Summary Chapter 5: Marketing communication objectives Marketing Communication Midterm

COMMUNICATION OBJECTIVES = communication objectives are intermediary way

to reach marketing goals CO should: fit with overall marketing goals + be relevant to identified problems + targeted to different audiences +be quantified to provide valuables for measuring campaigns efficiency + be realistic, achievable, comprehensive, motivating + be timed + eventually be translated to sub goals if necessary CO are criteria that helps evaluate campaign success or failure (=by increase/decrease of sales or market share, we can measure if those objectives were/werent achieved efficiently) A) Division of MARKETING COMMUNICATION OBJECTIVES (MCO) from BROAD perspective: Reach goals = assure sufficient exposure (effectively and efficiently reach target group; clear definition of target group and its behavior needed) Process goals = ensure enough processing (capture attention of target group, appeal to them, be appreciated, be remembered) Effectiveness goals = measure efficiency of spreading message (most important) B) Division of MARKETING COMMUNICATION OBJECTIVES according to DAGMAR model (Defining advertising goals for measured activity results; Russel Colley) Main marketing goals are: GROWTH OF MARKET SHARE and SALES. But reaching those goals is influenced by: Product Benefits Prices Technology quality Packaging Market Innovations Design evolution Distribution Competition Release of DAGMAR model showed: importance of BUYER and POTENTIONAL BUYER STAGE in purchase process as one of new marketing goals, that is much important as sales and growth. o Therefore MCO defined by DAGMAR, are also factors influencing growth of market share and sales. DAGMAR model represents strong theory of communication All objectives defined in DAGMAR is not possible to reach all goals in one campaign. Choosing right structure of goals differs by product, situation or problem that arisen in preliminary situation analysis. DAGMAR model communication objectives:

 CATEGORY NEEDS and WANTS = developing existence of one or more buying motives and making potential customers perceive product category as a good means of meeting this motives. => consumers should know which needs product satisfies, and what is the difference between known product categories and new categories.(i.e.: Pharmaceutical company introduces new pills for headache =>than it is need to be said what is its use, when, and how our pill is better than competitors one) Important is to create category awareness: to know who is our target group and therefore choose right way of communicating its category needs. (If our target group are people without phone stressed category need will be to have a phone; If our target group are people owning phone stressed category need will be some benefit, special service or so...) BRAND AWARENESS = is the association of some physical characteristics - such as a brand, name, logo, package, style and others - with a category need. => BRAND RECALL = unaided spontaneous awareness ( i.e.: when said: soft drink => first thing that appears in our mind: coca cola = recall of some brand without seeing its logo); - difficult to achieve; even though people can remember our brand, they might have not to recognize it in shop. - important in situations when purchase decision is made at another time/location than is point of sale, or when buyer has to ask explicitly for certain product or service. => BRAND RECOGNITION = aided awareness (i.e.: when shown logo => customer recognize the brand) - easier and cheaper to achieve; it is crucial that product has same shape, logo and other visual parameters in media as well as in reality; (radio in building brand recognition is inappropriate tool). - important in situations when purchase decision is made in the store (spontaneously), and buyer reacts on visual clues such as packages, displays, colors, logos and so on. BRAND KNOWLEDGE = means that target consumers are aware of the most essential brands characteristics, features and benefits. => Consumers know brands strengths and weaknesses while comparing to its competition. Their knowledge about the brand is very SUBJECTIVE and it depends on brands image and its positioning on market, as well as on their experiences, beliefs, perceptions and lifestyle. (i.e.: You want to buy phone=> you know about Nokia, Samsung, Sony Ericson and others existence=> Sony Ericson has best parameters in music sound and capacity from all brands =>your job is DJ=> you go for Sony Ericson mobile) BRAND ATTITUDE = is the perceived value of brand to a consumer, as result of comparing two and more brands. => consumer will base his brand choice on comparing and evaluation of several brands and this result is called brand attitude. No brand attitude among customers -> new should be created;

