sub-brands like FastTrack, Raga, Nebula, Edge, Dash, and FLIP for customers across the spectrum. FastTrack was positioned for the youth, Edge for the technology-conscious segment, Nebula for the luxury segment consumers who demand value at high prices, and the FLIP range of contemporary-styled watches for upper premium (luxury) segment.... this caselet highlights the different advertising media used by Titan Industries Ltd. to establish itself in various international markets. The caselet emphasizes upon the need to develop products that cater to the needs of the various customer segments like mass market, youth, luxury, and premium. It also describes the emergence of Indian advertising agencies as a global force and the need to devise promotional methods based on the country of operation. Titan Industries Ltd (TIL), one of the leading manufacturers of watches in the world, was incorporated in 1986 and launched its first watch model in 1987. A joint venture between the Tata group and the Tamil Nadu Industrial development Corporation (TIDCO), it is the undisputed leader in India with a market share of 58% in the organized domestic market. Issues: » The importance of selecting a proper advertising agency while entering international markets. » The emergence of Indian advertising agencies as a global force » Need to adapt or standardize the advertising content » Importance of segmentation 1. Explain the rationale for TIL changing its account, from an international advertising agency to a domestic one, for its second foray into the European market and other countries. ___________________________________________________________________________ ___________________________________________________________________________ 2. “The attempt is to show faces and images which are well known to European consumers.” Enumerate the probable reasons that might have led TIL to associate its watch brands with events and eminent personalities in its six print campaigns in Europe? ___________________________________________________________________________ ___________________________________________________________________________ Choose any popular product and give an example for Perspective on consumer behaviour? ___________________________________________________________________________ ___________________________________________________________________________ 51 CU IDOL SELF LEARNING MATERIAL (SLM)
4.7UNIT END QUESTIONS A. Descriptive Questions Short Answers 1. What are the less-tangible factors that influence customers’ perceptions? 2. What is Digital Marketing? 3. Write a note on Designing service? 4. What are the 4 types of marketing services? 5. Write a note on Personalised Services Long Answers 1. What are the types of Marketing Services? 2. Why Customer Service is Important? 3. Perspective on Consumer Behaviour. Explain. B. Multi-Choice Questions 1. Any individual who purchases goods and services from the market for his/her end-use is called a.................. a. Customer b. Purchaser c. Consumer d. All of these 2. ------------ is nothing but willingness of consumers to purchase products and services as per their taste, need and of course pocket. a. Consumer behaviour b. Consumer interest c. Consumer attitude d. Consumer perception 3. ___________ is individuals and households who buy goods and services for personal consumption. a. The target market 52 b. A market segment CU IDOL SELF LEARNING MATERIAL (SLM)
c. The consumer market. d. The ethnographic market 4. __________________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world. a. Readiness b. Selectivity c. Perception d. Motivation 5. SEO Abbreviation a. Search Engine Optimisation b. Search Engine Order c. Search Engine Online d. Search Engine on-board Answers 1 -a, 2 –b, 3 -c, 4 –c, 5 -a 4.8 REFERENCES • Advertising Management, Jayshree Jethwaney & Shruti Jain, Oxford University Press • Advertising & Promotions: An IMC perspective, Kruti Shah and Alan D’Souza, Tata McGraw Hill • Advertising Management, Aakar, Batra and Myers, Prentice • Advertising & Promotions, S H Kazmi and Satish K Batra, Excel • Advertising; Principles and Practice, Wells, Moriarty and Burnett, Pearson • Advertising & Promotion: An IMC approach, Terence A. Shimp Pub., Cengage Learning 53 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 5. UNDERSTANDING COMMUNICATION PROCESS Structure 5.0 Learning Objective 5.1 Introduction 5.2 Source 5.3Message 5.4 Channel Factor 5.5 Communication Response Hierarchy 5.6 Summary 5.7 Keywords 5.8 Learning Activities 5.9 Unit End Questions 5.10 References 5.0 LEARNING OBJECTIVE After studying this unit, you will be able to: • Describe Nature of Communication Process • Identify Scope of Communication Process • Explain and Communication Response Hierarchy • Describe Channel Factor 5.1 INTRODUCTION The transmission or passage of information or a message from the sender through a selected channel to the receiver while overcoming obstacles that slow it down is referred to as the communication method. The communication mechanism is cyclic in nature, since it starts with the sender and ends with the sender in the form of feedback. It occurs at all levels of the company, including the top, bottom, and sides. As such, communication must be a continuous and complex interaction in which several variables influence and are affected. The 54 CU IDOL SELF LEARNING MATERIAL (SLM)
communication process is made up of several phases, each of which is essential for successful communication. 5.2 SOURCE The person who is directly or indirectly involved in communicating a marketing message is referred to as the source. A representative who sends a message and/or shows a product or service is referred to as a direct source. A model, for example, is an indirect source that does not send a message but draws attention to and/or improves the appearance of the ad. Source Credibility: The degree to which the recipient believes the source has appropriate expertise, ability, or experience and trusts the source to provide unbiased, objective information is referred to as credibility. Credibility has two essential dimensions: competence and trustworthiness. The sleeper effect, in which the persuasiveness of a message rises with the passing of time, suggests that a low credibility source may be as powerful as a high credibility source. Source Attractiveness Attractiveness, which includes similarity, familiarity, and likability, is a source trait that advertisers commonly use. Similarity refers to a perceived similarity between the source and the message recipient, while familiarity refers to sensitivity to the source. Likability refers to a person's fondness for them as a result of their physical appearance, behaviour, or other personal characteristics. Likability can be used in a variety of ways, including overshadowing the product, overexposure, target audience receptivity, and risk to the advertiser. Source Power: When a source may actually administer incentives and penalties to the recipient, he or she has control. The source may be able to persuade another person to respond to the request or position he or she is supporting as a result of this power. The source's power is determined by a number of variables. The source must be viewed as having the ability to impose positive or negative penalties on the receiver (perceived control), and the receiver must believe the source is concerned about the receiver's compliance (perceived concern). It's also necessary to consider the receiver's assessment of the source's ability to observe conformity (perceived scrutiny). 55 CU IDOL SELF LEARNING MATERIAL (SLM)
5.3 MESSAGE The communicator normally tries to get across a range of message points in marketing communications. Knowing the best way to convey these points and overcome any dissenting views held by audience members is an integral part of message strategy. Order of Presentation The strongest claims are made at the start of the letter, assuming that a primacy effect is at work, in which knowledge presented first is more powerful. Putting the strongest points at the end implies a recency effect, in which the most convincing claims are made last. Conclusion Drawing Marketers must determine if their messages should draw a firm conclusion or leave it up to the audience to draw their own conclusions. Message Sidedness Message sidedness is another message structure decision that the market must make. Only positive attributes or benefits are mentioned in a one-sided post. A two-sided message includes both positive and negative aspects. When the target audience already has a favourable opinion about the topic, one-sided messages are most effective. They also work well for people who are less educated. Refutation A refutational appeal is a form of two-sided message in which the communicator presents all sides of a problem and then refutes the opposing perspective. Refutational appeals are more successful than one-sided advertisements in making customers immune to an opposing message because they appear to \"inoculate\" the target Audience against a competitor's counterclaims. Comparative Advertising Comparative advertising is the practise of naming rivals in an advertisement, either directly or indirectly, or comparing one or more particular attributes. Comparative advertising is especially useful for new brands because it enables them to place themselves directly against more established brands and advertise their unique benefits. Fear Appeals 56 CU IDOL SELF LEARNING MATERIAL (SLM)
Fear is an emotional reaction to a threat that communicates, or at the very least suggests, danger. Fear appeals are often used in advertisements to elicit this emotional reaction and motivate people to take action to eliminate the danger. Humour Appeals Humorous advertisements are frequently the most well-known and remembered of all advertising messages. Advertisers employ humour for a variety of purposes. Consumers' attention is drawn to and held by humorous messages. They boost efficacy by placing customers in a good mood, increasing their liking for the ad and their attitude toward the product or service. Also, humour will divert the receiver's attention away from counter- arguments to the post. 5.4 CHANNEL FACTOR Personal versus Non personal Channels: The variations between personal and non-personal contact networks are numerous. In general, information obtained through personal power sources is more convincing than information obtained through the mass media. Effects of Alternative Mass Media The number and variety of people reached by the different mass media used by advertisers vary in several respects, including prices, information processing requirements, and qualitative factors. Differences in Information Processing: There are fundamental variations in the way information from different types of media is distributed and stored, as well as the rate at which it can be processed. Ads in print media, such as newspapers, magazines, or direct mail, provide self-paced information; readers can process the ad at their own speed and research it for as long as they want. Information from radio and television, on the other hand, is externally paced; the transmission rate is regulated by the medium. Effects of Context and Environment The impact of the medium on a message is referred to as a qualitative media effect. The picture of the media vehicle may have an impact on how people respond to the message. The design of the programme in which an advertisement appears may also establish a media atmosphere. 57 CU IDOL SELF LEARNING MATERIAL (SLM)
