Chapter Two

ANALYZING THE MARKETING COMMUNICATION PROCESS

Chapter Objectives
After completing this unit, the student should be able to:
Basic model of communication
Analyzing receivers
The response process
o Traditional response hierarchy models
o Alternative response hierarchies
o The cognitive response approach
Controllable variables of the communication process
Analyzing source, message, and channel factors
Establishing communication goals and objectives
Allocating budget

2.1. THE NATURE OF COMMUNICATION

The Function of all elements of the integrated marketing communications
program is to communicate. An organization’s IMC strategy is implemented
through the various communications it sends to current or prospective
customers as well as other relevant publics. Organizations send
communications and messages in a variety of ways. Such as through
advertisements, brand names, logos and graphic systems, websites, press
releases, package designs, promotions, and visual images. Thus, those
involved in the planning and implementation of an IMC program need to
understand the communications process and how it occurs. The way marketers
communicate with their target audiences depends on many factors, including
how much customers know and what they think about the company and the
image it hopes to create. Developing an effective marketing communications
program is far more complicated than just choosing a product feature or
attribute to emphasize. Marketers must understand how consumers will
perceive and interpret their messages and how these reactions will shape
consumers’ responses to the company and/or its product or service.

Communication has been variously defined as the passing of information, the

exchange of ideas or the process of establishing commonness or oneness of
thought between as sender and a recover. These definitions suggest that for
communication to occur, there must be some common thinking between two
parties and information must be passed from one person ton another (or from
one group to another). As you will see in this chapter, establishing this
commonality in thinking is not always as easy as it might seem; many attempts
to communicate are unsuccessful.
Over the years, a basic model of the various elements of the communication
process has evolved; two elements represent the major participants in the
communication process, the sender and the receiver. Another two are the major
communication tools, massage and channel. Four others are the major
communication functions and processes: encoding, decoding, response, and
feedback. The last element, noise refers to any extraneous factors in the
system that can interfere with the process and work against effective
communication.

2.2. A BASIC MODEL OF COMMUNICATION

Source/Encoding: The sender, or source, of a communication is the person or

organization that has information to share with another person or group of
people. The source may be an individual (say, a salesperson or hired
spokesperson, such as a celebrity, who appears in a company’s advertisements)
or a non-personal entity (such as the corporation or Because the receiver’s
perceptions of the source influence how the communication is received,
marketers must be careful to select a communicator the receiver believes is
knowledgeable and trustworthy or with whom the receiver can identify or relate
in some manner.
The communication process begins when the source selects words, symbols,
pictures, and the like, to represent the message that will be delivered to the
receiver(s). This process, known as encoding, involves putting thoughts, ideas,
or information into a symbolic form.

The sender’s goal is to encode the message in such a way that is familiar to the
target audience. Many symbols have universal meaning, such as the familiar
circle with a line through it to denote no parking, no smoking, and so forth.

Message: It is actual advertisement that contains the intended message.

Symbolic expression of the sender’s thoughts.
 Channel: The channel is the method by which the communication travels
from the source or sender to the receiver. At the broadest level Channels of
communication are of two types, personal and non-personal. Personal
channels of communication are direct interpersonal (face-to-face) contact
with target individuals or groups. Non-personal channels of communication
are those that carry a message without interpersonal contact between
senders and recover. Non-personal channels are generally referred to as
the mass media or mass communications, since the message is sent to many
individuals at one time.
Receiver/Decoding: The receiver is the person(s) with whom the sender
shares thoughts or information. Generally, receivers are the consumers in
the target market or audience who read, hear, and/or see the marketer’s
message and decode it. Decoding is the process of transforming the sender’s
message back into thought. This process is heavily influenced by the
receiver’s frame of reference or filed of experience, which refers to the
experiences, perception, attitudes and values he or she brings to the
communication situation. The more knowledge the sender has about the
receivers, the better the sender can understand their needs, empathize with
them, and communicate effectively. Marketing and advertising people often
have very different fields of experience from the consumers who constitute
the mass markets with whom they must communicate.
Noise: Extraneous Factors create planned distortion or interference in the
communication. Whenever the relationship between the communicators or
environmental factors distorts the communication process, the distortion is
called interference (Noise).Interference at some stage in communications
process. As Competitive promotional messages and Misinterpretation of
message or wrong receiver
Response /Feedback: The set of reactions the receiver has after seeing,
hearing, or reading the message is known as a response. The response of the
receiver can arrange from non observable actions such as storing information in
memory to taking immediate action such as storing information in memory to
taking immediate action such as dialing a number to order a product advertised
on television.
2.3. ANALYZING THE RECEIVER
To communicate effectively with their customers, marketers must understand
who the target audience is, what (if anything) it knows or feels about the
company’s product or service, and how to communicate with the audience to
influence its decision-making process. Marketers must also know how the market
is likely to respond to various sources of communication or different types of
messages. Before they make decisions regarding source, message, and channel
variables, promotional planners must understand the potential effects associated
with each of these factors. This section focuses on the receiver of the marketing
communication. It examines how the audience is identified and the process it
may go through in responding to a promotional message.

