Monday, 8 October 2012
Sunday, 7 October 2012
Understanding Source, Message and Channel factors
Understanding
Source, Message and Channel factors
In this part, we are going to understand the three major components of
the communication process –
1.
Source
2.
Message, and
3.
Channel factor
The receiver will be discussed in the subsequent posts.
These are the factor which can be controlled by the communicator (the
marketer) in order to achieve a desired persuasion of the receiver (the target
customer).
Who delivers the message, what kind of appeal to use, and the
channel of communication- all play a very significant role in the process of
communication for a marketer. The steps involved in the process of message
conveyance are :
1.
Message presentation
2.
Attention
3.
Comprehension
4.
Yielding
5.
Retention, and
6.
Behaviour
Source factors:
The question to ask here is - When Tiger Woods appears in an ad of Nike
or Tag Heuer or Buick, what is the source? Is it he himself, the company or a
combination of the two? We will try to find out.
Well, a source is a person involved in communicating a marketing
message, either directly or indirectly. The characteristics of the source
affect the advertising message and in turn the consumer behaviour and consumer
purchase decision. There are three basic categories of source attribute which a
marketer must bear in mind. These are:
1.
Credibility
2.
Attractiveness, and
3.
Power
Source Credibility
The credibility of a source comes from expertise, trustworthiness
or a combination of the two. Does Tiger Woods give the credibility, the brand
he endorses demands? Well, depends upon the perception of the consumers about
him. And a marketer has to be careful in understanding that perception.
The use of expertise and
trustworthiness helps in creating a positive attitude towards the message and
hence leaves a positive influence on the receiver.
Using celebrities (like him), experts in the given domain or corporate
leaders (in case of Dell), as the spokesperson generally help in giving
credibility to the message being delivered.
Source Attractiveness
Next important aspect is attractiveness of the source. It leads to persuasion
through the process of identification.
The source of the message should be attractive enough to concentrate the
viewer’s attention towards the advertisement but not to an extent that it
overshadows the brand itself.
For example- Lindsay Wagner
appearance in Ford commercials
proved to be very successful. She proved to be very effective in communicating
the message to the consumers while still not overshadowing the brand.
Also, looking from the perspective of the celebrities, who appear in a
number of commercials, it leads to an overexposure,
which may give negative results in sending across the desired message. This is
because the consumers are aware that they are being paid for the commercials.
Hence, their appearance in too many commercials is detrimental to the
credibility of the message.
Meaning movement and the endorsement process
Thus, a celebrity’s effectiveness as an endorser
depends upon the culturally acquired meanings he/ she brings to the endorsement
process.
Source Power
A source has power when it can actually administer rewards and
punishments to the receiver. This power is a function of:
1.
Perceived control
2.
Perceived concern, and
3.
Perceived scrutiny
For example, in a personal selling situation, the sales representative
may have some power over a buyer in case the latter anticipates receiving
special awards on complying with the salesperson.
Message Factors:
Order of presentation
Research on learning and memory generally indicates that items presented
first and last are remembered better than those presented in the middle.
Presenting the strongest arguments at the beginning assumes a primacy effect while, doing that at the
end assumes a recency effect.
Conclusion Drawing
Research indicates that, in general, messages with explicit conclusions
are more easily understood and effective in influencing attitudes. However,
this depends upon the target audience, type of topic/ issue at hand and the
nature of the situation.
For instance, stating the conclusion is necessary for a less educated
audience. But, open- ended ads work better for highly involved audiences.
Message sidedness
Message can be either one sided
(stating only the positive attributes) or two
sided (presenting both good and bad points). Depending upon the market
share and image associated, a particular message type can be chosen.
Comparative advertising
This is the practice of directly or indirectly naming the competitors
for the purpose of comparison. Ethical issues may be associated with the same.
Fear
The relationship between persuasion and fear can be explained by the
fact that, fear appeals have both facilitating and inhibiting effects.
Relationship
between fear levels and message acceptance
Humor
Humorous advertisements are often the best known and best remembered of
all advertising messages. However, their effectiveness reduces with every
watch. As someone once has rightly said, “The first time the ad is funny, the
second time the ad is acceptable, and the third time it is a bore”. One should
also keep in mind that “if the viewers laugh with you, you can be in it for the
long haul. It’s when they laugh at you that you are in trouble”.