Clutter The issue of clutter, which has been described as the amount of advertising in a medium, is another aspect of the media environment that marketers care about. 5.5 COMMUNICATION RESPONSE HIERARCHY Consumer reactions and behaviour to the advertisement process are explained by Response Hierarchy Models. The Models provide a full understanding of a customer's reactions at all points of his journey, from product awareness to purchasing action. The article discusses the five key Response Hierarchy Models that describe customer behaviour across three levels of awareness: Cognitive, Affective, and Behavioural. The following are the five Response Hierarchy Models: • AIDA Model • Hierarchy-of-Effects Model • Innovation-Adoption Model • Information Processing Model and • Operational Model 1. AIDA Model Attention, Interest, Desire, and Action (AIDA) is a term that stands for Attention, Interest, Desire, and Action. The AIDA model is used in advertising to describe the phases that occur between when a customer first becomes aware of a product or brand and when they buy it. Of all the Response Hierarchy Models, the AIDA model is one of the most well-known. The AIDA Model is used by businesses to get the desired response from targeted customers through advertising. This model can be used to effectively activate the customers' various emotions. 2. HIERARCHY-OF-EFFECTS MODEL Robert J Lavidge and Gary A Steiner developed the Hierarchy of Effects model in 1961. From the process where the consumer sees the product to the buying phase, this advertising contact model defines six stages. An advertisement's goal is to get a consumer to go through all six stages of the Hierarchy-of-Effects Model: Awareness, Knowledge, Liking, Preference, Conviction, and Purchase. 3. INNOVATION-ADOPTION MODEL Rogers developed the Innovation-Adoption Model in 1995. He proposed several phases for a target consumer to pass through on their way from incognizance to purchase. Awareness, 58 CU IDOL SELF LEARNING MATERIAL (SLM)
Interest, Evaluation, Trial, and Adoption are the five phases of the Innovation-Adoption Model. 4. INFORMATION-PROCESSING MODEL Cognitive psychologists use a framework called the Information-Processing Model to describe mental processes. The human thought process is linked to machine functions in this model. It means that the human mind, like a machine, takes in information, organises it, and stores it for later retrieval. It argues that, like a machine, the human mind has a parallel architecture with an input system, a processing unit, a storage unit, and an output device. The Presentation, Attention, Comprehension, Yielding, Retention, and Behavioural phases are all part of the Information-Processing Model. 5. OPERATIONAL MODEL The Operational Model is a strategic paradigm that consists of three components: non- evaluative thinking, evaluative thinking, and action. 5.6 SUMMARY • Communication allows for the formation of relationships and the organisation of tasks. • Every message has a goal or intent. The sender wants to achieve something by writing, whether consciously or unconsciously. • The exchange of a message or information from a sender to a receiver is known as communication. • Effective communication entails communicating the messages to others in a straightforward and unambiguous manner. It's all about obtaining facts from others with the least amount of distortion possible. • The names of Fayol and Barnard are well-known among the founders of Communication Studies. • Communication has long been regarded as the management bottleneck, with no management role being possible without it. 5.7 KEYWORDS • Channel: the imparting or interchange of thoughts, opinions, or information by speech, writing, or signs. 59 CU IDOL SELF LEARNING MATERIAL (SLM)
• Communication: the imparting or interchange of thoughts, opinions, or information by speech, writing, or signs • Grapevine: a person-to-person method of spreading rumours, gossip, information, etc., by informal or unofficial conversation, letter writing, or the like. • Informal: not according to the prescribed, official, or customary way or manner; irregular; unofficial. • Intermediary: an intermediate agent or agency; a go-between or mediator. 5.8 LEARNING ACTIVITIES 1. case study. Giving away the marketing budget generates 5.5 million impressions for cell Phone carrier When you get your marketing budget, you want to be prudent with how you invest the company’s resources, especially in these difficult times. Not Visible. The pre-paid cell phone carrier just gave the marketing budget away — like Drake filming a music video. I’m being a little sarcastic of course. Let me explain this unique campaign. In response to the devastation wrought by COVID-19, the all-digital wireless carrier launched its #VisibleActsOfKindess campaign on Twitter and Instagram. Visible surprised 1,000 people — not just their customers — by giving them $250 Amazon gift cards. Do the math, that adds up to $250,000. Visible partnered with several known names in various industries, like Michael Voltaggio and P.K. Subban, to roll out the campaign. “Partnering with some of the influential folks who participated in #Visible Act of Kindness — such as Dan Levy, Padma Lakshmi, Emeril Lagasse — helped us reach more of the people who wanted to tell their stories in an authentic, powerful and speedy way. Because of our premise of wanting to extend our help when and where it mattered the most and the desire to amplify and highlight these amazing stories, many of our partners were quick to say yes,” said Minjae Ormes, CMO, Visible. 1. Analyse the case study with social media communication and its impact on covid19? ___________________________________________________________________________ 60 CU IDOL SELF LEARNING MATERIAL (SLM)
__________________________________________________________________________ 5.9 UNIT END QUESTIONS A. Descriptive Questions Short Answers 1. Explain Effects of Alternative Mass Media. 2. What is source? 3. What is Message? 4. What is Channel Factor? 5. Write a short note on Communication Response Hierarchy? Long Answers 1. Explain What is message in IMC 2. Explain What is Source in IMC 3. Describe Communication Response Hierarchy B. Multi-Choice Questions 1. Awareness, Interest, Evaluation, Trial, and Adoption are stages of a. AIDA Model b. Hierarchy-of-Effects Model c. Innovation-Adoption Model d. Information Processing Model 2. Awareness, Knowledge, Liking, Preference, Conviction, and Purchase are stages of a. AIDA Model b. Hierarchy-of-Effects Model c. Innovation-Adoption Model d. Information Processing Model 3. Attention, Interest, Desire, and Action are stages of 61 a. AIDA Model b. Hierarchy-of-Effects Model c. Innovation-Adoption Model CU IDOL SELF LEARNING MATERIAL (SLM)
d. Information Processing Model 4. Presentation, Attention, Comprehension, Yielding, Retention and the Behavioural stage. a. AIDA Model b. Hierarchy-of-Effects Model c. Operational Model d. Information Processing Model 5. A source characteristic frequently used by advertisers is attractiveness, which encompasses similarity, familiarity and likability. a. Source Credibility b. Source Power c. Source Attractiveness d. None of these Answers 1 -c, 2 –b, 3 - a, 4 – d, 5 – c 5.10 REFERENCES • Advertising Management, Jayshree Jethwaney & Shruti Jain, Oxford University Press • Advertising & Promotions: An IMC perspective, Kruti Shah and Alan D’Souza, Tata McGraw Hill • Advertising Management, Aakar, Batra and Myers, Prentice • Advertising & Promotions, S H Kazmi and Satish K Batra, Excel • Advertising; Principles and Practice, Wells, Moriarty and Burnett, Pearson • Advertising & Promotion: An IMC approach, Terence A. Shimp Pub., Cengage Learning 62 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 6. COMMUNICATION PROCESS AND MODEL Structure 6.0 Learning Objective 6.1 Introduction 6.2 AIDA Model 6.3 Hierarchy of Effect model 6.4 Innovation Adoption Model 6.5 Information Processing Model 6.6 The standard learning Hierarchy 6.7 Attribution Hierarchy 6.8 Low Involvement Hierarchy Consumer Involvement 6.9 Summary 6.10 Keywords 6.11 Learning Activities 6.12 Unit End Questions 6.13 References 6.0 LEARNING OBJECTIVE After studying this unit, you will be able to: • Describe AIDA Model • Explain and Innovation Adoption Model • Describe attribution Hierarchy • Describe Consumer Involvement. 6.1 INTRODUCTION The process of forming, understanding, and negotiating meaning is known as communication. Verbal, nonverbal, and written communication are all forms of communication. It may be audible, visual, or even physical in nature. Communication may be done in a number of ways, but it is still a learned behaviour. People must learn to communicate by codes, symbols, and language systems, despite the fact that most humans are born with the physical 63 CU IDOL SELF LEARNING MATERIAL (SLM)
ability to talk, hear, see, and so on. Communication is therefore a group activity in which people use symbols to create and interpret context. 6.2 AIDA MODEL Attention, Interest, Desire, and Action (AIDA) is an acronym that stands for Attention, Interest, Desire, and Action. When a customer watches or views an advertising, they go through these four steps. The role of advertising, according to Lewis, is to attract consumers first and foremost. Once an advertisement has captured the attention of the audience, it must pique the customers' interest in the product. After generating interest, the ad must elicit a desire in the consumer to use the product, and the consumer must then take a favourable action against the product by buying it. Figure 6.1 Satisfaction Awareness/Attention Before going through the particulars of the presentation, the salesperson can entice the prospect to attend. 1. To ensure that the prospect is open to the presentation, do the following. 2. The salesperson's entire effort can go unnoticed or unregistered unless he engages the prospect's mind in the presentation. 3. Getting the prospect's attention means separating him from his other responsibilities and engaging him in the presentation, both physically and emotionally, in order to get the most out of the sales meeting. 64 CU IDOL SELF LEARNING MATERIAL (SLM)