Identifying the Target Audience

The marketing communication process really begins with identifying the
audience that will be the focus of the firm’s advertising and promotional efforts.
The target audience may consist of individuals, groups, niche markets, market
segments, or a general public or mass audience. Marketers approach each of
these audiences differently.

 The target market may consist of individuals who have specific needs and
for whom the communication must be specifically tailored. This often requires
person-to person communication and is generally accomplished through
personal selling. Other forms of communication, such as advertising, may be
used to attract the audience’s attention to the firm, but the detailed message
is carried by a salesperson who can respond to the specific needs of the
individual customer. Life insurance, financial services, and real estate are
examples of products and services promoted this way.
 A second level of audience aggregation is represented by the group.
Marketers often must communicate with a group of people who make or
influence the purchase decision. For example, Companies marketing their
products and services to other businesses or organizations must understand
who is on the purchase committee, what aspect of the decision each
individual influences, and the criteria each member uses to evaluate a
product. Advertising may be directed at each member of the buying center,
and multilevel personal selling may be necessary to reach those individuals
who influence or actually make decisions.
 Marketers look for customers who have similar needs and wants and thus
represent some type of market segment that can be reached with the same
basic communication strategy. Very small, well-defined groups of customers
are often referred to as market niches. They can usually be reached through
personal-selling efforts or highly targeted media such as direct mail.
 The next level of audience aggregation is market segments, broader
classes of buyers who have similar needs and can be reached with similar
messages. As market segments get larger, marketers usually turn to broader-
based media such as newspapers, magazines, and TV to reach them.
 Marketers of most consumer products attempt to attract the attention of
large numbers of present or potential customers (mass markets) through
mass communication such as advertising or publicity. Mass communication is
a one-way flow of information from the marketer to the consumer.

2.4. THE RESPONSE PROCESS
Perhaps the most important aspect of developing effective communication
programs involves understanding the response process the receiver may go
through in moving toward a specific behavior (like purchasing a product) and
how the promotional efforts of the marketer influence consumer responses. In
many instances, the marketer’s only objective may be to create awareness of
the company or brand name, which may trigger interest in the product. In other
situations, the marketer may want to convey detailed information to change
consumers’ knowledge of and attitudes toward the brand and ultimately change
their behavior.
The response process
Traditional response hierarchy models
Alternative response hierarchies
The cognitive response approach
2.4.1. Traditional Response Hierarchy Models
A number of models have been developed to depict the stages a consumer may
pass through in moving from a state of not being aware of a company, product,
or brand to actual purchase behavior. The following Figure shows four of the
best-known response hierarchy models. While these response models may
appear similar, they were developed for different reasons. The traditional
response hierarchy models comprises the following models
 AIDA model  Innovation Adoption Model
 Hierarchy of effects model  Information processing model
The AIDA model: was developed to represent the stages a salesperson must
take a customer through in the personal-selling process. This model depicts the
buyer as passing successively through attention, interest, desire, and
action. The salesperson must first get the customer’s attention and then arouse
some interest in the company’s product or service. Strong levels of interest
should create desire to own or use the product. The action stage in the AIDA
model involves getting the customer to make a purchase commitment and
closing the sale. To the marketer, this is the most important stage in the selling
process, but it can also be the most difficult. Companies train their sales reps in
closing techniques to help them complete the selling process.

