Advertising Management and Sales Promotion Unit 2

Sikkim Manipal University Page No. 25

Unit 2 Setting Advertising Objectives and
Formulating Advertising Strategies
Structure:
2.1 Introduction
Objectives
2.2 Advertising and Psychology of Marketing Objectives
2.3 Behavioural Objectives
Self Assessment Questions I
2.4 Communication Objectives
2.4.1 Advertiser
2.4.2 Audience
2.4.3 Media
2.4.4 Dynamic Concept
2.4.5 Choice and Competition
2.4.6 Advertising Agency
2.4.7 Matching Message with the Media
2.4.8 Distractions for the Audience
2.4.9 Resource Constraints
Self Assessment Questions II
2.5 Summary
2.6 Terminal Questions
2.7 Answers to SAQs andTQs
2.1 Introduction
Advertising is a specific form of communication where the aspects of cost
and corresponding benefit assume a special significance. Advertising
objectives are the communication tasks to be accomplished with specific
customers that a company is trying to reach during a particular time frame.
Advertising Management and Sales Promotion Unit 2
Sikkim Manipal University Page No. 26
Advertisement aims at bringing some change in the behavioural pattern of
the buyer. Audiences alter their patterns of behaviour under the influence of
factors such as education, occupation, mobility and so forth. Advertisers
have their own resource constraints, both of funds as well as time. This unit
deals with the marketing objectives and communication objectives in brief.
Objectives:
After studying this unit, you will be able to:
Explain the psychology of marketing objectives and their relation to
advertising
Mention the components of behavioural objectives.
Explain communication objectives.
2.2 Advertising and Psychology of Marketing Objecti ves
Advertising is a specific form of communication where the aspects of cost
and corresponding benefit assume a special significance. In order to
understand the way advertising can work, it is necessary to learn something
about communication. Invariably, one is tempted to go into the domain to
realize that decision-making in the area of business, or for that matter, in the
domain of non-commercial activity, will be influenced quite considerably by
patterns of behaviour of concerned persons, individually and in groups.
Human beings belong to different types and background which have an
effect on their behaviour. Furthermore, regardless of education, training and
group or organizational framework, rationality may be expected only up to a
limit. Man is simply not totally a rational being; psychology has nonetheless
endeavoured to introduce some order to the selectivity and bias with which
he processes communication.
Advertising Management and Sales Promotion Unit 2
Sikkim Manipal University Page No. 27
Advertising Objectives:
Advertising objectives are the communication tasks to be accomplished with
specific customers that a company is trying to reach during a particular time
frame. A company that advertises usually strives to achieve one of the four
advertising objectives: trial, continuity, brand switching, and switchback.
Which of the four advertising objectives is selected usually depends on
where the product is in its life cycle.
Trial: The purpose of the trial objective is to encourage customers to make
an initial purchase of a new product. Companies will typically employ
creative advertising strategies in order to cut through other competing
advertisements. The reason is simple: Without the first trial of a product by
customers, there will not be any repeat purchases.
Continuity: Continuity advertising is a strategy to keep current customers
using a particular product. Existing customers are targeted and are usually
provided new and different information about a product that is designed to
build consumer loyalty.
Brand switching: Companies adopt brand switching as an objective when
they want customers to switch from competitors' brands to their brands. A
common strategy is for a company to compare product price or quality in
order to convince customers to switch to its product brand.
Switchback: Companies subscribe to this advertising objective when they
want to get back former users of their product brand. A company might
highlight new product features, price reductions, or other important product
information in order to get former customers of its product to switchback.
2.3 Behavioural Objectives
An objective is a clear and unambiguous description of your educational
expectations for students. When written in behavioural terms, an objective
Advertising Management and Sales Promotion Unit 2
Sikkim Manipal University Page No. 28
includes three components: student behaviour, conditions of performance,
and performance criteria.