Channel factors:
Personal vs Non Personal Channels
Personal channels of communication turn out to be more persuasive that
the non-personal channel(s) of mass media. The difference lies in the personal
influence and customization in the case of personal channels.
Effects of alternative mass media
There I a basic difference 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 is self-paced, thus can be used to give extensive
information. While the information given on broadcast media is externally paced
thus, the message needs to be short and effective at the same time.
Effects of context and environment
The medium communicates an image that is independent of any message it
contains. The Qualitative media effect
is the influence of the medium on the message.
Clutter
The problem of clutter is very intriguing for the advertisers in today’s
world of information overload. Thus, the importance of being as direct and
effective in the minimum time possible besides being able to grab attention has
increased dramatically.
Achievers
The Epitome of Achievement- Rolex
The people who fall in the
category of Achievers are usually
motivated by the desire for achievement. They are successful, goal oriented
people who focus on and are deeply committed to their career and their family.
They are politically conservative and respect authority and status quo. They
prefer harmony, obviousness and stability as they are risk prone, lack the urge
for self-discovery. Brand image is the most attractive feature and they favour
established, prestige products. The reason that could justify their liking
towards the established brand would be the lack of time.
Mercedes
Gleitze, 1st woman to swim across the English Channel in 1927; wore
the Rolex watch Oyster for 14 hours and 15 minutes while was swimming in the
English Channel. Still was in perfect condition; was showing accurate time.
Achievers,
they want to associate themselves to the brands that have earned and achieved its
name, its image, its brand. Rolex is one of the best examples in this segment.
It has proved way back in 1927 or by attaching the watch to the submarine;
double the pressure that deep sea divers experience.
After
the death of Hans Wilsdorf in 1960, a private trust was created. This insured
that the company will never be sold, hence the board of directors would not
have to worry about distributing the dividend to their shareholders instead
they reinvested for the betterment and improvement of the company in the
various fields, to name few, distribution, after sales services, research and
development and promotion. They, therefore, focus on long term achievements and
develop strategy accordingly.
Rolex was 71st on the list of 100 most powerful
brands by Business Week in 2007.
Place – Rolex is preferred by its customers globally, who
remain loyal to this brand. They follow a rigorous channel selection method for
selling its watches. In major cities Rolex has its own retail outlets. In India
they also sell through Multi Brand Outlets line Shopper’s Stop.
Promotion – Rolex has smaller but loyal customer base and
therefore it is very important for them to reach and communication to their
target customers effectively. Rolex has its own brand image and they rely heavily
on this factor for attracting customers. It invests heavily on brand
ambassadors, like Roger Federer, to increase its brand value and in turn
attract more customers.
If Rolex follows the traditional advertising
channels they will hinder their own image severely. They cannot afford to
invest in traditional advertising channels. To earn enough sales and keep the
company profitable it is essential for the company to have an aggressive
marketing strategy. They follow a slow but sure way of customer development
through brand building. Through subtle imagery of a premium, aspirational
product worn by high achievers, Rolex has carved for itself a niche in the
customer’s mindshare.
Current Strategy –
Conservatism and tradition are the two credos
of the Rolex’s strategy: same product and same
communication in the last few decades. The company has been able to gain
sustainable advantage over the years owing to its unique communication strategy
and differentiation. The brand has always personified achievement and has kept
nurturing this ‘myth’ on account of successful celebrity endorsement. It also
maintains a part of mystery around its brand in order to cultivate the legend.
For a long time, it has been considered a
male watch, but lately they began efforts for women to like it too. Another important theme of the strategy has been the
backward vertical integration. This helped them to secure future supply.
Finally, going into the untapped potential of emerging markets has been on
their agenda.
Communication –
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Advertisement Categories
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Personalities/ Events
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Product Campaigns
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The current marketing communication strategy
features two distinctive categories of advertising as shown in the figure. The communication strategy of Rolex is very elaborated and
specific. The key points of their strategy rely on the use of sponsorship and
particularly celebrity endorsement and the emphasis on being a mysterious
brand.
