mk0016-b1809-slm-unit-04

Advertising Management and Sales Promotion Unit 4

Sikkim Manipal University Page No. 66

Unit 4 Setting Advertising Objectives

Structure:

4.1 Introduction

Objectives

4.2 Marketing Objectives

4.3 Advertising Objectives

Sales-oriented/behavioural objectives

Communication-oriented objectives

4.4 The DAGMAR Approach to Setting Objectives and Measuring

Advertising Effectiveness

4.5 Kinds of Advertising Objectives

4.6 The Advertising Communication System

The communication process

The advertising exposure model

4.7 The Need for Clear Understanding of Objectives

4.8 Summary

4.9 Glossary

4.10 Terminal Questions

4.11 Answers

4.12 Case Study

4.1 Introduction

In the previous unit, you learnt about the advertising agency’s structure. In

this unit, you will learn what kinds of objectives are set and how advertising

strategies are formulated in an ad agency or in the advertising department

of a company.

While planning and developing a communication programme, marketing

communication managers are faced with the responsibility of deciding the

mission of promotion and the money to be spent on it. There are several

reasons why determining communication objectives for a promotional

programme are a must. First and foremost, it provides a direction for the

various people working on the programme and links them all through a

common goal. Coordination amongst different parties becomes easier and

problems can be avoided if common objectives are arrived at for a single

promotional programme.



Further, setting communication objectives is an integral part of the planning

process that affects several strategic and tactical decisions regarding the

promotion design, the budget that is allocated to the communication

programme and the evaluation of promotional programmes. For instance, if

a new product’s objective is to gain maximum awareness, the

communication managers might select a media with greater reach; if

immediate sale is an objective, sales promotion might be given more

budgetary share, etc. Communication managers can also allocate budgets

based on the extent of utility they are likely to derive from their

communication. For instance, it is unwise for a retailer to spend lakhs of

rupees producing a television commercial for a Diwali sale if the objective is

to reach only the local market and the sale is likely to generate only 10%

extra sale for the season. And it is equally foolish to try to sell someone a

car which costs Rs. 10 lakh with a brochure that costs a few rupees per

copy.

Objectives also serve as a yardstick against which the results of a

programme can be measured. Advertising managers are interested in

measuring the performance because it tells them if their investment in

promotions is generating any returns and also which communication

alternatives are producing better results.

Advertising managers are, therefore, under enormous pressure to decide

the size of the budget, define the target accurately, spell out the advertising

objectives and set up a mechanism to measure the effectiveness of a

particular campaign. They have to justify the expenditure and get it renewed

for the next year.

Objectives:

After studying this unit, you should be able to:

explain why objective-setting is important for advertising

differentiate between sales-oriented and communication-oriented

objectives

classify the different kinds of advertising objectives

analyse how the communication system works and how advertising can

shape the process to influence the target audience



4.2 Marketing Objectives

Advertising objectives should flow from marketing objectives, because, as

discussed in Unit 1, advertising plans are based on marketing plans.

Marketing objectives refer to the overall marketing programme and are

outlined in terms of sales, profitability or market share goals (e.g. increase

sales by 10% in territory A amongst target audience, capture 5% share of

men aged 21–25 in market B, etc.). These are then translated into

secondary objectives related to product, price, distribution and promotion

tasks. Advertising objectives are thus part of the promotion tasks that help

achieve marketing objectives. In addition to marketing objectives, factors

such as characteristics of the product and target audience, competitive

promotional activities, marketing mix strategy, positioning strategy, market

conditions, etc. also influence advertising objectives.

4.3 Advertising Objectives

Advertising or communication objectives are specific communication tasks

to be achieved with a specific target audience in a given period of time.

These specific communication tasks can be outlined in terms of

sales/behavioural or communication effects as indicated in the examples

below:

To lead 50,00,000 middle-income metro- and mega-city households to

our certified dealers for a trial run of M6 model car within 6 months of its

launch. (Sales/behavioural effect objective).

Within a year, convince 50% of brand X users that our brand Y gives

twice as much brightness as brand X with the same quantity

(Communication effect objective).

There is a raging debate about which of the two sales- or communication-

related objectives are more appropriate goals for promotional programmes.

In the next section, we will examine both of them in detail.

