, magazines,

direct mail); broadcast media (radio, television); direct mail); broadcast media (radio, television); and display media (billboards, signs, posters)and display media (billboards, signs, posters)

AtmospheresAtmospheres; are designed environments to create ; are designed environments to create and reinforce buyer’s leaning toward purchasing a and reinforce buyer’s leaning toward purchasing a product. E.g. lobby design of a hotel.product. E.g. lobby design of a hotel.

EventsEvents; are staged occurrences that ; are staged occurrences that communicate messages to target communicate messages to target audiences. E.g. press conferences, grand audiences. E.g. press conferences, grand openings, shows, exhibitions, public tours, openings, shows, exhibitions, public tours, and other events.and other events.

Such nonpersonal communications may Such nonpersonal communications may first flow to the opinion leaders and first flow to the opinion leaders and then from them to the target audiences. then from them to the target audiences. That is why, most of the time, mass That is why, most of the time, mass communicators aim their messages communicators aim their messages directly at opinion leaders.directly at opinion leaders.

Selecting the Selecting the Message SourceMessage Source

The message’s impact on the target The message’s impact on the target market is also affected by the message market is also affected by the message source.source.

Messages delivered by highly credible Messages delivered by highly credible and attcative and attcative sources sources (e.g. celebrities) (e.g. celebrities) gain higher attention and recall and gain higher attention and recall and are are more persuasive. more persuasive. E.g. Kevin Costner in E.g. Kevin Costner in THY ads. As a result, mTHY ads. As a result, many food any food companies aim promotions at doctors, companies aim promotions at doctors, dentists… dentists…

Celebrities are effective when they Celebrities are effective when they personify a key product attribute. personify a key product attribute. ……Beyaz ads for Rinso ...Beyaz ads for Rinso ...

Using animals and cartoon Using animals and cartoon characters are also successful; they characters are also successful; they are more dependable and unlikely to are more dependable and unlikely to create negative publicity.create negative publicity.

Collecting FeedbackCollecting Feedback

After sending the message, the After sending the message, the communicator must research its communicator must research its effect on the target audience. This effect on the target audience. This involves asking the target members involves asking the target members their opinion and behaviour about their opinion and behaviour about the message. the message.

Communications EffectsCommunications Effects

People react differently on information. People react differently on information. Many people do not automatically Many people do not automatically purchase products based on the advice purchase products based on the advice received from opinion formers or leaders.received from opinion formers or leaders.

The adoption process takes time. It starts The adoption process takes time. It starts with people becoming aware of the with people becoming aware of the product (e.g. new restaurant in town). product (e.g. new restaurant in town). Knowledge is built over time until the Knowledge is built over time until the potential customers are persuaded by the potential customers are persuaded by the messages.messages.

Individual Differences in Individual Differences in AdoptionAdoption

People differ in their readiness to try new People differ in their readiness to try new products. After a slow start, an increasing products. After a slow start, an increasing number of people adopt the new product. number of people adopt the new product. The number of adopters reaches a peak and The number of adopters reaches a peak and then drops off as very little adopters remain.then drops off as very little adopters remain.

There are five adopter categorization on the There are five adopter categorization on the basis of time of adoption of innovations;basis of time of adoption of innovations; InnovatorsInnovators: are the first 2.5 percent of the : are the first 2.5 percent of the

buyers, they are adventurous, take risk, buyers, they are adventurous, take risk, relatively younger, better educated, have higher relatively younger, better educated, have higher income, are more receptive toincome, are more receptive to

unfamiliar things, rely more on their own unfamiliar things, rely more on their own values andvalues and

judgement, are less brand loyal and more judgement, are less brand loyal and more likely to tae advantage of special promotions likely to tae advantage of special promotions e.g. discounts.e.g. discounts.

Early adoptersEarly adopters: are the next 13.5 percent, are : are the next 13.5 percent, are opinion leaders in their communities and opinion leaders in their communities and adopt new ideas early but carefully.adopt new ideas early but carefully.

Early majorityEarly majority: are rarely leaders but adopt : are rarely leaders but adopt new ideas before the average person.new ideas before the average person.

Late majorityLate majority: adopt an innovation only after : adopt an innovation only after a majority of people have tried it.a majority of people have tried it.

LaggardsLaggards: are suspicious of changes and : are suspicious of changes and adopt the innovation only when it has become adopt the innovation only when it has become tradition.tradition.

Adopter categorization on the Adopter categorization on the basis of relative time of basis of relative time of adoption of innovationsadoption of innovations

34% 34%34% 34%

early lateearly late

13.5 % majority majority13.5 % majority majority

earlyearly 16% 16%innovators adoptersinnovators adopters laggardslaggards

2.5%2.5%

A number of factors infleunce A number of factors infleunce adoption;adoption; Socio-economic characteristics (e.g. Socio-economic characteristics (e.g.

stage in family life cycle, education, stage in family life cycle, education, income, social networks, peer groups, income, social networks, peer groups, etc.)etc.)

Personal characteristics (e.g. Personal characteristics (e.g. personality traits, attitudes, beliefs, personality traits, attitudes, beliefs, values, motivation etc.)values, motivation etc.)

