Objectives for the IMC Plan

Value of Objectives Communications Planning and Decision Making Measurement and Evaluation of Results Planning and Decision Making Communications Objectives

Marketing Versus Communications Objectives Vs. Marketing Objectives Generally stated in the firm’s marketing plan Achieved through the overall marketing plan Quantifiable, such as sales, market share, ROI To be accomplished in a given period of time Must be realistic and attainable to be effective Generally stated in the firm’s marketing plan Achieved through the overall marketing plan Quantifiable, such as sales, market share, ROI To be accomplished in a given period of time Must be realistic and attainable to be effective Communications Objectives Derived from the overall marketing plan More narrow than marketing objectives Based on particular communications tasks Designed to deliver appropriate messages Focused on a specific target audience Derived from the overall marketing plan More narrow than marketing objectives Based on particular communications tasks Designed to deliver appropriate messages Focused on a specific target audience

Problems with Using Sales as A Communications Objective The Economy The Economy Distribution Technology Price Policy Promotion Competition Product Quality Product Quality Price Policy Technology Distribution Product Quality Product Quality Competition Promotion $ ALE $

Problems with Using Sales as a Communications Objective Carryover effect of advertising Many experts believe the effects of advertising can occur over an extended period. Money spent on advertising does not necessarily have an immediate impact on sales.

Problems with Using Sales as a Communications Objective Sales objectives offer little guidance to those planning and developing the Promotional Program. The creative and media people working on the account need direction: Nature of the message the company hopes to communicate. The intended audience. The particular effect or response sought.

When Are Sales Objectives Appropriate? Sales objectives are useful if: Other marketing or environmental factors are not influencing sales. Carryover effect is not occurring. Managers involved do not require guidance. Setting sales objectives appears appropriate in the case of direct- response advertising.

Direct Response Ads Seek Sales

Communication Objectives Statements of what the communications will accomplish. Three levels of communication objectives, depending upon the decision at hand: Overall IMC plan Individual IMC tools Individual elements of a communication tool

Communication Objectives Communication objectives should be based: On the particular communication tasks required to deliver the appropriate messages to the specific target audience. At a relevant point within the target market’s purchase decision-making process and consumption experience.

The DAGMAR Approach D efine A dvertising G oals for M easuring A dvertising R esults

The DAGMAR Approach Recognition that communication effects are the logical basis for advertising goals and objectives against which success or failure should be measured.

The DAGMAR Approach An advertising goal is a communication task that is specific and measurable. The communication task has four stages: Awareness Comprehension Conviction Action

DAGMAR Definition of Objectives Specified Time Period Concrete, Measurable Tasks Target Audience Benchmark and Degree of Change Sought Objectives

Pyramid of Communications Effects 20% Trial Conative 40% Liking Affective 90% Awareness Cognitive 5% Use 70% Knowledge 25% Preference 90% Awareness 70% Knowledge 40% Liking 25% Preference 20% Trial

Many Ads Seek Communication Objectives

Setting Objectives Using the Communications Effects Pyramid Figure 4-5

Image ads can have a strong effect on preference

R&P Perspective Objectives  Related to behaviour or communication

Behavioural Objectives The link between attitude toward the brand (communication objective) and sales (marketing objective). Must have a clear behavioural objective for each target audience.

Options for Behavioural Objectives 1. Trial Consumer’s first purchase of focal brand. Brand trial objectives Retrial objectives Brand-switching objectives Category trial objectives

Options for Behavioural Objectives 2. Repeat Purchase A consumer’s continued purchase of a focal brand within a specified time period. Repeat-purchase objectives

Options for Behavioural Objective 3. Purchase-Related Behaviour An action taken by consumers which will lead to a higher probability of purchasing the brand. Consumer seeks some amount of information about, or experience with, the brand. Purchase-related behaviour objectives

Options for Behavioural Objectives 4. Repeat Consumption The continued consumption of a brand once purchased. Repeat-consumption objectives

Options for Communication Objectives Can be viewed as a universal framework for: A specific communication  One print ad or television commercial A specific campaign  Advertising or sponsorship A complete IMC program  All promotional tools

Options for Communication Objectives 1. Category need Whether the target audience feels the need to purchase within the actual product category. 2. Brand awareness 3. Brand attitude 4. Brand purchase intention 5. Brand purchase facilitation

Questions You are in a meeting to discuss plans for a new advertising and promotional program for your company. The vice president of marketing opens the meeting by stating there is only one objective for the new campaign—to increase sales. How would you respond to this statement? Discuss three situations where sales are an appropriate measure of the effects of advertising or other marketing communications element. You are the advertising manager for an established brand of laundry detergent and have just fought hard to have the promotional budget for the brand increased by 10 percent. You have just received a report for the latest quarter that shows sales did not change despite the increase in advertising spending. The marketing vice president is concerned about the lack of increase in sales and wants you to explain the problem. How might you respond?