Chapter 3

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Unit- 3
Marketing Communication
Aschalew Adane (Asst. Prof)

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Learning Objectives
After completing this unit the trainee will be able to:
 Able to define marketing communication;
 Understand basic features/ nature of marketing
communication;
 Explain the human communication system;
 Analyze basic model of communication;
 Examine the major characteristics of the source,
message/ message variables and channel factors

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 Communication has been variously defined as “the passing

of information,” the exchange of ideas, “or as the process
of establishing a commonness or oneness of thought
between a sender and a receiver.
 The communication process is often very complex, with
success depending on many factors such as:
 The nature of the message)
 The audience’s interpretation of it, and
 the environment in which it is received.

The Flow of Communication
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Marketing communication has an external and

internal flow of information.
 The External Flow is directed at:
 past,present,and potential customers ,at
resellers ,both wholesalers and retailers ;
 at other companies (competing & non-
competing) ; and
 at various audiences, such as
government agencies ,private
agencies ,and experts in the field.
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It communicates:
 With past customers through advertising and

direct mail ;
 With current customers through
advertising ,warranties ,product updates ,and
material on how to use its products ; and
 With potential customers through advertising,
point of purchase displays ,salespeople ,and
so on.

The Flow of Communication
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The Internal Flow of marketing communication:

It involves employees in general, specific departments of the organization, and
stockholders.
 Employees often need to know what marketing is doing ,especially
when the organization is introducing new products or deleting old
ones ,changing prices ,or distributing the product in new outlets or
markets .
 By influencing how employees perceive their organization,
marketing communication can help shape their morale and
performance.
 If employees feel they are working for an innovative market leader
that produces highly regarded ads, for example, they are likely to
work harder, stay with company longer, and become positive
opinion leaders in public.
 Marketing must communicate with other areas of the firm as well.
The Basic Model of Communication
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Words, speakers, messages, and listeners together form a system.

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i)Sources Encoding
 The sender or the source, or initiator, of the

communication process can be an
individual, a group, or an institution that
wishes to transmit a message to the receiver,
which may be another individual, group, or
institution.

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ii)Encoding:
 Encoding is the process of putting

thoughts, ideas, or information into a
symbolic form.
 The process of transforming thoughts

into a sequence of symbols is called
Encoding.
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iii)Message
The sender accomplishes the

transmission of the message by selecting
and combining a set of symbols in order
to convey some meaning to the receiver.

iv)Channel
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 The Channel is the method or medium by which the

communication travels from the source or sender to the
receiver.
 The message must be delivered through a medium that the

receiver uses and at opportune time.
 Delivering the same message through two different media

can produce very different results.
 Possible media may be classified as either personal or non

personal.
v)Receiver
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/ Decoder
 Decoding is the process of transforming and

interpreting this sender’s message back into thought.
 The receiver is the person with whom the sender shares

thoughts or information.
 Generally, the receivers are the consumers in the

audience or market targeted by a company who read,
hear, and /or see the marketer’s message and decode it.

Types of Communication Systems and Their Characteristics
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Types
Characteristics
Complexity Contact/ Time lag Adjustment
Relationships
Interpersonal Low High Short High
Organizational Moderate Moderate Moderate Moderate
Public High Low Long Moderate
Mass high low long low

Character of the Source of Message
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 The source of a message is the speaker, communicator, or
endorser –the person whose message is directed at the
audience.
 Three types of sources have to be distinguished:
 The sponsor source is the manufacturer who pays for the
message and is usually identified somewhere in the
message itself.
 The reseller source is either a wholesaler or retailer that

associates its name with the message.
 The message presenter is the person who delivers the

actual message.
Persuasiveness of The Source
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The persuasiveness of the source is affected by three
characteristics:
 Credibility: the extent to which the receiver perceives
the message source to be truthful or believable –
depends on the perceived expertise and objectivity of
the source.
 Attractiveness: the extent to which the receiver

identifies with the source –is determined by similarity,
familiarity, and the liking.
 Power of the source: is determined by perceived

control, perceived concern, and perceived scrutiny.
Message Structure
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The message structure includes whether:

 It is its verbal or nonverbal,
 Its readability, and
 The order of the ideas, repetition, and
 The prescience or absence of
counterarguments.