Three Parts of a Behavioural Objective:
1. Student Behaviour Skill or knowledge to be gained (e.g., two digit
numbers, vocabulary etc.) and the action or skill the student is able to
demonstrate (e.g., define, count, label, categorize, analyze, design,
evaluate, add, multiply, etc.)
Examples: Students will add two-digit numbers; Students will use the
vocabulary items identified in bold print in the first story in sentences of
their own.
2. Conditions of Performance Under what circumstances or context will
the behaviour be performed.
Examples: In an oral presentation; without the use of notes
3. Performance Criteria How well is the behaviour to be done;
compared to what standard
Examples: 80 out of 100; containing all components discussed in class.
Example of a well-written behavioural objective:
"In an oral presentation, all the students will be able to paraphrase
Dr. Martin Luther Kings I Have a Dream address, mentioning at least 3 of
the 5 major points discussed in class."
Components of Behavioural Objectives:
Learner:
This is the easy part, but don't leave it off! "The students", "The fourth
graders", "Susie"...
Advertising Management and Sales Promotion Unit 2
Sikkim Manipal University Page No. 29
Behaviour:
This is the key part of the whole thing. Notice the word "behaviour" in
"behavioural objectives"? Behaviours are actions. They are observable.
Here are some examples:
Run, write, add, put together, search, compose, speak, jump, read, draw
etc.
Here are some non-examples:
Understand, listen, participate, enjoy, think, know, review
Conditions:
This is a little trickier. Conditions are the circumstances under which your
student(s) will perform the behaviour. Only include the conditions that are
important for this particular objective.
Examples:
With a word processor, using Netscape, using a calculator, with teachers
assistance, with a peer tutor, in co-operative groups, silently, aloud, in the
resource room, in the general education class, independently, during class
discussion, etc.
Self Assessment Questions I
State whether the following statements are True or False:
1. Behaviours are actions which are not observable.
2. Conditions of performance state under what circumstances or contexts
the behaviour will be performed.
3. When written in behavioural terms, an objective includes three
components.
Advertising Management and Sales Promotion Unit 2
Sikkim Manipal University Page No. 30
2.4 Communication Objectives
Establishing communication objectives
Current Prospect
Awareness/
Interest Level
Desired
Communication Outcome
Sample
Communication Objective
Lack of
Awareness
Heightened
company/product/brand
awareness;
requests for additional
information
Measurable shift in
awareness levels;
X% increase in website
visits, store traffic,
enquiries, requests for
information
Lack of Interest
Heightened awareness of
product benefits and value
proposition;
product trial through events,
samples, demonstrations, etc.
Measurable shift in
perceived product attributes
and company reputation;
Increased customer
involvement, measured by
event and demonstration
attendance, acceptance of
trial offers or samples, etc.
Misperceptions
Corrected impressions;
improved target prospect
knowledge
Measurable positive shift in
consumer opinions and
attitudes.
Interest but
perceived lack
of need
Heightened knowledge of
value proposition;
understanding of unique
benefits; trial through
introductory offers.
Measurable increase in
serious buyer prospects,
measured by requests for
estimates, proposals, in-
person presentations,
introductory offers, etc.
Interest but lack
of motivation to
buy
Stimulate desire with time-
sensitive and limited-quantity
offers or short-term purchase
incentives.
Measurable positive
response to incentives and
promotional offers, etc.
Interest and
motivated to
buy, but facing
purchasing
obstacles
Overcome barrier with easy-
to-accept obstacle removal
option.
Convert one of three
reluctant prospects to
purchasers.
Interested,
motivated,
serious
prospect
Successful sales transaction Closure rate of one sale out
of every three presentations
to motivated prospects.
Advertising Management and Sales Promotion Unit 2
Sikkim Manipal University Page No. 31
Triangle of Communication
The process of advertising communication may be succinctly expressed in
the form of the eternal triangle of communication. The advertisers objective
is to communicate with the audience in order to obtain the desired results
arising from the responses of the audience.
