Transcript Promotional Management -- An Overview

Marketing
Communications
Objective Setting
Asia-Pacific Marketing Federation
Certified Professional Marketer
Copyright
Marketing Institute of Singapore
Organization
1. Introduction
2. Types of Objectives
3. Hierarchy of Effects Model
4. Product Involvement
Introduction

Promotional Objectives are the goals of the
promotional activities.
Serve to:
(a) facilitate the planning of the campaign, and
(b) set the standard to evaluate the campaign effort
 Important to set appropriate objectives
Criteria for
Appropriate Objectives

Consistent with corporate and marketing
objectives

Clear

Defines the target audience and quantifies the
desired response

Achievable yet Demanding

Establish Time Schedule
– If too easy  waste resources; false sense of
security
– If too high  demoralizing; damage
leadership credibility
– Recognizes campaign's effectiveness and
efficiency
Types of Objectives
(a) Informing
-- About the functional and psychological needs the
product satisfies
-- Important especially for new products
(b) Persuading
-- Persuades consumer to move toward some action
or attitude
-- Appropriate for competitive growth products
(c) Reminding
-- Reminds that the product is still
available
-- Suited for mature products

In less developed Asian countries, product
awareness may be the promotional objective

In developed Asian countries where consumers
are already aware of product benefits,
persuading may be the objective – persuading
consumers prefer one brand over another
Hierarchy of Effects Models
DAGMAR
Defining Advertising Goals for Measured
Advertising Results.
A series of steps through which a brand must
climb to gain acceptance.
 Unaware  Aware  Comprehension & Image
 Attitude  Action
 Advtg effects occur over a period of time.
 Behavior response does not occur immediately.

AIDA
Attention, gain Interest, create a Desire, and
precipitate an Action

Represent stages a salesperson must take a customer
through in the personal selling process.
Product Involvement
 Effectiveness/Importance
of Promotional Mix
differ depending on:
– High/Low Product Involvement
High Involvement
 Extensive
problem solving
 Awareness  Attitude Trial
 All 4 tools used
 See
Figure: Objectives and Promotion Mix
Over Time: High Involvement Product
Effectiveness, Importance
Objectives and Promotion Mix Over
Time: High Involvement Product
Awareness
0
Comprehension
Conviction
Purchase
Time
+
Objectives
(a) Awareness
-- Due to need recognition
-- Competing needs
-- Priority ranking of needs
(b) Comprehension
-- Info search for solution
-- Desire to make right decisions
(c) Conviction
-- Evaluation of alternatives
-- Establish criteria  Beliefs Attitude
(d) Purchase
-- Purchase may not be made because:
* no purchasing power
* product not available
* rude salespeople
Low Involvement
 Limited
problem solving
 Awareness  Trial  Attitude
 Advertising and sales promotion used
 See
Figure: Objectives and Promotion Mix
Over Time: Low Involvement Product
Effectiveness, Importance
Objectives and Promotion Mix Over
Time: Low Involvement Product
Advertising
Awareness
0
Product Trial Attitude Formation Repeat Purchase
Time
+
(a) Awareness
-- Temporal need recognition
-- Purchase opportunities must occur at time of
need recognition  purchase
(b) Product trial
-- Product choice influenced by brand recall
(c) Attitude Formation
-- Favorable attitude may not lead to brand
loyalty
-- Brand loyalty due to inertia
-- Easy brand switching thro’ aggressive
promotion