4.3.1 Sales-oriented/behavioural objectives

Sales-oriented objectives are behavioural in nature. Goals can be set in

terms of quantity purchased, inquiries generated, coupons redeemed, calls

made, store visits made, etc. Advocates of sales-oriented objectives argue

that when companies are increasingly spending huge sums on promotions

every year, the expense needs to be justified in terms of return on



investment, sales volume, market share or such other measurable results.

After all, the ultimate objective of all communication is to get a consumer to

purchase the product.

Although sales-oriented objectives are easier to set and measure, they may

not be appropriate for advertising. A sale is a result of many factors besides

advertising – product quality, distribution, price, competitive scenario,

economic conditions, etc. Hence, advertising cannot be solely made

responsible for selling products. Besides, advertising can hardly have a

direct and immediate impact on sales. For instance, a consumer will not

rush to purchase Colgate toothpaste or Akai television immediately after

watching their television commercials. He/she might keep them in mind for

future purchase. But if there is a sales promotion offer on these brands,

he/she might expedite their purchase. Thus, advertising can often have a

delayed impact on sales (also called carryover effect), which is another

problem with having sales-oriented objectives. Finally, having objectives in

terms of sales do not guide advertising managers in terms of the strategies

or actions they need to take for developing and implementing an advertising

programme.

Sales-oriented objectives are often used as a quick fix solution in situations

of dire market performance and increasing competition. With product life

cycles getting shorter and competitive pressures increasing, companies are

in a desperate urgency to turn around their communication investments

quickly.

This is not to say that sales-oriented objectives are always inappropriate.

They may be appropriate for certain mature products wherein

communication managers have amassed enough promotional experience to

be able to peg with reasonable certainty the communication–sales

relationship. For instance, with experience, they may be able to project with

reasonable accuracy the level of promotional effort that can bring about a

certain level of sales. A study done by John Philip Jones in 1989 revealed

that if a brand has an 8% market share, it has to overspend by about 2% for

its promotion to have any impact.1

1 Source: Hansen, F. & Chrisensen, L. B. (2004). Long-term Advertising Effects and

Optimal Budgeting, Research Paper, Center for Marketing Communication,

Copenhagen Business School.



However, all behavioural objectives are not always based on sales as the

objective of advertising is not always increased sale, although it is a

compelling one. In many cases, the objective is to change the behaviour in

the target group. According to Batra, Myers & Aaker, to do this, the market

is divided into three segments:

The Existing users (E) of advertised brand A who are largely loyal but

can switch, so need to be wooed

Users of Other brands (O) who never use brand A

Non-users of the product class itself (N)

Figure 4.1 depicts the shifting pattern of customer’s perceptions.

Fig. 4.1: The Shifting Pattern of Customer Perceptions

(Source: Batra, Myers & Aaker)

Behavioural change can be brought about by:

Persuading the existing customers to use, and thus buy brand A more

frequently. It can be done by suggesting new product applications (like

using a clear carbonated lemon drink such as 7-up as a mixer for gin or

vodka or using beer as a hair conditioner, etc.) or persuading consumers

to use more of the product (brush twice a day) so that the loyal customer

buys more of the brand A.

Increasing the loyalty of habitual brand switchers by reinforcing brand

benefits more powerfully, so that they do not shift to another brand.

These are people who are indifferent to brands, especially in low priced

FMCG like bath soaps or ready-to-eat snacks. All the brands in these

categories advertise all the time, leaving the existing users vulnerable to

switching. This poaching needs to be prevented by reinforcing the

repurchase habits through advertising.



Attracting new customers from other brands to brand A. These people

use the product class; so they can be seduced to use brand A on a trial

basis with offers of gifts, samples, price-offs, etc. as in household

product brands. This is possible only when customers are dissatisfied

with a competing brand and are looking for an option. This is an easier

target because they already use the product class. For instance, women

enthusiastically accept the recommendation of trusted friends for

expensive make-up or garment brands when they are less than happy

with their current brand.

Cultivating people who do not use the product class at all. Some people

manage well without car, tractor, university education, polio vaccine,

spyware, perfume or diamond jewellery, but may be potential consumers

in the future. They can be convinced into switching from scooter or

motorbike to a small car – Nano is a major class-switcher persuasion. Or

from filter coffee to instant brands, homemade shikakai to bottled

shampoo, hard liquor to wine or beer. However, this technique requires

huge budget, time and persuasive strategy and only big manufacturers

can do it.