Hierarchy of effects model: The model developed by Robert Lavidge and Gary
Steiner as a paradigm for setting and measuring advertising objectives. Their
hierarchy of effects model shows the process by which advertising works; it
assumes a consumer passes through a series of steps in sequential order from
initial awareness of a product or service to actual purchase. A basic premise of
this model is that advertising effects occur over a period of time. Advertising
communication may not lead to immediate behavioral response or purchase;
rather, a series of effects must occur, with each step fulfilled before the
consumer can move to the next stage in the hierarchy.

Innovation Adoption Model: It was evolved from work on the diffusion of

innovations. This model represents the stages a consumer passes through in
adopting a new product or service. Like the other models, it says potential
adopters must be moved through a series of steps before taking some action (in
this case, deciding to adopt a new product). The steps preceding adoption are
awareness, interest, evaluation, and trial. The challenge facing companies
introducing new products is to create awareness and interest among consumers
and then get them to evaluate the product favorably. The best way to evaluate a
new product is through actual use so that performance can be judged. Marketers
often encourage trial by using demonstration or sampling programs or allowing
consumers to use a product with minimal commitment. After trial, consumers
either adopt the product or reject it.

Information processing model: This model is advertising effect model,

developed by William McGuire. This model assumes the receiver in a persuasive
communication situation like advertising is an information processor or problem
solver. McGuire suggests the series of steps a receiver goes through in being
persuaded constitutes a response hierarchy. The stages of this model are similar
to the hierarchy of effects sequence; attention and comprehension are similar to
awareness and knowledge, and yielding is synonymous with liking. McGuire’s
model includes a stage not found in the other models: retention, or the
receiver’s ability to retain that portion of the comprehended information that he
or she accepts as valid or relevant.

This stage is important since most promotional campaigns are designed not to
motivate consumers to take immediate action but rather to provide information
they will use later when making a purchase decision. Each stage of the response
hierarchy is a dependent variable that must be attained and that may serve as
an objective of the communication process. As shown in Figure 5-4, each stage
can be measured, providing the advertiser with feedback regarding the
effectiveness of various strategies designed to move the consumer to purchase.
The information processing model may be an effective framework for planning
and evaluating the effects of a promotional campaign.
All four models assume a similar ordering of these three stages. Cognitive
development precedes affective reactions, which precede behavior. One might
assume that consumers become aware of and knowledgeable about a brand,
develop feelings toward it, form a desire or preference, and then make a
purchase. While this logical progression is often accurate, the response
sequence does not always operate this way. Over the past two decades,
considerable research in marketing, social psychology, and communications has
led to questioning of the traditional cognitive →affective → behavioral sequence
of response. Several other configurations of the response hierarchy have been
theorized.

2.4.2. Alternative Response Hierarchies

Michael Ray has developed a model of information processing that identifies
three alternative orderings of the three stages based on perceived product
differentiation and product involvement. These alternative response
hierarchies are the
 Standard learning,
 Dissonance/attribution, and
 Low-involvement models

The Standard Learning Hierarchy (Learn → Feel → Do)

In many purchase situations, the consumer will go through the response process
in the sequence depicted by the traditional communication models. Ray terms
this a standard learning model, which consists of a learn → feel → do
sequence. Information and knowledge acquired or learned about the various
brands are the basis for developing affect, or feelings, that guide what the
consumer will do (e.g., actual trial or purchase).
 Ray suggests the standard learning hierarchy is likely when the consumer is
highly involved in the purchase process and there is much differentiation
among competing brands. High-involvement purchase decisions such as
those for industrial products and services and consumer durables like
personal computers, printers, cameras, appliances, and cars are areas where
a standard learning hierarchy response process is likely. Ads for products and
services in these areas are usually very detailed and provide customers with
information that can be used to evaluate brands and help them make a
purchase decision.

