02 Dagmar Final
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Establishing Objectives (DAGMAR)
EG: Porche
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Types of Objectives
Marketing Objectives
Statements of what is to be accomplished by theoverall marketing program within a given timeperiod.
Need to be quantifiable such as sales volume,market share, profits, or ROI.
Need to be realistic, measurable and attainable
IMC Objectives
Statements of what various aspects of the IMCprogram will accomplish based oncommunication tasks required to deliverappropriate messages to the target audience.
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Function of Objectives
Operate as communication and coordination devices
Provide a criteria for decision making among alternative
campaigns
Evaluation of results
SALES AS OBJECTIVE ARE UNOPERATIONAL
Many factors affect sales
Role of advtg is long run
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Not all Ads are Designed to Achieve Sales
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Problems With Sales Objectives
Sales are a function of many factors, not just advertising and promotion.
Effects of IMC tools such as advertising
often occur over an extended timeperiod.
Sales objectives provide little guidance
to those responsible for planning anddeveloping the IMC program
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Many Factors Influence Sales
Product Qualitypackaging
Distribution
Competition
Technology
The Economy Price Policy
SALES
Advertising
Consumer tastes
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When Sales Objectives Are Appropriate
For promotional efforts that are direct actionin nature and can induce an immediatebehavioral response.
Sales promotion
Direct response advertising
Retail advertising for sales or special events
When advertising plays a dominant role in afirm’s marketing program and other factorsare relatively stable
When sales effects of an IMC variable can beisolated.
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TOWARDS OPERATIONAL OBJECTIVES
1. Who is the target segment? (people who are unaware of the brand or are not
convinced that brand or product has key attributes, have not yet developed a positive
attitude, etc)
2. What is the behavior within that segment that advertising is attempting
to influence, change……. Trial purchases, loyaly maintenance, more positive use
experience, reducing time b/w puchases ,increasing use up rate or decision to visit
retailer– LTV exceeding cost of acquiring new customer
– NEO CUSTOMER SEGMENT (diagram)
• O segment: find ad targeting at O segment
• E segment: ABC INVENTORY RULE (NIKE,CAMPBELL SOUP)
• N segment: Pepsi (cofee to pepsi rather than coke to pepsi), dannon yogurt vs sour cream on
basked potato, maruti 800, nano
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TOWARDS OPERATIONAL OBJECTIVES
– Increasing SOR (Share of requirements)- multiple brands of credit cards, biscuits,
soaps, hotels, etc. are simultaneously used- advt should make customer aware of real
brand advantage.
– Increasing brand loyalty, reducing attrition and price elasticity
• Reduce the flow from E to O,
• Reminding and reinforcing existing customers (fare and lovely)
• using consumer promotions like premiums requiring multiple usage proof
– Increasing usage- specially in food and beverage (eggs in summers, dabur honey),
kodak film, energizer batteries, scotch tape fro decoration as well as conventional
purpose, chewing gum for double chin
– Behavioral or action objectives- counting of cent off coupons, enquiries
generated on the day of advt.
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TOWARDS OPERATIONAL OBJECTIVES
3. What is the process that will lead to desired behavior and what is
the role of advtg in the process?
– Is it necessary to create awareness, communicate information about
brand, create image or attitude, build long term brand equity and
associations or associate feelings or a type of user personality with a
brand
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Communication Objectives
The primary goal of an advertising is to communicate and
planning should be based on communications objectives such as
brand awareness: increase familiarity and top of mind awareness -
Knowledge & interest (brand comprehension): eg windows / android
phones
Brand image and personality : type of associations a brand develops with atype of person or another product (charlie perfumes – specific female life-
style,apple computer- user friendly
Brand attitudes: like / dislike towards a brand
purchase intention: associating feelings with brands or use experiences
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The DAGMAR Approach
Define
Advertising
Goals for
M easuring
Advertising
Results
Advertising goals
should be written measurable task involving a starting
point
a defined audienceand
a fixed time period
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Characteristics of Objectives
Concrete, Measurable Communication Tasks
Have an Existing Benchmark Measure: president
Lincoln: “if we could first know where we are
and whither we are tending, we could better judge
what to do and how to do it ”
Well-Defined Target Audience
Specify Degree of Change Sought
Specific Time Period
Good Objectives Should Include:
h h
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The DAGMAR Approach-Hierarchy of effects model of communication process
Unaware
Aware
Comprehension and image
Attitude
Action
Targetaudience
passsequentiallythrough set
of steps
12
AIDA
A- Attract attention
I – gain interestD- create a desire
A – precipitate action
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Hierarchy model by Robert Lavidge and GarySteiner
ConativeRealm of motives.
