1. Communications theory and Buyer Behaviour
Session 2

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

3. 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

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

5. A simple communication model

6. The Marketing Communications Process model (P&B)

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

11. Nivea creams put the life on pause

13. 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?

14. Engel, Blackwell and Miniard model of Consumer behaviour, 2000

15. Who buys? Initiator Influencer User Purchasing decision Decider
Purchaser

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

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

23. 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

24. The FCB grid Think Feel High involvement Low involvement Think FeelDo
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

26. 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

27. 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

28. Six-step effects sequence6
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

29. 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