Interest The salesperson must ensure that the prospect stays glued to his presentation for the duration of it and does not drift away from it. The salesperson should make an effort to learn about the prospect's preferences, likes, dislikes, mood, and motivation, and then continue with the presentation while keeping all of these considerations in mind. Desire The salesperson should make a deliberate effort to get the prospect to this point of preparation, where he or she is ready to purchase his product. 1. He should focus on projecting to the prospect the advantages of his offering. He should also go so far as to present incentives tailored to the prospect's motivation. If the prospect is more driven by a desire for protection, for example, an insurance agent will emphasise the safety benefits offered by the insurance policies he is selling. 2. The salesperson should also be prepared to expect concerns or questions from the prospect in response to his sales presentation. 3. He should also have a number of responses and reasons ready for any objections that might arise. Action After the salesperson has successfully guided his prospect through the three stages outlined above, he should persuade them to purchase the product. It's important to note that even after going through the three stages of attention, interest, and desire, the prospect may still have some hesitation or inertia that prevents him from making the final decision to purchase the product. As a result, it becomes important for the salesperson to assist his prospect in making a final decision. Satisfaction After the prospect has put an order, the salesperson ensures that the prospect seems to have made the best decision possible. He should always express gratitude to the prospect, even going so far as to say, \"I appreciate your choice, sir; you have made an excellent decision.\" 1. The salesperson should also make sure that the service is delivered on time and that all other guarantees, such as freebies and discounts, are kept. 2. In addition, the salesperson should continue to stay in contact with his prospect and inquire about his or her experience with the service. How can this be applied to marketing planning? It's more of a communications model than a decision-making model, because it tells businesses how and when to interact at each level, because customers will be using different 65 CU IDOL SELF LEARNING MATERIAL (SLM)
channels, communicating at different touch points, and needing different information from different sources. As a result, using this to prepare your customised and targeted marketing strategy might be a good place to start. Ask yourself some key questions throughout the stages: • Awareness: How can we get the word out to potential customers about our goods or services? What is our plan for reaching out to the public? What is the name of our public relations campaign? What methods and channels do we employ? What are the messages that should be conveyed? • Interest: How are we going to pique their interest? What is the content strategy for our company? Is there any social evidence to back up our reputation? How and when will this knowledge be made available? What makes our product or service desirable? (i.e., on our website, through videos, customer reviews, etc.) • Desire: How do we engage with one another on a personal level in order to form an emotional bond? What about a chat room on the internet? Is it possible to get a fast answer to a tweet? Do you want to share some advice and tips? • Action: What is the call-to-actions, and where should they be placed? Is it simple for customers to communicate, and where will they look for it? Consider which marketing channel/platform you're using and how you're engaging with customers, such as through newsletters, websites, landing pages, inbound phone calls, and so on. • Retention: What is the offer to keep customers loyal? Where and how do we promote this on and off the internet? Practical Implication of Aida Model Laptop and computer brands Assume you're in the market for a new laptop or computer. Apple, Samsung, Microsoft, and ASUS are possibly some of the first computer brands that come to mind. Many of these brands are part of the 'awareness range.' The 'complete package' of computer brands, on the other hand, is far larger. Have you heard of MSI or Razor, for example? If not, these labels are not yet on your radar. You may even have a few favourite computer brands of all the ones you're familiar with. You may already rule out a Samsung or Apple computer laptop depending on the smart phone brand you have. Only the products you're seriously 66 CU IDOL SELF LEARNING MATERIAL (SLM)
considering purchasing are included in your \"consideration list.\" Whether or not this is the case is entirely dependent on the attitudes you've formed toward the brand since first coming into contact with it. If your curiosity in a brand develops into a genuine desire, there's a good chance it'll end up in your 'purchase package.' AIDA Model in Sum The AIDA Model is a perfect marketing tool for determining what to advertise to consumers at various stages of the decision-making process. Marketers would need to change their marketing plans at each stage in order to assist consumers in moving from one stage to the next. Since the AIDA Model is brief and straightforward, it can neglect other critical aspects of the customer decision-making process. We've written an article about the Marketing Funnel, which includes not four but nine phases that consumers go through. Here is a case study from our Marketing Models Guide showing how an award-winning hairdressing company, Francesco Group used the model to launch their new salon. 1. Awareness: Four months prior to the launch, a PR campaign was run to promote the award, stylists, and credentials, which was followed up by a direct mail campaign to targeted consumer groups. 2. Interest: A free consultation or haircut and finish was offered as part of a direct mail campaign. They used studies to prove that this will work, since females are loyal to convincing offers. 3. Desire: They held exclusive local launch activities near the opening of the new salon, which were promoted in the local press and on social media. This created a sensation in the community for 'people who wanted an invite' and were eager to see the new salon. 4. Action: Clear CTAS were placed on Facebook (call to reserve), the website (call to book), and local advertisements (call in to receive discount or the offer). While there are several ways to improve loyalty, such as signing up for mailing lists or social media that provide news about deals and activities, discounts on product lines, discounts based on frequency of visit, etc., the case study did not mention retention. 67 CU IDOL SELF LEARNING MATERIAL (SLM)
6.3 HIERARCHY OF EFFECT MODEL The hierarchy of effects is a theory that looks at how advertising influences consumers' decisions to buy such goods and brands. From gaining consumers' interest to final buying behaviour, the principle encompasses a sequence of phases that marketers can pursue. Figure 6.2: Hierarchy of Effects The hierarchy of effects theory describes how advertising affects consumers’ behaviour and leads to the transition from not knowing a product or brand to liking it and finally making the action to purchase. The theory was first raised by Robert J. Lavidge and Gary. Steiner in their article entitled “A Model for Predictive Measurements of Advertising Effectiveness,” which was published in 1961. It has now been used as a sophisticated advertising strategy to build up brand awareness and has branched off into many different variations. The impact hierarchy is founded on the principles of behavioural psychology. In terms of the human thought process, it can be divided into three stages: cognitive, affective, and behavioural. The cognitive stage, which includes the awareness and information levels, is also known as \"thinking.\" The affective stage is divided into three sub-stages: liking, preference, and conviction, and it explains the effect on customers' \"feeling\" phase. The final 68 CU IDOL SELF LEARNING MATERIAL (SLM)
stage is the behavioural (doing) stage, which leads to the purchase target. Each stage will be discussed in greater depth in the following paragraphs. Stages of Hierarchy of Effects 1. Awareness The first step in the process is to raise customer awareness. If a customer wants to buy a smartphone, for example, the phone brand's marketing team must make the consumer aware of the brand's presence through ads. The customer recognises the brand during the awareness stage, but has very little information about it. 2. Knowledge After being aware of a brand, the customer will begin to assess whether or not the product under that brand will satisfy his or her needs, as well as how it compares to other goods and brands. It's important to make sure that customers have enough details to get to know the brand well enough to progress to the next level. 3. Liking The phase shifts from cognitive to affective behaviour at the liking level. Consumers associate a brand with emotional comfort, and they develop favourable opinions of it. For example, a smartphone user can appreciate a phone's attractive design or find the phone's HD camera to be extremely useful. 4. Preference Consumers may enjoy certain features of one brand, but they may also enjoy certain characteristics of other brands. The brand must distinguish itself from other brands and gain customer preference over its rivals at the preference level. 5. Conviction Conviction is the stage in the purchasing process where a customer's optimistic feelings about a brand become a certainty. At this point, consumers have resolved their concerns and are no longer switching brands. 6. Purchase The final stage of the hierarchy is buying, where customers make a purchase decision. It is critical to provide customers with a favourable buying experience, such as pre-order options, usage guidance, or a promise of post-sales support. Consumers will be more likely to buy in 69 CU IDOL SELF LEARNING MATERIAL (SLM)
greater quantities or continue with the same brand for their next purchase if such attempts are made. Criticisms Against Hierarchy of Effects As previously mentioned, the hierarchy of effects model is a behavioural science analysis that focuses on behaviour response. Cognitive psychology, which examines how our brains interpret knowledge, has criticised the model for its efficacy. The hierarchy of effects divides the influence of ads on consumer purchasing behaviour into levels. Consumers are exposed to a wide variety of knowledge in the real world, according to cognitive psychology researchers, which may influence their final buying behaviour. Because of the substantial background noise, advertisers find it nearly impossible to understand how advertising knowledge is processed in the minds of consumers at each point. Another critique is that the theory suggests that all forms of advertising go through the same six steps, ignoring the differences between product types and advertising approaches. Instead of doing the same steps, marketers with different objectives can develop unique selling ideas that set their goods apart from the competition. 6.4 INNOVATION ADOPTION MODEL To describe a complicated term like \"innovation acceptance,\" we must look at common concepts and come up with a consensus-based interpretation that \"works\" with our unique business perspective. The Everett Rogers model, which uses a normal distribution to segment the market, and Geoffrey Moore's seminal works \"Crossing the Chasm\" and \"Inside the Tornado,\" which explain particular strategies, are only a few examples of academic and business research to draw from. Who are these groups of innovation adopters, and what differentiates them? Innovators: • The real geeks who buy into technology's promise and are often known as true visionaries; • The first to try new concepts and stuff • Those who are willing to take risks and make decisions based on various sources of knowledge. • A small group in terms of size, but a powerful one in terms of influence Early adopters: 70 CU IDOL SELF LEARNING MATERIAL (SLM)
