Communication Objectives

Are important because they serves as a bench mark in

1. Communication • Communications in b/w agencies and

organizational managers/sales promotion firms /media buying services etc.

2. Planning and decision making • While in decision making process

communication objectives plays an important role , i.e. how to develop a campaign/media mix selection /and allocating budget to diff. elements

3. Measuring results• The success and failure are relative to the

objectives u have defined.• Good objective are those which are

measurable.

How to determine objectives

Diff. in between marketing and comm. Objectives

Marketing objectives are stated in firm’s overall mkting.plans.

Are usually defined in terms of specific measurable outcomes such as sales volume /market share/profits/ROI.

or What the company wanted to accomplish by

its overall marketing program.

Now by defining marketing objective managers must be Now by defining marketing objective managers must be able to translate these objectives into communication able to translate these objectives into communication objectives. To do this objectives. To do this Situation analysisSituation analysis provides some valuable information's. Like :provides some valuable information's. Like :The mkt.segment the firm wanted to target and TA.The mkt.segment the firm wanted to target and TA.The product and its convincing attributes to the segment.The product and its convincing attributes to the segment.Competitors brand analysis. positioning/promotional Competitors brand analysis. positioning/promotional expenditure /creative and media strategies /tactics used expenditure /creative and media strategies /tactics used in ads. Etc)in ads. Etc)How u are going to position ur brand and specific How u are going to position ur brand and specific behavior responses.behavior responses.Primary Vs secondary objectives.Primary Vs secondary objectives.e.g. primary may be to increase sales /mkt share e.g. primary may be to increase sales /mkt share Secondary may be that u give a certain personality to the Secondary may be that u give a certain personality to the brand and start promoting the concept .brand and start promoting the concept .

Let’s see what are comm. Let’s see what are comm. objectivesobjectives

• Are statements of what various aspects of the IMC Are statements of what various aspects of the IMC program will accomplish. Must translate general program will accomplish. Must translate general mkting goals into communications goals.mkting goals into communications goals.

Goals ?Goals ?• To get mkt shareTo get mkt share

oror

• to communicate the information or a selling to communicate the information or a selling messagemessage

• Some times u don’t get the desired increase sales Some times u don’t get the desired increase sales by certain ad. Campaign. Does it means that by certain ad. Campaign. Does it means that advertising fails . advertising fails .

• Consider a football game .Consider a football game .• Same is the case of communication is just a Same is the case of communication is just a

quarterback of the team if team looses does not quarterback of the team if team looses does not mean the quarterback should be shunted out from mean the quarterback should be shunted out from the team. the team.

• Poor performance may be due to Poor performance may be due to • Quality / Packaging / Distribution /Price / Quality / Packaging / Distribution /Price /

tech./competition or even the economy tech./competition or even the economy • Other important point in favor of advertising is Other important point in favor of advertising is

that it has a carry over effect. that it has a carry over effect.

Sales based Sales based objectives objectives • Some times only objective of the firm is Some times only objective of the firm is

to increase the sales. in such a situation to increase the sales. in such a situation the communication objectives may be:the communication objectives may be:

• Direct response advertising. toll free Direct response advertising. toll free numbers)numbers)

• Retail advertising Retail advertising • Some times when Ad. Plays a very Some times when Ad. Plays a very

dominant role in the marketing plan.e.g dominant role in the marketing plan.e.g is of is of Pepsi/coke ,Pepsi/coke ,sales-oriented sales-oriented objective are used.objective are used.

• Repositioning the product.Repositioning the product.• When the promotional activities are When the promotional activities are

related with sales-oriented objectives, related with sales-oriented objectives, measuring results depends upon the measuring results depends upon the sales generated.sales generated.

Communication-based Communication-based objectivesobjectives Some times marketers recognize that the prime role of IMC is to Some times marketers recognize that the prime role of IMC is to

communicate and planning should be based on communication communicate and planning should be based on communication objectives.objectives.

