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Specific
Objectives Communications
Planning &
Decision Making
Measurement
& Evaluation
Characteristics of Objectives
Specific
Attainable Measurable
Realistic Quantifiable
Marketing and Sales vs. Communications
Objectives
Technology
Competition
The
Advertising economy
& promotion
Product
quality
Distribution
Price
Where Sales Objectives are Appropriate
2. Communications Objectives.
Objectives are:
1.Increasing company’s brand usage rate among
existing customers.
2.Increasing no. of target customers who associate
specific features and benefits with company’s brand.
3.Encouraging company’s brand trial among non users.
Communications Effects Pyramid
5% Use
20% Trial
25% Preference
40% Liking
70% Knowledge/Comprehension
90% Awareness
THE DAGMAR
APPROACH
Each purchase prospect
goes through 4 steps:
ODefine
Awareness
OAdvertising
OGOAL for Comprehension
OMeasuring
OAdvertising Conviction
OResult
Action
DAGMAR APPROCH
Concrete, Well-defined
measurable tasks audience
Benchmark Specified
measures time period
Measurement procedure: To indicate exactly what appeal
or image is to be communicated and to specify the
measurement procedure.
Objective should be a precise statement of what message the
advertiser wants to communicate to the target audience.
Target Audience : In DAGMAR approach is that the target
audience be well defined.
Written
Goals
Finally, goals should be committed to paper. It becomes
easy to determine whether the goal contains the crucial
aspects of the DAGMAR approach
Specified time
period
Objectives is the specification of the time period during
which the objective is to be accomplished, e.g. 6months.
BENCHMARK:
Pros Cons
Focus on communications Relies heavily on the
objectives response hierarchy
Better understanding of
Practicality and cost
goals and objectives
Direct
Sponsorship Marketing
Sales Internet
Promotions
Establishing a Budget
• Advertising/promotional expenditures
increase, sales and gross margins also
increase to a point, but then they level off.
Product Competition
life cycle
Product Product
stability price
Purchase
Differentiation frequency
Approaches of Budgeting
Management
decides how much
to spend
Top-Down Budgeting approaches/methods
Competitive Percentage
Parity of Sales
Top-Down Budgeting Methods
1. Affordable Method
• Firm determine amount to be spent in various areas such as
production and operations. Then it allocates what’s left to
advertising and promotion.
2. Competitive Parity
• Managers establish budget amounts by matching the
competition’s percentage of sales expenditures.
3. Return on Investment
• Advertising and promotions are considered investment like
plant and equipment. ROI looks good on paper, reality is that
it is rarely possible to assess the returns provided by
promotional effort.
4. Percentage of Sales
Perhaps the most commonly used method for budget
setting (particularly in large firms) is the percentage-of-sales
method, in which the advertising and promotions budget is
based on sales of the product. Management determines the
amount by either:
Monitor
Reevaluate objectives