Lecture 3 - Setting of Advertising Objectives Marketing Notes | EduRev

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Marketing : Lecture 3 - Setting of Advertising Objectives Marketing Notes | EduRev

 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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