Specific objectives may be to:Specific objectives may be to: Increase the % of consumers in the TM who associate some benefit or Increase the % of consumers in the TM who associate some benefit or

advantage with our brand .advantage with our brand . Increase the number of TA who prefer our brand over competitorsIncrease the number of TA who prefer our brand over competitors Encourage the current user to use more frequentlyEncourage the current user to use more frequently Engage new user who have never used the brand.Engage new user who have never used the brand. When marketers only need to change of attitude /brand knowledge / When marketers only need to change of attitude /brand knowledge /

image purchase intention ,consumers are not required to respond image purchase intention ,consumers are not required to respond immediately u just wanted to create a favorable predisposition before immediately u just wanted to create a favorable predisposition before purchase .purchase .

Effect of advertising on consumers movement from awareness to Effect of advertising on consumers movement from awareness to action .consumer moves through stages of action .consumer moves through stages of

Cognition ----to--- affective----to-----coCognition ----to--- affective----to-----co native native Ad stimulate for direct Ad stimulate for direct response) response)

Awareness knowledge liking preferences Awareness knowledge liking preferences conviction purchase. conviction purchase.

Communication effect Communication effect pyramidpyramid

5% repurchase 5% repurchase

20% trial20% trial

25% preference 25% preference

40% liking40% liking

70 % knowledge 70 % knowledge

90 % awareness90 % awareness

Some problems with Some problems with communication objectivescommunication objectives

U can not measure in quantitative U can not measure in quantitative terms that how much the terms that how much the

consumers are in the phase of consumers are in the phase of knowledge ,liking ,preferences etc.knowledge ,liking ,preferences etc.

(no formula to provide the (no formula to provide the information)information)

DAGMAR an approach to DAGMAR an approach to setting objectivessetting objectives

A report in the name of “Defining A report in the name of “Defining Advertising Goals for Measuring advertising Advertising Goals for Measuring advertising Results”Results” by Russell Colley and said: by Russell Colley and said:

Advertising’s job,purly and simply is to Advertising’s job,purly and simply is to communicate to a defined audience communicate to a defined audience information and a frame of mind that information and a frame of mind that stimulates action. Advertising succeed or stimulates action. Advertising succeed or fails depends upon how well it has fails depends upon how well it has communicated the desired information and communicated the desired information and attitudes to the right people at the right attitudes to the right people at the right time and at the right cost.time and at the right cost.

Communication task be based on Communication task be based on (according to Colley)(according to Colley)

AwarenessAwareness– ( making the consumer aware of the ( making the consumer aware of the

existence of the brand or company )existence of the brand or company ) ComprehensionComprehension

– Developing a understanding of what the Developing a understanding of what the product is and what it will do for the product is and what it will do for the consumer.consumer.

ConvictionConviction– Developing a mental disposition in Developing a mental disposition in

consumers mind consumers mind ActionAction

– Actual purchase or trial Actual purchase or trial

Characteristics of objectivesCharacteristics of objectives Concrete ,measurable tasks Concrete ,measurable tasks

– What Appeal /message to communicate What Appeal /message to communicate Target audience Target audience

– Well defined target audience ,based on Well defined target audience ,based on demographics/psychographics etc.demographics/psychographics etc.

Benchmark and degree to change soughtBenchmark and degree to change sought– That is present position of audiences and That is present position of audiences and

after the communication is been done .after the communication is been done . Specified time periodSpecified time period

– Time in which advertising objectives is Time in which advertising objectives is accomplished. accomplished.

Decisions that made diet Coke a successDecisions that made diet Coke a success Previously diet drinks were Tab Previously diet drinks were Tab Due to heavy promotion /a good new taste (new Due to heavy promotion /a good new taste (new

formula secret known to a very few people) formula secret known to a very few people) /brand name already known to world./brand name already known to world.

Objectives of promotion were:Objectives of promotion were:– To earn profit from the country’s increasing trends of To earn profit from the country’s increasing trends of

weight consciousnessweight consciousness– Break the public’s perception that a soft drink has to Break the public’s perception that a soft drink has to

lose its taste when it loses its calories.lose its taste when it loses its calories.– Wanted to expand its TM.Wanted to expand its TM.

