Page 130 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes Sales are a convenient and really attractive advertising objective for many managers but they
are usually unsuitable for most advertising managers because advertising is just one factor
among many others that influence sales. Other factors that may have a significant effect on sales
are product features, price, distribution, personal selling, publicity, packaging, competitors'
moves, and changing buyer needs, etc.
Many experts recognise the fact that advertising creates delayed or carryover effect and no
matter how much money is spent on advertising, it may not necessarily have an immediate
impact on sales. The carryover effect creates additional difficulty in determining the precise
relationship of advertising and sales. Darral G. Clarke found that for low-priced, mature, and
frequently purchased products the carryover effect of advertising on sales lasts, up to nine
months.
Understanding specific consumer problems is often the key to developing appropriate
advertising campaign. Advertising creates its most powerful impact when it is used to solve
narrowly defined Short-term advertising objectives are realistic and long-term objectives are
ambitious. Advertising communications objectives can be put in a pyramid form. First the
lower-level objectives, such as awareness, knowledge or comprehension are accomplished.
Subsequent objectives may focus on moving prospects to higher levels in the pyramid to elicit
the desired behavioural responses such as, associating feelings with the brand, trial, or regular
use etc. It is easier to accomplish ad objectives located at the base of the pyramid than the ones
towards the top. The percentage of prospective customers will decline as they move up the
pyramid towards more action-oriented objectives, such as regular brand use. Irrespective of the
fact whether the brand is new or established, the pyramid can be used to determine appropriate
advertising objectives. What is required is to determine, where the target audience lies with
respect to the various levels in the pyramid. Some possible objectives can be:
1. Increasing the percentage of target consumers who associate specific features or benefits
with company's brand.
2. Increasing number of target consumers who prefer company's brand rather than competing
brands.
3. Increasing company's brand usage rate among existing consumers.

4. Encouraging company's brand trial among non-users.
Russell H. Colley proposed DAGMAR (Defining Advertising Goals for Measured Advertising
Results) approach. He also proposed 52 advertising objectives. Colley believed communications
effects are the logical basis for setting advertising objectives.
"Advertising's job, purely and simply, is to communicate to a defined audience, information and
a frame of mind that stimulates action. Advertising succeeds or fails depending on how well it
communicates the desired information and attitudes to the right people at the right time and at
the right cost."
DAGMAR approach proposes that communications objectives be based on a hierarchical model
with four stages:
1. Awareness: Involves making target audience aware of the existence of the brand or
company.
2. Comprehension: The purpose is to develop an understanding among audience of what the
product is and what it would do for them.

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