 Favorable attitude -> should be reinforced; Very favorable attitude -> maintained to keep all customers satisfied; When attitude cannot be improved (you are good in your industry but not enough good to beat the best ones)-> brand should switch to another attitude by repositioning the brand and eventually finding better proposition of targeted market or new target group. Negative prior attitude -> modify brand attitude and reposition brand by appealing to different buying motivations. Permanently very favorable brand attitude doesnt exist because attitudes changes as a consequences of dynamic markets and competition power = improving attitudes will lead to more frequent purchase and hopefully make customers loyal. PURCHASE INTENTION = intention of the buyer to purchase the brand or the product or take other buying related actions => the level of communication used to stress intention depends on level of involvement in buying situations. (i.e.: Low involvement if we like cola, and we want to buy soft drink we will probably buy it even without anyone stressing our intention. But if there are high risks involved in purchase, generating intention is needed. Ad and promotion can stimulate purchase) PURCHASE FACILITATION = assuring buyers that there are no barriers hindering product or brand purchase => for example: if brand is not available in all stores providing some list of approved dealers can facilitate purchase; delivery service of product for those who cannot afford a car; brests wall in lingerie shops, that helps men to buy a right size of lingerie for their girlfriends etc. PURCHASE = tool for measuring of effectiveness of communication objectives => sales are more marketing objectives than communication objectives, but because of their action oriented context they are used as tool that shows us effectiveness of our communication campaign, respective response of target groups to our advertising. SATISFACTION = inclination to certain brand, as result of satisfying consumers requirements and surpassing their expectations. => new customers => happy people => positive information spread in world of mouth = customers will incline to choose same brand when purchasing again => existing customers => should be reassured about their choice to enhance brand loyalty.

 BRAND LOYALTY = mental commitment or relation between a consumer and a brand. There is several different types of brand loyalty: A) Brand loyalty as habit = repeated purchase based on routine buying (or high penetration rate) rather than a brand preference (typical for low involvement and fast moving products such as food). Nevertheless this leads to positive attitude towards those brands. => Companies themselves are focusing on encouraging consumers to use their brand more frequently as well as suggesting new ways/new situations in which brand can be consumed. B) Brand loyalty as a emotional bond with some brand It is not possible to capture all CO in promotional plan or campaign. Marketer should analyze and evaluate situation, and based on its result, he should chose those objectives that are appropriate for that situation. - If awareness levels are low, they should focus on that goal, if preference is problem, the campaign should stress liking; brand awareness and brand attitude will always be part of CO; - As those objectives should be quantified to make them measurable, MCO could be: increase percentage of unaided recall/recognition, increase number of target consumers preferring the brand, stimulate current buyers to stay, purchase product more frequently and encourage non buyers to try the brand for the first time. Percentage of target group in each state of DAGMAR model:
Category awareness (100%) / brand awareness : aided (95%) unaided (65%) Brand knowledge (60%) Brand liking (possitive attitude ) (30%) Brand preference (20%) Brand trial (10%) Brand repurchases / loyal buyers (3%)

CRITICICS of DAGMAR MODEL: As we know, DAGMAR model has introduced some new quantifiable measures for effectiveness such as awareness and image ratings. Those ratings are intermediate effect and indication for future sales. Nevertheless, in practice the sales fluctuate sooner than awareness and image ratings, because of changes in customers behavior or attitude changes. DAGMAR model doesnt take in account these other factors; therefore it is sometimes criticized for its inaccuracy in measuring effectiveness. Ehrenberg states that in DAGMARs strong theory of communication there is no evidence that consumers experience strong desire or conviction before they purchase a product or service. He created a weak theory of marketing communication reflected in ATR model (Awareness Trial Reinforcement; by Ehrenberg and Jones) stating that marketing communication first arouse awareness, than induce consumers towards a first trial purchase and then reassure and reinforce those users after their first purchase. = main difference between models: ATR model states that involvement is more about PRODUCT INVOLVEMENT than brand involvement (product is what makes us to go and buy, and after we test it we eventually choose some brand as our favorite) and that MC is addressed mainly to consumers with prior experience of brand or product.

