02 Dagmar Final

8/13/2019 02 Dagmar Final

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Establishing Objectives (DAGMAR)

EG: Porche



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.



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



Not all Ads are Designed to Achieve Sales



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



Many Factors Influence Sales

Product Qualitypackaging

Distribution

Competition

Technology

The Economy Price Policy

SALES

Advertising

Consumer tastes



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.



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




– 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.




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



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



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



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



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



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



Inverted Pyramid of Communications Effects

90% Awareness

70% Knowledge

40% Liking

25% Preference

20% Trial

5% Use



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



The Leo Burnett Program

• CAPP- continuous advertising planning program

• CDP – consumer demand profile

Preference

Totalusers

BrandBought

last

BrandAcceptance

BrandAwareness

Brandsatisfaction

Equality



General Motors approach

Awareness

Buying class

Consideration class

First choice



Advertising-Based View of Communications

Purchase

BehaviorAttitudes Knowledge Preference Conviction

One-Way

Linear

Advert is ing Throu gh Media

Act ing on Consumers



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



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.



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



Top Management Sets the

Spending Limit

The Promotion Budget Is Set to Stay

Within the Spending Limit

Top-Down Budgeting



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.



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



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)



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



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



Share of Voice and Ad Spending

Documents

02 Dagmar Final