Chapter 5

1. Chapter 5 Objectives for the IMC Plan

2. Chapter Objectives • To recognize the value of setting specific objectives for advertising and promotion. • To know the difference between marketing and communication objectives and the issues regarding the use of each. Chapter 5 : Objectives for the IMC Plan

3. Chapter Objectives • To know the historical approaches for setting communication objectives. • To understand a comprehensive framework for setting communication and behavioral objectives for all aspects of the IMC plan. Chapter 5 : Objectives for the IMC Plan

4. Value of Objectives • Communication. • 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. Chapter 5 : Objectives for the IMC Plan

5. 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. Chapter 5 : Objectives for the IMC Plan

6. Types of Objectives IMC Communication objectives. • Statements of what the communications will accomplish. • Based on the particular communication tasks required to deliver the appropriate messages to the specific target audience. • The message is delivered at a relevant point within the targets purchase decision making process and consumption experience. Chapter 5 : Objectives for the IMC Plan

7. Types of Objectives Sales 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. Chapter 5 : Objectives for the IMC Plan

8. Promotion Product Quality Competition SALES Technology Distribution The Economy Price Policy Factors Affecting Sales Chapter 5 : Objectives for the IMC Plan

9. The DAGMAR Approach Define Advertising Goals for Measuring Advertising Results Chapter 5 : Objectives for the IMC Plan

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 Chapter 5 : Objectives for the IMC Plan

11. Characteristics of Objectives • Well-Defined Target Audience • Concrete Measurable Communication Tasks • Existing Benchmark Measure • Degree of Change Sought • Specific Time Period • Specific – Measurable-Attainable-Realistic-Timely Chapter 5 : Objectives for the IMC Plan

12. Limitations 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. Chapter 5 : Objectives for the IMC Plan

13. Comprehensive Response Model Applications Lavidge and Steiner Hierarchy of Effects Model • As consumers proceed through the three stages, they move closer to purchase. Cognitive -- Affective -- Conative • Consumers are not expected to respond to advertising immediately. • Ads must provide relevant information and create favorable predispositions toward the brand before purchase behavior will occur. Chapter 5 : Objectives for the IMC Plan

14. Purchase Conviction Preference Liking Knowledge Awareness Conative Realm of motives. Ads stimulate or direct desires. Affective Realm of emotions. Ads change attitudes and feelings Cognitive Realm of thoughts. Ads provide information and facts. Point of purchase Retail store ads, Deals “Last-chance” offers Price appeals, Testimonials Competitive ads Argumentative copy “Image” copy Status, glamour appeals Announcements Descriptive copy Classified ads Slogans, jingles, skywriting Teaser campaigns Effects of Advertising on Consumers Chapter 5 : Objectives for the IMC Plan

15. Communications EffectsPyramid • Lower level objectives such as awareness and knowledge or comprehension must be accomplished first. • The initial stages are easier to accomplish than than those toward the top. • The percentage of prospective customers will decline as they move up the pyramid. Chapter 5 : Objectives for the IMC Plan

16. Communications EffectsPyramid 90% Awareness 70% Knowledge 40% Liking 25% Preference 20% Trial 5% Use Cognitive Affective Conative Chapter 5 : Objectives for the IMC Plan

17. Advertising Through Media One-Way Attitudes Knowledge Preference Conviction Purchase Behavior Linear Acting on Consumers Traditional Advertising-Based View of Communications Chapter 5 : Objectives for the IMC Plan

18. Advertising Through Media One-Way Attitudes Knowledge Preference Conviction Purchase Behavior Linear Acting on Consumers Focuses on what the marketer wants to say, when the marketer wants to say it. Chapter 5 : Objectives for the IMC Plan

19. Setting IMC ObjectivesTarget Audience • In setting the direction for any IMC plan or component, there must be a clear idea of the customer status of the target audience. • The key questionIs the communication directed towards current customers or non customers? Chapter 5 : Objectives for the IMC Plan

20. Target Audience Current 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. Chapter 5 : Objectives for the IMC Plan

21. Target Audience 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. Chapter 5 : Objectives for the IMC Plan

22. Behavioral Objectives Trial • Brand trial purchase – a consumers first purchase of a focal brand. • Brand trial objectives – are established as consumers naturally enter the market as they reach a certain age or have income. • Brand re-trial purchase – a consumers first purchase of a focal brand after some time delay. • Brand re-trial objective – focuses on the length of delay between purchases. Chapter 5 : Objectives for the IMC Plan

23. Behavioral Objectives Trial • Category trial objective • Category trial purchase – a consumers first purchase in a product category that the consumer had not purchased previously. • Repeat purchase • A customers continued purchase of a focal brand within a specified time period. • Repeat purchase objective – how often to purchase, how much to purchase, when to purchase. Chapter 5 : Objectives for the IMC Plan

24. Behavioral Objectives Purchase Related Behaviour • An action that consumers take that will lead to a higher probability of consumption. Repeat Consumption • The continued consumption of a brand once purchased. • Repeat Consumption Objective – For communicating with current brand purchasers who have the product. Chapter 5 : Objectives for the IMC Plan

25. Communication Objectives • 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 Chapter 5 : Objectives for the IMC Plan

26. Communication Objectives • 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. Chapter 5 : Objectives for the IMC Plan