• Larger in scale than Innovators and vital to the progress of inventions. • Early pioneers who are willing to take a risk and are often known as visionaries who rely on \"gut feel\" and experience. Early majority: • The market's most mainstream division, with more than twice the scale of the first two. • Followers of innovators and early adopters for ideas, power, and thoughts • A community that enjoys new things and inventions but prefers to wait and see if an innovation is \"successful\" before embracing it. Late majority: • People who only embrace technologies when they are compelled to do so • A segment that is more difficult to convince and influence, particularly through advertisements and online information Friends and colleagues are held in high regard for their guidance and influence. Laggards: • The last party to embrace an innovation – kicking and screaming • Naysayers of any transition, only accepting and implementing an innovation when completely compelled to do so • Strong dependence on the advice and influence of friends and colleagues – despite constructive reviews, it's always difficult to persuade them. Consumer Adoption Process: Consumer adoption is broken down into five stages, according to Philip Kotler: knowledge, interest, assessment, trial, and adoption. William Stanton, on the other hand, calls six stages: knowledge, interest and facts, assessment, trial, adoption, and post-adoption. We'll proceed in six stages.’ 1. Awareness Stage: The invention is noticed by each individual customer. He is exposed to creativity, but he has little knowledge of it. He just knows a little bit about it. He is aware of it through conversations with acquaintances, family, salespeople, and dealers. He gets ideas for new products from a variety of sources, including newspapers, magazines, the Internet, television, outdoor media, and other forms of advertisement. He isn't paying much attention to the latest product at this stage. 71 CU IDOL SELF LEARNING MATERIAL (SLM)
2. Interest and Information Stage: The customer becomes interested in innovation at this point and tries to gather more knowledge. He gathers data from advertisements, salespeople, suppliers, new customers, and the company itself. He looks for information on qualities, functions, risk, manufacturers, brands, colour, shape, price, incentives, availability, services, and other relevant factors. Simply put, he gathers as much knowledge as possible. 3. Evaluation Stage: The cumulative data is now being used to assess the invention. To assess the value of innovation, the customer considers all relevant factors. He compares various aspects of innovation with existing goods, such as qualities, features, efficiency, price, after-sales services, and so on, to determine if the innovation should be tried out. 4. Trial Stage: Consumers are eager to try out new products. He tests it technically. To gain self-experience, he tries out the innovation on a small scale. He has the choice of purchasing the product or obtaining free samples. This is a crucial stage since it decides whether or not to purchase it. 5. Adoption Stage: If the trial yields positive outcomes, the buyer will eventually decide to adopt/purchase the innovation. Quantity, form, model, distributor, payment, and other issues are all decisions he makes. He buys the product and drinks it alone or with other family members. 6. Post Adoption Behaviour Stage: This is the final step in the consumer acceptance process. If a customer is pleased with a new product and associated services, he will purchase it again, and vice versa. He begins to use creativity on a daily basis and often speaks well of others. For a marketer, this is a critical move. Every stage of customer adoption necessitates the assistance of a marketer. He has to do everything he can to get them to try, buy, and replicate the invention. Make it clear that every type of consumer (innovators, early adopters, early majority, late majority, or laggards) goes through all stages of the adoption process, but takes a different amount of time to do so. 72 CU IDOL SELF LEARNING MATERIAL (SLM)
6.5 INFORMATION PROCESSING MODEL The IP Model, created by William McGuire, assumes that advertising viewers are information processors and problem solvers. This model is similar to the other response hierarchy models in that it explains how a consumer goes through six stages before making a buying decision. 1. Presentation The presentation process is when customers are informed about the product and that there is a new product on the market. At this point, ads must emphasise the new product's features and benefits. It will assist the consumer in distinguishing the product from an older or competing product. 2. Attention The consumer's attention must be drawn to the commodity. This is accomplished by the use of promotional materials. It's an example of an \"eyecatcher.\" To grab people’s attention, you have these weapons 3. Comprehension Customers give the commodity a thorough examination. Customers conduct research to see if there are any other items on the market that have the same function or value. What would the cost of this commodity be if I purchase it? 4. Yielding This move ensures that your customer enjoys your product. The term \"liking\" should not be confused with \"attachment\" to the product. In this case, liking refers to the consumer's perception of the brand's positive attributes. For instance, it's available, it appears to be a good product, it's safe, it's within my budget, and so on. 73 CU IDOL SELF LEARNING MATERIAL (SLM)
5. Retention The tendency of a customer to consider and remember relevant details about a product or service is referred to as retention. Since most advertisement is intended to inspire the consumer, knowledge retention is crucial. It doesn't happen right away, so it's used later to make a buying decision. 6. Behaviour The Information Processing Model's final step is behaviour. The procurement of goods and services is included in this point. Purchases can be made both offline and online. This stage explains how the advertising's goal is met and the buyer is persuaded to buy the product. 6.6 THE STANDARD LEARNING HIERARCH The Learning Hierarchy (Standard) In certain purchasing cases, the customer would follow the conventional communication models' response series. This is referred to as a typical learning model by Ray, and it consists of a read, feel, and do series. The basis for developing affect, or feelings, that guide what the consumer will do is information and knowledge acquired or learned about the various brands (e.g., actual trial or purchase). The user is viewed as an active participant in the communication process who gathers information through active learning in this hierarchy. When the customer is heavily involved in the purchasing process and there is significant distinction among competing brands, Ray suggests that the traditional learning hierarchy is likely. A typical learning hierarchy response mechanism is likely in high-involvement purchasing decisions such as those for industrial goods and services, as well as consumer durables such as personal computers, printers, cameras, appliances, and vehicles. Customers may use this information to assess brands and make purchasing decisions. Ads for goods and services in these areas are typically very informative and provide customers with information that can be used to evaluate brands and help them make a buying decision. 6.7ATTRIBUTION HIERARCHY Ray proposes a second response hierarchy in which customers act first, then establish behaviours or emotions as a result of that behaviour, and finally learn or process knowledge that supports the behaviour. 74 CU IDOL SELF LEARNING MATERIAL (SLM)
In situations where consumers must choose between two alternatives that are identical in quality but are complex and may have hidden or unknown attributes, this dissonance/attribution model, also known as do-feel-learn, occurs. The buyer could buy the product based on a non-media source's recommendation, then try to justify the purchase by cultivating a positive attitude toward the brand and possibly even negative feelings toward the rejected alternative (s). This alleviates any post-purchase dissonance or discomfort that the customer might feel as a result of their doubts about the purchase. Dissonance reduction entails selective learning, in which the user seeks out information that validates their decision while avoiding information that casts doubt on it. According to this model, advertisers must understand that expectations change after a purchase, just as they do after learning from the media. According to Ray, the key influence of the media in these circumstances is to reduce dissonance by promoting the wisdom of the purchase or supplying supportive facts, rather than to promote original option behaviour and attitude change. Some advertisers object to this interpretation of the response hierarchy because they refuse to believe that the media has no influence on a consumer's initial buying decision. However, the model does not say that the media has no influence; rather, it claims that the media has the greatest impact after the purchase has been made. Advertisement and promotion efforts must not only promote brand selection, but also reinforce choices and ensure that a buying trend can continue, according to marketing communications planners. 6.8 LOW INVOLVEMENT HIERARCHY – CONSUMER INVOLVEMENT The Hierarchy of Low Involvement The low-involvement hierarchy, in which the recipient is seen as moving from cognition to actions to attitude change, is perhaps the most intriguing of Ray's three response hierarchies. This sequence of read, do, and feel is thought to characterise low customer engagement in the buying process. This hierarchy, according to Ray, occurs when there is little involvement in the purchasing decision, there are little differences between brand alternatives, and mass-media (especially broadcast) advertising is significant. The concept of a low-involvement hierarchy is based in part on Herbert Krugman's theory of television advertising's effects. Krugman was curious as to why television commercials had such a strong impact on brand recognition and recall but had no influence on customer perceptions toward the product. He theorised that television is essentially a low-involvement medium, and that during 75 CU IDOL SELF LEARNING MATERIAL (SLM)