These are only some of the ways in which behavioural changes can be

brought about in the hope that new customers will dramatically increase

sales. In reality, improvement in sale is a slow process and difficult to

measure even when tools like price-off, coupons, etc. are used. It can

also be seen that many behavioural objectives are more communication-

oriented than sales-oriented. However, their effects are primarily

measured in terms of increase in product usage and addition to a

consumer base, that is, in terms of sales.

4.3.2 Communication-oriented objectives

Communication objectives, on the other hand, talk about the specific

communication tasks that are to be achieved. These are outlined in terms of

awareness to be created, knowledge to be imparted, attitude (and maybe

behaviour) to be changed, image to be built, purchase intentions to be

created, etc. They are based on the belief that the most important role of

advertising is to communicate. Sale is a byproduct of these objectives and is

not expected to result immediately. Marketers and advertising managers

recognise the step-by-step movement of consumers towards purchase.



Such purchase results as a culmination of the entire communication

sequence from building awareness to leading to purchase. We will discuss

this in detail in the models of consumer response hierarchies in Unit 5.

With experience, it is possible to convert marketing objectives into

advertising objectives. For instance, if the marketing objective is to increase

sales of a herbal tea by 10%, advertising objectives, based on marketing

and advertising research, can be the following:

Convince at least 70% consumers that herbal tea is not bad tasting by

generating brand trials.

Show the linkage of anti-oxidants with good health and increase the

number of consumers in the target market who associate herbal tea with

anti-oxidants to 70%.

Clear the misconception that herbal tea is expensive by giving price

information.

Table 4.1 gives examples of how communication objectives are established

to address the different kinds of communication problems.

Well-defined communication objectives that clearly complement marketing

objectives can help in making a campaign successful. The DAGMAR

approach, popularly used in advertising planning and discussed in the next

section, emphasises on setting communication-related objectives for

advertising.



Table 4.1: Examples of Communication Objectives



4.4 The DAGMAR Approach to Setting Objectives and Measuring

Advertising Effectiveness2

Defining Advertising Goals for Measured Advertising Results (DAGMAR) is

a model devised by Russell H. Colley in 1961 in which advertising objectives

can be set in a way that the results of an ad campaign can be measured

and quantitatively monitored. The key premise of the report is that

advertising’s prime job is to communicate to a specific target audience and

bring them to a state that stimulates action. Hence, communication-related

objectives are the valid basis for setting advertising goals. It is against these

objectives that the effectiveness of advertising should be measured.

Colley has proposed that all commercial communication aimed at the

ultimate objective of a sale should move a prospect through four levels of

understanding:

1. Awareness – The prospect must be aware of the existence of the brand

or company.

2. Comprehension – The prospect must understand what the product is

and what it will do for him/her.

3. Conviction – The prospect must develop a mental disposition to buy the

product.

4. Action – The prospect must stir himself/herself into action, that is, buy

the product.

Colley proposed that the communication-related goals for advertising should

also be based on the above hierarchical model outlining the communication

process. He argued that unlike marketing goals, which are almost

exclusively concerned with achieving a desired action, the effectiveness of

advertising should be judged based on the extent to which it moves the

consumer upward on the hierarchy rather than solely on its ability to

generate sales. This framework allowed marketing communication

managers to analyse the long-term effects of advertising more strategically.

While the four-step hierarchical model was proposed by Colley to outline the

communications response process, he also developed a checklist of

2 Source: Colley, R. H. (1961). Defining Advertising Goals for Measured Advertising Results.

New York: Association of National Advertisers.



52 specific advertising tasks that can be used in goal setting and in leading

to the ultimate objective of generating sales.

In addition to proposing the communication hierarchy, which is similar to the

hierarchical models of advertising effects (discussed in Unit 5), Colley also

set standards for what can be termed as a good objective. According to

Colley, objectives should have the following features:

1. Concrete and measurable communication tasks – Colley proposed

that communication objectives should precisely state the task to be

achieved. For instance, clear misconception regarding price among non-

users, develop conviction among the target audience that brand A has

ingredient Y, etc. are precise or concrete tasks. An emphasis on movement

up the communications hierarchy offered the advantage of being able to set

more narrowly defined advertising objectives and to effectively measure

progress towards them.

The users of FairGlow fairness soap were happy with its performance,

but were unclear about its unique breakthrough ingredient Natural Oxy-G

and how it worked. Non-users were still wary of the product being able to

deliver on the promise of blemish-free fairness. To address this issue, the

communication objective set by the brand was: “To provide complete

confidence about the product’s performance. To explain the Natural Oxy-

G process in a convincing and appealing manner.”

