Page 1
Subject: Commerce
Lesson: Setting of Advertising Objectives
Lesson Developer: Romila Aggarwal & Sonu Mehta
College/Department: Bharati College, Commerce, Keshav
Mahavidyalaya, Business Studies, University of Delhi
Page 2
Subject: Commerce
Lesson: Setting of Advertising Objectives
Lesson Developer: Romila Aggarwal & Sonu Mehta
College/Department: Bharati College, Commerce, Keshav
Mahavidyalaya, Business Studies, University of Delhi
Setting of Advertising Objectives
2
Institute of Lifelong Learning, University of Delhi
Table of Contents:
Lesson: Setting Advertising Objectives
1: Learning Outcomes
2: Introduction
3: Reasons for Setting Advertising Objectives
4: Factors influencing Setting of Advertising Objectives
5: Process of Setting Advertising Objectives
6: Approaches to Setting of Advertising Objectives
6.1: Primary and Selective Demand Theory
6.2: PLC Approach
6.3: Advertising Spiral Approach
6.4: Linear Hierarchical Models
Summary
Exercises
Glossary
References
1. Learning Outcomes:
After reading this chapter, you should be able to:
? describe the major decision areas involved in developing
advertising program,
? understand the fundamentals of establishing advertising
objectives,
? differentiate the various approaches of setting advertising
objectives,
? understand the primary and secondary demand theory,
? appreciate how the advertising objectives change during
different stages in PLC,
? understand advertising spiral with respect to setting of
advertising objectives in different stages,
? appreciate the hierarchy of mental states of the consumers
from coming across an advertisement to purchase of the
product,
? apply the knowledge of hierarchy of advertising effects in
setting advertising objectives,
? understand the relevance of setting advertising objectives for
measuring advertising effectiveness,
Page 3
Subject: Commerce
Lesson: Setting of Advertising Objectives
Lesson Developer: Romila Aggarwal & Sonu Mehta
College/Department: Bharati College, Commerce, Keshav
Mahavidyalaya, Business Studies, University of Delhi
Setting of Advertising Objectives
2
Institute of Lifelong Learning, University of Delhi
Table of Contents:
Lesson: Setting Advertising Objectives
1: Learning Outcomes
2: Introduction
3: Reasons for Setting Advertising Objectives
4: Factors influencing Setting of Advertising Objectives
5: Process of Setting Advertising Objectives
6: Approaches to Setting of Advertising Objectives
6.1: Primary and Selective Demand Theory
6.2: PLC Approach
6.3: Advertising Spiral Approach
6.4: Linear Hierarchical Models
Summary
Exercises
Glossary
References
1. Learning Outcomes:
After reading this chapter, you should be able to:
? describe the major decision areas involved in developing
advertising program,
? understand the fundamentals of establishing advertising
objectives,
? differentiate the various approaches of setting advertising
objectives,
? understand the primary and secondary demand theory,
? appreciate how the advertising objectives change during
different stages in PLC,
? understand advertising spiral with respect to setting of
advertising objectives in different stages,
? appreciate the hierarchy of mental states of the consumers
from coming across an advertisement to purchase of the
product,
? apply the knowledge of hierarchy of advertising effects in
setting advertising objectives,
? understand the relevance of setting advertising objectives for
measuring advertising effectiveness,
Setting of Advertising Objectives
3
Institute of Lifelong Learning, University of Delhi
? comprehend DAGMAR approach in setting advertising
objectives,
? identify the challenges associated with the application of
DAGMAR approach.
2. Introduction:
Setting the advertising objectives is one of the five major decisions that need to be
taken up by the top management for success. The other major decisions are related
to Budget, Message, Media, and Evaluation. They are also referred to as five M's of
advertising- Mission, Money, Message, Media, and Measurement. In this e-lesson,
we are focusing on the setting of advertising objectives.
The setting of advertising objectives is very important to the company as a whole,
since this is the beginning of the entire planning of advertising. Identification of
objective(s) gives a focus and direction to the marketer. This is the determining and
controlling factor for the money allocation (budget), the copy creation and message
designing, mediums to be used and finally the evaluation. That is how an effective
and successful Ad-campaign is designed.
This setting helps the marketer/advertiser to know in advance what exactly they are
to plan and what are they looking forward to. It takes the marketer away from the
wandering about approach to a well-defined and known path.