advertisements, the viewer's perceptual defences are diminished or even absent. The user does not equate the message to previously learned views, needs, or past experiences in a low- involvement situation. With regular viewing, the ad causes subtle shifts in the consumer's information structure. This shift in customer awareness is not associated with a shift in mindset, but rather with understanding more about the advertised brand, such as a brand name, ad style, or slogan. This knowledge may be sufficient to cause a purchase, according to Krugman, when the buyer enters a purchase situation. As a result of their interaction with the purchased brand, the customer may develop an opinion about it. As a result, in a low-involvement scenario, the answer sequence is: Message exposure with minimal intervention Cognitive system shift Purchase Positive or negative experience Attitude forming Instead of actively finding information, the user in the low-involvement hierarchy participates in passive learning and random information catching. Non-message elements such as music, characters, symbols, slogans or jingles, and non-message elements such as music, characters, symbols, and slogans or jingles may be more important to a passive, uninterested audience than actual message material. The advertiser could take advantage of this situation by creating a catchy jingle that is stored in the consumer's mind without any active cognitive processing and becomes salient while he or she is in the buying situation. Advertisers for low-involvement goods often repeat basic product claims like a main copy point or a unique product value. According to Scott Hawkins and Stephen Hoch's research, repeating basic product statements improved consumers' recall and trust in those claims under low-involvement conditions. They came to the conclusion that for low-involvement goods, a heavy repetition strategy could be more profitable than reaching wider audiences with longer, more informative messages. For over 20 years, Heinz has dominated the ketchup industry by consistently claiming that its brand is the thickest and richest. Over the years, Heinz has used a number of promotional campaigns. They have all shared the same simple message, which is that Heinz is the best and most favoured ketchup brand. 76 CU IDOL SELF LEARNING MATERIAL (SLM)
6.9 SUMMARY • AIDA (Attention, Interest, Desire, and Action) is an acronym that stands for Attention, Interest, Desire, and Action. When a customer watches or views an advertising, they go through these four steps. • Awareness, information, liking, choice, belief, and purchase are the stages of the Hierarchy of Effects. • The consumer adoption process consists of the following steps: awareness, interest and information, evaluation, trial, adoption, and post-adoption behaviour. • Presentation, focus, comprehension, yielding, retention, and behaviour are the six phases of the information processing model. • The Hierarchy of Low Involvement The low-involvement hierarchy, in which the recipient is seen as moving from cognition to actions to attitude change, is perhaps the most intriguing of Ray's three response hierarchies. 6.10 KEYWORDS • AIDAS: Attention, Interest, Desire, Action and Satisfaction • Hierarchy a system in which members of an organization or society are ranked according to relative status or authority. • Innovation is a process by which a domain, a product, or a service is renewed and brought up to date. • Laggards comprise a group of consumers who avoid change and may not be willing to adopt a new product until all traditional alternatives are no longer available. 6.11 LEARNING ACTIVITIES 1. Find out how AIDA model is applied in Unilever Limited. Explain ___________________________________________________________________________ ___________________________________________________________________________ 2. Find out how information process model is applied in a telecom company. ___________________________________________________________________________ ___________________________________________________________________________ 77 CU IDOL SELF LEARNING MATERIAL (SLM)
6.12 UNIT END QUESTIONS A. Descriptive Questions Short Answers 1. What are the Stages of Hierarchy of Effects? 2. List out the stages in Consumer Adoption Process 3. Write a short note on Information processing model in detail. 4. Write a short note on standard learning hierarchy 5. Write a short note on attribution hierarchy Long Answers 1. Explain AIDA Model in Detail. 2. Explain Hierarchy Adoption Model in detail 3. Explain Information processing model in detail. 4. Explain the standard learning hierarchy 5. Explain attribution hierarchy B. Multi-Choice Questions 1. Awareness, Interest, Evaluation, Trial, and Adoption are stages of a. AIDA Model b. Hierarchy-of-Effects Model c. Innovation-Adoption Model d. Information Processing Model 2. Awareness, Knowledge, Liking, Preference, Conviction, and Purchase are stages of a. AIDA Model b. Hierarchy-of-Effects Model c. Innovation-Adoption Model d. Information Processing Model 3. Attention, Interest, Desire, and Action are stages of a. AIDA Model b. Hierarchy-of-Effects Model 78 CU IDOL SELF LEARNING MATERIAL (SLM)
c. Innovation-Adoption Model d. Information Processing Model 4. Presentation, Attention, Comprehension, Yielding, Retention and the Behavioural stage. a. AIDA Model b. Hierarchy-of-Effects Model c. Operational Model d. Information Processing Model 5. A source characteristic frequently used by advertisers is attractiveness, which encompasses similarity, familiarity and likability. a. Source Credibility b. Source Power c. Source Attractiveness d. None of these Answers 1 -c, 2 –b, 3 - a, 4 – d, 5 – c 6.13 REFERENCES • Advertising Management, Jayshree Jethwaney & Shruti Jain, Oxford University Press • Advertising & Promotions: An IMC perspective, Kruti Shah and Alan D’Souza, Tata McGraw Hill • Advertising Management, Aakar, Batra and Myers, Prentice • Advertising & Promotions, S H Kazmi and Satish K Batra, Excel • Advertising; Principles and Practice, Wells, Moriarty and Burnett, Pearson • Advertising & Promotion: An IMC approach, Terence A. Shimp Pub., Cengage Learning. 79 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 7. COMMUNICATION PROCESS AND OTHER MODEL Structure 7.0 Learning Objective 7.1 Introduction 7.2 The Elaboration Likelihood (ELM) model 7.3 Foote, Cone and Belding (FCB) Model 7.4 Summary 7.5 Keywords 7.6 Learning Activities 7.7 Unit End Questions 7.8 References 7.0 LEARNING OBJECTIVE After studying this unit, you will be able to: • State the Communication Process Models • Explain ELM Model • Describe the Foote • Explain FCB Model 7.1 INTRODUCTION The process of forming, understanding, and negotiating meaning is known as communication. Verbal, nonverbal, and written communication are all forms of communication. It may be audible, visual, or even physical in nature. Communication may be done in a number of ways, but it is still a learned behaviour. People must learn to communicate by codes, symbols, and language systems, despite the fact that most humans are born with the physical ability to talk, hear, see, and so on. Communication is therefore a group activity in which people use symbols to create and interpret context. 80 CU IDOL SELF LEARNING MATERIAL (SLM)
7.2 THE ELABORATION LIKELIHOOD (ELM) MODEL Introduction Richard E. Petty and John T. Cacioppo developed the Elaboration Likelihood Model in the 1980s. Persuasion is very much a part of our everyday lives. When readers, listeners, or viewers absorb a message about what they read, listen to, or watch, they are persuaded. We will be convinced by the message and we will remember it as thoughts. That's how we'll always remember them. We won't remember anything if we didn't learn it, and we won't be swayed by it if we didn't understand it. Training, on the other hand, cannot always be combined with persuasion. For example, there might be commercials that we despise because we don't want to understand or remember the message, and we aren't convinced by them. The Elaboration Likelihood Model (ELM) describes how a persuasion message affects a reader's or viewer's attitude. It is important for businesses and advertising agencies to consider and plan market campaigns that are based on people's attitudes. Theory Persuasion is described as the process of persuading or persuading someone to do something by using logic or argument. According to the Elaboration Likelihood model, any message goes through two stages of persuasion. They are known as the Central and Peripheral routes. Both are effective persuasion methods, but each has its own set of guidelines for making them more effective. Central Route The Central route's persuasion method is straightforward and comprehensive. The central route necessitates a careful examination of the arguments contained in the letter. It necessitates a greater level of participation on the part of the reader or viewer. The message's recipient carefully considers the message and considers it from all angles. As the message is processed via the central pathway, the receiver's active involvement, as well as his confidence and ability to think, are critical. Simply put, the recipient should be interested in the message and subject matter. The central route is very efficient. Someone who is overwhelmed or has difficulty interpreting the message may be unable to complete the central processing. The downside of this strategy is that if the message does not specifically reach the recipient, the message will be ignored. Example 81 CU IDOL SELF LEARNING MATERIAL (SLM)
A woman who is passionate about platinum jewellery will pay careful attention to ads for platinum jewellery. She is enthralled with new trends and has a tendency to collect them. She is interested in the topic and is motivated to learn more about it. She considers and carefully processes the post. And her husband might not be interested in jewels, so the message from commercials about jewels would be completely ignored by him. The message is processed by the woman, not her husband, in her central path. Peripheral Route The peripheral route is weak, and the receiver's involvement will be minimal. The message sent through the peripheral route is not cognitively evaluated. The message's recipient is undecided on whether to agree or disagree with the message. Since the individual will not be able to expand on the message enough, he will be convinced by factors unrelated to the message in the end. This is where packing, promotion, advertisement, and public relations come into play. People are not always in a position to carefully consider the message, so they will seek out the next best choice for being convinced. Example Brian, a high school student, is in a bookstore looking for a note book to help him with his homework. He notices a variety of designs on the notebook's front cover from different firms. He became perplexed when he saw a notebook with a picture of his favourite football player on the front cover. He bought the notebook without giving it much thought. 7.3 FOOTE, CONE AND BELDING (FCB) MODEL Definition: The FCB grid or Foote, Cone and Belding model is an integrative approach to interpret the consumer’s buying behaviour and its implication for adopting suitable advertising strategy. It is depicted on a matrix with the help of four significant factors, i.e., thinking, feeling, high involvement and low involvement. Richard Vaughn and his colleagues proposed the FCB Model in 1980. At the time, he was the Senior Vice President of FCB (Foote, Cone and Belding), an advertising firm. The theory of the right or left brain was used to create this model. The feeling factor of this model is similar to how the right brain of a human body indicates emotional attributes. In addition, the thought factor on the left side of the matrix represents human rational behaviour, just as the left brain does. FCB Matrix 82 CU IDOL SELF LEARNING MATERIAL (SLM)
