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Q.1. Discuss the DAGMAR approach in setting objectives and measuring effectiveness of advertising.
Ans: - A) Meaning: - 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.
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 him/her into action, that is, buy the product.
B) Explanation: - In addition to proposing the communication hierarchy, which is similar to the “hierarchical models of advertising effects”, 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 non-users, develop conviction among the target audience that brand A has ingredient Y, etc. are precise or concrete tasks. 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.
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.
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 company’s resources.
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.
Q.2. What is Gestalt psychology? Explain with examples how it resembles the way a person fits in the advertising message with his/her existing knowledge.
Ans: - (A) Gestalt psychology is the school of psychology founded in the 20th century that provided the foundation for the modern study of perception. Gestalt theory emphasizes that the whole of anything is greater than its parts. That is, the attributes of the whole are not deducible from analysis of the parts in isolation. The word Gestalt is used in modern German to mean the way a thing has been “placed,” or “put together.” There is no exact equivalent in English. “Form” and “shape” are the usual translations; in psychology the word is often interpreted as “pattern” or “configuration.”
The publication of Czech-born psychologist Max Wertheimer’s “Experimental Studies of the Perception of Movement” in 1912 marks the founding of the Gestalt school. In it Wertheimer reported the result of a study on apparent movement conducted in Frankfurt, Germany, with psychologists Wolfgang Köhler and Kurt Koffka. Together, these three formed the core of the Gestalt school.
(B) Gestalt is about patterns or configurations. Gestaltists believe that we categorize incoming stimuli into meaningful patterns. It occurs at the interpretation stage of the information processing chain. For example, looking at a picture of a man, woman and kids enjoying a picnic at a park, we perceive it as a family because we put the people together in the context. If the ‘parents’ from that advertisement were sitting on a rug together enjoying a glass of wine, we would perceive the setting as a romantic one.
Print message designs must be evaluated as a whole, rather than just a set of elements on a page. The purpose of design is to organise ideas into a format that will gain the audience’s attention. In simple terms, gestalt is the idea that when a person looks at a picture or design they see it as a ‘whole’ rather than as a set of elements.
**FIGURE AND GROUND PERCEPTION
• GROUPING
• SIMILARITY
• PROXIMITY
• CLOSURE
• SEMIOTICS
**PERCEIVED VALUE
There are three main types of consumer value:
• Intrinsic versus extrinsic
• self-oriented versus others-oriented
• Active versus reactive value.
Q.3. Advertising is a paid form of communication. It has gained its significance since it attempts to build a positive attitude towards a product. Explain the characteristics and objectives of advertising.
Ans:-
A) Definition of Advertising:- “The action of calling something to the attention of the public especially by paid announcements; or, to call public attention by emphasizing desirable qualities so as to arouse a desire to buy or patronize.”
B) Characteristics:-
1) The fact that it is “a paid form” of presentation emphasizes that advertising space or time must be purchased.
2) Its “non-personal” nature emphasizes the fact that it is not a direct or personalized presentation to one individual but to the masses.
3) “Presentation” signifies the format in which advertisements communicate.
4) “Promotion” indicates the objective of advertising.
5) “Identified sponsor” refers to the identification of the brand or the advertiser who is communicating.
C) Objectives: - Advertising objectives can be categorized based on whether their goal is to inform, persuade, remind or reinforce;
Inform – Let people know what the product is, where it would be available, what problem it would solve, etc. Informative advertising is most rampant in the introductory stage of the product or product category because maximum information has to be given when something is new.
Persuade – This becomes more important as the product grows or faces increasing competition. The advertiser now needs to give more reasons or enticements to lure consumers. One way of establishing superiority is by comparative advertising, where you evaluate your brand vis-à-vis a competitor’s brand directly or indirectly. The better-than-competitor claim can be made subtly by telling the consumer how your brand addresses his/her need and convincing him/her that no other brand does that in the same fashion. For example, a television commercial for Captain Cook persuaded consumers by depicting how its salt was better flowing compared to Tata Salt
Remind – This kind of advertising is widespread with mature products, that is, products that are well past their introduction and rapid growth phases. Everyone knows about the products – what they do, how beneficial they are, how they are different from other products, etc. There are hardly any new consumers who need to be persuaded. Hence, an advertiser needs to remind the consumer that his/her product exists and that it is there when he/she needs it. For example, with its witty, well-timed and creative print ads on current topics, the mature brand Amul Butter stays on top-of-the-mind.
