3/27 Flashcards
DAGMAR
Defining Advertising Goals for Measure Advertising Results
What makes a good operational objective?
1.Communication (behavioral sales or market share) 2.Well-Defined target 3.Measurable 4.Time frame 5.Benchmark (Current Level) 6.Feasible (Realistic)
Market Share
(Company/Industry)
What we know about Market Share
- Tells us how well we are doing against competition
- Helps assess primary and secondary domain.
- Market Share increases from new category users are less costly then stealing share from competitors.
Why we look at market share
- Market share losses may signal long term problems.
- Firms with very low market share may not be viable
- Examining mkt. share trends may indicate future problems or opportunities
Hierarchy of Effects (Stages)
- Awareness
- Knowledge
- Liking
- Preference
- Conviction
- Purchase
Marketing Concept
The key to profitably for a firm is to identify customer wants and needs and satisfy those wants and needs through products and their offerings
Market Segmentation
The process of breaking down the overall market into groups of consumers with different buying requirements
Market Segmentation Steps
Dividing Market into segments
Choosing Target(s)
Attractive Market Segments are…
Measurable
Accessible
Profitable
Unmet Needs
Advertisers use segmentation to figure out…
- Who to target
- What to say
- Where to say it
BDI (Brand Development Index)
Compares Brand Sales of a market to total sales
BDI= (% of brands total sales/% of US Population) x 100
CDI (Category Development Index)
Compares category sales of a particular market to total sales
CDI=(% of Product Categpry Sales/%US Population) x 100
80/20 Rule
20% of the Users use 80% of the product
Problems with going after heavy users…
- Often price conscious
- Often loyal (to competition)
- Same media habits as others
- Majority Fallacy (going after largest group and thinking that they are most profitable)
D’arcy’s
M.A.P.S.
Marketing and Advertising planning system
Brand Franchise Model:
MAPS Purpose
MAPS is spread out between the Situation Analysis and Creative Strategy
The real purpose is to
Facilitate communication with client Give Direction to the creative team Assure that creative is aligned with objectives
Parts of the S Shaped Response Function
- Min- Some Sales with no advertsing
- Lagged Effect: It takes time for ads to break through the clutter
- Period of increasing returns
- Max-Saturation Point
Ad Sales Ratio
Ad $/Sales $
Ranges from 2% to 12%
Budgeting Process Stages
- Determine expenditure level
2 Allocate budget
Influences on Ad Budget Size
Items Charged
Target Size/ SOM
Clutter/Competition
Nature of Product
Ad Objective
Advertising Response Cure: Downward Concave Curve
- Early Exposures are most Effective
- Little new info provided with additional exposures
- So, incremental value of adversing decreasing
Components of an Ad Budget
How much to spend-Expenditure
When- Allocation
Where- Allocation
Why- Allocation