The FCB matrix is based on a pattern of four significant factors. On the x-axis, the thinking to feeling factor shifts from left to right, and on the y-axis, high to low involvement moves from top to bottom. Let us now see how the quadrants formed vary from one another: Figure 7.1 Informative (Quadrant 1): This group includes costly goods that have a high degree of value to customers and necessitate extensive thought for decision-making. The prospective buyer first reads or collects all available information about the product, then determines whether or not it is necessary to purchase it, and finally makes the final purchase. Affective (Quadrant 2): Affective goods are desirable items that have an emotional component and necessitate customer participation. A feel, read, and do order is followed by the buyer. That is, he or she first forms a bond with the brand or commodity, then learns everything there is to know about it before purchasing it. Habitual (Quadrant 3): Everyday necessities are included in this group of goods. As a result, the consumer has a low level of involvement but makes analytical decisions while buying these products. The buyer first obtains the product, tests it, and decides if it meets the buyer's needs; after that, the buyer builds confidence in the brand. Satisfaction (Quadrant 4): This quadrant contains goods whose purchase is motivated by emotions but does not necessitate extensive customer participation. The customer buys the product, has an emotional reaction to it (positive or negative), and then learns more about it. 83 CU IDOL SELF LEARNING MATERIAL (SLM)
Examples Bajaj Allianz Life Insurance ‘Early Retirement Life Goal’ Advertisement: It demonstrates how, by opting for this early retirement package, one can plan for retirement from work before reaching the age of 60. This product falls into the insightful or high participation and thought group, which is located in the first quadrant. Tanishq’s festive collection ‘Virasat’: On the auspicious festival of Diwali, the company highlighted the importance of the ancient practise of buying and worshipping gold jewellery in its advertising. Thus, it truly belongs to the high involvement and feels section, which is categorized in the second quadrant as an affective product. Ghadi Machine Wash: This product is marketed as a professional for washing clothes in the washing machine, which not only saves time but also money for the consumer. This is a common commodity, and its selection is based on low involvement, though it does necessitate some thought; therefore, it falls into the third quadrant. Sunfeast Dark Fantasy’s ‘New Meetha’ campaign: The product commercial depicts how this indulgent biscuit can satisfy your sweet tooth. It is marketed as a healthier alternative to traditional Indian sweets. Product Categorization on FCB Grid The FCB grid is extremely important in determining which group a product belongs to. If the organisation understands the value of a product to the consumer, the marketing plan for the goods and services will be better determined. Let us instantly have a look at the different product and their categories 84 CU IDOL SELF LEARNING MATERIAL (SLM)
Figure 7.2 Quadrant 1 – Informative: High-value items, which are typically purchased only once in a lifetime, necessitate a great deal of thought and involvement on the part of the buyer. Property, land, insurance, a family vehicle, savings, and a protection system are just a few examples. Quadrant 2 – Affective: These goods are useful, but the buyer's feelings, rather than critical reasoning, affect their buying decision. Bridal gowns, jewellery, cosmetics, antiques, and perfumes are only a few examples. Quadrant 3 – Habitual: Habitual goods are things that are used on a daily basis, such as household cleaners, oil, detergent, newspapers, and so on. Quadrant 4 – Satisfaction: Ice creams, confectioneries, fast food, soft drinks, casual clothing, entertainment, and greeting cards are examples of items that satisfy customers when purchased or consumed. Advertising Strategies in Relation to FCB Grid Since all promotional campaigns are designed to reach out to a specific audience, it is critical to comprehend the degree of customer expectation and interaction. The FCB grid depicts the buyer's decision-making process, assisting businesses in directing their marketing activities in the right direction. 85 CU IDOL SELF LEARNING MATERIAL (SLM)
Following are the various types of strategies which can be used for advertising products lying in the specific quadrant: Personal Selling Given that the goods in the first quadrant are typically once-in-a-lifetime or high-value purchases, consumers must obtain adequate product details. Personal selling is an excellent way to communicate directly with customers and to address their concerns. Long and Informative Advertisements To communicate with potential customers, most items in the first quadrant, as well as those in quadrants two and three, require long and engaging advertisements. Such a marketing strategy is needed for routine products to develop a distinct brand image. Direct Marketing Direct marketing can be used to promote a variety of items; however, it is most often used to promote informative and affective products because consumers want to feel confident about their purchases. Public Relations When it comes to goods with a high level of engagement and a strong emotional component, good public relations can go a long way. As a result, this integrative marketing strategy is widely used in the advertisement of affective goods. Brand Advertisements Such advertisements emphasise and reinforce brand values in order to communicate with the viewer. Such ads not only increase brand loyalty but also offer a high level of satisfaction to customers. As a result, this technique is used to promote the majority of the goods in quadrants two and four. Broadcast Advertisements Items with a low level of customer interest are sold on television or radio. This makes it easier for brands in quadrants three and four to reach out to potential mass buyers. Free Samples 86 CU IDOL SELF LEARNING MATERIAL (SLM)
To take advantage of the discount, many of us purchase goods with free offers or trial packs. This technique is widely used to entice customers to pursue a new line of goods from the third quadrant. Sales Promotion Companies pitch the goods in quadrants two and four using various strategies such as discounts, gifts, reward points, and so on. Point of Purchase Advertisements To support the goods of quadrants two and four, these commercials are most often shown in department stores, malls, and other stores. These are the locations where ads will get the attention of potential customers right away. Word of Mouth Publicity This is the most reliable product marketing approach since it is applicable to products in quadrants two, three, and four. Current customers publicise or speak about the goods in order to generate interest or increase demand. Feel Good Advertisements This joy marketing term is primarily used for items in the fourth quadrant. The explanation for this is that the pleasure or enjoyment that customers experience as a result of owning a product necessitates brand connection and emotional embracement. Billboard Advertisements While waiting for the lights to turn green, we sometimes come across billboard advertising on the side of the lane. Such a plan fascinates and creates an immediate demand for goods in the fourth quadrant. 7.4 SUMMARY • In the 1980s, Richard E. Petty and John T. Cacioppo developed the Elaboration Likelihood Model. Persuasion is very much a part of our everyday lives. The Elaboration Likelihood Model (ELM) describes how a persuasion message affects a reader's or viewer's attitude. It is important for businesses and advertising agencies to consider when developing market strategies and determining consumer attitudes. The FCB model was created with the aid of the right or left-brain theory. The feeling 87 CU IDOL SELF LEARNING MATERIAL (SLM)
factor of this model is similar to how the right brain of a human body indicates emotional attributes. • The FCB matrix is based on a pattern of four significant variables. Satisfaction (Quadrant 1), Informative (Quadrant 2), Affective (Quadrant 2), Habitual (Quadrant 3). (Quadrant 4) • Personal selling is an excellent way to communicate directly with customers and to address their concerns. 7.5 KEYWORDS • ELM (Elaboration Likelihood Model) The elaboration likelihood model (ELM) of persuasion is a dual process theory describing the change of attitudes. • FCB (Foote, Cone and Belding model) is an integrative approach to interpret the consumer’s buying behaviour and its implication for adopting suitable advertising strategy. • Direct marketing consists of any marketing that relies on direct communication or distribution to individual consumers, rather than through a third party such as mass media. • Personal selling is where businesses use people (the \"sales force\") to sell the product after meeting face-to-face with the customer • Billboard (also called a hoarding in the UK and many other parts of the world) is a large outdoor advertising structure (a billing board), typically found in high-traffic areas such as alongside busy roads. 7.6 LEARNING ACTIVITIES 1. Explain real time example of any two companies who have implemented ELM model. And how did they benefit from it? ___________________________________________________________________________ ___________________________________________________________________________ 2. Explain real time example of any two companies who have implemented FCB model. And how did they benefit from it? 88 CU IDOL SELF LEARNING MATERIAL (SLM)