Reinforce – This seeks to convince current consumers that they have made the right choice. By reinforcing key benefits and depicting satisfied consumers of the brand, an advertiser can reassure current consumers that they have indeed spent their money well.
Q.4. What is “above the line” and “below the line” activities with respect to marketing communications? Explain the concept in detail.
Ans: - Media: - Media is a newly coined word that includes a huge number of activities and tools of paid mass communication which are used by the marketing and advertising industry as much as the entertainment world. Although media rates seem high, this is the cheapest cost per contact tool available today.
Marketing communication activities can also be loosely classified as “above the- line” (ATL) or “below-the-line” (BTL). The promotional activities carried out through mass media like television, radio, newspaper, etc. typically qualify as ATL, whereas BTL refers to forms of non-media communication, including non-media advertising, such as an event, a sponsorship, a sales promotion activity, point-of-purchase advertising, etc. BTL also involves some extent of interaction with the consumer.
Table A gives the reach of these media as estimated by IRS Q4, 2010, whereas Table B states their advertising shares.
[Table A: Media Reach]
[Table B: Advertising spends, Shares and Growth rates of leading Mass Media]
The most frequently used structured ATL mass media include the following:
1) Print- Newspapers, magazines, journals, weeklies, etc.
2) Television - Due to cable, DTH and satellite technology, television reaches out to more than 50% of the population.
3) Radio - Has declined and reaches out to less than 20% of the population.
4) Cinema - Is a popular medium for advertisers in a country that has the largest film industry in the world, releasing more than 800 films a year.
5) Internet - Is gradually gaining popularity with the increase in PC penetration, literacy and availability of Internet connection.
In the BTL segment, many incredibly innovative vehicles for advertising messages are thought up every day, which deliver results too, if only for the unexpectedness of it. For example, folk and rural media like storytelling, puppetry, and street plays & music and dance, etc. Now global Fast Moving Consumer Goods (FMCG) Multi-National Companies (MNCs) too have taken to these in a big way since there is immense growth in the rural markets.
Every advertising agency works out the best possible combination of media to be used for the assignment on hand, keeping in mind various considerations like the characteristics of various media, type of message and target audience, budget availability, communication objectives, media availability, etc. A “media mix” refers to the combination of various media that a media planner chooses to incorporate in the media plan.
Q5:- Describe the AIDA model of consumer response hierarchy with the help of diagram.
Ans: - The Awareness-Interest-Desire-Action (AIDA) model of consumer response hierarchy is one of the popular models.
It states that a consumer passes successively through the following four stages of response
1. Awareness – In this initial stage, most of the target audience is unaware of the product or brand and hence the communicator’s objective is to build awareness, maybe just name recognition of the product with simple messages, repeating the brand name or giving basic information about the product. In a relatively new product category, this function assumes the maximum importance. For example, the objective of Hutch’s takeover and change of name to Vodafone was to inform the audience about the change through quick reach and repetition. Thus, several 5–10 second spots were designed to ensure that the ads did not result in any monotony.
2. Interest – In this stage, consumers graduate from awareness about the product to interest in it. Marketers need to find out how consumers feel about their product. Are they favorably disposed? Do they like it? Do they find it interesting enough? Interest in the product can be created by showing some unique feature of the product, demonstrating how it works, presenting entertaining ads, fetching in popular celebrities, etc.
3. Desire – It is not enough to create just an interest in the product. Once the target audience is aware about and interested in the product, the function of advertising is to get them positively inclined towards buying it, that is, create in them a desire and preference for the advertised product. Desire can be built by showing how the product addresses a consumer’s specific needs and by creatively promoting quality, value and other significant features. For instance, Aqua guard arouses desires by giving rational benefits of using the product, such as clean water without germs.
4. Action – Advertising has not played its part until it has achieved the ultimate objective of spurring the target audience into action. In most cases, the desired action is to lead consumers to purchase the product. But in certain cases, it can also be to generate inquiries, lead to a retail visit; promote participation in a promotion, etc. Brand- or image-building advertising will not immediately lead to purchase action, but it will create a preference and desire that will ultimately translate into purchase. This is a long-term strategy.
(Traditional Consumer Response Hierarchy Model)
Q6:- Describe some of the strategies for effective marketing and advertising in rural market.
Ans: - Literacy is still poor in rural areas and no complicated selling message or print media can be tried. Advertising must use very basic means such as wall painting and hoardings with visually powerful images. Although satellite technology has taken television to the remotest corners of the country, household ownership of it is still low. Therefore, exposure is often through community televisions, which means image building through sustained campaigns may not be possible. In fact, reach of most media is still inadequate in rural areas.
A rural marketing strategy will succeed if all the above factors are kept in mind. Therefore, advertising must keep in mind the decision, purchase and usage pattern that are peculiar to rural areas. Some strategies have been standardized by now.
These include:-
1. Small packages – Indians in general and rural people in particular are highly price conscious and demand value for money. Rural people not only have small budgets, they have even worse storage facilities in their small homes. Therefore small packaging, even single use packets, sell well. The runaway success of shampoo sachets is a textbook example. Lux sells 50 paisa sachets and is doing well.
2. Strong visual images – Brand names that are easy to remember and symbols in gaudy colors with images of animals, birds, flowers or children are more successful. Villagers do not read brand name and buy by recognizing the symbol on the package. Ghari detergent with a clock and fertilizer having a farmer with a heap of wheat on his head has been very successful.
3. Free containers – By nature Indians are frugal and rural people even more so. Buying kitchen containers is not a standard norm even in well to- do urban homes and a nice and sturdy reusable container for storage of other food items is still a great attraction. Therefore a product that comes in a reusable container instead of a plastic bag will sell better.
4. Door delivery – In spite of India’s huge size and remoteness, taking the product to the customer’s home, when tried, has been successful. Small savings picked from homes and petty businesses every evening by banks is as successful in rural areas as in urban markets.
Ans:-
A) Definition of Advertising:- “The action of calling something to the attention of the public especially by paid announcements; or, to call public attention by emphasizing desirable qualities so as to arouse a desire to buy or patronize.”
B) Characteristics:-
1) The fact that it is “a paid form” of presentation emphasizes that advertising space or time must be purchased.
2) Its “non-personal” nature emphasizes the fact that it is not a direct or personalized presentation to one individual but to the masses.
3) “Presentation” signifies the format in which advertisements communicate.
4) “Promotion” indicates the objective of advertising.
5) “Identified sponsor” refers to the identification of the brand or the advertiser who is communicating.
C) Objectives: - Advertising objectives can be categorized based on whether their goal is to inform, persuade, remind or reinforce;
Inform – Let people know what the product is, where it would be available, what problem it would solve, etc. Informative advertising is most rampant in the introductory stage of the product or product category because maximum information has to be given when something is new.
Persuade – This becomes more important as the product grows or faces increasing competition. The advertiser now needs to give more reasons or enticements to lure consumers. One way of establishing superiority is by comparative advertising, where you evaluate your brand vis-à-vis a competitor’s brand directly or indirectly. The better-than-competitor claim can be made subtly by telling the consumer how your brand addresses his/her need and convincing him/her that no other brand does that in the same fashion. For example, a television commercial for Captain Cook persuaded consumers by depicting how its salt was better flowing compared to Tata Salt
Remind – This kind of advertising is widespread with mature products, that is, products that are well past their introduction and rapid growth phases. Everyone knows about the products – what they do, how beneficial they are, how they are different from other products, etc. There are hardly any new consumers who need to be persuaded. Hence, an advertiser needs to remind the consumer that his/her product exists and that it is there when he/she needs it. For example, with its witty, well-timed and creative print ads on current topics, the mature brand Amul Butter stays on top-of-the-mind.
Reinforce – This seeks to convince current consumers that they have made the right choice. By reinforcing key benefits and depicting satisfied consumers of the brand, an advertiser can reassure current consumers that they have indeed spent their money well.
Q.4. What is “above the line” and “below the line” activities with respect to marketing communications? Explain the concept in detail.
Ans: - Media: - Media is a newly coined word that includes a huge number of activities and tools of paid mass communication which are used by the marketing and advertising industry as much as the entertainment world. Although media rates seem high, this is the cheapest cost per contact tool available today.
Marketing communication activities can also be loosely classified as “above the- line” (ATL) or “below-the-line” (BTL). The promotional activities carried out through mass media like television, radio, newspaper, etc. typically qualify as ATL, whereas BTL refers to forms of non-media communication, including non-media advertising, such as an event, a sponsorship, a sales promotion activity, point-of-purchase advertising, etc. BTL also involves some extent of interaction with the consumer.
Table A gives the reach of these media as estimated by IRS Q4, 2010, whereas Table B states their advertising shares.
[Table A: Media Reach]
[Table B: Advertising spends, Shares and Growth rates of leading Mass Media]
The most frequently used structured ATL mass media include the following:
1) Print- Newspapers, magazines, journals, weeklies, etc.
2) Television - Due to cable, DTH and satellite technology, television reaches out to more than 50% of the population.
3) Radio - Has declined and reaches out to less than 20% of the population.
4) Cinema - Is a popular medium for advertisers in a country that has the largest film industry in the world, releasing more than 800 films a year.
5) Internet - Is gradually gaining popularity with the increase in PC penetration, literacy and availability of Internet connection.
In the BTL segment, many incredibly innovative vehicles for advertising messages are thought up every day, which deliver results too, if only for the unexpectedness of it. For example, folk and rural media like storytelling, puppetry, and street plays & music and dance, etc. Now global Fast Moving Consumer Goods (FMCG) Multi-National Companies (MNCs) too have taken to these in a big way since there is immense growth in the rural markets.
Every advertising agency works out the best possible combination of media to be used for the assignment on hand, keeping in mind various considerations like the characteristics of various media, type of message and target audience, budget availability, communication objectives, media availability, etc. A “media mix” refers to the combination of various media that a media planner chooses to incorporate in the media plan.
Q5:- Describe the AIDA model of consumer response hierarchy with the help of diagram.
Ans: - The Awareness-Interest-Desire-Action (AIDA) model of consumer response hierarchy is one of the popular models.
It states that a consumer passes successively through the following four stages of response
1. Awareness – In this initial stage, most of the target audience is unaware of the product or brand and hence the communicator’s objective is to build awareness, maybe just name recognition of the product with simple messages, repeating the brand name or giving basic information about the product. In a relatively new product category, this function assumes the maximum importance. For example, the objective of Hutch’s takeover and change of name to Vodafone was to inform the audience about the change through quick reach and repetition. Thus, several 5–10 second spots were designed to ensure that the ads did not result in any monotony.
2. Interest – In this stage, consumers graduate from awareness about the product to interest in it. Marketers need to find out how consumers feel about their product. Are they favorably disposed? Do they like it? Do they find it interesting enough? Interest in the product can be created by showing some unique feature of the product, demonstrating how it works, presenting entertaining ads, fetching in popular celebrities, etc.
3. Desire – It is not enough to create just an interest in the product. Once the target audience is aware about and interested in the product, the function of advertising is to get them positively inclined towards buying it, that is, create in them a desire and preference for the advertised product. Desire can be built by showing how the product addresses a consumer’s specific needs and by creatively promoting quality, value and other significant features. For instance, Aqua guard arouses desires by giving rational benefits of using the product, such as clean water without germs.
4. Action – Advertising has not played its part until it has achieved the ultimate objective of spurring the target audience into action. In most cases, the desired action is to lead consumers to purchase the product. But in certain cases, it can also be to generate inquiries, lead to a retail visit; promote participation in a promotion, etc. Brand- or image-building advertising will not immediately lead to purchase action, but it will create a preference and desire that will ultimately translate into purchase. This is a long-term strategy.
(Traditional Consumer Response Hierarchy Model)
Q6:- Describe some of the strategies for effective marketing and advertising in rural market.
Ans: - Literacy is still poor in rural areas and no complicated selling message or print media can be tried. Advertising must use very basic means such as wall painting and hoardings with visually powerful images. Although satellite technology has taken television to the remotest corners of the country, household ownership of it is still low. Therefore, exposure is often through community televisions, which means image building through sustained campaigns may not be possible. In fact, reach of most media is still inadequate in rural areas.
A rural marketing strategy will succeed if all the above factors are kept in mind. Therefore, advertising must keep in mind the decision, purchase and usage pattern that are peculiar to rural areas. Some strategies have been standardized by now.
These include:-
1. Small packages – Indians in general and rural people in particular are highly price conscious and demand value for money. Rural people not only have small budgets, they have even worse storage facilities in their small homes. Therefore small packaging, even single use packets, sell well. The runaway success of shampoo sachets is a textbook example. Lux sells 50 paisa sachets and is doing well.
2. Strong visual images – Brand names that are easy to remember and symbols in gaudy colors with images of animals, birds, flowers or children are more successful. Villagers do not read brand name and buy by recognizing the symbol on the package. Ghari detergent with a clock and fertilizer having a farmer with a heap of wheat on his head has been very successful.
3. Free containers – By nature Indians are frugal and rural people even more so. Buying kitchen containers is not a standard norm even in well to- do urban homes and a nice and sturdy reusable container for storage of other food items is still a great attraction. Therefore a product that comes in a reusable container instead of a plastic bag will sell better.
4. Door delivery – In spite of India’s huge size and remoteness, taking the product to the customer’s home, when tried, has been successful. Small savings picked from homes and petty businesses every evening by banks is as successful in rural areas as in urban markets.
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