Transcript Promotion Management

MKM803
Integrated Marketing
Communications
Chapter 5 – Setting Objectives for
the IMC Plan
Strategic Planning
 Strategic planning is a process of developing and
maintaining a fit between the organization’s goals and
capabilities and changing market opportunities.
 A corporate or business plan states a company’s
financial objectives and strategies for achieving those
objectives.
 New companies must also have a business model.
 A marketing plan is a set of objectives, strategies,
and tactics orchestrating marketing activities designed
to help the company achieve its financial objectives.
 Annual MC plans are generally composed of a
campaign.
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How Planning Works
Three critical tasks in planning:
 Setting measurable objectives
 Deciding on strategies
 Choosing tactics
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Why set 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.
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Cascading Objectives and
Strategies
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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
 Sales volume
 Market Share
 Profits
 Specific, Measurable, Realistic, Attainable
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Winter 2005
Types of Objectives
Why Sales is NOT a good 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.
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Types of Objectives
Communication objectives.
 Statements of what the communications will
accomplish.
 They should be based on the particular
communication tasks required to deliver the
appropriate messages to the specific target
audience.
 The message should be delivered at a relevant
point within the targets purchase decision making
process and consumption experience.
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The DAGMAR Approach
Define
Advertising
Goals for
Measuring
Advertising
Results
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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
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Characteristics of Objectives
 Well-Defined Target Audience
 Concrete Measurable Communication Tasks
 Existing Benchmark Measure
 Degree of Change Sought
 Specific Time Period
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Assessment 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.
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Communication Objectives: Are
stated in three parts:
1. Target Audience
2. Behavioural Objectives – what is
the behaviour that you want this
communication to cause in your
target audience
3. Communications Objectives – the
effect that you want your
communication to have on the target
audience
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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.
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
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Behavioral Objectives
What is the behaviour that you want this
communication to cause in your target
audience
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Trial
Repeat purchase
Purchase related behaviour
Repeat consumption
Application
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Communication Objectives
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Category Need
Brand Awareness
Brand Attitude
Brand Purchase Intention
Purchase Facilitation.
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Winter 2005