___________________________________________________________________________ ___________________________________________________________________________ 7.7 UNIT END QUESTIONS A. Descriptive Questions Short Answers 1. Explain Central Route in ELM Model. 2. What are the Advertising Strategies in Relation to FCB Grid? 3. What is ELM Model? 4. What is FCB Model? 5. Write about FCB Matrix with example. Long Answers 1. Write in detail about FCB Model. 2. Explain ELM Model. 3. Explain the Product Categorization on FCB Grid B. Multi-Choice Questions 1. _________works on the four significant factors arranged in a pattern. a. Innovation Model b. ELM Model c. FCB Matrix d. None of these 2. ___________is weak and the involvement of the receiver will be low. a. Central Route b. Peripheral Route c. Linear Route d. None of these. 3. The strategy of ________works for all kinds of products; however, it is prominently used for advertising the informative and affective products since the buyers need to get assured of whatever they buy. 89 CU IDOL SELF LEARNING MATERIAL (SLM)
a. Direct Marketing b. In-direct Marketing c. Traditional Marketing d. None of these 4. What is 3rd Quadrant in FCB Matrix? a. Satisfaction b. Affective c. Informative d. Habitual 5. What is 1st Quadrant in FCB Matrix? a. Satisfaction b. Affective c. Informative d. Habitual Answers 1 - c, 2 –b, 3 - a, 4 – d, 5 -c 7.8 REFERENCES • Advertising Management, Jayshree Jethwaney & Shruti Jain, Oxford University Press • Advertising & Promotions: An IMC perspective, Kruti Shah and Alan D’Souza, Tata McGraw Hill • Advertising Management, Aakar, Batra and Myers, Prentice • Advertising & Promotions, S H Kazmi and Satish K Batra, Excel • Advertising; Principles and Practice, Wells, Moriarty and Burnett, Pearson • Advertising & Promotion: An IMC approach, Terence A. Shimp Pub., Cengage Learning 90 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 8. PLANNING FOR MARKETING COMMUNICATION (MARCOM) Structure 8.0 Learning Objective 8.1 Introduction 8.2 Establishing marcom Objectives 8.3 Budgeting for Promotional Programmes 8.4 Setting communication objectives 8.5 Sales as marcom objective 8.6Summary 8.7Keywords 8.8 Learning Activities 8.9 Unit End Questions 8.10 References 8.0 LEARNING OBJECTIVE After studying this unit, you will be able to: • Explain MARCOM Objectives • Describe Budgeting for Promotional Programmes • Describe communication objectives • Explain Sales as marcom objective 8.1 INTRODUCTION Marcom, or marketing communication, is the process by which businesses educate, inform, urge, and inform customers about their goods, solutions, and brands, either directly or indirectly. Marcom is a term that refers to a company's and its brands' ability to communicate with and establish relationships with customers. It enables businesses to link their brands to individuals, locations, experiences, activities, and feelings. It can also help businesses demonstrate how a product operates, its use cases, why it's used, who profits from it, and how valuable it is to the target audience. 91 CU IDOL SELF LEARNING MATERIAL (SLM)
8.2 ESTABLISHING MARCOM OBJECTIVES Integrated marketing communications goals are statements that describe what the IMC programme can achieve in different areas. They should be focused on the specific communications activities that must be completed in order to send the right messages to the right people. Managers must be able to convert broad marketing objectives into precise correspondence and promotional targets. The marketing strategy, which should provide valuable details on • The market segments the firm wants to target and the target audience, could provide some guidance in this regard (demographics, psychographics, and purchase motives). • The product's key characteristics, advantages, benefits, implementations, and uses. • Logos of the company and its rivals (sales and market share in various segments, positioning, competitive strategies, promotional expenditures, creative and media strategies, and tactics). • Suggestions for how the brand should be placed, as well as clear behavioural responses (trial, repurchase, brand switching, and increased usage). Communications Objectives Some marketers are aware of the issues that come with sales-oriented goals. They understand that the primary goal of an IMC programme is to connect, and that preparation should be focused on that goal. Advertising and other promotional campaigns aim to increase brand awareness and interest, as well as positive attitudes and image, and purchasing intentions. Advertisers recognise that they must include relevant information and develop favourable predispositions toward the brand before buying behaviour can occur; instead, consumers are required to react quickly. Effects of Communication Pyramid Advertising and promotion achieve communications tasks in the same way that a pyramid is designed, by achieving lower-level goals like recognition, understanding, and comprehension first. Consumers who are aware of or informed about the product or service are moved to higher levels in the pyramid in subsequent tasks. The first stages of the pyramid, such as trial and repurchase or casual use, are easier to complete than those at the top, such as regular use. As a result, as they progress up the pyramid, the number of potential customers will decrease. The communications effects 92 CU IDOL SELF LEARNING MATERIAL (SLM)
pyramid is used to show how a company launching a new brand of shampoo targeted at 18- to 34-year-old females could set its IMC objectives. The communications pyramid can also be used to set advertising goals for a well-known brand. The advertising planner must figure out where the target group fits into the pyramid's different blocks. If a brand's reputation and knowledge of its features and benefits are poor, the goal of communications should be to raise them. If these pyramid blocks are already in place, but liking or desire for the brand is poor, the advertising aim could be to shift the target market's perception of the brand and encourage them to buy. Obstacles to Communicating Your Goals Not all marketing and advertising executives agree communications objectives; others argue that translating a sales target into a concrete communications goal is too difficult. However, a sales target must eventually be turned into a communications goal. If the goal of a marketing campaign for an existing brand is to increase revenue by 10%, the promotional manager would need to consider the message that will be conveyed to the target audience in order to accomplish this. The following are some examples of possible objectives: • Increasing the percentage of target market customers who associate our brand with unique attributes, benefits, or advantages. • Increasing the number of customers in the target market who prefer our product to that of competitors. • Encouraging existing customers to use the product more often or in different circumstances. • Encouraging people who haven't tried our brand to do so. 8.3 BUDGETING FOR PROMOTIONAL PROGRAMMES Establishing the Budget The advertisement and promotion budget of a company can range from a few thousand dollars to over a billion dollars. As companies like Ford, Procter & Gamble, and General Motors spend more than 2 billion dollars a year on product promotion, they hope to achieve their specified goals. The budget decision is no less important for a company investing a few thousand dollars; the money spent will determine the company's overall success or failure. One of the most important choices a marketing manager must make is how much to spend on promotion. Unfortunately, many executives are unaware of the importance of advertisement and promotion. They look at the communications budget as a cost rather than a return on 93 CU IDOL SELF LEARNING MATERIAL (SLM)
investment. Instead of seeing budget costs as a way to increase revenue and market share, they see them as a way to reduce revenues. As a result, when times are difficult, the advertisement and promotional budget is the first to be cut—despite the fact that there is clear evidence to the contrary. Furthermore, the decision is not a one-time obligation. Every year, when a new product is launched, or when internal or external factors necessitate a change to preserve competition, a new budget is created. Budgeting, despite being one of the most important decisions, has proven to be the most resistant to reform. A comparison of ads and promotional texts over the last ten years reveals the same budgeting processes. This process' theoretical foundation is still based on economic theory and marginal analysis. (Advertisers often use a contribution margin strategy, which is the contrast between a brand's overall sales and its total variable costs.) However, as Robert Steiner points out, marginal analysis and contribution margin are nearly interchangeable terms.) We'll start our budgeting discussion by looking at these theoretical approaches. Theoretical Issues in Budgeting The majority of the models used to determine advertising budgets are classified as either economic or sales response models. Marginal Analysis The definition of marginal analysis is graphically represented by Marginal Analysis. Sales and gross margins rise in tandem with advertisement promotional spending to an extent, but then level off. Profits are calculated by deducting promotional costs from the gross margin. A company will continue to spend advertising/promotional dollars as long as the marginal profits generated by these expenses exceeded the incremental advertising/promotional costs, according to this theory. The optimum level of spending is when marginal costs are equal to marginal revenues produced (point A). If the total advertising/promotional costs exceeded the profits raised, the appropriations would be deemed excessive, and the budget would be reduced. A larger budget would be necessary if sales were higher. Though marginal analysis appears rational on the surface, it has a number of flaws that limit its utility. The assumptions that (1) sales are a direct result of advertisement and promotional expenses and that this impact can be calculated, and (2) that advertising and promotion are primarily responsible for sales are among these flaws. Sales Response Models Even though advertisement and marketing activities continue to rise, the revenue curve is flattening. The relationship between ads and sales has been the subject of a lot of study and debate in order to figure out what form the response curve might take. 94 CU IDOL SELF LEARNING MATERIAL (SLM)
The concave-downward function or the S-shaped response curve are the two models of the advertising/sales response function that almost all marketers follow. • The downward concave features. Julian Simon and Johan Arndt concluded that the effects of advertising budgets obey the microeconomic rule of diminishing returns after analysing more than 100 reports on the effects of advertising on revenue. That is, the incremental value of ads decreases as the volume of advertising increases. The logic is that those who are most likely to buy will react to the first (or earliest) exposures, whereas those who are less likely to buy will be unaffected by the ads. For potential buyers, each new ad will have little to no new details that will influence their decision. Concave-downward function model: Advertising's effects start to fade after a short time. According to this model, less advertisement dollars might be required to have the greatest impact on revenue. • The answer feature in the form of a S. The S-shaped response curve, which projects an S- shaped response feature to the budget outlay, is assumed by many advertising managers (again measured in sales). The advertising budget's initial outlays have no effect (as indicated by the essentially flat sales curve in range A). Ad and promotional campaigns begin to have an impact after a certain budget level has been met (the start of range B), as additional expenditure increments result in increased sales. However, since additional expenses begin to return little or no revenue at the beginning of range C, this incremental benefit extends only to a point. 8.4 SETTING COMMUNICATION OBJECTIVES One of the reasons why advertising targets receive so much attention is that advertising has historically been the primary means of communication with target markets for many businesses. Other components of the promotional mix, such as product promotion, direct marketing, and publicity, are used sparingly to help and complement the advertising campaign. Another explanation is that for too long, conventional advertising-based marketing communications strategy approaches like DAGMAR have dominated the industry. These methods are based on a hierarchical response model and consider how marketers can create and disseminate advertisement messages in order to drive consumers down an effects route. Professor Don Schultz refers to this method as \"inside-out preparation.\" It focuses on what the marketer wants to say, when the marketer wants to say it, about things the marketer feels are relevant about his or her brand, and in the media forms the marketer wants to use, 95 CU IDOL SELF LEARNING MATERIAL (SLM)
according to him. For IMC, Schultz recommends an outside-in planning approach that begins with the consumer and works backwards to the brand. This ensures that promotional planners research the different media that consumers and prospects use, as well as when the marketer's advertisements are most important to them and when they are most likely to be receptive to them. Professor Tom Duncan proposes a similar strategy, arguing that IMC should use zero- based communications planning, which entails deciding which activities must be completed and to what degree marketing communications functions should be used. This method concentrates on the job at hand and looks for the best suggestions and media to complete it. An IMC campaign, like a conventional advertisement campaign, starts with a big idea, according to Duncan. Public relations, direct reaction, packaging, or product promotion are all examples of big ideas in IMC. Duncan recommends that a successful IMC programme start with the marketing communications function that best addresses the company's key challenge or opportunity, and then use a promotional combination that leverages the strengths of whichever communications functions are most relevant to the situation. Many of the factors that go into deciding advertising targets often apply to determining goals for other aspects of an integrated marketing communications programme. 8.5 SALES AS MARCOM OBJECTIVE Marketing communication objectives are long-term targets that aim to increase the value of your brand over time through marketing campaigns. Communication goals work when you convince consumers by constant affirmation that your brand has advantages, they want or need, as opposed to sales promotions, which are short-term inducements to purchase. (i) To Increase Awareness: Increased brand recognition is not only one of the most common marketing communication goals, but it's also the first for most new businesses. When you first reach the market, you must make people aware of your business and its goods or services. This may include television advertisements or print advertising that portray your company's logo, as well as repeated repetition of your brand name, slogans, and jingles. The goal is to become well- known and unforgettable. Establishing or sustaining top-of-mind recognition, which ensures consumers think of you first when evaluating your product category, is a common goal for established businesses. 96 CU IDOL SELF LEARNING MATERIAL (SLM)
(ii) To Change Attitudes: Another common communication goal is to change people's views of a business or a brand. Misconceptions about your business, goods, or services will arise in the marketplace. Advertising allows you to speak directly to them. Bad publicity can also arise from the company's involvement in a business controversy or other troubling activities. Following its notorious Gulf of Mexico oil spill in mid-2010, BP spent millions of rupees on ads to justify the company's clean-up efforts to the public. Local businesses don't usually have that kind of budget, but local radio or print advertisements will suffice. (iii) To Influence Purchase Intent: One of the most important communication goals is to encourage consumers to purchase. This is typically accomplished by persuasion marketing, which emphasises the superior advantages to the customer, usually in comparison to rivals. It's important to connect with the underlying need or desire that motivates a consumer to take action. Commercials for sports drinks that feature athletes competing, getting hot and sweaty, and then drinking afterward are a popular way to increase buying intent. The benefits of the drink, such as taste or nutrients, are usually mentioned in the advertisements. (iv) To Stimulate Trial Purchase: Two distinct but related communication goals are to encourage trial use and encourage repeat purchases. Customers are also persuaded to try the product for the first time by free trials or product samples. The aim is to remove the risk for the customer and enable them to experience your brand. Once you've had them on your first purchase, you'll need to find out how to turn it into a repeat purchase. One-time consumers can be converted into repeat buyers and, eventually, lifelong customers through discounts on subsequent purchases or frequency systems. 8.6 SUMMARY • Advertising is a paid type of non-personal contact about any product, service, or concept, with the aim of informing potential consumers about certain goods and services, as well as how to access and use them. • Many ads are often intended to increase consumption of such products and services by establishing and reinforcing brand awareness and brand loyalty. 97 CU IDOL SELF LEARNING MATERIAL (SLM)
• Advertisements often contain both insightful and persuasive messages for this reason. The unique selling proposition (USP) of a product is emphasised in its marketing. • DAGMAR stands for Defining Advertising Goals for Measured Advertising Results in its full form. It's essentially a method for establishing promotional objectives and measuring the effectiveness of those objectives. • There are many forms of advertising: Product Promotion, Institutional Promotion, Consumer Promotion, and Industrial Promotion Advertising on a national and local level, as well as commercial and non-commercial advertising, Advertising that is both rational and emotional 8.7 KEYWORDS • Direct Marketing: Interactive marketing system using media • MARCOM – Marketing Communication refers to the means adopted by the companies to convey messages about the products and the brands they sell, either directly or indirectly to the customers with the intention to persuade them to purchase • Promotions refer to the entire set of activities, which communicate the product, brand or service to the user. • Marginal Analysis: is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits. 8.8 LEARNING ACTIVITIES 1. Case study: Microsoft has been continuously taking up several Artificial Intelligence (AI) projects and has placed AI high up in its product portfolio. To promote its AI offerings, Microsoft teamed up with Carlsberg to use AI to speed up the process of brewing new flavours of the beer. The company has marketed this project using the integrated marketing approach using a multitude of channels. Microsoft is an American technology company. It develops, 98 CU IDOL SELF LEARNING MATERIAL (SLM)
manufactures, licenses, supports and sells computer software, consumer electronics, personal computers, and related services. Their mission is to 'empower every person and every organization on the planet to achieve more.' Print and media are a pivotal part of Microsoft's marketing strategy. Microsoft spends upwards of $1.5 Billion for Print and media alone. One of its ingenious print advertising campaigns for Microsoft's Office 365 software includes the WIFI-enabled promotion on the Forbes magazine. sleek router with a battery placed within the magazine gave its subscribers free WIFI for 15 days. This gimmick ensured that readers had to retain the magazine him at all times and contributed multiple exposures of the ad to the reader. Currently, Microsoft is undertaking a slow shift from traditional media to social media and other online platforms. Microsoft has been continuously taking up several Artificial Intelligence (AI) projects and has placed AI high up in its product portfolio. To promote its AI offerings, Microsoft teamed up with Carlsberg to use AI to speed up the process of brewing new flavors of the beer. 1. How the company has marketed this project using the integrated marketing communication approach using a multitude of channels of promotions? ___________________________________________________________________________ ___________________________________________________________________________ 2. Advertising aims either at informing, persuading, or reminding consumers about a product or service. For accomplishing each of these objectives, collect three ads that address at least one of these objectives. Do you think the ads are effective? ___________________________________________________________________________ ___________________________________________________________________________ 8.9 UNIT END QUESTIONS A. Descriptive Questions Short Answers 99 CU IDOL SELF LEARNING MATERIAL (SLM)
1. What are communication objective? 2. What is Marginal Analysis? 3. How to motivate customers to purchase? 4. What is sales response models? 5. What is Concave-downward function model? Long Answers 1. Describe MARCOM Objectives. 2. Explain Budgeting for Promotion 3. Describe Setting Communication Objectives 4. Describe sales as MARCOM Objectives. B. Multi-Choice Questions 1. The advertising budget procedure used most frequently is the ___________ method. a. percentage-of-sales b. arbitrary allocation c. marginal cost d. None of these 2. At what stage of the PLC (Product Life Cycle) can a higher price usually be charged? a. Introduction b. Decline c. Maturity d. None of these 3. The optimal expenditure level is the point where marginal costs equal the marginal revenues they generate. a. Nominal expenditure b. Optimal expenditure c. Medium d. None of these 100 CU IDOL SELF LEARNING MATERIAL (SLM)
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