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Communication - the basics

What is your objective?

BE 531
Revision

What do you need to say?


Who do you want to say it to?

Dr Katerina Tasiopoulou
katerina@essex.ac.uk
Office hours - email for appointment or let me know after class

What communications tools and channels will be most effective?


What response do you want to achieve?

Communications can be used


to...

Communications objectives

Inform and make customers aware of a companys product and


services

Persuade customers to try a companys product and services

Reinforce experiences by reminding customers about their


needs of their past experiences and by reassuring customers
immediately before or after a purchase

Di!erentiate a companys product and services from the ones


of the competition (i.e. mineral water)

Develop brand values


Establishing feelings, emotions
and beliefs about the brand

Making customers remember the


brand

Developing positive attitudes


towards the brand

!Change and manage


behaviour
Driving customers
to a web site address
Making customers buy a
product
Persuading customers to make
a phone call

Engaging an audience

Captivating an audience by using:


Communications tools/Messages/Media
Messages can be: Informative / Emotional
2 types of media:
a)Traditional media: print, broadcast, cinema,outdoor
b)Digital media and the internet

Figure 1.4

A traditional model of the marketing communications mix

Integrated Marketing Communications


What are some advantages and disadvantages of adopting an IMC approach in
comparison to the traditional approach of managing a marketing
communications mix?
- How can IMC approach be used to build customer value ?
- what is the role of an IMC strategy in building a brand ?
- can you explain why IMC is an important tool in the digital marketing
domain ?
-

Figure 1.5

A contemporary model of the marketing communications mix

Source: Hughes and Fill (2007)

Linear Model of Communication


- The quality of the linkages between these elements will determine whether a
communication event will be successful or not
-Main weakness : it cannot represent all forms of communication

Realms of
Understanding
Source

Encoded message composed of: combination of words, pictures,


symbols, music

Realms of
Understanding

Encoding

Decoding

The Source and the Encoding

Objective: to create a message that is credible AND the receiver


can understand.

Receiver

Message
Noise

Noise

Problems:
Sending the wrong message will result in misinterpretation by
the receiver
Lacking conviction, authority, trust or expertise
Cause: lack of proper understanding of the target audience
(cultural, social)
Solution: Research, Celebrity and white coat endorsements

Sender

Receiver

Wilbur Schramm (1955): Linear Model of Communications

Process of Adoption (rogers 1983)

Process of Diffusion

- how individuals become committed


to use new innovation

Producer 1. Knowledge Consumer


2. Persuasion

Diffusion = process of adoption over time


Early majority
Late majority
Early
adopters

3. Decision
4. Implementation

Innovators

Laggards

5. Confirmation
Time

Process of Diffusion

The Consumer Decision Making Process

Innovators: large disposable income, risk takers


Early adopters: opinion leaders, younger, above average
education, consult more publications and sales people =
information gatherers

Early majority: opinion followers, slightly above average

in age, education, social status & income


Late majority: sceptical of new ideas, adoption based on
social or economic factors
Laggards: set in their opinions, lowest in terms of
income, social status & education

Need recognition
Information Search

Marketing
Communications

Evaluation of Alternatives
Purchase
Post Purchase Evaluation

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Influences on consumer behaviour


Buyer
Psychology

Other Stimuli

Environmental influences on individual buying behaviour


Outcomes
Product Choice
Brand Choice

Communications
Mix

Dealer Choice

Political, Legal

Motivation

Economic

Perception

Purchase
Amount

Technological

Learning

Purchase
Timing

Cultural

Memory

Culture
Self
Actualisation

Payment
Method

Subculture

Social Class

Reference Groups
Situational
factors

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Social Media in IMC

Stage of Buyer Readiness

Awareness

Advertising
Direct Marketing

Interest

Public Relations
Digital

Desire
Sales
Promotion
Personal
Selling

Purchase

Repeat Purchase

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-Decline of traditional mass media with alternative

channels for content and entertainment


- Audience and media fragmentation; multi-channel
television
- 'New' v 'old' consumers
- Passive v interactive use of media
- Growth of new media and digital channels

Cognitive Dissonance
- Term coined by L. Festinger to desribe a psychological state in
which there is some incongruity ( dissonance) caused by two
contradictory attitudes or beliefs
- Resulting inconsistency encourages the individual to modify his/
her thoughts to be more compatible and harmonious.
- Example: Post shopping regret caused by guilt or poor decision
making or brand promise not being achieved.
- Relates to customer satisfaction and retention

Why do firms go international?

Saturated home markets

New market opportunities abroad

Increasing NPD investment needs returns from larger global


markets

Growing need for economies of scale in manufacturing,


distribution, communication etc

The Role of Marketing


Why global marketing communications?

