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By Ankit kumar singh Roll num :2011/mba/012 Avinash kumar Roll num : 2011/mba/015

The Message Initiator (the Source) The Sender The Receiver The Medium The Message The Target Audience (the Receivers) Feedback - the Receivers Response

Credibility of Informal Sources Credibility of Formal Sources These sources also Credibility of Spokespersons and Endorsers called opinion Message Credibility leaders

Issues with Credibility Includes word of mouth

Informal sources may not always be credible

Credibility of informal sources is built on the perception that they have nothing to gain from their recommendation.

An opinion leader is an example of a credible informal source. Individuals who experience postpurchase dissonance often try to alleviate their uncertainty by convincing others to make similar purchases.

Credibility of formal sources is built on intention, reputation, expertise, and knowledge.


Such formal sources as neutral rating services or editorial sources have greater credibility than commercial sources. Consumers judge commercial sources based on their past performance, the kind and quality of service, the quality and image of products offered, and their position in the community. Firms with well-established reputations generally have an easier time selling their products than do firms with lesser reputations. Furthermore, a quality image permits a company to experiment more freely in many more areas of marketing than would otherwise be considered prudent, such as self-standing retail outlets, new price levels, and innovative promotional techniques.

Social networks Brand communities Consumer message boards and weblogs Strategic marketing applications of word- of mouth Buzz agents Viral marketing Tackling negative rumors

Credibility of spokespersons and endorsers the spokesperson that gives the product message is often perceived as the source.

Therefore, his/her reputation is extremely important.

The Target Audience (Receivers) Receivers decode the messages they receive on the basis of their personal experience and personal characteristics.

Target Audience Selection of the appropriate audience is key.

It is essential that the sponsor segment the audience into groups that are homogeneous in terms of some relevant characteristic. This enables the marketer to create specific messages for each target group and run them in specific media that are seen or heard by each target group.

There is a need for an umbrella message for all audiences from which they spin off specific messages for targeted segments. Many organizations use public relations professionals to help them maintain a positive corporate image.

Credibility of informal sources is built on the perception that they have nothing to gain from their recommendation.

An opinion leader is an example of a credible informal source. Individuals who experience postpurchase dissonance often try to alleviate their uncertainty by convincing others to make similar purchases.

A persons level of involvement determines how much attention is paid to the message and how carefully it is decoded. Mood A consumers mood (e.g., cheerfulness, unhappiness) affects the way in which an advertisement is perceived, recalled, and acted upon. The consumers mood often is influenced by the context in which the advertising message appears (e.g., the adjacent TV program or newspaper story) and the content of the ad itself; these in turn affect the consumers evaluation and recall of the message

Consumers selectively perceive advertising messages.

They tend to ignore advertisements that have no special interest or relevance to them. TV remote controls offer viewers the ability to wander among program offerings with ease (often referred to as grazing). Some marketers try to overcome channel surfing during commercials by roadblocking, i.e., playing the same commercial simultaneously on competing channels.

The VCR created problems for television advertisers by enabling viewers to fast-forward, or zip through commercials on prerecorded programs.

Things that impair reception of a message, such as competing advertising messages or distracting thoughts are called psychological noise. The best way for a sender to overcome psychological noise is to:

Repeat exposure to the message. Use contrast. Use teasers. Place ads in specialized media

Targeting consumers through mass media Media Strategy First, the sponsor should develop a consumer profile of the target market. Next, a medium with an appropriate audience profile needs to be selected. Before selecting a specific medium, the advertiser needs to select a general media category that will enhance the message. Once marketers have identified the appropriate media category, they can then choose the specific medium (or media) in that category that reaches their intended audiences.