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Characteristics of Objectives

Specific

Attainable Measurable

Realistic Quantifiable

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Sales vs. Communications Objectives

Sales Communications
Objectives Objectives
• Primary goal is • Increased brand
increased sales knowledge, interest,
• Requires economic favorable attitudes
justification and image
• Should produce • Immediate response
quantifiable results not expected
• Goal is creating
favorable
predispositions

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Factors Influencing Sales

Technology
Competition

The
Advertising & economy
promotion

Product
quality
Distribution
Price

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Communications Effects Pyramid

5% Use

20% Trial

25% Preference

40% Liking

70% Knowledge/comprehension

90% Awareness

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GfK Purchase Funnel

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The DAGMAR Approach

Define Awareness

Advertising
Goals for Comprehension

Measuring Conviction
Advertising
Results Action

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Advertising-Based View of Marketing

Ads

Acting on Consumers

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Marginal Analysis

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Budget Adjustments

If cost is less than the


marginal revenue generated
Inc
rea

din
Sp
en
se

g
Ho

ng
Sp
en

If the cost is equal to the


di
ld

marginal revenue generated


ase

din
cre
De

If the cost is more than the


Sp
en

marginal revenue generated

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Sales Response Models

A. Concave-Downward B. S-Shaped Response


Response Curve Function
Incremental Sales

Incremental Sales

Initial Spending

High Spending
Middle Level

Little Effect
Little Effect

High Effect
Range A Range B Range C
Advertising Expenditures Advertising Expenditures

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Factors Influencing Advertising Budgets

Product Hidden product


life cycle qualities

Product Product
durability price

Purchase
Differentiation frequency

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Top-Down vs. Bottom-Up Budgeting

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Build-Up Approaches

• Objective and Task Method


• Define communications objectives to be
accomplished
• Determine specific strategies and tasks
needed to attain them
• Estimate costs associated with
performance of these strategies and tasks

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Implementing the Objective and Task Approach

Isolate objectives

Determine tasks required

Estimate required expenditures

Monitor

Reevaluate objectives

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