Session 5

IMC
Session 5
Advertising Goals
THE DAGMAR
APPROACH
Define
Advertising
GOAL for
Measuring
Advertising
Result
4
• Russel H. Colley, 1961
• DAGMAR Approach is the task of measuring ad

effectiveness as well as the objectives or goals of
advertising.
• Colley distinguished 52 advertising goals that might

be used with respect to a single advertisement.
• ‘communicate rather than sell’
5
The 2 core things on which the
DAGMAR Model stands are:
1. Creation of a communication task to

achieve goals
2. Defining the objective of the communication

tasks in a manner that the results can be
measured.
6
DAGMAR model suggests that the ultimate objective of
advertising must carry a consumer through four levels of
understanding i.e.
Characteristics of Objectives
A major contribution of DAGMAR was Colley’s specification of what constitutes a
good objective.
8
× An advertising goal is
× a specific communication task (and not a sales task)
× to be accomplished among a defined audience
× in a given period of time
× Example
× to persuade 500 housewives to visit dealer’s
showroom to see a demonstration in the month of
November
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OBJECTIVES OF DAGMAR APPROACH
• Persuade a prospect to visit the showroom.
• Growth in market share.
• Improve sales turnover.
• Perform complete selling function.
• Advertise a special reason to buy.
• Stimulate impulse sales.
• Remind people to buy.
• Create awareness about the product and brand existence.
• Create favorable emotional disposition towards the product.
• Impart information regarding benefits and distinctive features of the product.
• Combat and offset competitive claims.
• Correct false impressions, wrong information and other hindrances to sales.
• Aid sales force with sales promotion and selling activities and boost their morale.
• Establish brand recognition and acceptance. 10
AIDA
THE PROCESS OF AIDA
Attention: Attention is usually grabbed by the use of image, color, layout,

typography, size, celebrity, model etc
Interest: Once attention is grabbed, it’s necessary to create interest in the

viewers mind so that they will read more about the brand being
advertised. By the use of an attractive sub head, interest can be invoked
Desire: The element of desire is usually created by the use of body copy
where you write in detail about the necessity of buying the brand,
thereby explaining the features of the brand, facts and figures
Action: Towards the end, the contact information of the brand will be given
where they expects the viewers to take action immediately. It can be in
the form of shop address, toll free numbers or website address
SMART Goals
Blog Traffic Goal
• Specific: I want to boost our blog’s traffic by increasing our weekly

publishing frequency from 5 to 8 times a week. Our two bloggers will
increase their workload from writing 2 posts a week to 3 posts a week,
and our editor will increase her workload from writing 1 post a week to
2 posts a week.
• Measureable: An 8% increase is our goal.
• Attainable: Our blog traffic increased by 5% last month when we
increased our weekly publishing frequency from 3 to 5 times a week.
• Relevant: By increasing blog traffic, we’ll boost brand awareness and
generate more leads, giving sales more opportunities to close.
• Time-Bound: End of this month
17
“Grow market share by 15%,
in the state of Wisconsin, for
product line XYZ, by the end
of the fiscal year.”
Take a look at the list of possible promotional goals listed below.
Assume that you were responsible for the promotion of McDonald’s ‘healthy
menu’ campaign (designed to reposition the brand to some extent), which of
the following goals might be appropriate?
1. To increase sales by…

2. To increase profit by…
3. To enhance overall positioning
4. To gain new customers
5. To increase overall brand equity
6. To change attitudes towards McDonald’s
7. To increase average profitability of customers
8. To increase percentage of ‘heavy users’ (frequent customers)
9. To win back ex-customers
10. To increase the cross-selling of products (more products per visit)
11. To enhance customer loyalty (of existing customers)
12. To improve staff morale
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QUESTIONS:
1. From the above list, what goals you think McDonald’s

would have as part of its repositioning project?
2. What would be their main two goals?
3. What are the dangers of simply limiting promotional

objectives to just sales goals?
4. Is it possible that some firms would implement a

promotional campaign that would have a negative profit
impact in the short term? Why?
20
IMC
BUDGET
PROMOTION IS AN
EXPENSE OR
INVESTMENT?
Top Down Approaches
Build Up Approaches
23
24
Affordable Method/ All-you-can-afford
Arbitrary Allocation
Percentage Of Sales
Competitive Parity
ROI
Straight % of sales
% of unit cost
Industry standard percentage
Eg: 0.2% construction industry, 15.6% on

distilled and blended liquors
Not suitable for new product introductions

Limitations Projection of future sales is difficult
Lower sales would lower the budget which is not recommended
◦ Benefits
◦ Collective wisdom of industry
◦ Minimizes marketing warfare.
◦ Minimizes unusual ad expenditures.
◦ Limitations
◦ Similar expenditure does not mean
equal effectiveness.
◦ Ignores the ability and possible
advantages of individual firm
1. For each of the situations, determine how they
have most likely set their promotional budget,
choosing from
 A= Affordable
 B = Percentage of sales
 C = Competitive parity
 D = Objective and task
 E = Return on investment
2. Which of the approaches to setting a promotional

budget, you think is most suitable for a large
marketing oriented firm? For a small business?
3. Which of the approaches you think is most

common in business practice?
32
A shoe company decides to increase its advertising
budget to $1m to support the launch of their new
range of tennis shoes. Their goal is to achieve a 5%
market share within the first three months.
A local accountant works out that she should have

around $20,000 spare this year to invest in local
paper advertising and to hold two seminars.
A small chain of take away restaurants decides to

increase its promotional spend as its advertising is
not being noticed due to the heavy advertising of
its major competitors.
The highest proportion of Kellogg’s promotional budget is spent on
Corn Flakes (its biggest seller), followed by Rice Bubbles, and only a
little is spent on its breakfast bars (which only achieve small sales),
and so on.
A major law firm is decreasing its promotional spend for this coming
year. They typically hold four information seminars a year that
usually generate around 20 new clients per event. However, last year
they doubled the number of seminars to eight, but without much
increase in new clients. Therefore, they will return to only holding
four seminars this year.
THANKS

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IMC

• DAGMAR Approach is the task of measuring ad

• Colley distinguished 52 advertising goals that might

• ‘communicate rather than sell’

1. Creation of a communication task to

2. Defining the objective of the communication

Attention: Attention is usually grabbed by the use of image, color, layout,

Interest: Once attention is grabbed, it’s necessary to create interest in the

• Specific: I want to boost our blog’s traffic by increasing our weekly

1. To increase sales by…

1. From the above list, what goals you think McDonald’s

2. What would be their main two goals?

3. What are the dangers of simply limiting promotional

4. Is it possible that some firms would implement a

Industry standard percentage

Eg: 0.2% construction industry, 15.6% on

Not suitable for new product introductions

2. Which of the approaches to setting a promotional

3. Which of the approaches you think is most

A local accountant works out that she should have

A small chain of take away restaurants decides to

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