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Appendix M: DAGMAR – Sim lation Simulation Program Inception of DAGMAR Model • Founded in 1961 with Russell Colley’s book, Defining Advertising Goals for Measured Advertising Results Avi Shankar. “Advertising’s Imbroglio.” Journal of Marketing Communications 5 1-15 1999 Simulation Programs: Example: DAGMAR • Like other models at the time (AIDA—attention, interest, desire, action), the DAGMAR Model was based on the cognitive responses of consumers and the sequence of psychological processes they would undergo to purchase a product Avi Shankar. “Advertising’s Imbroglio.” Journal of Marketing Communications 5 1-15 1999 1 • Sequence: Unawareness, awareness, comprehension, conviction, i ti andd action ti Avi Shankar. “Advertising’s Imbroglio.” Journal of Marketing Communications 5 1-15 1999 • Furthermore, when the process by which consumers decide to carry out a purchase is difficult to pin, this complicates how much money should be spent in a specific advertising strategy. P. Doyle and I. Fenwick, “Measuring Advertising Payoff”. Operational Research Quarterly. Vol. 26, pp 694 (1975) Elaboration on DAGMAR weaknesses • The “Hierarchy of Response” weakness is that the model assumes a standard approach by which consumers will go about choosing what to buy. P. Doyle and I. Fenwick, “Measuring Advertising Payoff”. Operational Research Quarterly. Vol. 26, pp 694 (1975) Other Academic Models • Use of Time Series or CrossSectional Data to postulate sales response function P. Doyle and I. Fenwick, “Measuring Advertising Payoff”. Operational Research Quarterly. Vol. 26, pp 695 (1975) 2 Difficulties with DAGMAR –“’Sonking’—the scientification of non-knowledge” (695) –This is because most mathematical th ti l models d l have h nebulous empirical input P. Doyle and I. Fenwick, “Measuring Advertising Payoff”. Operational Research Quarterly. Vol. 26, pp 695 (1975) • Change in attitudes of consumers does not induce change in purchasing behavior. behavior George E. Belch & Michael A. Belch, “Advertising and Promotion: An Integrated Marketing Communications Perspective,” Fourth Edition, 1998, Irwin/McGraw-Hill • The model does not always identify the means by which people associate with the commodity (“Response Hierarchy Problems”) George E. Belch & Michael A. Belch, “Advertising and Promotion: An Integrated Marketing Communications Perspective,” Fourth Edition, 1998, Irwin/McGraw-Hill DAGMAR Model • Introduced in order to set goals on communication • Advertising planning becomes more effective ff ti • Assumption that customers go through several stages before buying a product Source: Setting Promotional Goals: A Communications’ Relationship Model, Journal of Consumer Marketing 1994 3 DAGMAR Model • Goals specified by – Target market – Consumer base-line hierarchy levels – Changes from these baselines – Time Period for achievement Source: Setting Promotional Goals: A Communications’ Relationship Model, Journal of Consumer Marketing 1994 DAGMAR Model • Furthermore fixed stages that customers go through, is not realistic • Consumers also can take “action” without other stages Source: Setting Promotional Goals: A Communications’ Relationship Model, Journal of Consumer Marketing 1994 DAGMAR Model • Problem that these requirements/goals are complex and time-consuming, as a lot of research h iis involved i l d • Second problem that model needs “preconceived notion of consumers’ hierarchy levels” Source: Setting Promotional Goals: A Communications’ Relationship Model, Journal of Consumer Marketing 1994 DAGMAR - Assumption 1) Advertisement must get attention 2) Consumer mentally consciously processes ad 3) Based on rational consumers has to be convinced 4) Consumer is convinced, switches to brand and buys product Source: Pre-testing and monitoring the effectiveness of magazine advertising, Consterdine 4 DAGMAR Model • Agreement today that promotion works different depending on product and situation Source: Pre-testing and monitoring the effectiveness of magazine advertising, Consterdine DAGMAR Model • Before setting a goal, it is necessary to conduct research in order to have a clear picture of the status-quo Source: DAGMAR, Association of National Advertisers 1995 DAGMAR Model • Defining the advertising goal • Different to marketing goal, ads are more related to communication • Goal in order to measure it afterwards Source: DAGMAR, Association of National Advertisers 1995 DAGMAR Model • Example of a defined goal • “To increase –from 10% to 40% in one year – among the 70 million homemakers who use automatic washers, the number who identify Brand “X” with ingredient “Y” as a lowsudsing detergent which cleans better and faster than others.” Source: DAGMAR, Association of National Advertisers 1995 5 DAGMAR Model • 2nd Example of a defined goal • “To increase the number who get the message – “reduces overall drilling cost” – from 25% to 50% in the next year.” Source: DAGMAR, Association of National Advertisers 1995 DAGMAR Model 3) “Goals are agreed upon by those concerned at both creative andd approvall levels.” l l ” 4) These goals are based on insights into markets and buyers Source: DAGMAR, Association of National Advertisers 1995 DAGMAR Model • 6 steps to define goal by ANA (Association of National Advertisers ) 1) Advertising goals are concise and succinct and only part of the marketing 2) These goals are written down in measurable terms Source: DAGMAR, Association of National Advertisers 1995 DAGMAR Model 5) “Benchmarks are set up against which accomplishments can be measured.” 6) Evaluation methods are determined before the advertising campaign is launched Source: DAGMAR, Association of National Advertisers 1995 6 DAGMAR Model • Furthermore: • Goals should be agreed upon by advertiser and agency before the launch of the campaign Source: DAGMAR, Association of National Advertisers 1995 DAGMAR Model • Getting information about • “How many more people are more acutely aware of the brand” • “How many more people comprehend the features, advantages and benefits of the products/service” Source: DAGMAR, Association of National Advertisers 1995 DAGMAR Model • 2nd part MAR: Measured Advertising Results • “systematic evaluation of the degree to which the advertising succeeded in accomplishing predetermined advertising goals” Source: DAGMAR, Association of National Advertisers 1995 DAGMAR Model • Getting information about • “How many more people are favorably disposed toward the purchase of the product/service” • “How many people have taken action Source: DAGMAR, Association of National Advertisers 1995 7 DAGMAR Model • Ultimate goal is that consumer buy product • DAGMAR uses 4 phases awareness, comprehension, h i conviction and action • Each stage has a probability of purchase Source: DAGMAR, Association of National Advertisers 1995 8