Communication behavior (responses to Communication behavior (responses to communications)communications)

Setting the Total Setting the Total Promotion BudgetPromotion Budget

The marketer must decide how much to The marketer must decide how much to spend on promotion.According to the type of spend on promotion.According to the type of industry, the promotion spendings vary. E.g. industry, the promotion spendings vary. E.g. 20-30%of the sales in cosmetics, 2-3%in 20-30%of the sales in cosmetics, 2-3%in industrial machinery.industrial machinery.

There are basically four methods to set the There are basically four methods to set the total budget for advertising;total budget for advertising; affordable methodaffordable method percentage-of-sales methodpercentage-of-sales method competitive-parity methodcompetitive-parity method objective-and-task methodobjective-and-task method

Affordable MethodAffordable Method

Setting the promotion budget at the level that Setting the promotion budget at the level that management thinks the company can afford.management thinks the company can afford.

Small companies project their total revenues, Small companies project their total revenues, deduct their operating expenses and capital deduct their operating expenses and capital outlays, and then devote some of the outlays, and then devote some of the remaining funds to advertising.remaining funds to advertising.

This method places advertising last among This method places advertising last among expenses, therefore, ignores the effects of expenses, therefore, ignores the effects of promotion on sales.promotion on sales.

This method may result in either over or underThis method may result in either over or under spending for advertising. spending for advertising.

Percentage-of-Sales MethodPercentage-of-Sales Method

Setting the promotion budget at a certain Setting the promotion budget at a certain percentage of current or forecasted sales or percentage of current or forecasted sales or as a percentage of the sales price. as a percentage of the sales price.

The advantage of this method is that it helps The advantage of this method is that it helps management think about the relationships management think about the relationships between promotion spending, selling price, between promotion spending, selling price, and profit per unit.and profit per unit.

The disadvantages are; (1) it wrongly views The disadvantages are; (1) it wrongly views sales as the cause of promotion rather than as sales as the cause of promotion rather than as the result, (2) it may prevent increase in the result, (2) it may prevent increase in promotionalpromotional

spending, when the sales are falling, (3) spending, when the sales are falling, (3) it does not provide any basis for it does not provide any basis for choosing a specific percentage, except choosing a specific percentage, except last year’s and competitors last year’s and competitors percentages.percentages.

Competitive-Parity MethodCompetitive-Parity Method

Setting the promotion budget to match Setting the promotion budget to match competitor’s outlays. The company monitors competitor’s outlays. The company monitors competitor’s advertising or industry averages.competitor’s advertising or industry averages.

The advantage of this method is that it mat The advantage of this method is that it mat prevent promotional wars.prevent promotional wars.

The disadvantages of this method are; (1) The disadvantages of this method are; (1) each company has its own promotional needs, each company has its own promotional needs, therefore, the competitors’ spending may be therefore, the competitors’ spending may be misleading, (2) there is no guarantee that this misleading, (2) there is no guarantee that this method will prevent promotion wars. method will prevent promotion wars.

Objective-and-Task MethodObjective-and-Task Method

Setting promotion budgets based on what Setting promotion budgets based on what the company wants to accomplish with the company wants to accomplish with promotion.promotion.

This is the most logical budget setting where This is the most logical budget setting where the company (1) defines specific promotion the company (1) defines specific promotion objectives, (2) determines the tasks needed objectives, (2) determines the tasks needed to achieve these objectives, (3) estimates the to achieve these objectives, (3) estimates the total costs of performing these tasks.total costs of performing these tasks.

This is the most difficult method to use This is the most difficult method to use because it is hard to understand which tasks because it is hard to understand which tasks will achievewill achieve

specific objectives. E.g. if Sony wants to specific objectives. E.g. if Sony wants to create 95% awareness for its new create 95% awareness for its new camera within 6 months, it is difficult to camera within 6 months, it is difficult to decide what messages and promotions decide what messages and promotions to use and how much to spend.to use and how much to spend.

Setting the Promotion Setting the Promotion MixMix

After the budget has been determined, the After the budget has been determined, the marketer must decide which promotion marketer must decide which promotion tools to use - advertising, personal selling, tools to use - advertising, personal selling, sales promotion, public relationssales promotion, public relations and direct and direct marketing.marketing. He must blend the promotion He must blend the promotion tools into a coordinated tools into a coordinated and integrated and integrated promotion mix.promotion mix.

The following factors influence the The following factors influence the marketer’s choice of promotion tools;marketer’s choice of promotion tools; NatureNature of each promotion tool of each promotion tool Type of product and marketType of product and market Push versus pull strategyPush versus pull strategy Buyer readiness stageBuyer readiness stage Product-life-cycle stageProduct-life-cycle stage

Useful Links and Useful Links and SourcesSources

McCabe, S. (2009). Marketing McCabe, S. (2009). Marketing Communications in Tourism and Communications in Tourism and Hospitality: Concepts, Strategies and Hospitality: Concepts, Strategies and Cases. Butterworth-Heinemann: Oxford. Cases. Butterworth-Heinemann: Oxford.

Kotler, P.; Bowen, J. and Makens, J. (1999). Kotler, P.; Bowen, J. and Makens, J. (1999). Marketing for Hospitality and Tourism (2nd Marketing for Hospitality and Tourism (2nd ed.). Prentice Halled.). Prentice Hall: New Jersey.: New Jersey.

Kotler, P. and Armstrong, G. (20Kotler, P. and Armstrong, G. (201010) ) Principles of Marketing (1Principles of Marketing (133th ed.). Prentice th ed.). Prentice HallHall: New Jersey.: New Jersey.