The Dissonance/Attribution Hierarchy (Do →Feel→Learn)

Involves situations where consumers first behave, then develop attitudes or
feelings as a result of that behavior, and then learn or process information that
supports the behavior. This dissonance/attribution model, or do
→feel→learn, occurs in situations where consumers must choose between two
alternatives that are similar in quality but are complex and may have hidden or
unknown attributes. The consumer may purchase the product on the basis of a
recommendation by some non-media source and then attempt to support the
decision by developing a positive attitude toward the brand and perhaps even
developing negative feelings toward the rejected alternative(s). This reduces any
post purchase dissonance or anxiety the consumer may experience resulting
from doubt over the purchase.

Dissonance reduction involves selective learning, whereby the consumer

seeks information that supports the choice made and avoids information that
would raise doubts about the decision. According to this model, marketers need
to recognize that in some situations, attitudes develop after purchase, as does
learning from the mass media.
 Ray suggests that in these situations the main effect of the mass media is not
the promotion of original choice behavior and attitude change but rather the
reduction of dissonance by reinforcing the wisdom of the purchase or
providing supportive information. For example, the ad reinforces consumers’
decisions to purchase a product by showing the number of awards the brand
has received for customer satisfaction.

As with the standard learning model, this response hierarchy is likely to occur
when the consumer is involved in the purchase situation; it is particularly
relevant for post-purchase situations. For example, a consumer may purchase
tires recommended by a friend and then develop a favorable attitude toward the
company and pay close attention to its ads to reduce dissonance.

The Low-Involvement Hierarchy (learn→ do → feel)

The most interesting of the three response hierarchies proposed by Ray is the
low-involvement hierarchy, in which the receiver is viewed as passing from
cognition to behavior to attitude change. This learn→ do → feel sequence is
thought to characterize situations of low consumer involvement in the purchase
process.

 Ray suggests this hierarchy tends to occur when involvement in the purchase
decision is low, there are minimal differences among brand alternatives, and
mass-media (especially broadcast) advertising is important.

The notion of a low-involvement hierarchy is based in large part on Herbert

Krugman’s theory explaining the effects of television advertising. Krugman
wanted to find out why TV advertising produced a strong effect on brand
awareness and recall but little change in consumers’ attitudes toward the
product. He hypothesized that TV is basically a low-involvement medium and the
viewer’s perceptual defenses are reduced or even absent during commercials. In
a low-involvement situation, the consumer does not compare the message with
previously acquired beliefs, needs, or past experiences. The commercial results
in subtle changes in the consumer’s knowledge structure, particularly with
repeated exposure. This change in the consumer’s knowledge does not result in
attitude change but is related to learning something about the advertised brand,
such as a brand name, ad theme, or slogan. According to Krugman, when the
consumer enters a purchase situation, this information may be sufficient to
trigger a purchase. The consumer will then form an attitude toward the
purchased brand as a result of experience with it. Thus, in the low-involvement
situation the response sequence is as follows: Message exposure under low
involvement →Shift in cognitive structure →Purchase→ Positive or
negative experience →Attitude formation

2.4.3. The Cognitive Response Approach

One of the most widely used methods for examining consumers’ cognitive
processing of advertising messages is assessment of their cognitive
responses, the thoughts that occur to them while reading, viewing, and/or
hearing a communication. These thoughts are generally measured by having
consumers write down or verbally report their reactions to a message. The
assumption is that these thoughts reflect the recipient’s cognitive processes or
reactions and help shape ultimate acceptance or rejection of the message. The
focus of cognitive response approach is to determine the types of responses
evoked by an advertising message and how these responses relate to attitudes
toward the ad, brand attitudes, and purchase intentions.

1.Product/Message Thoughts
The first category of thoughts comprises those directed at the product or service
and/or the claims being made in the communication. Much attention has focused
on two particular types of responses, counterarguments and support arguments.
Counterarguments are thoughts the recipient has that are opposed to the
position taken in the message. Other consumers who see this ad may generate
support arguments, or thoughts that affirm the claims made in the message.
The likelihood of counter arguing is greater when the message makes claims
that oppose the receiver’s beliefs. Counterarguments relate negatively to
message acceptance; the more the receiver counter argues, the less likely he or
she is to accept the position advocated in the message. Support arguments, on
the other hand, relate positively to message acceptance. Thus, the marketer
should develop ads or other promotional messages that minimize counter
arguing and encourage support arguments.