(Source: www.mudra.com)

The DAGMAR approach also requires that the objectives should be

measurable and it should be possible to specify the measurement

procedure. For instance, if the ad message communicates that brand X is

the best on attribute Q, then a questionnaire may include the request, “rank

the following brands on best Q attribute.” Measurement can be done by

quantifying responses to mean percentage of the audience who rated brand

X as the best on attribute Q.

2. Well-defined target audience – Objectives should clearly define the

target audience for the communication based on the situation analysis for

the product. If the target audience is not well defined, the entire promotional

effort may go waste. For instance, in the above example of FairGlow



fairness soap, the brand defined its target audience as follows to explain the

Natural Oxy-G process of its soap in a convincing and appealing manner:3

Users of beauty creams and soaps and fairness products, who are, young

girls in the age group of 18+, currently use products to enhance their

complexion. They are very rational in their choice of products and would try

new products only if they are completely convinced about them.

3. Benchmark and determination of degree of change sought – Colley

proposed that objectives should be based on knowledge of the current

status of response variables such as awareness, liking, attitude, purchase

intention, etc. For instance, if it is known that currently only 10% of the

prospects are aware of the presence of ingredient Y in brand A, it may be

decided to increase this awareness level to 70%, which may be the required

awareness level for a desired sales goal. If on the other hand, 70% or more

prospects are already aware, the ad campaign need not focus on generating

awareness.

Thums Up knew that the preference for its drink over Pepsi was low in

the 12–29 year age group, with only 53.9% of the contribution coming

from this segment in 2001. After its campaign with the tagline “Grow up

to Thums Up” this contribution increased to 61%.

(Source: Effie 2002 Case Studies, www.agencyfaqs.com)

Thus, based on the knowledge of current status, the degree of change

required can be determined. The help of marketing research can be taken to

determine the existing levels of response hierarchy. In the case of new

products, the current status of response variables is considered to be almost

zero. Hence, preliminary research is not required. Knowledge of the current

status is also useful in judging the effectiveness of campaigns.

4. Pre-determined time period – Objectives should clearly specify the time

period in which the results are to be achieved. Gaining 50% awareness in a

year is not the same as gaining it in two months. Campaigns that keep on

running endlessly till results are achieved are a drain on the company’s

resources. Timings for most campaigns run from a few months to a year

based on the communication task and the circumstances. Achieving

3 Source: www.mudra.com

http://www.agencyfaqs.com/

http://www.mudra.com/



objectives becomes more difficult as advertising takes consumers up

through the response hierarchy. Hence, the time period required for

achieving 90% awareness may be shorter than for achieving 10% sales.

The DAGMAR approach has been successful in presenting the case for

communications-related objectives as opposed to sales-related objectives.

The criteria laid down by Colley for a good objective have also made it

easier to measure the effectiveness of campaigns. However, it is also

subject to criticisms such as high costs of research, over-reliance on

quantitative measures, etc. that have hampered its whole-hearted

acceptance by everyone in the field. Yet, it proves to be a useful guide in

setting advertising objectives to communication managers.

Self Assessment Questions

1. Marketing objectives are usually outlined in terms of sales or profit

goals. (True/False)

2. Which of the following is a behavioural-objective of advertising?

a. Clearing misconception about price

b. Generating brand awareness

c. Generating inquiries

d. Establishing the superiority of brand A over brand B

3. Advertising objectives are created independently of marketing

objectives. (True/False)

4. The DAGMAR approach supports setting sales-oriented objectives for

advertising campaigns. (True/False)

5. The DAGMAR approach requires that the objectives should be

measurable and it should be possible to specify the measurement

procedure. (True/False)

4.5 Kinds of Advertising Objectives

A company does not release entertaining television commercials or colourful

press ads spending millions of rupees for some entertaining or artistic

reason. It approaches an advertising agency because it has an urgent need

in hand, often a serious problem. An advertiser usually has one or couple of

the following objectives for any campaign:

Increase brand awareness – Sometimes even a brand selling well may

have poor brand awareness, especially in FMCG. The users may be



habitual buyers with no great awareness of the distinctive features of the

brand. The campaign may aim to sharpen brand awareness by creating

a focused brand personality and reinforcing it over a period of time.

Enhance brand image – Even a successful brand may come under

severe pressure from either new brand competition or another old brand

introducing new features. The campaign objective may be to strengthen

the client’s brand image as the brand stands now, by reminding the

target about its relevant benefits.

