BBA III SEM ADVERTISING MANAGEMENT -UNIT 3 (MANSI TYAGI) UNIT 3 (SYLLABUS) Promotional objectives -importance determination of promotional objectives, setting objective DAGMAR; Advertising Budget importance, establishing the budget-approaches allocation of budget.

2. Value of Objectives
Communications
Planning &
Decision Making
Measurement
& Evaluation
Specific
Objectives

3. Characteristics of Objectives
Specific
Measurable
Quantifiable
Attainable
Realistic

4. Marketing and Sales vs. Communications
Objectives
Marketing and Sales
Objectives
• Generally declared in the
firm’s marketing plan
• Achieved through the
overall marketing plan
• Quantifiable, such as
sales, market share,
• 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.

5. 1. Sales as an promotional Objectives.

6. Sales Objectives
Increased Sales
Increased Market Share
Brand Extensions

7. Factors Influencing Sales
Competition
Technology
The
economy
Product
quality
Price
Distribution
Advertising
& promotion

8. Where Sales Objectives are Appropriate

9. 2. Communications Objectives.
Objectives are:
1.Increasing company’s brand usage rate among
existing customers.
2.Increasing no. of target customers who associate
specific features and benefits with company’s brand.
3.Encouraging company’s brand trial among non users.

10. Communications Effects Pyramid
20% Trial
40% Liking
90% Awareness
5% Use
70% Knowledge/Comprehension
25% Preference

11. ODefine
OAdvertising
OGOAL for
OMeasuring
OAdvertising
OResult
THE DAGMAR
APPROACH
Action
Awareness
Conviction
Comprehension
Each purchase prospect
goes through 4 steps:

12. DAGMAR APPROCH
O DAGMAR Approach is the task of measuring ad
effectiveness as well as the objectives or goals of
advertising.
O In 1961, Russell H. Colley wrote a book under the
sponsorship of the association of National Advertisers
called Defining advertising goals for measured advertising
result. The book has become know as the DAGMAR
approach.
O Colley distinguished 52 advertising goals that might be
used with respect to a single advertisement.

13. COMMUNiCATiON TASK

14. Awareness: Making the consumer aware of the existence of the
brand or company.
Comprehension: Developing an understanding of what the product
is and what it will do for the consumer.
Conviction: Developing a mental disposition in the consumer to buy
the product.
Action: Getting the consumer to purchase the product.

15. CHARACTERiSTiCS OF
OBJECTiVES
The second importance concept of DAGMAR approach is
that the advertising goal should be specific. It should be
consists of:
Concrete,
measurable tasks
Benchmark
measures
Well-defined
audience
Specified
time period

16. Measurement procedure: To indicate exactly what appeal
or image is to be communicated and to specify the
measurement procedure.
 Objective should be a precise statement of what message the
advertiser wants to communicate to the target audience.

17. Target Audience : In DAGMAR approach is that the target
audience be well defined.

18. Written
GoalsFinally, goals should be committed to paper. It becomes
easy to determine whether the goal contains the crucial
aspects of the DAGMAR approach
Objectives is the specification of the time period during
which the objective is to be accomplished, e.g. 6months.
Specified time
period

19. The objectives should also specify how much
change or movement is being sought such as
increase in awareness levels, creation of
favorable attitudes or number of consumers
intending to purchase the brand, etc.
BENCHMARK:

20. Criticisms of DAGMAR
• DAGMAR has contributed to the advertising planning
process, it has not been totally accepted by everyone
in the advertising field.
• A number of problems have led to questions
regarding its value as a planning tool.
1. Problems with the response hierarchy
– Its reliance on the hierarchy of effects model. The
fact that consumers do not always go through
this sequence of communications effects before
making a purchase has been recognized.

21. Continue…
2. Practicality and costs
• Money must be spent on research to establish
quantitative benchmarks and measure changes in the
response hierarchy.
3. Inhibition / Lack of creativity
• Many person think the DAGMAR approach is too
concerned with quantitative assessment of
campaign’s impact on awareness, brand name recall.

22. 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

24. • Advertising budget is a financial document that shows
the total amount to be spent on advertising and lists the
way this amount is to be allocated.
• It is a translation of an advertising plan into monetary
units.
• It helps in meeting advertising objectives of an org.
• It is prepared for a specific future period of time.
• It is prepared by the advertising manager in
consultation with the marketing manager and approved
by the top management.
• It shows the plan of allocation of available funds to
various advertising activities.

26. • Setting advertising objectives
• Determining the task to be performed to achieve the
objectives.
• Preparing advertising budget.
• Approval of the top management.
• Allocation of advertising budget
• Monitor and control
ADVERTISING BUDGETING PROCESS

27. Establishing & Allocating the Promotional Budget
Sponsorship
Public
Relations
Sales
Promotions
Internet
Group Sales
Direct
Marketing

28. Establishing a Budget
• Size of a firm's advertising and promotions
budget can vary from a few thousand dollars to
more than a billion.
• One of the most critical decisions facing
the marketing manager is how much to
spend on the promotional effort.
• Many managers fail to realize the value of
advertising and promotion.

29. Establishing a Budget

30. Continue..
• Advertising/promotional expenditures
increase, sales and gross margins also
increase to a point, but then they level off.
• Profits are shown to be a result of the gross
margin minus advertising expenditures.

31. Purchase
frequency
Factors Influencing Advertising Budgets
Product
life cycle
Product
stability
Differentiation
Product
price
Competition

32. Approaches of Budgeting
Management
decides how much
to spend

33. Top-Down Budgeting approaches/methods
Top down
budgeting
methods
Affordable
Method
Competitive
Parity
Percentage
of Sales
Return on
Investment

34. Top-Down Budgeting Methods
1. Affordable Method
• Firm determine amount to be spent in various areas such as
production and operations. Then it allocates what’s left to
advertising and promotion.
2. Competitive Parity
• Managers establish budget amounts by matching the
competition’s percentage of sales expenditures.
3. Return on Investment
• Advertising and promotions are considered investment like
plant and equipment. ROI looks good on paper, reality is that
it is rarely possible to assess the returns provided by
promotional effort.

35. 4. Percentage of Sales
Perhaps the most commonly used method for budget
setting (particularly in large firms) is the percentage-of-sales
method, in which the advertising and promotions budget is
based on sales of the product. Management determines the
amount by either:
(1) taking a percentage of the sales
(2) assigning a fixed amount of the unit product cost to
promotion and multiplying this amount by the number of units
sold.

36. Object and Task Method :
Isolate objectives
Reevaluate objectives
Determine tasks required
Estimate required expenditures
Monitor
Bottom up Budgeting Methods
• Most logical way of setting advertising budget.
• It focus on the advertising task that is to be achieved.
• Advertising objectives are fixed after intensive market
research.