Figure 1: Functions of Advertising Objectives
Focus and
Coordination
•Objectives provides framework that
builds focus for making the Ad plan and
brings in cordination
Plans and
Decisions
•Objectives facilitate plans and help in
taking important decisions
Measurement
and
Control
•Objectives provide standards for
evaluation and keeping control
Communication
and
Sales
•The objectives fulfill both the functions of
communication and sales
Page 4
Subject: Commerce
Lesson: Setting of Advertising Objectives
Lesson Developer: Romila Aggarwal & Sonu Mehta
College/Department: Bharati College, Commerce, Keshav
Mahavidyalaya, Business Studies, University of Delhi
Setting of Advertising Objectives
2
Institute of Lifelong Learning, University of Delhi
Table of Contents:
Lesson: Setting Advertising Objectives
1: Learning Outcomes
2: Introduction
3: Reasons for Setting Advertising Objectives
4: Factors influencing Setting of Advertising Objectives
5: Process of Setting Advertising Objectives
6: Approaches to Setting of Advertising Objectives
6.1: Primary and Selective Demand Theory
6.2: PLC Approach
6.3: Advertising Spiral Approach
6.4: Linear Hierarchical Models
Summary
Exercises
Glossary
References
1. Learning Outcomes:
After reading this chapter, you should be able to:
? describe the major decision areas involved in developing
advertising program,
? understand the fundamentals of establishing advertising
objectives,
? differentiate the various approaches of setting advertising
objectives,
? understand the primary and secondary demand theory,
? appreciate how the advertising objectives change during
different stages in PLC,
? understand advertising spiral with respect to setting of
advertising objectives in different stages,
? appreciate the hierarchy of mental states of the consumers
from coming across an advertisement to purchase of the
product,
? apply the knowledge of hierarchy of advertising effects in
setting advertising objectives,
? understand the relevance of setting advertising objectives for
measuring advertising effectiveness,
Setting of Advertising Objectives
3
Institute of Lifelong Learning, University of Delhi
? comprehend DAGMAR approach in setting advertising
objectives,
? identify the challenges associated with the application of
DAGMAR approach.
2. Introduction:
Setting the advertising objectives is one of the five major decisions that need to be
taken up by the top management for success. The other major decisions are related
to Budget, Message, Media, and Evaluation. They are also referred to as five M's of
advertising- Mission, Money, Message, Media, and Measurement. In this e-lesson,
we are focusing on the setting of advertising objectives.
The setting of advertising objectives is very important to the company as a whole,
since this is the beginning of the entire planning of advertising. Identification of
objective(s) gives a focus and direction to the marketer. This is the determining and
controlling factor for the money allocation (budget), the copy creation and message
designing, mediums to be used and finally the evaluation. That is how an effective
and successful Ad-campaign is designed.
This setting helps the marketer/advertiser to know in advance what exactly they are
to plan and what are they looking forward to. It takes the marketer away from the
wandering about approach to a well-defined and known path.
Figure 1: Functions of Advertising Objectives
Focus and
Coordination
•Objectives provides framework that
builds focus for making the Ad plan and
brings in cordination
Plans and
Decisions
•Objectives facilitate plans and help in
taking important decisions
Measurement
and
Control
•Objectives provide standards for
evaluation and keeping control
Communication
and
Sales
•The objectives fulfill both the functions of
communication and sales
Setting of Advertising Objectives
4
Institute of Lifelong Learning, University of Delhi
Schools of Thought:
The basic purpose of advertising is, in fact, the increase in sales for earning profit.
Advertising is also capable of influencing the buyer behaviour to the extent of
changing the mindset and cause attitudinal changes.
There are basically two schools of thought for setting advertising objectives:
1. Communicative Model also referred to as Qualitative Approach:
This approach deals with the perception, mindset, attitudes and buying behaviour of
existing and potential consumers. As a qualitative approach, its emphasis is on
sending across an effective message to the consumers. Messages that have a recall
value enable the consumers to identify and differentiate a brand from others and
there by develops brand preference.
2. Sales Model also referred to as Quantitative Approach
This approach deals with increasing the sales of a company in the short and long
run. As a quantitative approach its emphasis is on market penetration, market
expansion, and increase in the level of sales turnover for a product or product
category. In order to make advertising effective, these needs to be quantified.
Figure 2: Basic Schools of Thought of Advertising objectives
Advertising
objectives
Sales as
objective
Communication
as objective
Examples:
? Increase Sales
and demand by
5%-8%
? To enter into a
new geographical
area say ‘A’
? To increase
overall profits by
10%.
Examples:
? To create brand awareness
? To give knowledge about the
product
? To develop preference about
the advertised product over
other competitive products
? To influence buyer behavior
to buy the advertised
product.