Introduce new features or improved version – In a competitive

market, each producer is constantly working to incrementally improve

his/her product just to stay ahead of competition and only then to serve

his/her customers better. When a successful new feature or an

altogether new version of the brand is introduced, a major campaign is

necessary.

Increase sale – As mentioned earlier, advertising is only one

component of the marketing mix and in itself cannot increase sale. But it

does play a huge role. Therefore, the agency has to define clearly its

role in this process. Sale may even decrease for the moment due to

poor supply chain, bad after-sale support, indifferent salesmanship, or

as it happened in 2008–09, global economic downturn. In such a

situation, the job of advertising is to keep the brand in front of the target

and not necessarily expect immediate increase in sale. Besides,

advertising is a long-term tool and often is not even designed to increase

sale immediately.

Increase profit – Increasing profit is different from increasing sale.

Especially in FMCG, the top line may keep growing due to many

promotional activities and price wars, yet the bottom line can tank, due

to thinning margins. The campaign may try to create better prestige or

reliability for the brand, so that it will need less promotional expense or

will be able to charge premium prices and thus increase profit.

Increase market share – Each brand in the same product class and

price band sells only to some users and not others. For instance, in the

bath soap market, some use Pears and some use Mysore Sandal or

Dove. Each creates and protects its share of the market. The objective

of the campaign may be to increase the market share of Pears by



persuading users of Dove to buy it. So Dove’s loss is Pears’ gain,

reducing Dove’s market share for no failure on its part at all.

Expand geographical market – Most products do well in one area of

the country and not in others. South India drinks coffee, North and East

India drink tea. With sustained and clever local advertising, coffee can

be made more popular in the north, as indeed, Kolkata serves instant

coffee as a sophisticated guest drink now.

Create corporate image – Often a corporate campaign mentions the

brands only in the passing, but focuses on the company’s image. The

idea is that a great company, by definition, is expected to make great

products which everyone can trust.

Perform damage control – A brand or manufacturer may get stuck with

bad reputation, the reason of which may or may not be its fault or in its

control. Some years ago, a few capsules of the painkiller Tylenol were

filled with poison by an emotionally deranged man in the USA, causing

several deaths. The manufacturer immediately released huge

campaigns accepting responsibility and informing that they had recalled

and destroyed all Tylenol capsules from the retail market which is quite

a logistical nightmare and replaced them with a new batch and now it

was safe to buy.

Few years back, Coca-Cola was in the news in India. The

government accused its product of having unacceptable levels of

pesticide. The manufacturer kept releasing half page or bigger, totally

text-based Black and White ads in all newspapers across India

claiming that their product’s pesticide content was lower than what

was legally acceptable, backing it up with huge research data, expert

reports and tables and charts. Coca-Cola had even roped in Aamir

Khan as its protagonist to restore public confidence. The company

also claimed that it used only Indian ground water, just like all other

Indian bottled beverages. Simple text-based ads in large, easy-to-

read fonts, with a line drawing of their bottle as the only visual were

released. Sales took a knock temporarily, since carbonated drinks

were mostly consumed by the young and parents panicked. But the

advertising blitzkrieg must have worked at some level, because next

summer the sales bounced back.



Attract the best professionals – Big companies may need to create

attractive corporate images for themselves as employers to ensure that

the most qualified and experienced in the profession would want to join

their company as a matter of pride. Now there are specialist agencies,

which do nothing but create corporate profiles for recruitment ads. Very

competitive professions like marketing, infrastructure, IT, ITeS, BPO

companies, etc., have made this whole new genre of recruitment

advertising fashionable.

Announce new outlets – When a major product line is introduced in a

new city or part of the country, huge launch campaigns are released to

inform potential customers quickly about brand availability. For instance,

“LG electronic products now come closer to you in Ludhiana.”

These are only some of the objectives for which advertising campaigns are

released in mass media.

Activity 1

Suppose say you have started a new retail store of branded Jeans and

you wish to advertise both in print media and web (online). Mention the

advertising objectives you want to accomplish.


6. A corporate campaign focuses on _________________________.

7. ____________________ cannot be the objective of advertising.

a. Creating brand image c. Announcing new outlets

b. Promoting sales d. Broadcasting entertaining commercials

4.6 The Advertising Communication System

Before designing communication objectives, one must understand how the

communication system works. The advertising fraternity is always

concerned about standardising the communication process because the

targets are so variable and human behaviour is so unpredictable. Yet, it is

vital that the advertising communication process is by and large understood,

so that the impact of a campaign on the target group can be somewhat

predictable. Communication is commonly understood as the imparting,

sharing or exchanging of information, news, views, thoughts, attitudes or



ideas between two or more people. There are two major theories about

advertising communication.