 DAGMAR model states that involvement is more about BRAND INVOLVEMENT (so first choosing brand and than buying product of that category) and that MC is addressed mainly to virgin non users of product

MARKETING COMMUNICATION OBJECTIVES AND STAGES IN PRODUCT LIFECYCLE

One of the most important factors in choosing objectives is the phase of lifecycle of a brand or product. 1) INTRODUCTION STAGE = company that is marketing completely new product will have to have to learn consumers what the new product is about and what are differences compared to known products, create category need (explain what needs are better fulfilled with our product), brand awareness and brand knowledge. = new brand launches there is no need to communicate functional product features (as in case of new product release), because customers are aware of them from using other brands products. Coal is to create brand awareness and support psychosocial brand image connotations (this can be done by connecting brand with certain lifestyle) GENERALLY in this stage there need to be communicated: that it is new product/brand + why it is different from others + what benefit will bring its consumption to customers + to consumers should be given a reason why that information should be believed (celebrity, scientific evidence etc.) 2) GROWTH STAGE = consumers are aware of brand, product and its most important characteristics; + there is release of competition GOAL: defend brands position by creating brand preference + emphasizing the right product features and benefits to differentiate product from competitors 3) MATURITY STAGE = in this stage brand has to cope with strong competition => communication strategies should mainly focus on brand loyalty building and customers should be induced to be less open to the advantages of competition. 6 possible objectives can be reached: building high spontaneous brand awareness/top mind awareness + clam a clear and unique brand benefits + stressing lower prices could help increase preference of product + offering small product innovations + reinforce psychosocial meaning of product/transform meaning of brand + reassuring existing customers about their choice. 4) DECLINE STAGE = After manufacturers are in confronted with declining product or brand they can decide between two steps: o milk and harvest the brand (by using sales promotion tools such as lotteries or benefit prices to increase purchase) o or completely renew the life of declining product or brand; that can be done in these steps: communicating important product adaptation or change + drawing attention to new applications or moments

of use + increase frequency of use + attract new target group (= repositioning)

M objectives C

C ategory need

Top of m ind P urchase aw areness B rand aw areness B rand prefference B rand attitude N target group ew B rand know ledge B rand loyalty B rand attitude C ustom er satisfaction

B rand attitude

MARKETING COMMUNICATION OBJECTIVES AND CONSUMERS CHOICE SITUATIONS

The effectiveness of communications goals may be determined not only by the product/brand lifecycle but also by the consumer choice situation. Following factors are affecting consumers choice situation: CHOICE PROCESS = speed, frequency , modalities of choice from often and superficial to once in while and attentive. (For example: we behave differently if we go to buy milk: we just go->see-> choose one-> and buy it-> and next day again; while during buying car: we go->see>search for others->compare->ask for more information->choose-> buy). Influencing consumers in this process and consequently communicating with them will also differ in these different situations. CONSUMER CHARACTERISTICS = his knowledge, economical background, lifestyle, experiences etc. CONSUMER-PRODUCT RELATIONSHIP = low vs. high involvement; routine purchases vs. intensively considered purchases. POINT OF PURCHASE CHARACTERISTICS (shop/home/office) ADVICE INVOLVED (from family, friends, salesperson etc.) PRODUCT CHARACTERISTICS (daily bought articles/special articles) Based on these six groups of variables, a number of frequently occurring choice situations as well as their impact on the communication goals can be described: Standard mass Quality products Showroom products products Quality services Products with new Standard services techniques International luxury Mail order Investment products products products Special niche products Unsought products Impulse products

CORPORATE COMMUNICATION OBJECTIVES

No matter what type of company do we talk about, there exist always a gap between desired corporate identity and the existing attitude towards the company. This gap is starting point for defining corporate communication campaign objectives. Image of

company always largely depends on the consistency between reality and behavior on the one hand, and the corporate claims communicated on the other. Therefore if companys image corresponds with reality but not with desired reality, the reality has to be changed first and communicated afterwards. Depending on the strategic priorities and positioning, and of course nature of the gap between identity and image, different corporate communication messages can be developed. A number of specific situations or objectives that call for specific types of message are listed below: IMPROVE INTERNAL CORPORATE CULTURE = in such a situation focus is on communicating important cultural strategies that are not adequately assimilated by stuff IMPROVING CORPORATE AWARENESS = by developing new better corporate image RENAMING = target groups have to be reassured that the same company is still dealing with them INTEGRATING TWO COMPANIES = unification of both companies cultures and identities into a new one, and communicating it properly to all target groups. NEW STRATEGIES = especially those that have impact on relationship between audience and the company will have to be communicated CREATING GOODWILL = messages can be aimed at laying the groundwork for a long term, stable and favorable corporate image