McGraw-Hill/Irwin Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed 5 The Communication Process

5-2 Ford Fiesta Launch Case History 20 something target audience “Life-streamers” due to social media use “Agents” chosen to drive Fiesta free for 6 months Write about experiences / no restrictions Ford confident in product quality Increased brand awareness Have cars people get emotional about and want to buy

5-3 What is Communication? Passing of information or exchange of ideas Process of establishing a commonness of thought between a sender and a receiver Success depends on the: Nature of the message Audience’s interpretation Environment in which it is received Major barrier - Language

5-4 Communication Function of IMC is to communicate Thru ads /brand names /logos / packaging Need to understand process to develop more effective programs

5-5 The Nature of Communication

5-6 Basic Model of Communication Source Person or organization that has information to share with another person or group of people Encoding Putting thoughts, ideas, or information into a symbolic form Message Contains the information or meaning the source hopes to convey

5-7 Source Encoding Using a Celebrity Source = person or organization that has info to share Encoding = word a message so understood by receiver Goal = select knowledgeable / trustworthy communicator that receiver can identify with

5-8 Graphic Pictures Drawings Charts Pictures Drawings Charts Verbal Spoken Word Written Word Song Lyrics Spoken Word Written Word Song Lyrics Musical Arrangement Instruments Voices Ringtone Arrangement Instruments Voices Ringtone Animation Action/ Motion Pace/ Speed Shape/ Form Action/ Motion Pace/ Speed Shape/ Form Verbal Graphic Musical Forms of Encoding Encode message in way that it will be understood by receiver

5-9 Message Development Content Structure Design Information source hopes to convey Way message is put together

5-10 An Image Can Convey More Than Words

5-11 Communication Channels Channel: Facilitates communication between sender and receiver Non-personal channel or mass media Lacks direct, interpersonal contact between the sender and receiver Sent to many people at one time Personal channel - Direct communication between two or more persons Word-of-mouth (WOM): Informal communication among consumers about products and services Viral/Buzz marketing: Generating positive word-of-mouth discussion

5-12 Personal Channels Communications Channels Nonpersonal Channels Personal Selling Word of Mouth/Mouse Print Media Broadcast Media Method by which communication travels from sender to receiver

5-13 Viral / Buzz Marketing Viral/Buzz Marketing: Propagating marketing-relevant messages with the help of individual consumers Factors affecting success Is message entertaining Female/younger consumers more susceptible Bloggers more influential Seeding: Identifying and choosing the initial group of consumers who will be used to start spreading the message

5-14 Marketers Embrace Viral/Buzz Marketing Frito Lay ran contest asking consumers to create commercial..then use social media to spread word about the brand

5-15 Most Popular Viral Ad Campaign 171 million views worldwide

5-16 Dove “Real Beauty” Viral Campaign Link to the Dove Evolution YouTube Video Generated 12 million hits on You Tube Powerful pass-along benefits from consumers talking favorably about brand Note: concern whether person spreading info should disclose affiliation with company

5-17 Receiver / Decoding Receiver: person with whom sender shares information (consumer) Decoding: process of transforming sender’s message into thought Influenced by receiver’s field of experience (perception / attitudes) Effective communication = receiver correctly interprets what source is trying to say Know your receiver to understand needs Demographics of Marketing Managers vs. consumers

5-18 Apples for Dessert Effective communication when common ground between sender and receiver

5-19 Noise in the Communications Process Noise interferes with message: - distortion in TV signal or -distractions

5-20 Response / Feedback Response = receiver’s reaction after seeing message Storing information in memory / dialing 1-800# Feedback = part of receiver’s response communicated back to sender Personal selling – gestures / frowns Customer inquiries / coupon redemptions / reply cards

5-21 Successful Communication Receive feedback Select an appropriate source Develop a properly encoded message Select appropriate channel for target audience

5-22 Identifying the Target Audience Mass Markets Markets Segments Niche Markets Individuals Communication process begins with knowing your audience Reach thru personal selling (e.g. financial services) Direct Mail (Rolls Royce) ESPN Mass Media

5-23 Consumer Communications Models Low Involvement Hierarchy Involvement in purchase decision is low (e.g. soap) Minimal difference among brands Mass media advertising is important Use of visual image personality helps Source derogations Negative thoughts about spokesperson or organization lead to reduction in message acceptance