4.6.1 The communication process

One model defines how the communication channel works. Figure 4.2

illustrates the basic model that depicts the primary elements of the

communication process. Note that communication is a very complex

process and its success depends on how well coordinated these various

elements are.

Figure 4.2 depicts the basic advertising communication process.

Fig. 4.2: The Basic Advertising Communication Process

(Source: Shah & D’Souza)

The message is at the heart of all communication. It could be verbal, non-

verbal or symbolic. It includes both the content and presentation of the

advertisement. The manner of presentation is chosen carefully to ensure

Noise/Entropy

En-

coding

Cha-

nnel De-

coding

Credibility

Attracti-

veness

Power

Commu-

nication-

ills

Culture

Social

system

Compre-

hension

skills

Attitude

Demogra-

phic profile

Knowledge

Culture

Social

system

Feedback

Content, structure, format, tone

Sender/

Source

Message Message

Receiver



that the target will immediately relate with it at an emotional level, where all

purchasing decisions are taken anyway.

All messages originate from a “sender or source” of the message. They

flow from the sender to the receiver and vice versa, which is indicated by the

direction of the dashed arrows. The source can be many, the manufacturer

of the brand, the brand itself, a sponsor, a high credibility spokesperson, an

adorable celebrity, a loyal user, a trusted agent, etc. They all bring different

images of the brand and the source must be chosen carefully to maximise

its impact on the objective of the campaign. The effectiveness of

communication is determined by factors like the credibility, attractiveness,

power, communication skills, culture and social system of the sender. For

example, in the case of the popular Lead India campaign by The Times of

India, the celebrities Priyanka Chopra and Shah Rukh Khan were the

ambassadors of the campaign. Both sources were leading and successful

celebrities and popular youth icons – qualities that went well with the

campaign’s target audience of the youth of the country. Here the vampire

effect is a real danger, when the image of the celebrity spokesperson is so

strong and overwhelming that people remember the high power endorser

cricketer or actor and not the brand as if the endorser is sucking the blood

out of the brand.

The process of communication begins when the sender determines how a

given message will be conveyed. He/she has to select the words, images,

symbols, format, tone, etc. for the message. This process of transforming

the content of a message (thoughts, ideas, news, etc.) into a symbolic form

is known as “encoding.” For instance, the print ads of Mumbai Traffic Police

(Figures 4.3 and 4.4) encode the melancholy message of a smashed head

(effect of not wearing a helmet) through the visual of a broken egg, whereas

the visual of the tyre is meant to represent a wreath.



Fig. 4.3: Print Ads of Mumbai Traffic Police

Fig. 4.4: Print Ads of Mumbai Traffic Police

The “channel” is the mode by which the message travels from the source to

the receiver. There are various traditional and unconventional channels

such as press, television, radio, outdoor, Internet, mobile, etc. through which

messages are disseminated. Another strong channel is word-of-mouth,

which carries strong persuasions like indisputable credibility, user feedback,

personal recommendation, trust and prestige of a known person, power of

the peer group, etc. which have a potential to influence the behaviour of the

target group. Its weakness is that the advertising industry has not learnt to

initiate and manage it yet, and there is little control over it.



The “receiver” is the target group the advertisement is trying to reach and

influence. This group is carefully studied and defined in detail. The social

characteristics and the demographic and psychographic profile of the

persons likely to receive information and buy the brand are important.

After a message is encoded and transmitted through the right channel, the

receiver decodes the message on receipt. “Decoding” is the process of

translating the encoded message from its symbolic representation back into

thought or comprehension. Thus, in the case of the ads issued by the

Mumbai Traffic Police, by looking at the visuals of a broken egg and a tyre-

wreath, the receiver understands the results of careless driving. How well

the message is decoded depends on the receiver’s comprehension skills,

attitude, profile, knowledge, culture and social system, among other things.

It is possible that religious groups that do not follow the system of burying

their dead in a cemetery may not be able to comprehend the message of

Mumbai Traffic Police that depicts a tyre as a wreath on a gravestone in one

of its ads. The greater the similarity, understanding or common frame of

reference between the sender and the receiver, the more effective the

communication would be. Hence, marketing communicators give

considerable importance to the understanding of their target audience. The

idea is that if the process of communication is understood well, the

advertising agency knows at which stage to intervene and with which tools

to achieve its objective of the moment.