2.4.1 Advertiser
The advertiser is commonly interpreted as a commercial organization which
has the paramount objective of making profits out of business activities.
Profits are usually generated through marketing or trading activity, apart
from the financial investments. Even in the last case, marketing has a role to
play as the yield for investments in order companies and assets will, in turn,
depend on the marketing activity of the latter. The communication logic will,
however, also apply to the types of advertisers which may have a societal or
political objective. Advertising for family planning, road safety and the like,
and election campaigns are no way different in this respect.
2.4.2 Audience
The team audience has to be interpreted with care. Readers of a
newspapers of magazine, listeners to the radio, or viewers of cinema or
television would not necessarily constitute the audience for an advertiser.
The audience for specific advertising has to be defined and idea
segmentation, which would help in defining and identification of the target
audience, is no way less important for non-commercial advertising. The
concept of target audience will, therefore, be applicable in all situations
whether an advertising campaign or a detailed advertising programme for a
product or service is under consideration.
2.4.3 Media
The third element of the triangle of communication is the media and that is
where advertising tends to differ from other forms of communication.
Advertising Management and Sales Promotion Unit 2
Sikkim Manipal University Page No. 32
Advertising, as a rule, will not control the media. Hence, they will have to
depend on the availability of media, and its appropriateness, to reach their
target audience.
2.4.4 Dynamic Concept
Thus the triangle of communication consists of advertisers who are trying to
convey advertising message to their target audience through media which
are independent of advertisers. The basic concept, however, is not
constrained to a static situation. First, the triangle may be interpreted both at
the micro and macro levels, i. e. for an advertiser or for one campaign and
collectively for several advertisers in a community or a country. More
importantly, all three elements of the triangle are subject to continuous
change. Audiences alter their patterns of behaviour under the influence of
factors such as education, occupation, mobility and so forth. Definitions of
target audience invariably need revision. Advertisers produce and market
products and services which may cater to the needs and tastes of their
clientele. The media, serving as the link, is influenced primarily by
audiences to whom they have to relate. The cost economics of media, at the
same time, involves advertising revenues. Both advertisers and media are
ultimately dependent on the mass of buyers from amongst whom both select
their respective target audience.
2.4.5 Choice and Competition
The creative aspect of advertising comes into play when an advertiser
formulates an appropriate message to be beamed across to its target
audience for a specific campaign. Even if we assume that segmentation has
been efficiently done, it will be necessary to formulate the message and
present it in such a way that it should appeal to the audience. This is
essential when there is choice, and correspondingly, competition. The
Advertising Management and Sales Promotion Unit 2
Sikkim Manipal University Page No. 33
importance of appeal will obviously be less when there is little or limited
choice, unless the advertiser has the objective of market development.
2.4.6 Advertising Agency
An advertising agency, working in unison with the advertiser, lends its
professional services to the advertiser for formulation and presentation of
message. However, it is the media which provides basic sustenance to the
advertising agency by allowing 15% commission (as in India) on the billing
of advertisers. The system obviously has its origin in free market operations
arising from competition within the media. The agency makes its
recommendation as to whether a specific media vehicle is suited to the
target audience and the advertising message.
2.4.7 Matching Message with the Media
The media has two major roles. First, it is the question of matching audience
to media, the type of person who constitutes the readership, listenership and
viewership of the media vehicles. The second dimension is that of the
frequency with which a specific media vehicle can put across the message
to the target audience and the choice available to the advertiser. Both these
dimensions are combined with the concept of exposure which is translated
into Opportunity To See (or hear), commonly known as OTS. A further
dimension of the suitability of certain types of message to a specific media,
whether print, audio or audio-visual, should also be kept in mind.