2. Source-Oriented Thoughts
A second category of cognitive responses is directed at the source of the
communication. One of the most important types of responses in this category is
source derogations, or negative thoughts about the spokesperson or
organization making the claims. Such thoughts generally lead to a reduction in
message acceptance. If consumers find a particular spokesperson annoying or
untrustworthy, they are less likely to accept what this source has to say. Of
course, source-related thoughts are not always negative. Receivers who react
favorably to the source generate favorable thoughts, or source bolsters. As
you would expect, most advertisers attempt to hire spokespeople their target
audience likes so as to carry this effect over to the message.

3. Ad Execution Thoughts
The third category of cognitive responses consists of the individual’s thoughts
about the ad itself. Many of the thoughts receivers have when reading or
viewing an ad do not concern the product and/or message claims directly.
Rather, they are affective reactions representing the consumer’s feelings toward
the ad. These thoughts may include reactions to ad execution factors such as
the creativity of the ad, the quality of the visual effects, colors,
 Ad execution-related thoughts can be either favorable or unfavorable.
They are important because of their effect on attitudes toward the
advertisement as well as the brand. In recent years, much attention has
focused on consumers’ affective reactions to ads, especially TV commercials.
 Attitude toward the ad (A→ ad) represents the receivers’ feelings of
favorability or un-favorability toward the ad. Advertisers are interested in
consumers’ reactions to the ad because they know that affective reactions
are an important determinant of advertising effectiveness, since these
reactions may be transferred to the brand itself or directly influence purchase
intentions. One study found that people who enjoy a commercial are twice as
 likely as those who are neutral toward it to be convinced that the brand is the
best.
Consumers’ feelings about the ad may be just as important as their attitudes
toward the brand (if not more so) in determining an ad’s effectiveness. The
importance of affective reactions and feelings generated by the ad depend on
several factors, among them the nature of the ad and the type of processing
engaged in by the receiver. Many advertisers now use emotional ads designed to
evoke feelings and affective reactions as the basis of their creative strategy. The
success of this strategy depends in part on the consumers’ involvement with the
brand and their likelihood of attending to and processing the message. We end
our analysis of the receiver by examining a model that integrates some of the
factors that may account for different types and levels of cognitive processing of
a message.

2.5. Source, Message, and Channel Factors

To develop an effective advertising and promotional campaign, a firm must
select the right spokesperson to deliver a compelling message through
appropriate channels or media. Source, message, and channel factors are
controllable elements in the communications model. The persuasion matrix
helps marketers see how each controllable element interacts with the
consumer’s response process. The matrix has two sets of variables. Independent
variables are the controllable components of the communication process,;
dependent variables are the steps a receiver goes through in being persuaded.
Marketers can choose
 The person or source who delivers the message,
 The type of message appeal used, and
 The channel or medium.
 Select their target audience
The following examples, which correspond to the numbers in Figure 6-1,
illustrate decisions that can be evaluated with the persuasion matrix.
 Receiver/comprehension: Can the receiver comprehend the ad? Marketers
must know their target market to make their messages clear and
understandable. The more marketers know about the target market, the more
they see which words, symbols, and expressions their customers understand.
 Channel/presentation: Which media will increase presentation? Atop-rated,
prime-time TV program, its coverage, reach and frequency.
 Message/yielding: What type of message will create favorable attitudes or
feelings? Marketers generally try to create agreeable messages that lead to
positive feelings toward the product or service. Humorous messages, Music
ads, explicit sexual appeals.
 Source/attention: Who will be effective in getting consumers’ attention?
Marketers deal with this problem by using sources who will attract the target
audience’s attention—actors, athletes, rock stars, or attractive models.