What makes a message readable and persuasive ?
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 Readable message are understandable to the

audience and have a very good chance of being
persuasive.
 Important factors include:
 The arrangement of words in the core message, word
frequency, and sentence length.
 In addition, the number of ideas used to construct the
core message should be kept to a minimum, and these
ideas should be restated throughout the message.

Communicating Positive and Negative Attributes
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One –Sided Message (OSM)

 OSM is a communication in which only positive
attributes or benefits of a product or service are
presented.
 A one –sided message presents arguments for the
sponsor without mentioning counterarguments.
 Using this approach is beneficial
 When the audience in generally friendly,
 When the advertiser‘s position is the only one that will
be presented, or
 When the desired result is immediate though
temporary opinion change.
Communicating Positive and Negative Attributes
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Two-Sided Message (TSM)
 TSM is a message in which both good and
bad points about a product or claim are
presented.
 In
general, a two- sided arguments as being
more objective and therefore more honest.
 Educated audiences are aware of opposing

points of view and expect communicators
to acknowledge and
Aschalew refute
Adane (Asst. Prof) theses views.
Message Content:
Message Content:
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 The specific words, pictures, and other devices employed in
a message, along with the overall appeal, reflect the content
of the message.
 A very general way of analyzing message content divides

messages into just two categories:
 Rational appeals and
 Emotional appeals.

Rational Vs. Appeals
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 A rational appeal tends to be factual and follows a

prescribed logic.
 In contrast, an emotional appeal is directed toward the

individual‘s feelings and is intended to create a certain
mood, such as guilt, joy, anxiety, or self –pride.
 The choice of appeals is limitless.
 No one type of content is always persuasive; each

choice brings potential risks and benefits.

Fear Appeal
Fear Appeals
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 Intuitively, one might expect that the
more fearful the message, the more
persuasive.
 But research does not support this

assumption.
 Another suggestion is that fear is effective

up to a certain level; beyond this level, it
creates negative results.
Effectiveness of a Fear Appeal
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The effectiveness of a fear appeal also depends on

the audience.
 Demographic characteristics such as age, sex, race and
education all influence the effect.
 Personality differences are also significant.
 For instance, people with high self-esteem react more
favorably to high levels of fear than do people with lower
self-esteem, who are more persuaded by low levels of fear.
 Similarly, the more vulnerable the receiver feels, the less
effective a fear appeal will be, particularly if it employs high
levels of fear.
 In conclusion, the effect of fear appeals depends on many
variables, not just the level of fear aroused.
Humor
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Humor
 Humor can be expressed visually or verbally through puns, jokes,
riddles, and so on.
 Investigations of the nature of humor as a communication device
have produced mixed results.
 Research concludes that humorous appeals create four positive
effects.
 They enhance source credibility,
 attract attention,
 evokes a positive mood, and
 increase persuasion.
 More recently, the research examined the use of humor in radio
messages.
 They found that using humor increases attention paid to the
commercial, reduces irritation at the commercial, improves its
likeability, and increases liking(Asst.
Aschalew Adane of the
Prof)product.
Pleasant Appeals
Pleasant Appeals
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 Most people would rather feel good than feel bad.
 Taking advantage of this desire is the rationale behind pleasant

appeals, which creative a positive experience and a high level of
liking.
A pleasant appeal can take several forms

 It can use expressions of fun and entertainment, perhaps by
showing people dancing, singing, or simply having a good time.
 Warmth is an emotion considered synonymous with liking.

 Homecomings, nostalgic situations, and loving relationships all
connote warmth.
Pleasant Appeals
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Evidence supporting the effectiveness of pleasant appeals

is strong.
Warm ,entertaining messages are :

Noticed more ,
Are remembered more ,
Increase source credibility ,

Improve attitudes ,and
Create feelings that are transferred to the sponsor.

Inexpensive Ways To Promote Business
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 There are at least eight inexpensive ways to promote business.

 These are:
i) Use of Paper & Electronic Document:

 For example, business stationery; email etc.
ii) Articles & Press Releases:

 Well written articles can provide free
advertising & build positive word of mouth.
 Likewise Newspapers are \also excellent
place\ to place your promotional article.
Pleasant Appeals
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iii)Sending out press releases

 Your press release has to actually contain
information that is newsworthy.
iv)Talk show
 Radio to, cable TV may be looking
for some guests for their programs. A

great low cost way to promote your
business.

