Objective setting and market positioning

Advertising and Demand

As Bordon suggested that the role of advertising is

frequently exaggerated and that prevailing social and environmental conditions are more of the fundamental importance in determining the basic demand trends. According to Bordon, Advertising leads to increase in demand when.

 The products can be distinguished easily from its

substitutes. It is possible to appeal to emotional buying motives. The psychological and physical factors influencing demand are favorable. These include fashion, social standards, incomes and the size and the distribution to the population.

 sufficient finance is available to support a minimum

level of satisfaction. Advertisement can be used to reveal and emphasize the product hidden qualities. E.g. ads of toothpaste. No doubt advertising is instrumental in increasing in the demand. The increase in demand may be because of alternative marketing strategies e.g., reduction in price, increase in distribution level, change in quality of product etc.

Objective setting
Advertising objectives are set in such a way that they

help in achieving marketing objectives. An advertiser must know what to expect from the advertising campaign given the huge money spent on advertising. Basically, advertising objectives have four categories as perception, learning, persuation and behavior.

For an advertisement to be effective, it must be seen,

read understood believed and acted up on. Based on this advertising have three fallowing categories : 1. Sales objectives. 2. Communications objectives. 3. Behavioral objectives.

SALES OBJECTIVES
Advertising objectives, should be operational. Means

there should be a criteria for decision making and standard with which results can be compared. The most common advertising objectives in terms of sales are: Immediate increase in percentage of sales. Increase in market share.

However, the objectives may not be operational for two

reasons: Advertising is one of among many factors influencing sales and it is difficult to isolate the influence of it on sales. The influence of advertising continues over a long time.

Distribut ion s channel manage ment Compe titors actions

Economic condition Brand image Taste & preferen ces

Sales

Advertisin g
Product quality and features

packag ing

price

Sales force nos.& quality

Other promot ional mix

COMMUNICATION OBJECTIVES
Advertising is most effective when it is used to obtain

narrowly defined communication objectives.

Purchase

5% purchase/ regular purchase Regular buy 10% Trial

Behavioral objectives

15% preferences
Knowledge 20% liking 30% knowledge/ comprehension

Communication objectives

Awareness
70% generating awareness Unawareness 100% Unawareness

The promotional manger should measure existing

level of consumer awareness, knowledge, liking or preference for his brand. If the awareness and knowledge about the brand is low among the consumers, he must concentrate on increasing this aspect. If the liking and preference for the brand is low then right message and media should identify.

BEHAVIORAL OBJECTIVES
It is important in the advertising objectives to induce

action in the consumer . Here we require the consumer to act or show a specific behavior. The behavior could be the trial of the brand, or purchase of the brand.

 The two specific objectives could be:

Increasing companys brand usage rate among existing consumers. 2. Encouraging non users to have trial consumption/ or purchase it.
1.

MARKET POSITIONING
According to the Philips Kotlar positioning is the act

of the designing the companys offerings and image to occupy a distinctive place in the target markets mind. Positioning is the foundation up on which all other marketing decisions are built. A brands position is the first thing that comes in mind when we hear a brands name. e.g. Volvo owns the safety position, ESPN owns the sports information.

 positioning involves a decision to emphasize or

highlight certain aspects of brand by which consumer have a clear and definite idea of what the brand stand for in the given brand category. Variables like price, distribution, product quality, and features of the product plays major role but marketing communication is the most important tool for acquiring such positioning. Therefore positioning is not what you do to the product but what you do to minds of the consumer through marketing communications.

WHY POSITIONIG
Positioning provides necessary information answer to

what the brand is attempts to create a brand identity to stand firmly against the competitor's efforts. Consumer response to products or brands as they perceive them rather than what are in realty. Perception of individual product is subjective and called perceptual identity. Perceptual identity is determined by individual needs, values, experience and environment.

POSITIONING STRATEGIES
A brand must be positioned in away it is most

effective in attracting the desired target segment. A brand by answering the fallowing questions itself can develop positioning strategies Who am I ? (knowledge of the brands identity and image, lineage or family). What I am? ( the functional capabilities of brand). For whom am I? (the consumer segment I serve best). Why me? ( powerful reason to choose among others).

APPROACHES TO POSITIONING STRATEGY

1.
2. 3. 4. 5. 6. 7.

Customer benefit approach The price quality approach The applications approach The product user approach The product class approach The cultural symbol approach The competitor approach

CUSTOMER BENEFIT
It is most used

positioning strategy. It involves putting the brand above competitors, based on specific brand attributes and customer benefits. e.g. Volvo transportation

The price quality approach

There are brands that

deliberately attempts to offer more in terms of service, features, quality or performance. Manufacture of such brands charge higher price to cover the cost and partly to cover the fact that they are of high quality.

The use and application approach

Associate

the product with a use of application is the another way to communicate an image of product.

The product user approach

In this approach, the

brand manager identifies and determines the target segment for which the product will be positioned. Many brands use a model or a celebrity to position their product.

The Product class approach

This is very bold positioning

strategy. Used when particularly product category is too crowded. Manager position the brand in different context. E.g. 7up soft drink position as beverage with fresh clean taste. Research shows that people also consider it as mixer beverage and not as soft drink.

The culture symbol approach

The

culture symbol approach is based upon deeply entrenched culture symbol which helps in differentiating competitors brands. A band manager should identify something that is highly meaningful to the consumers and is not being used by competitors.

The competitor approach

This is an offensive

strategy. And very common in comparative ads. Many brands use competitors as a dominant plank in their campaigns.