However, apart from characteristics of the sender and the receiver, certain

environmental factors also determine the effectiveness of communication.

Termed as “noise or entropy,” these are factors that create interference in

message dissemination or reception. For example, the coming up of a better

sale offer by a competitor at the time of the advertiser’s offer, the newspaper

page on which the advertiser advertised being full of other ads, power cut at

the time an ad is broadcasted on television, etc. are all noise-causing

factors that hamper the communication process.

“Feedback” completes the exchange process whereby the receiver

becomes the sender and transmits his/her response back to the original

source. Feedback can be in various forms – verbal posing of questions to a

salesman, written letter of complaint to a brand manager, purchase action

after seeing an ad or even total inaction. A problem that marketers



experience, often when mass media is used, is that of indirect or delayed

response which makes it difficult to measure the effectiveness of

communication. For example, consumers may not rush to buy immediately

when an ad campaign is released but may wait till Diwali bonus time.

Because of the difficulty in gauging delayed response, marketers often

conduct consumer interviews, make store visits or provide feedback forms

to analyse receivers’ response, comprehension, product attitude, message

recall, etc.

4.6.2 The advertising exposure model

Figure 4.5 depicts the communication and persuasion process.

Fig. 4.5: The Communication and Persuasion Process

(Source: Batra, Myers & Aaker)



This theory is built on the premise that when a target is exposed to an

advertisement, he/she goes through a series of cognitive and affective

states. The diagram above shows some of the possible objectives the

advertiser may want to achieve through an ad and how it could lead to the

desired action, that is, purchase most of the times. This defines clearly at

what stage the advertising message can intervene to initiate action.

However, the planner needs to understand exactly what is the integrated

body of information, attitudes, aspirations, desires and means of the target

in order to carry him/her from passive perception to definite action.


8. _______________________ is the process by which a message is

transformed into a symbolic form before transmitting to the receiver.

9. The process of communication is completed when the receiver gives

__________, but the problem with advertising is that it may lead to

delayed _____________.

10. In word-of-mouth communication, there is no clear _______________

for the message.

11. Communication is typically a one-way process. (True/False)

4.7 The Need for Clear Understanding of Objectives

In order to achieve targeted impact of a campaign, the manufacturer, his/her

sales and marketing team and his/her advertising agency needs to sit

together and clearly define what exactly is the goal at the moment and how

to achieve it. For that, defining advertising objectives is the first step. It is the

synergy of these stakeholders that moves the target towards the desired

goal.

4.8 Summary

Let us recapitulate the important concepts discussed in this unit:

Advertising objectives serve various purposes such as shaping strategic

and tactical decisions, guiding budget setting, serving as a yardstick

against which campaign results can be measured, etc. Advertising

objectives are based on marketing objectives and can be outlined in

terms of sales- or communication-related effects. Although sales-related

objectives are result-oriented, they may not be appropriate for

promotional tasks because of the delayed and indirect impact of



promotion on sales. Communication-related objectives talk about the

specific communication tasks to be achieved such as creating

awareness, changing attitude, etc. The DAGMAR approach emphasises

on setting communication-related objectives for advertising such that the

results of an ad campaign can be measured quantitatively.

The basic model of communication process depicts the primary

elements of the communication process. Communication begins when a

sender encodes a message and transmits it through a channel, after

which it is decoded by the receiver for interpretation. Feedback from the

receiver indicates if message comprehension has been as intended.

To give the advertiser the response he/she wants, the objective of the

campaign on hand needs to be clearly defined in all its aspects –

marketing, behavioural and communication objectives; this needs to be

clearly agreed upon by both sides, that is, the advertiser and the

advertising agency. If this is not done at the outset, much money will be

wasted and much heartburn will be created on both sides.

4.9 Glossary

Brand switchers: people who purchases a product or service of brand

different from that previously or usually purchased

Vulnerable: Susceptible or prone

Encoding: process of transforming the content of a message (thoughts,

ideas, news, etc.) into a symbolic form

Decoding: reverse of encoding wherein the encoded message is translated

from its symbolic form back into comprehension or interpretable form

4.10 Terminal Questions

1. Describe why it is important to set advertising objectives.

2. Compare sales-related objectives vs. communication-related

objectives. Are both of them suitable for determining advertising

objectives?

