1. MKM803 Integrated Marketing Communications
Chapter 5 – Setting Objectives for the IMC Plan

2. Strategic Planning
Strategic planning is a process of developing and maintaining a fit between the organization’s goals and capabilities and changing market opportunities.
A corporate or business plan states a company’s financial objectives and strategies for achieving those objectives.
New companies must also have a business model.
A marketing plan is a set of objectives, strategies, and tactics orchestrating marketing activities designed to help the company achieve its financial objectives.
Annual MC plans are generally composed of a campaign.
Marianne Marando
Winter 2005

3. How Planning Works Three critical tasks in planning:
Setting measurable objectives
Deciding on strategies
Choosing tactics
Marianne Marando
Winter 2005

4. Why set objectives? Communication. Planning and decision making.
Help to orient everyone involved in the IMC program toward one, common goal.
Planning and decision making.
Serve as criteria for developing plans and making decisions.
Measurement and evaluation of results.
Provide the standards and benchmarks for evaluating results.
Communication - - facilitate the coordination of the various groups working on the campaign (agency, client, all others)
Planning – Once you are into planning a campaign you are faced with several options all the time (media, message choices) The question you should always ask – Does it match the promotional objective?
Marianne Marando
Winter 2005

5. Cascading Objectives and Strategies
Marketing objectives – what is to be accomplished with the firms overall marketing programs over a period of time. Good marketing objectives are quantifiable, delineate target market and have a time frame. Must also be realistic and attainable. To increase sales by 10% in the small business segment in the next year.
Marketing goals are usually SALES, MARKET SHARE, PROFIT – depends on stage of product life cycle
Marketing communications – look at at the marketing objective and decide what role communications will play to get there
Very tempting to think of sales as objective for communications – why advertise if it is not leading to sales? What is wrong with that argument?
Marianne Marando
Winter 2005

6. Types of Objectives Marketing objectives.
Statements of what is to be accomplished by the overall marketing program within a given time period.
Defined in terms of specific measurable outcomes
Sales volume
Market Share
Profits
Specific, Measurable, Realistic, Attainable
Example – To increase sales by 10% in the over 25 yr old segment during the next 12 months
Marketing objectives are different than promotional objectives – marketing objectives guide the overall marketing plan – influence price decisions, product decisions etc.
Marketing objectives are not appropriate for promotional objectives – objective of advertising is to communicate a message or information about a product or service
Remember back to week 1 – what is the purpose of advertising? Not always about sales.
Unfortunately some marketing and promotional managers don’t understand this and still try to use sales objectives for promotional plans.
What’s the problem with this?
Problems in achieving sales objectives may have nothing to do with promotion – may be other problems (price may be wrong, distribution)
Carry over effect – the effect of advertising may not always be an immediate impact on sales – may take time
Sales objectives offer little guidance to those developing promotional plans
Sometimes sales objectives are appropriate:
When promotional efforts are direct, short term, designed to create an immediate impact (sales promo, direct marketing)
Marianne Marando
Winter 2005

7. Types of Objectives Why Sales is NOT a good objectives:
Carryover effect- money spent on advertising does not necessary have an immediate impact on sales.
Sales objectives offer little guidance for planning and development of the IMC program.
Poor sales can be the result of many factors.
Marianne Marando
Winter 2005

8. Types of Objectives Communication objectives.
Statements of what the communications will accomplish.
They should be based on the particular communication tasks required to deliver the appropriate messages to the specific target audience.
The message should be delivered at a relevant point within the targets purchase decision making process and consumption experience.
Marianne Marando
Winter 2005

9. Define Advertising Goals for Measuring Results The DAGMAR Approach
Developed in 1961 – but still practiced by many advertising agencies today
Marianne Marando
Winter 2005

10. The DAGMAR Approach
Using DAGMAR, an advertising goal involves a communication task that is specific and measurable.
It is based on a hierarchical model of the communication process.
Awareness
Comprehension
Conviction
Action
First element -- Communications task – rather than a marketing task
Marianne Marando
Winter 2005

11. Characteristics of Objectives
Well-Defined Target Audience
Concrete Measurable Communication Tasks
Existing Benchmark Measure
Degree of Change Sought
Specific Time Period
Second major contribution of Dagmar – defining clearly what makes a good objective.
Concrete measurable communication task – needs to be specific enough to guide the creative specialists
Existing benchmark – for example if your objective is to increase awareness by 10% -- need to measure it before then measure it after.
Marianne Marando
Winter 2005

12. Assessment of DAGMAR Problems with response hierarchy
Consumers do not always go through this sequence of the communication effects before making a purchase.
Practicality and costs
Research costs more than it is worth.
Inhibition of creativity
Imposes too much structure.
Inhibition of creativity – some say that the lack of great advertising may be due to the fact that great advertising minds are being too constricted
Marianne Marando
Winter 2005

13. Communication Objectives: Are stated in three parts: Target Audience
Behavioural Objectives – what is the behaviour that you want this communication to cause in your target audience
Communications Objectives – the effect that you want your communication to have on the target audience
Marianne Marando
Winter 2005

14. Target Audience Current Customers Non-customers
Brand Loyal Customers – regularly buy the firm’s products.
Favorable Brand Switchers – buy the focal brand, but also buy other brands within the product category.
Non-customers
New category users – customers not currently purchasing in the focal brand’s product category.
Other brand switchers – purchase a few different brands within the product category, but not the focal brand.
Other brand loyals – purchase only one brand and are completely loyal
Marianne Marando
Winter 2005

15. Behavioral Objectives
What is the behaviour that you want this communication to cause in your target audience
Trial
Repeat purchase
Purchase related behaviour
Repeat consumption
Application
Marianne Marando
Winter 2005

16. Communication Objectives
Category Need
Brand Awareness
Brand Attitude
Brand Purchase Intention
Purchase Facilitation.
Category Need
Pertains to whether the target audience feels the need to purchase within the actual product category.
Category can be: omitted, reminded or emphasized
Brand Awareness
Creating a deeper understanding and knowledge of the brand.
Forms of Brand Awareness: recognition and recall
Brand Attitude
Prior understanding of the existing brand attitude is needed to choose an option.
Brand Attitude Options: established, maintained, increased, modified, or changed.
Brand Purchase Intention
Brand Purchase is assumed or generated.
Purchase Facilitation
Purchase facilitation is included or omitted
Marianne Marando
Winter 2005

17. Communication Objectives: Are stated in three parts:
Target Audience
Customers – brand loyal, favourable brand switchers
Non-customers – new category users, other brand switchers, other brand loyals
Behavioural Objectives – what is the behaviour that you want this communication to cause in your target audience
Trial
Repeat purchase
Purchase related behaviour
Repeat consumption
Application
Communications – the effect that you want your communication to have on the target audience
Create category need
Brand awareness
Brand attitude
Brand purchase intention
Purchase facilitation

18. Nike
Marianne Marando
Winter 2005

19. Another example …
- Viagra
Marianne Marando
Winter 2005