2.5.1. Source Factors

The source component is a multifaceted concept.
We use the term source to mean the person involved in communicating a
marketing message, either directly or indirectly.
 A direct source is a spokesperson that delivers a message and/or
demonstrates a product or service, like tennis star Andre Agassi who
endorses Head tennis rackets.
 An indirect source, say, a model, doesn’t actually deliver a message but
draws attention to and/or enhances the appearance of the ad.
Companies are very careful when selecting individuals to deliver their selling
messages. They recognize that the characteristics of the source affect the sales
and advertising message. Marketers try to select individuals whose traits will
maximize message influence. The source may be knowledgeable, popular,
and/or physically attractive; typify the target audience; or have the power to
reward or punish the receiver in some manner. Herbert Kelman developed three
basic categories of source attributes: Each influences the recipient’s attitude or
behavior through a different process.

Source attribute Process

 Credibility  Internalization
 Attractiveness  Identification
 Power  Compliance

1. Source Credibility: is the extent to which the Source is seen as having:

Knowledge , Skill, Expertise and the information is perceived as being:
Trustworthy , Unbiased , Objective information
2. Source Attractiveness
  Similarity: Resemblance between the Source and recipient of the
message.
 Familiarity: Knowledge of the Source through repeated or prolonged
exposure.
 Likeability: Affection for the Source resulting from physical appearance,
behavior, or other personal traits.
The Use of Celebrities
 Endorsements: The celebrity, whether an expert or not, merely
agrees to the use of his or her name and image in the promotion of the
product.
 Testimonials: The celebrity, usually an expert with experience with
the product, attests to its value and worth.
 Dramatizations: Celebrity actors or models portray the brand in use
during dramatic enactments designed to show the goods.
Risks of Using Celebrities
 The celebrity may overshadow the product
 The celebrity may be overexposed which reduces his or her credibility
 The target audience may not be receptive to celebrity endorsers
 The celebrity’s behavior may pose a risk to the company
3. Source Power
A source has power when he or she can actually administer rewards and
punishments to the receiver. As a result of this power, the source may be able to
induce another person(s) to respond to the request or position he or she is
advocating. The power of the source depends on several factors.
 The source must be perceived as being able to administer positive or
negative sanctions to the receiver (perceived control),
 The receiver must think the source cares about whether or not the
receiver conforms (perceived concern) and
 The receiver’s estimate of the source’s ability to observe conformity is also
important (perceived scrutiny).
When a receiver perceives a source as having power, the influence process
occurs through a process known as compliance. The receiver accepts the
persuasive influence of the source and acquiesces to his or her position in hopes
of obtaining a favorable reaction or avoiding punishment. The receiver may
show public agreement with the source’s position but not have an internal or
private commitment to this position. Persuasion induced through compliance
may be superficial and last only as long as the receiver perceives that the source
can administer some reward or punishment.

2.5.2. Message Factors

The way marketing communications are presented is very important in
determining their effectiveness. Promotional managers must consider not only
the content of their persuasive messages but also how this information will
be structured for presentation and what type of message appeal will be
used. This section examines the structure of messages and considers the effects
of different types of appeals used in advertising.
1. Message Structure
 Order of presentation (primacy vs. recency). Should the most
important message points be placed at the beginning of the message?
 Conclusion drawing (open vs. closed end). Marketing communicators
must decide whether their messages should explicitly draw a firm
conclusion or allow receivers to draw their own conclusions
 Message sidedness (one vs. two-sided):
o A one-sided message mentions only positive attributes or benefits or
o A two-sided message presents both good and bad points
 Refutation. In a special type of two-sided message known as a refutation
appeal, the communicator presents both sides of an issue and then refutes
the opposing viewpoint
 Verbal vs. visual