Quantitative
Approach
Qualitative
Approach
Page 5
Subject: Commerce
Lesson: Setting of Advertising Objectives
Lesson Developer: Romila Aggarwal & Sonu Mehta
College/Department: Bharati College, Commerce, Keshav
Mahavidyalaya, Business Studies, University of Delhi
Setting of Advertising Objectives
2
Institute of Lifelong Learning, University of Delhi
Table of Contents:
Lesson: Setting Advertising Objectives
1: Learning Outcomes
2: Introduction
3: Reasons for Setting Advertising Objectives
4: Factors influencing Setting of Advertising Objectives
5: Process of Setting Advertising Objectives
6: Approaches to Setting of Advertising Objectives
6.1: Primary and Selective Demand Theory
6.2: PLC Approach
6.3: Advertising Spiral Approach
6.4: Linear Hierarchical Models
Summary
Exercises
Glossary
References
1. Learning Outcomes:
After reading this chapter, you should be able to:
? describe the major decision areas involved in developing
advertising program,
? understand the fundamentals of establishing advertising
objectives,
? differentiate the various approaches of setting advertising
objectives,
? understand the primary and secondary demand theory,
? appreciate how the advertising objectives change during
different stages in PLC,
? understand advertising spiral with respect to setting of
advertising objectives in different stages,
? appreciate the hierarchy of mental states of the consumers
from coming across an advertisement to purchase of the
product,
? apply the knowledge of hierarchy of advertising effects in
setting advertising objectives,
? understand the relevance of setting advertising objectives for
measuring advertising effectiveness,
Setting of Advertising Objectives
3
Institute of Lifelong Learning, University of Delhi
? comprehend DAGMAR approach in setting advertising
objectives,
? identify the challenges associated with the application of
DAGMAR approach.
2. Introduction:
Setting the advertising objectives is one of the five major decisions that need to be
taken up by the top management for success. The other major decisions are related
to Budget, Message, Media, and Evaluation. They are also referred to as five M's of
advertising- Mission, Money, Message, Media, and Measurement. In this e-lesson,
we are focusing on the setting of advertising objectives.
The setting of advertising objectives is very important to the company as a whole,
since this is the beginning of the entire planning of advertising. Identification of
objective(s) gives a focus and direction to the marketer. This is the determining and
controlling factor for the money allocation (budget), the copy creation and message
designing, mediums to be used and finally the evaluation. That is how an effective
and successful Ad-campaign is designed.
This setting helps the marketer/advertiser to know in advance what exactly they are
to plan and what are they looking forward to. It takes the marketer away from the
wandering about approach to a well-defined and known path.
Figure 1: Functions of Advertising Objectives
Focus and
Coordination
•Objectives provides framework that
builds focus for making the Ad plan and
brings in cordination
Plans and
Decisions
•Objectives facilitate plans and help in
taking important decisions
Measurement
and
Control
•Objectives provide standards for
evaluation and keeping control
Communication
and
Sales
•The objectives fulfill both the functions of
communication and sales
Setting of Advertising Objectives
4
Institute of Lifelong Learning, University of Delhi
Schools of Thought:
The basic purpose of advertising is, in fact, the increase in sales for earning profit.
Advertising is also capable of influencing the buyer behaviour to the extent of
changing the mindset and cause attitudinal changes.
There are basically two schools of thought for setting advertising objectives:
1. Communicative Model also referred to as Qualitative Approach:
This approach deals with the perception, mindset, attitudes and buying behaviour of
existing and potential consumers. As a qualitative approach, its emphasis is on
sending across an effective message to the consumers. Messages that have a recall
value enable the consumers to identify and differentiate a brand from others and
there by develops brand preference.
2. Sales Model also referred to as Quantitative Approach
This approach deals with increasing the sales of a company in the short and long
run. As a quantitative approach its emphasis is on market penetration, market
expansion, and increase in the level of sales turnover for a product or product
category. In order to make advertising effective, these needs to be quantified.
Figure 2: Basic Schools of Thought of Advertising objectives
Advertising
objectives
Sales as
objective
Communication
as objective
Examples:
? Increase Sales
and demand by
5%-8%
? To enter into a
new geographical
area say ‘A’
? To increase
overall profits by
10%.
Examples:
? To create brand awareness
? To give knowledge about the
product
? To develop preference about
the advertised product over
other competitive products
? To influence buyer behavior
to buy the advertised
product.
Quantitative
Approach
Qualitative
Approach
Setting of Advertising Objectives
5
Institute of Lifelong Learning, University of Delhi
The advertising objectives once set cannot be categorized in watertight
compartments of qualitative and quantitative approach. In general, advertising
objectives serve as a communication device, enhance coordination between
advertiser and the agency along with other functionaries of the company and
provide a benchmark or standard against which success or failure of a campaign can
later be measured. Hence both communication and sales aspect go together and
hand-in-hand for determining the specific advertising objectives.
Figure 3: Specific Advertising Objective
The advertising objectives have to be set in line with the marketing objectives and
the company's objectives and mission because of the fact that the advertising
strategy is a part of the overall marketing strategy which in turn is derived from the
overall strategies of the company, as shown below in the diagram. The advertising
strategy thus has to be consistent with the overall company mission and vision. The
attainment of the advertising objectives must lead to the attainment of company's
broad and overall objectives.
Figure 4: Advertisement Strategy as a part of Overall Company Strategy
Thus the advertising objectives setting must blend with the pre-defined objectives
of promotional and marketing mix and the overall company's goals.
Company's Strategies
Advertising Strategy
Marketing Strategy
Company Missions/ Visions
Advertising
Objectives
Sales
Objectives
Communication
Objectives
Specific Objectives
of Advertising
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