SETTING ADVERTISING OBJECTIVES

Functions of Advertising Objectives

1.

To operate as communication and coordination devices (copywriter - media buyer - research specialists)

2.
3.

To provide a criterion for decision making

To evaluate results (market share, brand awareness)

Sales As An Objective

Advertising Price Distribution Packaging Product features Competition Consumer Tastes Factors influencing Sales

Sales

Long-Term Impact of Advertising

New customers Advertising Immediate Sales Change Attitude Improve image Future Sales

Operational Objectives of Advertising

How does one proceed? 1. 2. 3. Who is the target segment? What is the ultimate behaviour within that segment that advertising is attempting to precipitate, reinforce, change or influence? What is the process that will lead to the desired behaviour and what role can advertising play in the process? Is it necessary to create awareness, communicate information about the brand, create an image or attitude, build long-term brand equity and associations, or associate feelings or a type of user personality with a brand?

Behavioral Dynamics
Customer Types

Segment N Those not buying product class

Segment O Those buying Other brands exclusively

Approach:

Segment E Existing Customers

To To To To To To To

increase size of E attract O to get them to try our brand attract people from N increase brand loyalty reduce flow from E to O increase consumer promotions viz., premium increase usage of existing customers

Advertising Response Variables Intervening Between Advertising & Action

To identify and use advertising response variables, the key questions to be addressed are: 1. What communication, association, or persuasion task will be likely to precipitate the desired action? 2. How can this task best be conceptualized and measured? Brand awareness Brand comprehension Brand image and personality Brand attitude Associating feelings with brands or use experiences

Intervening and Behavioral Variables

Model A B C Advertising Variable Intervening Variables Advertising Advertising Advertising Brand Awareness Brand Awareness Brand Awareness Knowledge of brand attributes Behavioral Variables Trial Purchase Loyalty Trial Purchase

D
E F G

Advertising
Advertising Advertising Advertising

Knowledge of new application

Increase usage
Sales leads

Knowledge about company Associate Brand with User Type

Sales via personal selling Loyalty

H
I J K

Advertising
Advertising Advertising Advertising

Brand Attitude
Associate Feelings and Brand Use Brand Awareness Knowledge of Brand Attributes Brand Attribute

Loyalty
Loyalty Trial Purchase Trial Purchase

Knowledge of Brand Attributes Brand Attitude

Specifying the Target Segment

A basic question in the objective-setting process is the identity of the target segment. To whom is the advertising to be addressed?

DAGMAR Approach

Defining An Advertising Goal

An advertising goal is a specific communication task, to be accomplished among a defined audience, in a given period of time.

A Communication Task
Unaware Aware Comprehension and Image Attitude Action A Hierarchy of Effects Model of the Communication Process

A Specific Task

Measurement procedure: What appeal or image is to be communicated. Benchmark: To know the starting conditions. To know whether the existing image needs to be changed, reinforced, diffused or sharpened. Target Audience: To know the target audience precisely. Time Period: The objective should involve a particular time period.

Written Goals: Goals should be committed to paper.

Challenges to the DAGMAR Approach

Sales Goal: Only a sales measure is relevant. Practicability: Implementation difficulties inherent in approach. Measurement Problems: What should we really measure when we speak of attitude, awareness, or brand comprehension? Noise in the System: Many causal factors other than advertising that determines sales. Inhibiting the Great Idea: The great creative idea is a dream or hope of many advertisers. Hierarchy Model of Communication Effect: attacks the basic hierarchy model which postulates a set of sequential steps of awareness, comprehension, and attitude leading to action. Action can precede attitude and even comprehension with an impulse purchase of a low-involvement product.

Continuous Advertising Planning Program (CAPP) Consumer Demand profile

Preference

Equality

Total Users

Brand Brand Brand Brand Awareness Acceptance Bought Last Satisfaction

Elaboration Likelihood Model (ELM)

Advertisement
No Peripheral Cue Present No

Motivation to Process Information

Yes
Ability to Process Information Yes Central Route to Attitude Change

Yes Peripheral Route to Attitude Change

The ELM Model of Attitude Change