Celebrity Endorsements –
Earlier the task of the ambassador was to
provide a testimony to the robustness of the brand. But today product
functionality has become an order qualifier from being an order winner before.
Now the link between the ambassador and the product is a lot more subtle. Rolex
tries to exalt individual success choosing strong personalities, representing
their time and their discipline. From dance choreographer Maurice Béjart, ice
skater Peggy Fleming, photographer Helmut Newton, opera singer Placido Domingo
and golf player Arnold Palmer to the explorer Sir Edmond Hillary, Rolex has
always chosen the best people of their category to represent them.
In line with the idea of a long term
strategy, Rolex uses a selective marketing strategy which goal is to target
very directly the desired customer. They do not use artists that are “hot in
the moment” to have periodically picks of sales linked to the use of the
superstar. On the contrary, the chosen celebrities have a sustainable
character. In fact, Rolex ambassadors are famous only in “niche” activities
like golf, equestrian and sailing just to name a few and are unlikely to
provoke demonstration because most of the time they are unknown by the general
public.
Therefore, Rolex is the incarnation of
success, accomplishment and going beyond one’s limits. It is definitely the
watch people buy when they have achieved something in their life. The design of
the watch went through so minor changes that it is recognizable at first sight
and most people could identify a Rolex very easily. At the same time, they will
assume the person wearing it is an achiever and that he/she can afford it to
buy a Rolex watch.
Rolex has a very large range of communication
themes, among them dance, equestrian, exploration, golf, racing, sailing,
tennis, jazz, opera and classical music. What is more, Rolex is robustly
involved in philanthropy: it is the initiator of a mentoring program, the Rolex
Mentor and Protégé Arts Initiative, launched in 2002 as well as the Rolex
Awards for Enterprises launched in 1978.
Mystery –
Thanks to the lack of financial information
about the company, the particular status that the brand enjoys and their
communication strategy, Rolex without doubt is one of the most mysterious
brands in the world. And this mystery adds to the charisma of the brand.
First, Rolex tells great stories that feed
the brand identity and build inspiration. The celebrity/event advertisements
always start with a catching sentence followed by a short text presenting the
achievement of the celebrity/event:
“You have 100 days to travel 3924 km on foot.
By the way you are in Antarctica.”
This is not only the watch of collectors but
also of the speculators. In fact, the model is introduced with extreme
frugality on the market; the difficulty in finding one adds a lot to its
status. The beginning of this passion can be tracked back in the 1970s when
Paul Newmann was wearing it in the movie "Winnings" where he was a
race car driver. Now, the models are very demanded and can be bought in a jewellery
store and resold right away with up to 20% added value.
Female
Customers –
Roles wanted to move away from the identity
of being a “male’ watch, and the opportunity of increasing their presence on
the female segment is identified.
However, the company still seems having troubles implementing it and
attracting woman.
In
the end of 2004, Rolex has presented new pictures of some of its woman
ambassadors in its advertisements. The pictures still presents the celebrity in
her environment (golf, etc) but the picture look a lot more glamorous now.
Finally, mechanical watches were usually designed for male with the idea that
“women do not understand technology anyway” and that quartz watch with a nice
design were more appropriate for them. This tendency is slowly changing and
women also want to buy technological timepieces. Therefore, Rolex cancelled all
the quartz movement in the Oyster feminine line the next year. This was a very
innovative move compared to its competitors.
With the strategy of backward integration, Rolex
confirms that it is true watch making group that privilege the total control of
all aspects linked to the quality of its product instead of the development of
a multi brand portfolio. Rolex SA Geneva owned by Wilsdorf foundation and Rolex
Bienne produced movements exclusively for Rolex SA Geneva, were the two
different entities. Rolex SA decided to buy Rolex Bienne so that it’s
provisioning of movements.
Rolex is a watch company but has established itself
more than just a time checker. Elegance, celebrity and class are the few words
that can be associated with this brand- Rolex. It represents the hi-class
fashion and the spirit of achievement. Rolex is WIMBLEDON. Rolex is THE MASTERS
GOLF TOURNAMENT. Rolex is LE MANS.
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