3. What is DAGMAR? How is it useful in establishing objectives?

4. Explain the Kinds of Advertising Objectives.

5. Describe the basic advertising communication process.



4.11 Answers


1. True

2. c. Generating inquiries

3. False

4. False

5. True

6. Company’s image

7. d. Broadcasting entertaining commercials

8. Encoding

9. Feedback/response, response

10. Destination

11. False

Terminal Questions

1. Advertising objectives are part of the promotion tasks. There are several

reasons why setting advertising objectives are important. It provides a

direction for people working on the programme, links them all through a

common goal. In addition, coordination becomes easier and problems

can be avoided. For more details, refer section 4.1 and 4.2.

2. Sales-oriented objectives are behavioural in nature. Goals can be set in

terms of quantity purchased, coupons redeemed, store visits made, etc.

Sales-oriented objectives are often used as a quick fix solution in

situations of dire market performance. Communication objectives, on the

other hand, talk about the specific communication tasks that are to be

achieved. Refer section 4.3.1 and 4.3.2.

3. Defining Advertising Goals for Measured Advertising Results (DAGMAR)

is a model devised by Russell Colley in which advertising objectives can

be set in a way that the results of an ad campaign can be measured and

quantitatively monitored. Refer section 4.4.

4. Increasing brand awareness, enhancing brand image, introducing new

features, increasing sales are some of the kinds of advertising

objectives. Refer section 4.5 for more details.

5. Communication is a very complex process and its success depends on

how well coordinated these various elements are. Refer section 4.6.1 for

more details.



4.12 Case Study

Henko Brings Whiteness with Flying Colours

Henko Stain Champion Powder (HSCP) is a detergent powder that

champions the cause of ultimate stain removal. A product of Henkel India

Limited, a subsidiary of its German parent, Henko is the flagship brand of

the company with its premium detergent powder and bar promising superior

stain removal. Henko’s advanced German formula with active enzymes

enables it to fight even tough stains successfully.

Henko was launched in South India as a premium brand that was directly

pitched against HUL’s Surf Wash Booster (today’s Surf Multi-Action). The

marketing objective set for the brand was: To achieve average tonnage of

650 tonnes/month by May 2001 and 850 tonnes/month by Jan 2002 and to

increase the segment share to 30% of the premium segment of the powder

market (assuming the premium segment grows by 5%). The biggest

challenge for HSCP was to get the consumer shake off inertia in trying out

this new brand, especially given that they were using Surf more out of habit

than out of conviction regarding the brand’s performance. In view of this, the

communication objective was set to create dissonance in the Surf

consumer’s mind by positioning HSCP as a better option as compared to

Surf, which the consumers have been using more out of habit.

The target audience defined for the campaign consisted of housewives in

the age group 25–40 years, in SEC A, B and C households, residing in

metros and mini-metros and currently using Surf. The communication

strategy was based on the insight that today’s generation of young women

want more contemporary solutions for traditional problems. The television

commercial emphasised that the new detergent technology that was the

choice of the young, savvy woman was so powerful that her mother also

converted to it. There was an implied reference to Surf as old technology.

The media strategy was focused on addressing Surf users’ media habits

through their choice of channels and programmes. As a result of the

campaign, the brand touched volumes averaging 800 tonnes per month and

a volume base of 1000 tonnes in October 2001.

Discussion Questions:

1. What were the advertising objectives for Henko? Clearly state them

using the DAGMAR principles.



2. Who were the senders and receivers of Henko’s communication? What

was the message? What could have been some of the noise-creating

factors in the process?

(Source: www.mudra.com)

References:

Batra, Myers & Aaker

Colley, R. H. (1961). Defining Advertising Goals for Measured

Advertising Results. New York: Association of National Advertisers.

Hansen, F. & Chrisensen, L. B. (2004). Long-term Advertising Effects

and Optimal Budgeting, Research Paper, Center for Marketing

Communication, Copenhagen Business School.

Shah & D’Souza

E-References:

www.mudra.com

Effie 2002 Case Studies. Retrieved from http://www.agencyfaqs.com

http://www.goodywebs.com/2012/12/ads-4-reason.html#!/2012/12/ads-

4-reason.html

http://www.agencyfaqs.com/

mk0016-b1809-slm-unit-04

Documents

communication objectives

advertising managers

setting objectives

communication programme

introduction objectives

marketing objectives

kinds of objectives

common objectives