Chapter 2: Objectives Flashcards
What are business objectives
High-level objectives that directly affect the entire company. They can encompass a range of areas, such as financial performance, growth, etc …
What are marketing objectives
Measurable objectives of marketing initiatives that support your business goals
What are communication objectives
Change something in the mind of the consumer or customer behaviour
What does S.M.A.R.T objectives stand for?
Specific
Measurable
Achievable
Relevant
Timebound
Hierarchy of objectives
1) Mission/Vision/Core values
2) Business objectives
3) Marketing objectives
4) Marketing communication objectives
Mission statement
Formulation of a company’s objective, provides the company’s RAISON D’ÊTRE
Vision statement
The long term goals or aspirations of the organisation. Answers the question ‘where do we want to be in the future?”
Core values
The primary values within a company. They are the characteristics or motivators that demonstrate what the company stands for
Ideally, how many clear core values should a company aim to have?
3-5
What objective has an intermediary effect for long term commercial results?
Communication objectives
What are the 3 categories of communication objectives?
1) Reach
2) Process
3) Effectiveness
Explain the goal of reach communication objectives
Reach the target audience in an effective and efficient way
Explain the goal of process communication objectives
Conditions that should be met before any communication can be effective. FOCUS –> Extent to which consumers have processed a specific communication stimulus
What is the focus of process communication objectives?
The extent to which consumers have processed a specific communication stimulus
Explain the goal of effectiveness communication objectives
The effect of the whole campaign on the brand
What are the 2 categories of behavioural objectives?
1) Process
2) Effectiveness
Explain the goal of process behavioural objectives
Encourage the target audience to take a specific action
INTERMEDIARY effect
Explain the goal of effectiveness behavioural objectives
(long term) behavioural results = marketing objectives
What does D.A.G.M.A.R objectives stand for?
Defining
Advertising
Goals for
Measured
Advertising results
Results
Category need
need for an offering with the same general functionality
Name 3 situations for a category need
1) Launching new products/innovations and attract non-users (MUST)
2) Product categories under pressure or infrequently used (USEFUL)
3) Reposition an offering to meet other occasions or use (USEFUL)
Brand awareness
Association of some characteristics such as a brand name, logo, package, style, etc. with a category need
Top Of Mind awareness (TOM)
The first brand that pops up in your mind within a category need
Brand recall
Several brands that pop in your mind, unaided spontaneous awareness
Brand recognition
Aided brand awareness, brands that can be recognised when shown logo/packaging
Hierarchy of brand awareness
1) Top Of Mind (TOM)
2) Brand Recall
3) Brand Recognition
4) Unaware of Brand
Why is brand recognition so important?
consumers tend to limit search activity to a limited set of brands within a product category
… is most effective when purchase decision is another time and location than POS (Brand Awareness)
Brand name recall
… is most effective when the buyer must ask explicitly for a certain product (Brand Awareness)
Brand name recall
… is most effective when purchase decision is made in store (60-80%) (Brand Awareness)
Brand recognition
… is most effective when visual cues are easily recognisable: packages, logos, displays, colours (Brand Awareness)
Brand recognition
Brand knowledge
A consumer’s understanding and recall of a brand and it’s products
Tactics for increasing brand awareness
- Showing the product package or logo
- Repetition
- Sign-off slogans
- Jingles that are made to stick
- Be consistent and repeat
What should brand knowledge aim to highlight?
Essential brand characteristics, features & benefits
Brand attitude
Perceived value of a brand
What are the 2 aspects of brand image?
Mindshare & Heartshare
Mindshare
The degree to which the consumer feels that the brand is relevant personally
Heartshare
The extent to which the consumer has positive associations with the brand
Brand purchase intention
The willingness of a customer to buy a certain product or a certain service
What should a marketeers objectives be with low involvement products?
Brand Awareness and favourable brand attitude are important
Purchase intention should not be stressed but purchase should be facilitated
What should a marketeers objectives be with high involvement products?
Purchase intention should be stressed and trial simulated
Give an example of a low involvement product
Toilet paper, Chocolate
Give an example of a high involvement product
Car, House
What is the goal of purchase facilitation?
Reassure customers through communication that there are no obstacles to purchasing a product/brand
D.A.G.M.A.R communication objectives
1) Category Need
2) Brand Awareness
3) Brand Knowledge
4) Brand Attitude
5) Brand Purchase Intention
6) Purchase Facilitation
7) Purchase
8) Satisfaction
9) Brand Loyalty
What is the goal of purchase as a communication objective
boost sales (promotions)
What is the goal of satisfaction as a communication objective
product/service lives up to required/desired benefits or surpasses expectations
Net Promoter Score (NPS)
% Promoters (9-10) - % Detractors (0-6)
What is a detractor within the net promoter score (NPS)
A detractor is someone who indicated between 0-6 on the Net Promoter Score, meaning that it is very unlikely that the consumer will purchase again
What is a passive within the net promoter score (NPS)
A detractor is someone who indicated between 7-8 on the Net Promoter Score, meaning that his loyalty is uncertain
What is a promoter within the net promoter score (NPS)
A promoter is someone who indicated between 9-10 on the Net Promoter Score, meaning that they are loyal & enthusiastic about the offering
Tactics for improved customer satisfaction
- Monitor FAQ
- Invest in your customer service (after sales care)
- Map customer journey and improve the experience in every touchpoint
- Do something for your clients
Brand loyalty
The mental commitment or relation between a consumer and a brand
Does repeated purchase mean brand loyalty?
No
Tactics for improved brand loyalty
- Loyalty programs
- Exclusive offers/events
- Brand communities - content marketing on social platforms
- Suggesting new ways to use brand/offerings
- New consumption situation
Advantages of D.A.G.M.A.R model
Communication effects = indicator of future sales
Disadvantages of D.A.G.M.A.R model
- Attitude changes can also be caused by behaviour changes (Buging –> use –> Attitude)
- No proof that consumers have a strong desire or conviction before buying the product
Stages in a product life cycle
1) Introduction
2) Growth
3) Maturity
4) Decline
Describe the “introduction” stage of the product life cycle
Phase where the customer is introduced to the product for the first time
Describe the “growth” stage of the product life cycle
Phase where there is a growing demand, an increase in production, and expansion in it’s availability
Describe the “maturity” stage of the product life cycle
Phase where product is most profitable, competition at it’s highest, profit margins start to gradually shrink, sales volume is at it’s peak
Describe the “decline” stage of the product life cycle
Phase where increased competition starts to make product lose market share and gradually starts it’s decline
What D.A.G.M.A.R objectives are most important to focus on in the “introduction” stage of the product life cycle
- Category need
- Brand awareness
- Brand knowledge
- Brand attitude
What D.A.G.M.A.R objectives are most important to focus on in the “growth” stage of the product life cycle
- Brand attitude
- Brand preference
What D.A.G.M.A.R objectives are most important to focus on in the “maturity” stage of the product life cycle
- Top Of Mind Awareness
- Brand attitude
- Brand loyalty
- Customer satisfaction
What D.A.G.M.A.R objectives are most important to focus on in the “decline” stage of the product life cycle
- Purchase
- New target group