Advertising Management and Sales Promotion

Unit 4

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 agencys 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.
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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 products 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

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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 2125 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 communicationrelated 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
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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 communicationsales
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.

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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 customers 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.

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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 communicationoriented 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.
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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.

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Table 4.1: Examples of Communication Objectives

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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
advertisings 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

Source: Colley, R. H. (1961). Defining Advertising Goals for Measured Advertising Results.
New York: Association of National Advertisers.
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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 nonusers, 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 products performance. To explain the Natural OxyG 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

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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 1229 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 companys
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

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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

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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 clients 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 200809, 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

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

reducing Doves 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 companys 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 products 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-toread 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.

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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.
Self Assessment Questions
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

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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.

Message

Sender/
Source

Content, structure, format, tone

Encoding

Channel

Credibility

Receiver

Comprehension
skills

Attractiveness

Attitude

Power
Communicationills
Culture

Decoding

Message

Noise/Entropy

Demographic profile
Knowledge
Culture
Social
system

Social
system

Feedback

Fig. 4.2: The Basic Advertising Communication Process

(Source: Shah & DSouza)

The message is at the heart of all communication. It could be verbal, nonverbal or symbolic. It includes both the content and presentation of the
advertisement. The manner of presentation is chosen carefully to ensure
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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
campaigns 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.

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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.
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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 tyrewreath, the receiver understands the results of careless driving. How well
the message is decoded depends on the receivers 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 advertisers 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
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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)

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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.
Self Assessment Questions
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
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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.

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4.11 Answers
Self
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Assessment Questions
True
c. Generating inquiries
False
False
True
Companys image
d. Broadcasting entertaining commercials
Encoding
Feedback/response, response
Destination
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.
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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. Henkos 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 HULs Surf Wash Booster (todays 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 brands performance. In view of this, the
communication objective was set to create dissonance in the Surf
consumers 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 2540 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 todays 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.
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2. Who were the senders and receivers of Henkos 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 & DSouza
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/ads4-reason.html

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