Pleasant Appeals
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v)Seminar or Presentations:
 You have expertise that other people are interested in.
Why not share that & promote your business.
vi)Use Vehicle:
 One in every few vehicles has the name and phone
number of a business decorated on it. Another low cost
way to promote your business.
vii)Leisure Activities:
 There are all kinds of things & ways to promote your
business while you do what you love to do.
viii)Give out free things:
 Like first 50 people visiting a particular event will get
free things/gifts.
AIDA Model
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Oldest and most popular

By St. Elmo Lewis in 1900 for personal selling with stages. In 1911,Arthur Fredrick Sheldon revised the
model by changing the first step to 'favourable attention' and adding a fifth step ,'permanent satisfaction'.:
1) ATTENTION: To get the attention of the target customer.
2) INTEREST: To create interest in the product by giving product information(or special features) and
how it can help satisfy the needs and wants of the individual.
3) OUTCOME: Whether the potential buyer develops a favourable or unfavourable opinion
4) DESIRE: Create a desire in the customer to possess the product, by emphasizing the benefits & how it
satisfy needs.
5) ACTION: convince them to make a purchase; provide a toll free number or contact person for info.
Aschalew
6) SATISFACTION: The customer is satisfied Adane
after the (Asst. Prof)
purchase.
DAGMAR MODEL
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 'Defining Advertising Goals for Measured Advertising Results', abbreviated to

DAGMAR, was proposed by Russell H.Coney in 1961.Coney suggested that acievement
of a hierarchy-of-communications objectives leads to actual purchase. He suggested that
marketing goals and advertising goals were different. Marketing goals are measured in
terms of sales whereas advertising goals are measured in terms of the customers'
movement along the hierarchy.
1) AWARENESS:- In this stage the customer becomes aware of the product.
2) COMPREHENSION:- The customer is aware of the product characteristics and its uses.
He is also familiar with the brand name and brand logo.
3) CONVICTION:-This stage refers to the emotional decision of preferring one brand to

another.
4) ACTION:- In this stage the purchase is made.

CONT’D
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 The DAGMAR model assumes a high-involvment "learn-feel-do" hierarchy.
 As advertising and marketing goals are deemed distinct, advertising goals can be defined
specifically tracked and measured.
 The long-term effects of the advertisement can also be studied.
 With the help of the DAGMAR model, the effectiveness of the advertisement can be measured in
terms of its ability to move the customer along the hierarchy.
 The model enabled marketers to define the target market or audience for the commercial.
 As the advertisement had to be based on the objectives, creative people involved in the process of
designing tend to feel that their creativity was being stifled.
 The implementation of DAGMAR is also very costly, as extensive research is required for setting
quantitative targets and measuring them.
 Example:- General Motors(GM) used the DAGMAR approach to identify advertising goals.
HEIGHTENED APPRECIATION MODEL
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 The heightened appreciation model helps the marketer to arrive at an advertising strategy.
 The model suggests that an important attribute of the product category should be identified
and the advertisement should convey the link between the brand and that particular attribute.
 The consumer should be convinced about the importance of the attribute and the benefits
derived from it.
 Advertising campaigns based on the heightened appreciation model are said to be successful
if they result in increased usage and positive image of the brand.
 Example:-Traditionally, in India, toothpaste was advertised highlighting two attributes:
strength of teeth and prevention of decay of gums(advertising Strategy of Colgate).
 Hindustan Lever Limited launched two brands of toothpaste- Close Up Pepsodent.
 The Close Up toothpaste with mouthwash was targeted at youth and focused on freshness.
 The Pepsodent brand was targeted at kids and the attribute used in advertisements was its
ability to fight germs for long periods.
 These attributes of toothpaste,though important,had never been highlighted or given
importance till then.
 After the launch of Close Up and Pepsodent, the market share of Colgate decreased
significantly. Aschalew Adane (Asst. Prof)
ADVERTISING EXPOSURE MODEL
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 We know that an ad message creates awareness ,conveys information about
benefits, attributes or features, builds a brand image and personality, vests the
brand with certain feelings, links the brand with group norms and peers/experts
and induces purchase behaviour.
 Exposure to an ad can initiate any of these processes.
 These five effects create an attitude in us towards the brand,which if favourable

leads to purchasing action.
 In addition, certain ads just remind us about the product or brand or lead an
assault on those reasons which prevent a consumer from buying or using the
brand.

