1. Lecture Two
Communications theory and marketing
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2. Communications theory
 A definition of ‘communications’
 transmitting
 giving or exchange of information
 a means of communicating
 the science of transmitting information
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3. Communications theory
 Communications is not a one-way flow of
information
 it only occurs when a receiver actually receives
the message that the sender intended to send
 message rejection, misinterpretation and
misunderstanding are the opposite of effective
communication
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4. Communications theory
 Good communication = good business
 helps an organization to thrive
 focused and cost effective
 Poor communications = bad business
 can cost market share, jobs and survival
 can damage reputation and image
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5. University of Glamorgan 5

6. The Two-step communication
model (Katz & Lazerfeld, 1955)
Receivers
Receivers
Opinion
Media
Media Leaders
Receivers
Receivers
Receivers
Receivers
Opinion
Formers
Receivers
Receivers
Receivers
Receivers
Sender or Messages
Sender or Messages
Source
Source Receivers
Receivers
Receivers
Receivers
Opinion
Formers
Receivers
Receivers
Receivers
Receivers
Opinion
Leaders
Receivers
Receivers
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7. The mechanics of the
marketing communications
process
Sender’s Frame
of Reference
Sender
Sender
Requirements
Requirements
Sender or Encoded Decoded Receivers
Sender or Media Receivers
Source
Source Message Media Message
Receiver Receiver’s
Receiver
Requirements Frame of
Requirements
Reference
Distortion Noise Distortion
Feedback
Feedback
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8. Communications theory
 Multi-step communication model: proposes
that the communication process involves interaction
between all potential consumers
 Web communications models: online
communications allows customers to firstly talk to one
another (C2C), and secondly, back to the company
(C2B). The flow of communications becomes similar to a
spider’s web whereby all parties are joined together
through the process of communication
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9. Communications theory
 Linear communication model assumes:
 sender is active
 receiver is inactive or passive
 message is comprehended
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10. Communications theory
 Typical models assume communications
process to involve encoding, transmitting and
decoding a message through some medium.
 The decoding and reception of the message
may be affected by various types of ‘noise’ or
clutter
 The response (feedback) influences future
communications
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11. The mechanics of the marketing
communications process
Post -Purchase
Post -Purchase
Purchase
Purchase
Reinforcement
Reinforcement Action
Adoption Action
Adoption
Conviction Purchase
Conviction Purchase
Trial
Trial Trial Preference
Trial Preference
Desire
Evaluation of Desire
Evaluation of
Alternatives
Alternatives
Liking
Liking
Evaluation
Evaluation
Information Search
Information Search
Knowledge
Knowledge
Interest Interest
Interest Interest
Awareness
Awareness Problem
Awareness Problem
Awareness Recognition
Recognition Attention
Ignorance Attention
Ignorance
Ehrenberg and Engel, Blackwell
Rogers (1962) Goodhardt Blythe and Miniard Strong (1925)
(2000) 11

12. Communications theory
 Word of mouth (W-O-M)
 W-O-M is the most powerful of all
communication tools - particularly in it’s negative
form
 Customers use W-O-M recommendations to
provide information and to support and reinforce
their purchasing decisions
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13. Sources of communication by type
Least credible Most credible ABSENCE of
COMMUNICATION
PLANNED PRODUCT SERVICE UNPLANNED
MESSAGES MESSAGES MESSAGES MESSAGES
Mass Appearance Interaction with Word of Mouth
Communications service processes referrals No information or
Brochures Design Deliveries References
feedback when an
Direct Response Usefulness Invoicing News stories
unexpected delay or
Sales Product Ingredients Claims handling Gossip
Websites Eco-content of After Sales Service Unreported
service failure has
product complaints occurred, or in any
situation when the
customer feels he is
out of control of the
situation.
Source: Duncan, T. and Moriarty, S. (1997)
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14. Semiotics
 The scientific discipline of studying the meanings
associated with signs, symbols and brands
 Every message comprises:
 object (= product)
 sign (= advert content)
 interpretant (= meaning)
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15. Semiotics
 An icon resembles the object (product) in some way (e.g.
Apple computers)
 An index is a sign that is connected to an object
(product) because they share some property e.g. pine
tree on cleaning product indicates it shares the property
of fresh, natural scent
 A symbol is a sign that is related to an object (product)
through association - e.g. Mercedes star associated with
Mercedes-Benz company and German industrial quality
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