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Belch: Advertising and<br />

Promotion, Sixth Edition<br />

IV. Objectives and<br />

Budgeting for Integrated<br />

Marketing<br />

Communications Programs<br />

7. Establishing Objectives<br />

and Budgeting for the<br />

Promotional Program<br />

Using a variety of tools including billboards, videos, point-of-sale promotions, and<br />

spot television (Exhibit 7-8), the program doubled its unaided awareness scores,<br />

tripled trial, and increased brand awareness by 40 percent. In addition, beer sales doubled<br />

in test markets, and overall beer sales increased by 12.1 percent in the first year of<br />

the campaign. 16<br />

According to DAGMAR, the objective must also be measurable. There must be a<br />

way to determine whether the intended message has been communicated properly. For<br />

example Midwest Express measured its communications objective by asking airline<br />

travelers whether they thought Midwest’s airfares were higher than those of competing<br />

airlines.<br />

© The McGraw−Hill<br />

Companies, 2003<br />

Exhibit 7-8 Foster’s Beer<br />

delivers a very successful<br />

new campaign<br />

Target Audience Another important characteristic of good objectives is a welldefined<br />

target audience. The primary target audience for a company’s product or service<br />

is described in the situation analysis. It may be based on descriptive variables<br />

such as geography, demographics, and psychographics (on which advertising media<br />

selection decisions are based) as well as on behavioral variables such as usage rate or<br />

benefits sought. Figure 7-6 demonstrates the objective-setting process involved in the<br />

launch of the new Subaru Outback. Notice how specifically the target audience was<br />

defined. 207<br />

Target Market: Male, 35–55, married, household income $55,000+, active lifestyle<br />

Positioning: Carlike qualities without sacrificing SUV qualities<br />

Objectives: Convince SUV buyers to consider the Outback rather than SUV under<br />

consideration; generate high awareness, generate high numbers of<br />

showroom visits, avoid discounts, generate high sales volume, attract at<br />

least 50% of sales from those intending to buy Ford, Chevy, or Jeep<br />

Budget: $17 million<br />

Media: Advertising:<br />

TV: Prime-time programs, local news and sports<br />

Cable TV: National Geographic Explorer, Discovery, Learning<br />

Channel<br />

Print: Backpacker, Outside, National Geographic, Smithsonian<br />

Support Media: Outdoor and POP<br />

Public Relations: Press kits and PR campaign<br />

Direct Marketing: Prospective buyers; dealers<br />

Results: Recall increased from 33 to 38% in first 60 days; 50% by completion of<br />

campaign<br />

Dealer traffic increased by 15 to 20%<br />

Sales were highest in 9 years—four times projections; 55% from non-<br />

Subaru owners; top three models traded in: Jeep Grand Cherokee, Ford<br />

Explorer, Chevy Blazer<br />

Figure 7-6 Subaru<br />

Outback Objective Setting<br />

Chapter Seven Establishing Objectives and Budgeting for the Promotional Program

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