Communications theory and Buyer Behaviour Session 2

Objectives To understand communications theory To demonstrate alternative models in marketing communications To understand key stages in the decision making process

Communications Theory Good communication = good business helps an organization to thrive focused and cost effective Poor communications = bad business can cost market share, jobs and survival can damage reputation and image The communications process very complex various theories and models

What is communication? …a transactional process by two or more parties whereby meaning is exchanged through the intentional symbols. Engel, 1994 Transaction Intentional Symbolic

A simple communication model

The Marketing Communications Process model (P&B)

Until 1954 Marlboro was positioned as cigarettes for women, old slogan: “To match your lips and finger-tips” Taken from Pickton and Broderick, 2005

Nivea creams put the life on pause

Buyer Behaviour Key first step in developing a marketing strategy is understanding the target market and their buying behaviour Who is the buyer? Why do they buy? How, when and where do they buy?

Engel, Blackwell and Miniard model of Consumer behaviour, 2000

Who buys? Initiator Influencer User Purchasing decision Decider Purchaser

Behavioural sequence model (BSM) Data inputs 1) WHAT (decision stage) Need arousal Information search and evaluation Purchase Usage 2) WHO (roles) 3) WHERE (location) 4) WHEN (time and timing) 5) HOW (description) Adapted from: Rossiter and Percy, 1997, Advertising communications and promotion management

Advertising and promoting to individuals in role: To initiators – to make them aware of the category need and propose our brand as a possible purchase candidate To influencers – to communicate the reasons they should communicate our brand To deciders – to persuade them to select our brand To purchasers – to “lock in” the selection of our brand To users – to ensure that they actually use and, perhaps more rapidly use our brand

The intervening variables Perception means the ways stimuli, such as adverts, commercials, uniforms, are interpreted Learning Motivation defined as the drive to satisfy a need instinctive versus learned Maslow’s hierarchy of needs (I954) self-actualization esteem social safety physiological

The intervening variables Attitudes affect buying behaviour are learnt and tend to stick can be changed, but not quickly Group Influence formal, like committees informal, like friends primary secondary

Types of buying situation Extensive problem solving (EPS) if the buyer has no previous product experience and the purchase is infrequent, expensive and/or risky Limited problem solving (LPS) if the buyer has some knowledge and experience of, and familiarity with, a particular product or service Routinized response behaviour (RRB) in the case of strong brand loyalty for a habitually purchased product, eg baked beans High involvement v low involvement decisions

High and Low involvement Decision Process High involvement decision Spend lots of effort on expensive, personal or emotion-laden products e.g. cars Low involvement decision Acquiring products purchased regularly e.g. milk Low

Low and high involvement decision making Adapted from Assael (1992)

Hierarchy of Effects models Cognitive Affective Conative AIDA Attention Interest, desire Action AIDCA Interest, desire, conviction ACCA (or DAGMAR) Awareness, comprehension Conviction Lavidge and Steiner Awareness, knowledge Liking, preference, conviction Purchase AIETA Awareness Interest, evaluation Trial, adoption

The FCB grid Think Feel High involvement Low involvement Think Feel Do Feel Think Do cars, furniture, loans, appliances Jewellery, perfume, fashion Do Think Feel Do Feel Think Low involvement Detergents, food, toilet paper Sweets, soft drinks, ice cream Adapted from: Pelsmacker, 2004

Communication strategy High involvement Awareness PR Advertising broadcast then print high information content factual, rational low frequency Attitude Personal selling demonstrations trial Sales Promotion introductory prices brochures Behaviour - product quality price accessibility Long run behaviour product quality corporate PR guarantees, after sales service

Communication strategy Low involvement Awareness PR advertising Broadcast Low information context Emotion High frequency Attitude - product satisfaction Trial Behaviour - sales promotion - advertising - POS - packaging Long run behaviour - product quality

Six-step effects sequence 6 Profit 5 Sales or market share and brand equity 4 Target audience action 3 Communication effects and brand position 2 Processing 1 Exposure Adapted from: Rossiter, Percy, 1997

Reading Pickton, D. and Broderick, A. (2005) Integrated Marketing Communications Prentice Hal, Chapters 3, 4 De Pelsmacker, P. Geuens, M., and Van Den Bergh ,J. (2004) Marketing Communications, Prentice Hall, London, Chapter 3 Fill, C. (2005) Marketing Communications Prentice Hall, London