IMC Objectives

7/28/2019 IMC Objectives

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Value of Objectives

Focus and Coordination

They help to orient everyone involvedtoward one, common goal.

Plans and Decisions They serve as criteria for developing

plans and making decisions.

Measurement and Control

They provide the standards andbenchmarks for evaluating results.


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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.


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Not all Ads are Designed to Achieve Sales


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Problems With Sales Objectives

Sales are a function of many factors, notjust 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


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Many Factors Influence Sales

Product QualityPromotion

Distribution

Competition

Technology

The Economy Price Policy

SALES


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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 afirms marketing program and other factorsare relatively stable

When sales effects of an IMC variable can beisolated.


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Communication Objectives

The primary goal of an IMC program is tocommunicate and planning should be basedon communications objectives such as brandawareness, knowledge, interest, attitudes,

image and purchase intention


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Advertising and Movement Toward Action

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, DealsLast-chance offersPrice appeals, Testimonials

Competitive adsArgumentative copy

Image copyStatus, glamour appeals

AnnouncementsDescriptive copyClassified adsSlogans, jingles, skywriting

Teaser campaigns

Related behavioral

dimensions

Movement

towardpurchase

Types of promotions and

advertising at each step


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Communications Effects Pyramid

70% Knowledge

5% Use

20% Trial

25% Preference

40% Liking


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The DAGMAR Approach

DefineAdvertisingGoals forMeasuringAdvertisingResults


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Characteristics of Objectives

Concrete, Measurable Communication Tasks

Well-Defined Target Audience

Have an Existing Benchmark Measure

Specify Degree of Change Sought

Specific Time Period

Good Objectives Should Include:


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DAGMAR Difficulties

Response HierarchyProblems Doesn't always define the

process people use toreach purchase/use.

Attitude - BehaviorRelationship Attitude change doesn't

always lead to change inactions or behavior.

Sales Objectives AreNeeded

Sales are all that really

counts, notcommunicationsobjectives.

Costly and Impractical

The research and efforts

cost more then theresults are worth.

Inhibition of Creativity

Too many rules and

structure curb genius.

Legitimate Problems Questionable Objections


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Advertising-Based View of Communications

Purchase

BehaviorAttitudes Knowledge Preference Conviction

One-Way

Linear

Advert is ing Through Media

Act ing on Consumers


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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


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Marginal Analysis

Advertising / Promotion in Rs.

Sales

inRs.

Point A

Profit

Sales Gross Margin

Ad. Expenditure


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BASIC Principles of Marginal Analysis

IncreaseSpending . . . IF:The increased cost is less than theincremental (marginal) return.

DecreaseSpending . . . IF:The increased cost is more than theincremental (marginal) return.

HoldSpending Level. . . IF:The increased cost is equal to theincremental (marginal) return.


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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.


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Top Management Sets the

Spending Limit

The Promotion Budget Is Set to Stay

Within the Spending Limit

Top-Down Budgeting


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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.


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Total Budget Is Approved byTop Management

Bottom-Up Budgeting

Cost of Activities are Budgeted

Activities to Achieve ObjectivesAre Planned

Promotional Objectives Are Set

Obj ti d T k M th d


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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)


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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


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Share of Voice and Ad Spending

IMC Objectives

Documents