Marketing Communications Objective Setting Asia-Pacific Marketing Federation Certified Professional Marketer Copyright Marketing Institute of Singapore

Organization 1. Introduction 2. Types of Objectives 3. Hierarchy of Effects Model 4. Product Involvement

Introduction n Promotional Objectivesare the goals of the promotional activities. n Promotional Objectives are the goals of the promotional activities. Serve to: (a) facilitate the planning of the campaign, and (b) set the standard to evaluate the campaign effort  Important to set appropriate objectives

Criteria for Appropriate Objectives n Consistent with corporate and marketing objectives n Clear n Defines the target audience and quantifies the desired response

n Achievable yet Demanding –If too easy  waste resources; false sense of security –If too high  demoralizing; damage leadership credibility n Establish Time Schedule –Recognizes campaign's effectiveness and efficiency

(a)Informing (a) Informing -- About the functional and psychological needs the product satisfies -- Important especially for new products (b) Persuading -- Persuades consumer to move toward some action or attitude -- Appropriate for competitive growth products Types of Objectives

(c)Reminding (c) Reminding -- Reminds that the product is still available -- Suited for mature products

n In less developed Asian countries, product awareness may be the promotional objective n In developed Asian countries where consumers are already aware of product benefits, persuading may be the objective – persuading consumers prefer one brand over another

DAGMAR Defining Advertising Goals for Measured Advertising Results. n A series of steps through which a brand must climb to gain acceptance. n Unaware  Aware  Comprehension & Image  Attitude  Action n Advtg effects occur over a period of time. n Behavior response does not occur immediately. Hierarchy of Effects Models

AIDA Attention, gain Interest, create a Desire, and precipitate an Action n Represent stages a salesperson must take a customer through in the personal selling process.

n Effectiveness/Importance of Promotional Mix differ depending on: –High/Low Product Involvement Product Involvement

High Involvement n Extensive problem solving n Awareness  Attitude  Trial n All 4 tools used n See Figure: Objectives and Promotion Mix Over Time: High Involvement Product

Objectives and Promotion Mix Over Time: High Involvement Product Awareness Comprehension Conviction Purchase 0 Time + Publicity Personal Selling Advertising Sales Promotion Effectiveness, Importance

(a)Awareness (a) Awareness -- Due to need recognition -- Competing needs -- Priority ranking of needs (b)Comprehension (b) Comprehension -- Info search for solution -- Desire to make right decisions -- Desire to make right decisions Objectives

(c)Conviction (c) Conviction -- Evaluation of alternatives -- Establish criteria  Beliefs  Attitude -- Establish criteria  Beliefs  Attitude (d)Purchase (d) Purchase -- Purchase may not be made because: * no purchasing power * product not available * rude salespeople

Low Involvement n Limited problem solving n Awareness  Trial  Attitude n Advertising and sales promotion used n See Figure: Objectives and Promotion Mix Over Time: Low Involvement Product

Objectives and Promotion Mix Over Time: Low Involvement Product Awareness Product Trial Attitude Formation Repeat Purchase 0 Time + Effectiveness, Importance Advertising Sales Promotion

(a)Awareness (a) Awareness -- Temporal need recognition -- Purchase opportunities must occur at time of need recognition  purchase -- Purchase opportunities must occur at time of need recognition  purchase (b)Product trial (b) Product trial -- Product choice influenced by brand recall (c)Attitude Formation (c) Attitude Formation -- Favorable attitude may not lead to brand loyalty -- Brand loyalty due to inertia -- Brand loyalty due to inertia -- Easy brand switching thro’ aggressive promotion -- Easy brand switching thro’ aggressive promotion