Ads stimulate or direct
desires.
AffectiveRealm of emotions.
Ads change attitudes
and feelings
CognitiveRealm of thoughts.
Ads provide
information and facts.
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
Point of purchaseRetail store ads, Deals“Last-chance” offers Price appeals, Testimonials
Competitive ads Argumentative copy
“Image” copy Status, glamour appeals
AnnouncementsDescriptive copyClassified adsSlogans, jingles, skywriting
Teaser campaigns
Related behavioral
dimensions
Movement
toward purchase
Types of promotions and
advertising at each step
3
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Inverted Pyramid of Communications Effects
90% Awareness
70% Knowledge
40% Liking
25% Preference
20% Trial
5% Use
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DAGMAR Difficulties
Response Hierarchy Problems(noise) Doesn't always define the
process people use to reach
purchase/use. Many factorsbesides advertising affectawareness. Eg: competitivepromotion or unplannedpublicity
Attitude - Behavior Relationship
Attitude change doesn't alwayslead to change in actions orbehavior. Action may alsoprecede attitude formation andeven comprehension.
Sales Goal
Sales are all that really counts, notcommunications objectives. Ifawareness does not affect sales,why bother to measure it?
Practicability
Implementation difficulties
The research and efforts cost morethen the results are worth.
Measurement problems:
Attitude, awareness, brandcomprehension etc are abstract
things to measure. Inhibition of Creativity
DAGMAR is rational, plannedapproach. Too many rules andstructure curb genius.
Legitimate Problems Questionable Objections
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The Leo Burnett Program
• CAPP- continuous advertising planning program
• CDP – consumer demand profile
Preference
Totalusers
BrandBought
last
BrandAcceptance
BrandAwareness
Brandsatisfaction
Equality
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General Motors approach
Awareness
Buying class
Consideration class
First choice
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Advertising-Based View of Communications
Purchase
BehaviorAttitudes Knowledge Preference Conviction
One-Way
Linear
Advert is ing Throu gh Media
Act ing on Consumers
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Budgeting Decisions
Two major decisions
• Establishing the size of the budget
• Allocating the budget
Budgeting decisions involve determining how muchmoney will be spent on advertising and promotion
each year and how the monies will be allocated
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Problems with Marginal Analysis
Assumption: Sales are the principal objective of
advertising and/or promotion.
Assumption: Sales are the result of advertising
and promotion and nothing else.
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Advertising Sales/Response Functions
I n c
r e m e n t a l S a l e s
Advertising Expenditures
A. Concave-DownwardResponse Curve
I n c
r e m e n t a l S a l e s
Advertising Expenditures
Range A Range B Range C
B. S-Shaped ResponseFunction
Hi gh S p en d i n g
L i t t l eE f f e c t
I ni t i al S p en d
i n g
L i t t l eE f f e c t
Mi d d l eL ev e
l
Hi gh E f f e c t
T D B d ti
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Top Management Sets the
Spending Limit
The Promotion Budget Is Set to Stay
Within the Spending Limit
Top-Down Budgeting
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Top-Down Approaches
The Affordable Method What we have to spare. What's left to spend.
Arbitrary Allocation Method No system. Seemed like a good idea at the time.
Percentage of Sales Method Set percentage of sales or amount per unit.
Competitive Parity Method
Match competitor or industry average spending. Return on Investment Method
Spending is treated as a capital investment.
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Total Budget Is Approved byTop Management
Bottom-Up Budgeting
Cost of Activities are Budgeted
Activities to Achieve ObjectivesAre Planned
Promotional Objectives Are Set
Objective and Task Method
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Objective and Task Method
Establish Objectives(create awareness of new product among
20 percent of target market)
Determine Specific Tasks
(advertise on market area television and
radio and local newspapers)
Estimate Costs Associated with Tasks
(create awareness of new product among
20 percent of target market)
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Payout Planning
To determine how much to spend,marketers develop a payout plan thatdetermines the investment value of theadvertising and promotion appropriation
Example of a three-year payout plan (Rs. millions)
Year 1 Year 2 Year 3Product sales 15.0 35.50 60.75Profit contribution
(@$.50 per case) 7.5 17.75 30.38Advertising/promotions 15.0 10.50 8.50Profit (loss) (7.5) 7.25 21.88Cumulative profit (loss) (7.5) (0.25) 21.63
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Allocating the IMC Budget
Client/Agency Policies
Size of Market Market Potential
Market Share Goals
Market Share and Economies of Scale
Organizational Characteristics
Factors Affecting Allocation toVarious IMC Elements
Sh f d d S d