Many clients believe that money spent on advertising & other forms of promotions should produce measurable results, such as increase in sales volume by a certain % or rupee value or increasing the brands market share. They believe, objective should be based on the achievements of the sales results.
Problem with sales objectives:
1. In the business world, poor sales results can be due to any of the other marketing mix variables, including product design or quality, packaging, distribution, or pricing.
Advertising can make consumers aware of and interested in the brand, but it cannot make them buy it, particular if it is not readily available or is priced higher than a competing brand. Nothing will kill a poor product faster than good advertising.
2. Another problem with sales objectives is that the effects of advertising often occur over an extended period. Many experts recognize that advertising has a lagged or carryover effect; monies spent on advertising do not necessarily have an immediate impact on sales.
Advertising may create awareness, interest, and/or favorable attitudes toward a brand, but these feelings will not result in an actual purchase until the consumer enters the market for the product, which may occur later. A review of econometric studies that examined the duration of cumulative advertising effects found that for mature, frequently purchased, low-priced products, advertising effects on sales lasts up to nine months.
3. Another problem with sales objectives is that they offer little guidance to those responsible for planning and developing the promotional program.
Problem with sales objectives:
1. In the business world, poor sales results can be due to any of the other marketing mix variables, including product design or quality, packaging, distribution, or pricing.
Advertising can make consumers aware of and interested in the brand, but it cannot make them buy it, particular if it is not readily available or is priced higher than a competing brand. Nothing will kill a poor product faster than good advertising.
2. Another problem with sales objectives is that the effects of advertising often occur over an extended period. Many experts recognize that advertising has a lagged or carryover effect; monies spent on advertising do not necessarily have an immediate impact on sales.
Advertising may create awareness, interest, and/or favorable attitudes toward a brand, but these feelings will not result in an actual purchase until the consumer enters the market for the product, which may occur later. A review of econometric studies that examined the duration of cumulative advertising effects found that for mature, frequently purchased, low-priced products, advertising effects on sales lasts up to nine months.
3. Another problem with sales objectives is that they offer little guidance to those responsible for planning and developing the promotional program.