Decision was made to sell it not on calories but Decision was made to sell it not on calories but on taste (Just for the taste of it) on taste (Just for the taste of it)

26 % sales increases in first five yrs of 26 % sales increases in first five yrs of introduction introduction

Risks involved were : Risks involved were : – If diet coke had flopped, it would have tarnished If diet coke had flopped, it would have tarnished

Coke’s image also.Coke’s image also.

Marketing Marketing plan plan

CommunicatiCommunication in b/w on in b/w communicatiocommunication analysis n analysis and and budgeting is budgeting is a two way a two way interaction.interaction.

Means Means objectives objectives depends depends upon budgets upon budgets also.also.

QQ Weather the communication budget is an Weather the communication budget is an

expense or investmentexpense or investment?? Some theoretical approaches on the issue.Some theoretical approaches on the issue. Marginal analysisMarginal analysis Sales response modelsSales response models Top-down approachesTop-down approaches Affordable methodAffordable method Arbitrary allocation Arbitrary allocation Percentage of sales Percentage of sales Competitive parity Competitive parity ROI ROI

MarginaMarginal l

analysisanalysis

x axis =exp.x axis =exp.Y axis= Y axis= salessales

f(A) = salesf(A) = sales

A = ad. A = ad. expenditureexpenditure

Mf(A) = gross Mf(A) = gross

marginmargin

A A P= Mf(a)-a = profitP= Mf(a)-a = profit

As advertising exp. Increases sales and As advertising exp. Increases sales and gross margin also increases to a point but gross margin also increases to a point but then starts declining.then starts declining.

Profits = gross margin Profits = gross margin -- adv.exp. adv.exp. Optimal level is A where marginal cost = Optimal level is A where marginal cost =

marginal rev.marginal rev.ButBut

Sales are not the only objective of advSales are not the only objective of adv..For that reasonFor that reason

Relation of adv. On sales does not have a Relation of adv. On sales does not have a very direct relation. very direct relation.

For these reasons this approach is seldom For these reasons this approach is seldom used.used.

Sales response modelsSales response models(concave Vs S-shaped(concave Vs S-shaped

The concave –downward response modelThe concave –downward response model– Says as the effect of adv. Quickly diminish Says as the effect of adv. Quickly diminish

As the amount of adv. Increases its incremental As the amount of adv. Increases its incremental value decreases. i.e. the effect of adv. Quickly value decreases. i.e. the effect of adv. Quickly begins to diminish.begins to diminish.

The S- shaped response function.The S- shaped response function.

Incremental Incremental

SalesSales

adv. Expenditure adv. Expenditure

Top-down approachesTop-down approachesTop management sets the spending limitTop management sets the spending limit

Promotional budget set to stay within limitsPromotional budget set to stay within limits

Bottom-up budgetingBottom-up budgeting

Promotion objective are setPromotion objective are setActivities neededActivities neededCost is determined Cost is determined Budget is approved by top.Budget is approved by top.

Affordable method Affordable method – After determining the amount of resources for After determining the amount of resources for

production and operation ,left over is allocated to production and operation ,left over is allocated to promotional activities.promotional activities.

Arbitrary allocationArbitrary allocation– No systematic allocation of budget ,for non profit No systematic allocation of budget ,for non profit

organizations or small firms .organizations or small firms . Percentage of sales Percentage of sales

– Total sales Total sales 100,000100,000– 10% of sales 10% of sales 10,000 10,000– Advertising budgetAdvertising budget 10,000 10,000

Percentage of unit costPercentage of unit cost– Cost /unitCost /unit 1212– Allocation for adv.Allocation for adv. 3 3– Forecasted sales Forecasted sales 10000 units 10000 units – Budget Budget 10000 x 310000 x 3 30000 30000

Competitive parityCompetitive parity– Must have a collective wisdom of the Must have a collective wisdom of the

industry industry – If competitor don’t take an aggressive If competitor don’t take an aggressive

approach u don’tapproach u don’t– Useful when u are not a mkt leader and Useful when u are not a mkt leader and

don’t have the resources to be that.don’t have the resources to be that. Return on investmentReturn on investment

– Advertising and promotion are considered Advertising and promotion are considered as an investment like plant etc.as an investment like plant etc.

– Very difficult to access the return of Very difficult to access the return of advertising.advertising.