Setting Advertisement Objectives

Objectives provide communication

platform for the client

It provides a basis for decision making

The reason for setting objectives is to
have a point of reference
The situation analysis should provide relevant
information about:
1. The target market segment and target market profile
2. The brands main attributes and benefits
3. Market share of the company and competing brands
4. Some ideas on how the companys brand should be
positioned and what specific behavioral response is
desired, such as brand trial, repeat purchase,
increased usage rate etc.
Sales as an advertising objective
In an advertisers dream world, every ad would
trigger an immediate sales response.
The lag time between audience exposure to an
ad and when the ad leads to actual sale could
be quiet long.
Other factors that have significant effect on
sales are product features, price, distribution,
personal selling, publicity, packaging and
changing buyer needs.
Factors influencing sales
Advertising & Promotion
Personal selling
Competition
Consumer Tastes
Technology
Economy
Product Quality
Packaging
Distribution
Price
Sales
Communication Objective
5% repurchase / regular use
10% Trial
20% Preference
40% Liking
60% knowledge / comprehension
80% Awareness
Some possible objectives can be:
Increasing the percentage of target consumers
who associate specific features or benefits with
company's brand.
Increasing number of target consumers who
prefer companys brand rather than competing
brands.
Increasing companys brand usage rate among
existing consumers.
Encouraging companys brand trial among
non-users.
Example of setting objectives using
communications effect pyramid
Product: A detergent powder ( Brand X)
Time frame: 6 months
Objective 1: Create awareness among 90% of target
audience. Use simple message. Use repetitive
advertising in print and broadcast media.
Objective 2: Create brand interest among 70% of target
audience. Informative message about brands
features and benefits.
Objective 3: Generate positive feelings about the
brand among 40%. Build favorable attitudes
by conveying useful brand information and
sampling.
Objective 4:Obtain trial among 20% of target
audience. Use brand sampling and coupons
along with advertising.
Objective 5:Maintain regular use among 5% of
the target audience. Use reinforcing ads.
DAGMAR Approach
Russell H Colley(1961) prepared the report for the
Association of National Advertisers titled Defining
Advertising Goals for Measured Advertising Results
(DAGMAR).
He developed a model for setting advertising
objectives and measuring the results of the ad
campaign.
According to this mode, communications effects are
the basis for setting advertising objectives and goals
against which the results are measured.

Colley proposed the communication objectives based
on hierarchical model of four stages:
1. Awareness: Involves making target audience aware
of the existence of brand or company.
2. Comprehension: The purpose is to develop an
understanding among audience of what the product
is and what it would do for them.
3. Conviction: The objective is to create a mental
disposition among target audience members to buy
the product.
4. Action: To motivate the target audience to purchase
the product or service.
According to Colley, the objectives should have the
following features:
Stated in terms of concrete and measurable
communications tasks.
Specify target audience
Indicate the benchmark or standard starting point and
the degree of change sought
Specify the time period for accomplishing the
objective
Behavioral Steps towards Advertising
Dimensions purchase for various
stages

Conative
The realm of motives Purchase Testimonials, price/
quality appeals

Conviction

Affective Preference Comparative ads
The realm of emotions, attitude
And feelings Liking Glamour appeals

Knowledge Descriptive copy
Cognitive
The realm of thoughts Awareness Ad repetition
Assessment and Criticism of DAGMAR
Approach
Problems with response hierarchy

Sales as the advertising goal

Practicality and costs

Inhibits creativity
Ad. Agency selection and remuneration
SELECTION:
Step1: Develop a long list of agencies to evaluate.
Step 2: Conduct initial research. Make sure each
agencies include the services you need among the
core competencies.
Step3: Develop request Request for Proposal (RFP)
Step4: Call each agency on your list.
Step5: Send RFP to the agencies who have agreed to
participate

Step6: Evaluate the RFP responses, eliminating those
agencies which are less than the excellent fit.
Step7: Arrange for presentations from each of your final
list agencies . One at your facility and second at their
agency.
Step8: Finally, after reviewing their RFP responses and
meeting the finalist agencies, its time to make the
final selection.
REMUNERATION:
There are three methods used to compensate the
agencies for their varied services:
1. Commission
2. Negotiated fee
3. Percentage Charges
Commission
The agency is paid a fixed commission (usually 15%)
The rates for outdoor media are slightly
higher.(16.66%)
E.g.:- The agency places the order to purchase a full
page in a monthly magazine costing Rs.30,000
The magazine will bill the agency for Rs.30,000 less
than 15% (Rs.4500) commission.
Negotiated fee
A number of agencies and their clients negotiate
some type of fee system or cost plus arrangement for
compensation.
Sometimes the agency is paid through a combination
of fee and commission method.
Percentage Charges
A mark up of percentage charges is added up to the
bill.
The percentage charges is between 17.65% and 20%
E.g.:- If agency pays Rs1,00,000 for research,17.65%
of the figure is added to the total of Rs.1,17,650.
The agency adds 17.65% of this total in its overall
bill