Falling political, economic and technological


barriers to international trade and regional
economic integration globalisation

Reminding

Informing

Demographic and cultural convergence


- the emergence of global market segments
(business travellers, luxury brands buyers, sports fans)

Persuading

The Marketing Communications Mix

Key challenges in international brand and communications


management
Differences:
Political / regulatory
Economic
Social / cultural
Technological
Competitive environments
Some examples:
Differences in consumer income and purchasing power
Differences in product regulatory regimes and technical standards
Differences in consumer tastes and behaviour across cultures

Key issue in all aspects of international brand and


communications strategy

Two main perspectives:

Cultural convergence
- the world is getting smaller and more the similar everywhere

Standardisation of brand and communications strategies


Global strategy

Adaptation of brand and communications strategies

Localism

Multi-local strategy

- local cultures remain strong and are gaining strength outside the mainstream

Some Key Elements of Culture

Turkey

Language

Iran

Abu Dhabi

S Vietnam

Economic
System

Germany
Austria
Switzerland

Bahrain

Hong Kong

Philippines

Indonesia
Malaysia

Thailand

Anglo

Canada
Peru

Mexico
Chile

Taiwan

Legal
System

Germanic

Finland

Saudi Arabia

UAE

Far Eastern

Culture
Norms, Values and Beliefs

Sweden
Denmark

Kuwait

Political
System

Social
Structures

Norway
Greece

Arab

Religion

Nordic

Near Eastern

Country Clusters

Colombia
Argentina

Italy

UK

New Zealand

Belgium

S Africa

Portugal
Spain

Latin American

Australia

Ireland

France

USA

Latin European

Independent
Japan

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Different Levels of Culture

India

Brazil

Israel

Ronan and Shenkar 1985

Implications
Differences in:
Consumer perceptions, preferences and tastes

National culture
Ethnic culture
Subculture

Patterns of purchasing behaviour


Product usage
Interpretations of signs, symbols, colours taboos etc

Social Class
Reference Groups
Family
The Individual

Examples of trends:
Americans buy larger fridges and appliances than Europeans
The Japanese wash their clothes at lower temperatures than Americans
Germans prefer smaller frozen pizzas to Americans

Trend Towards Global Branding and Communication Strategies

Implications for brand policy

local variations in:

Brand name and logo


Product design, style, sizes, colour etc.

Growth of global category leader brands as future profit drivers

Some culturally sensitive products categories are becoming more global - growth of
global brands in food and drink, retailing and fashion

Polarisation between global, regional and local brands in portfolios

Design of packaging, labelling etc


Level of after sales service etc, etc

Advantages of brand and communication standardisation include

Uniformity and consistency of international brand image in a shrinking world

Economies of scale in manufacturing, distribution, promotion etc

Advantages of global branding

Economies of scale in marketing strategies

Uniform brand image

Problems

Some brands historically have different positionings in some markets

Some cultural adaptation usually needed


> transnational approach Think Global, Act Local

Few really global brands, but the number is growing

Even world brands like MTV, Coca Cola and McDonalds all have
some adaptation and variations for local tastes

Complete standardisation is very rare - still many local variations in


advertising and communications

How does this affect the traditional IMC mix


standardise or adapt?

Cultural differences many possible pitfalls

Advertising

Language

Personal selling

Education and literacy levels

Sales promotion

Family structure and gender roles

Public relations

Work and leisure practices

Direct marketing

Symbols - colours, signs and environments

Conventions and taboos in media and advertising etc

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Hofstedes Cultural Dimensions

Hofstedes Cultural Dimensions

! G. Hofstede is a Dutch researcher who tried to


identify why people from various cultures
behave as they do.
! He introduced 4 main dimensions of any culture
into his research.
! 116 000 respondents from over 70 different
countries around the world. (The largest
organizationally based study ever conducted.)

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a) Power distance:
"
The extent to which less powerful members
of institutions and organizations accept that
power is distributed unequally.
"
Countries in which people blindly obey the
orders of their superiors have high power
distance. This should be observed at lower
levels or even upper levels.

c) Individualism

b) Uncertainty avoidance
" The extent to which people feel threatened by
ambiguous situations and have created
beliefs and institutions that try to avoid
these.
" Countries populated with people who do not
like uncertainty tend to have a high need for
security and a strong belief in experts and
their knowledge; examples include
Germany, Japan, and Spain.

Individualism vs. Collectivism

I and Me cultures

Priority given to individual freedom


and choice

Collectivist
#

We and Us cultures
Rank shared goals higher than
individual desires and goals
Subordinate their own wishes
and goals to those of the
relevant social unit
Egypt
Nepal

Israel

#
#
#
#

Romania
Nigeria
CanadaStates
United

#
#
#
#
#

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"

The tendency of people to look after themselves and their


immediate family only.

"

Collectivism (in contrast to individualism) is the tendency of


people to belong to groups or collectives and to look after
each other in exchange for loyalty.

"

Hoftstedes findings show that the wealthy countries have


higher individualism scores and poorer countries higher
collectivism scores. (GNP based wealth)

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Hofstedes Cultural Dimensions

Individualistic
#

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Hofstedes Cultural Dimensions

Hofstedes Cultural Dimensions

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Mexico
India
Japan

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d) Masculinity
" A cultural characteristic in which the dominant
values in society are success, money, and
things.
" In contrast, femininity is the term used by
Hofstede to describe a situation in which the
dominant values in society are caring for
others and the quality of life.

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Highest Scoring Countries:


Hofstede-Bond Studies

Hofstedes Cultural Dimensions


e) Integrating the dimensions
" A description of the four dimensions of culture
is useful in helping to explain the differences
between various countries.
" Hofstedes research has extended beyond this
focus and shown how countries can be
described in terms of pairs of dimensions.
" Pairings and clusters can provide useful
summaries for international environment.
" Example of pairing between PDI and UAI
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High Power
Distance

High
Individualism

High
Masculinity

High
Uncertainty
Avoidance

High LongTerm
Orientation

Philippines

United States

Japan

Japan

Hong-Kong

India

Australia

Korea

Taiwan

Singapore

Great Britain

Brazil

Japan

Brazil

Netherlands

Pakistan

Korea

Hong-Kong

Canada
New Zealand
Sweden
Germany

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