 It is a direct inducement to action.
J.Lavidge & Gary Model
 In 1961 ,Robert J. Lavidge and Gary A. Steiner proposed a new model for marketing
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communications; hierarchy of effects but included persuasion as an important factor in the model.
 This model considered the long-term effects of advertising too.
 a customer who is totally unaware of the product goes through the following six steps before
making a purchase:
1) AWARENESS: the customer becomes aware of the existence of the product.
2) KNOWLEDGE: The customer comes to know about the features and uses of the product.
3) LIKING: The customer develops a favourable attitude towards the product.
4) PREFERENCE: Here, the customer develops preference for the said brand over other competitive
products or substitutes.
5) CONVICTION: This step involves a desire to buy the product. The customer is convinced of a good
purchase.
6) PURCHASE: The customer makes the actual purchase.

EXAMPLE: Hyundai Motors Limited usedAschalew
the model successfully
Adane (Asst. Prof) while launching its small car,
Santro, in India.
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Models of the Response Process
Models
Stages AIDA Hierarchy of Innovation Information
model effects model adoption Processing
Attention Awareness Awareness Presentation

Cognitive Attention
Knowledge Comprehension
Interest Linking Interest Yielding

Affective Preference
Desire Conviction Evaluation Retention
Trial
Behavioral Action Purchase Behavior
Adoption
44
!!!
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T h

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1

Aschalew Adane (Asst. Prof)

Aschalew Adane (Asst. Prof)

 Communication has been variously defined as “the passing

Aschalew Adane (Asst. Prof)

Marketing communication has an external and

 With past customers through advertising and

Aschalew Adane (Asst. Prof)

The Internal Flow of marketing communication:

Words, speakers, messages, and listeners together form a system.

Aschalew Adane (Asst. Prof)

Aschalew Adane (Asst. Prof)

Aschalew Adane (Asst. Prof)

 The sender or the source, or initiator, of the

Aschalew Adane (Asst. Prof)

 Encoding is the process of putting

 The process of transforming thoughts

The sender accomplishes the

Aschalew Adane (Asst. Prof)

 The Channel is the method or medium by which the

 The message must be delivered through a medium that the

 Delivering the same message through two different media

 Possible media may be classified as either personal or non

 Decoding is the process of transforming and

 The receiver is the person with whom the sender shares

 Generally, the receivers are the consumers in the

Aschalew Adane (Asst. Prof)

Organizational Moderate Moderate Moderate Moderate

Public High Low Long Moderate

Mass high low long low

Aschalew Adane (Asst. Prof)

 The reseller source is either a wholesaler or retailer that

 The message presenter is the person who delivers the

 Attractiveness: the extent to which the receiver

 Power of the source: is determined by perceived

The message structure includes whether:

Aschalew Adane (Asst. Prof)

 Readable message are understandable to the

Aschalew Adane (Asst. Prof)

One –Sided Message (OSM)

 Educated audiences are aware of opposing

 A very general way of analyzing message content divides

 Rational appeals and

Aschalew Adane (Asst. Prof)

 A rational appeal tends to be factual and follows a

 In contrast, an emotional appeal is directed toward the

 The choice of appeals is limitless.

 No one type of content is always persuasive; each

Aschalew Adane (Asst. Prof)

 But research does not support this

 Another suggestion is that fear is effective

The effectiveness of a fear appeal also depends on

 Most people would rather feel good than feel bad.

 Taking advantage of this desire is the rationale behind pleasant

A pleasant appeal can take several forms

 Warmth is an emotion considered synonymous with liking.

Evidence supporting the effectiveness of pleasant appeals

Warm ,entertaining messages are :

Increase source credibility ,

Create feelings that are transferred to the sponsor.

Aschalew Adane (Asst. Prof)

 There are at least eight inexpensive ways to promote business.

i) Use of Paper & Electronic Document:

ii) Articles & Press Releases: