III. First Case

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III. First Case From opportunities to objectives
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Nike

• Whats the problem?

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How to solve a case

• Situation analysis
• Company
• Consumer
• Product
• Competition
• Market
• Trends

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SWOT
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Alternatives
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Decision

• Describe decision
• Explain why is the best decision
• Address the disadvantages of your decision
• How are you going to measure the success of your
  decision?
• Explain how would you implement your plan

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Objectives
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Hypothetical SWOT
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Objective-setting in context

• After the situation is evaluated, opportunities
  should be translated into actionable, measurable
  objectives that specify what integrated marketing
  communications should accomplish

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Marketing vs. communication objectives

• Generally marketing objectives are defined in
  terms of expectations for a product performance.
• To generate sales
• To increase margins
• To build volume

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Marketing vs. communication objectives (cont)

• Communication objectives are set in terms of
  expectations for communications influence on
  consumer attitudes and behavior
• To persuade
• To inform
• To remind

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Marketing vs. communication objectives (cont)

• A communication objective is about
• Awareness Brand, top-of-mind, attributes
• Comprehension or understanding
• Believability
• Trust
• Attitude
• Image

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Marketing vs. communication objectives (cont)

• Marketing evaluates final outcomes in concrete
  terms
• Distribution
• Sales and/or profit
• Shelf facings
• Communications outcomes are intangible
• Attitude change
• Evoked set
• Positive consumer perceptions

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Types of IMC objectives

• Communication effects
• This objective is set in terms of soft measures
  such as awareness, knowledge, preference
• Ex To establish top-of-mind awareness in 70 of
  the target market by the end of November.

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Types of IMC objectives

• Behavioral effects
• This type of objective uses consumers actions as
  a measure of advertising effects
• Ex To persuade 70 of the target market to try
  the sample of the product by the end of November.

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Types of IMC objectives

• Sales-driven objectives
• This type of objectives sets IMC goals in terms
  of sales
• Ex To achieve a 65 repurchase rate among the
  target market by the end of the introductory
  year.

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A guide for objective developers (cont)

• Output-oriented
• Focused on what the company/brand expects to
  accomplish in the long term.
• Ex
• To increase trial among.
• To promote awareness
• To maximize usage among heavy users

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A guide for objective developers (cont)

• Measurable
• Objectives should be quantifiable in order to
  provide some means for evaluating if the intended
  effects of IMC were achieved
• Should answer by how much?
• Ex
• To increase awareness by 30 among..

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A guide for objective developers (cont)

• Time bounded
• Objectives should reflect an expectation that
  specific results will be achieved by specific
  dates
• Ex
• To achieve brand awareness for brand X fruit
  drinks in 50 of the target within the first
  three months of the campaign.

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A guide for objective developers (cont)

• Realistic
• Objectives should be attainable (not impossible
  or too easy) and cost effective.
• Ex
• Pizza Hut will increase traffic by 100 among the
  target audience by the conclusion of the 6-month
  campaign period.

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A guide for objective developers (cont)

• One purpose
• Each objective should be worded so that only one
  result is associated with each statement
• Ex
• To increase awareness and trial by 30
• Should be
• To increase awareness
• To increase trial by

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A final word

• How do you get to the numbers? (, dates, etc.)
• Previous experience
• Market data
• Surveys
• Experiments
• Or follow the process. Well talk about this
  later

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Examples

• To create awareness of the product X among 30 of
  the target market within the first 6 months of
  the new campaign
• Increase distribution of product X by 30 within
  the first 6 months of the new campaign
• To create a fun and utilitarian image of product
  X among 35of the market within 12 months

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More examples (or)

• Increase the companys margins by 10
• To persuade 45 of the target market within 10
  months.
• Increase sales of product X within the first 6
  months of the campaign
• Make ads that show the products performance.

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Example of objectives

• Problem
• In late 2004, Amazon had launched a DVD rental
  service in the UK at a worryingly low price
  point. Worse, Blockbuster eliminated late fees.
  Then, beginning in early 2005, it rolled out its
  own online rental store mirroring Netflixs
  unlimited offer but at a much lower price point
  (14.99 to Netilixs 17.99).

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Objectives

• Build total awareness Initial goals were to
  increase base brand awareness by at least 8.
• Increase subscriber trial year on year
  subscription numbers needed to jump by an
  aggressive 50 above the 2.2 million base in
  2004.
• Increase walk on trials i.e. trials that could
  not be linked to direct marketing, online
  advertising etc. and so could only be linked to
  Netflixs mass offline advertising. It was agreed
  that this figure needed to move by at least 17
  points
• Source Effie Awards