ABSTRACT

Advertising is a major resource area in many companies, and it is inconceivable for no heart-searching to follow the deployment of such substantial sums. The majority of the companies which admit to having no advertising objectives at all market industrial goods. Most of them spend relatively small amounts on advertising. The rationale behind the enquiry about methods used to determine appropriations was an attempt to establish whether a strong 'advertising by objectives' approach helped in the task of determining the size of the advertising budget. Advertising should be stated in terms of sales objectives or that advertising, together with other forms of promotion, aims to accomplish clearly defined communication objectives. Thus advertising succeeds or fails depending on how well it communicates predetermined information and attitudes to the right cost. This philosophy is referred to as Defining Advertising Goals -Measuring Advertising Results (DAGMAR). An analysis of the questionnaires indicated a common failure to dovetail the measurement methods with the specific objectives.