2. Message Appeals
 Comparative Advertising. It is the practice of either directly or
indirectly naming competitors in and ad and comparing one or more
specific attributes.
 May be especially useful for new brands
 Often used for brands with small market share
 Frequently use in political advertising
 Fear Appeals. Fear is an emotional response to a threat that expresses,
or at least implies, some sort of danger. Ads sometimes use fear appeals
to evoke this emotional response and arouse individuals to take steps to
remove the threat.
 May stress physical danger or threats to health
 May identify social threats: disapproval or rejection
 May backfire if the level of threat is too high
 Humor Appeals. Humorous ads are often the best known and best
remembered of all advertising messages.
 They can attract and hold attention
 They are often the best remembered
 They put the consumer in a positive mood
2.5.3. Channel Factors
The final controllable variable of the communication process is the channel, or
medium, used to deliver the message to the target audience. While a variety of
methods are available to transmit marketing communications, they can be
classified into two broad categories, personal and non-personal media.
Personal versus Non-personal Channels
There are a number of basic differences between personal and non-personal
communications channels. Information received from personal influence
channels is generally more persuasive than information received via the mass
media. Reasons for the differences are summarized in the following comparison
of advertising and personal selling: From the standpoint of persuasion, a sales
message is far more flexible, personal, and powerful than an advertisement. An
advertisement is normally prepared by persons having minimal personal contact
with customers. The message is designed to appeal to a large number of
persons.

Effects of Alternative Mass Media

 The various mass media that advertisers use to transmit their messages
differ in many ways, including the number and type of people they reach,
costs, information processing requirements, and qualitative
factors. We should recognize differences in how information is processed
and how communications are influenced by context or environment.

1. Differences in Information Processing

There are basic differences in the manner and rate at which information from
various forms of media is transmitted and can be processed.
 Information from ads in print media, such as newspapers, magazines, or
direct mail, is self-paced; readers process the ad at their own rate and can
study it as long as they desire. In contrast, information from the broadcast
media of radio and television is externally paced; the transmission rate is
controlled by the medium.
The difference in the processing rate for print and broadcast media has some
obvious implications for advertisers. Self-paced print media make it easier for
the message recipient to process a long, complex message. Advertisers often
use print ads when they want to present a detailed message with a lot of
information. Broadcast media are more effective for transmitting shorter
messages or, in the case of TV, presenting pictorial information along with
words. While there are limits to the length and complexity of broadcast
messages, advertisers can deal with this problem. One strategy is to use a radio
or TV ad to get consumers’ attention and direct them to specific print media for
a more detailed message.

Effects of Context and Environment

Interpretation of an advertising message can be influenced by the context or
environment in which the ad appears.
 A qualitative media effect is the influence the medium has on a
message. The image of the media vehicle can affect reactions to the
message. For example, an ad for a high-quality men’s clothing line might
have more of an impact in a fashion magazine like GQ than in Sports
Afield.
  A media environment can also be created by the nature of the program
in which a commercial appears. One study found that consumers reacted
more positively to commercials seen during a happy TV program than a
sad one.
 Clutter: Another aspect of the media environment, which is important to
advertisers, is the problem of clutter, which has been defined as the
amount of advertising in a medium. However, for television, clutter is often
viewed as including all the non-program material that appears in the
broadcast environment—commercials, promotional messages for shows,
public service announcements (PSAs), and the like. Clutter is of increasing
concern to advertisers since there are so many messages in various media
competing for the consumer’s attention. Half of the average magazine’s
pages contain ads and in some publications the ratio of ads to editorial
content is even higher. On average, around a quarter of a broadcast hour
on TV is devoted to commercials, while most radio stations carry an
average of 10 to 12 minutes of commercial time per hour. The high level of
advertising often annoys consumers and makes it difficult for ads to
communicate effectively. The problem is not likely to go away, however,
and advertisers will continue to search for ways to break through the
clutter, such as using humor, celebrity spokespeople, or novel, creative
approaches.

2.6. Establishing and Allocating the promotional Budget

 The Affordable method: sets the budget at an affordable level Ignores the
effects of promotion on sales
 Percentage-of-sales method sets the budget at a certain percentage of
current or forecasted sales or unit sales price
 Easy to use and helps management think about the relationship
between promotion, selling price, and profit per unit
 Wrongly views sales as the cause than the result of promotion
 Competitive-parity method sets the budget to match competitor outlays
 Represents industry standards
 Avoids promotion wars
 Objective-and-task method sets the budget based on what the firm wants
to accomplish with promotion and includes:
• Defining promotion objectives( create awareness of new product among
20 percent of target market)
• Determining tasks to achieve the objectives(Advertise on market area
television and radio stations and in major newspapers)
• Estimating costs( Television advertising, $575,000; Radio advertising, $
225,000; newspaper advertising, $175,000).