The achievement of an advertisers objectives is dependent on the appeal of
the message to the target audience and the reach of the media. The
qualitative aspects of creation of advertising and the quantitative estimation
of exposures which each unit of the target audience is subject to must also
have to be considered. It must also be pointed out that the reception of the
advertisers message is also dependent to a great extent on various
distractions and disturbances operating on the audience. These are inherent
Advertising Management and Sales Promotion Unit 2
Sikkim Manipal University Page No. 34
in the process of advertising communication. People select media primarily
according to their interest and preferences. Advertising which may appear in
these media is per se peripheral to the audiences criteria of selection of
media.
2.4.8 Distractions for the Audience
The following two factors aggravate the disturbances and distractions
operating on the audience:
a. Competition between media: A number of media vehicles would
normally compete for the attention of the audience.
b. Situational setting: Reception of the advertising message may also be
affected by the time and occasion of reading, listening or viewing of the
audience.
The cumulative effect of the above features may be indicated by considering
the data available on exposures, for audiences in the USA and India.
According to an estimate presented by Edwing W. Abel, Vice President and
Marketing Director of General Foods Corporation, to the West Cost Meeting
of the Association of National Advertisers, a typical metropolitan family in
the USA would be exposed every day to 1518 advertising message. Such a
family, i. e. husband, wife and children, would spend the national average
amount of time on newspapers, magazines, home and car radios and
television. On an average day, the estimated exposures were estimated by
Adel as below:
Display advertisements in their specific newspapers read by a commuting
husband and an active suburban wife.
Radio commercials heard at breakfast, lunch or in the car.
Advertisements in two specific national magazines read by the wife.
TV commercials from dinner time to 10.30.
Advertising Management and Sales Promotion Unit 2
Sikkim Manipal University Page No. 35
Subway (underground train and stations) posters and car cards along the
husbands route.
Advertising in comics read by the couples children.
In India, similar estimate of possible advertising exposures was obtained by
Clasrion Mc Cann Advertising Company for the city of Bombay in 1965. An
educated man commuting to work to the commercial centre of the city or
suburb may be subject to exposures of about 300 advertisements.
Admittedly, the average for non-metro cities and towns, to say nothing of
rural areas, would be lower.
The above estimates, although somewhat out of date, bring forth the
following observations:
An average person belonging to the target audience of an advertiser is
subject to a rather large number of advertising exposures.
As a corollary of the above, the number of advertisements actually seen or
head, in full or part are likely to be much smaller than the maximum possible
Opportunities To See (OTS), ranging from about 300 per person in India to
about 700 in the USA, according to the above data.
2.4.9 Resource Constraints
Completing the cycle of communication, it is obvious that advertisers have
their own resource constraints, both of funds as well as time. They can only
afford to spend a certain amount of money on advertising in accordance
with their marketing and advertising appropriation. The preparation of
advertisements needs time. Finally, the feedback from the audience is an
important input for the advertisers.
Self Assessment Questions II
1. ___________ from the audience is an important input for the
advertisers.
Advertising Management and Sales Promotion Unit 2
Sikkim Manipal University Page No. 36
2. The achievement of an advertisers objectives is dependent on
____________ to the target audience and the reach of the media.
3. An average person belonging to the target audience of an advertiser is
subject to a rather large number of _________________.
2.5 Summary
For any task the objective is very important. Striking a balance between the
marketing objectives, advertising objectives and the customers behaviour
objectives is a crucial task for any firm. A company that advertises usually
strives to achieve one of the four advertising objectives: trial, continuity,
brand switching, and switchback. The communication objective is generally
meant for reaching the customer exactly. The achievement of an
advertisers objectives is dependent on the appeal of the message to the
target audience and the reach of the media.
2.6 Terminal Questions
1. What are advertising objectives?
2. Describe the behavioural objectives.
3. What are the communication objectives? Explain.
2.7 Answers to SAQs and TQs
SAQs I
1. False 2. True 3. True
SAQs II
1. The feedback
2. The appeal of the message
3. Advertising exposures
Answers to TQs:
1. Refer to 2.2
2. Refer to 2.3
3. Refer to 2.4