6. Marketing vs. Communications Objectives
Marketing
Objectives
• Generally stated in the
firm’s marketing plan
• Achieved through the
overall marketing plan
• Quantifiable, such as
sales, market share, ROI
• To be accomplished in a
given period of time
• Must be realistic and
attainable to be effective
Communications
Objectives
• Derived from the overall
marketing plan
• More narrow than
marketing objectives
• Based on particular
communications tasks
• Designed to deliver
appropriate messages
• Focused on a specific
target audience
Vs.
11. Test Your Knowledge
Which of the following statements about
communications objectives is true?
A) Sales goals are easily translated into
communications objectives.
B) It can be difficult to determine the relationship
between communications objectives and
sales performance.
C) Communications objectives cannot serve
as operational guidelines for planning,
executing, and evaluating promotional
programs.
D) Marketing managers often do not recognize
the value of setting communications objectives.
12. IMC perspective Geico
• Increases in Advertising
– Sell via internet & direct sales
– In 2005, increased advertising expenditures 75%
to $403 million
– In 2006, spent twice as much as nearest
competitor
– Also spent in more places
• Increases in Sales
– 5.8% new customer acquisition (2.1% is
industry average)
– 91% ad message recognition
– Only brand to have double digit market share
growth 13.1%
13. From Awareness to Action
Affective
Realm of emotions.
Ads change attitudes
and feelings
Cognitive
Realm of thoughts.
Ads provide
information and facts
Conative
Realm of motives.
Ads stimulate or
direct desires
Teaser campaigns
“Image” copy
Status, glamour appeals
Announcements
Descriptive copy
Classified ads, slogans,
Jingles, skywriting
Competitive ads
Argumentative copy
Point of purchase
Retail store ads, deals
“Last-chance” offers
Price appeals
Testimonials
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
18. Pros and Cons of DAGMAR
Cons
Inhibition of creativity
Relies heavily on the
response hierarchy
May not increase sales
Practicality and cost
Pros
Focus on communications
objectives
Measurement of stages
Better understanding of
goals and objectives
Less subjective
21. San Diego Zoo Protect Endangered Species
*Click outside of the video screen to advance to the next slide
22. Establishing & Allocating the Promotional Budget
Sponsorship
Underwriting
Public
Relations
Sales
Promotions
Internet
Group Sales
Direct
Marketing
23. Test Your Knowledge
In marginal analysis, all of the following should be
considered except:
A) Sales
B) Fixed costs of advertising
C) Advertising expenditures and other
variable costs
D) Gross margin
E) Net worth
25. Budget Adjustments
Increase
Spending
If the cost is less than the
marginal return
Hold
Spending
If the cost is equal to the
incremental return
Decrease
Spending
If the cost is more than the
incremental return
26. Assumptions for Marginal Analysis
Sales are
determined
solely by
advertising
and promotion
Sales are a
direct measure
of advertising
and promotions
efforts
27. Sales Response Models
Incremental
Sales
Advertising Expenditures
A. Concave-Downward
Response Curve
Incremental
Sales
Advertising Expenditures
Range A Range B Range C
B. S-Shaped Response
Function
High
Spending
Little
Effect
Initial
Spending
Little
Effect
Middle
Level
High
Effect
31. Test Your Knowledge
Well known brand name products do not receive
incremental advantages from increased dollar
expenditures on advertising. Once the ad hits the
market, subsequent budget increases result in little or
no incremental gains. This is best explained by:
A) Arbitrary allocation
B) The objective and task method
C) Competitive parity
D) An S-shaped response
E) Rapidly diminishing returns
36. Share of Voice Effect
Decrease–find a
defensible niche
Increase to defend
Attack with large
SOV premium
Maintain modest
spending premium
Competitor’s
Share
of
Voice
High
Low
High
Low
Your Share of Market
37. Economies of Scale
There is no evidence to support any of these!
Proposition I
Larger firms can support their brands with lower relative
advertising costs than smaller firms.
Proposition II
The leading brand in a product group enjoys lower
advertising costs per sales dollar than do other brands.
Proposition III
There is a static relationship between advertising costs
per dollar of sales and the size of the advertiser.
38. Organizational Characteristics
• Factors that influence advertising and
promotion budgets
– The organization’s structure
– Power and politics
– The use of expert opinions
– Characteristics of the decision maker
– Approval and negotiation channels
– Pressure on senior managers to arrive
at the optimal budget
