AIDA, DAGMAR and SWOT

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AIDA

AIDA is a model of marketing that relates to the promotion of a product. It stands for Attention, Interest, Desire and Action.

What does AIDA demonstrate

the four stages of a promotion model which move the customer from a state where they have no awareness of the product through to the point at which they decide a purchase needs to be made.

AIDA states that effective marketing will raise

(A) awareness

And encourage

(I) interest (D) desire and (A) action

Awareness and Interest should be encourage via...

- Firstly, establishing consumer awareness about the product and informing potential buyers about the product. The promotional objective at this stage is to get the product seen and talked about.

- Then creating and stimulating buyer interest. This is achieved by creating an understanding of the benefits of the product in relation to the needs of the customer.

- At this stage the promotional message focuses on how the product meets these needs.The objective is to move the potential buyer from passive awareness to a more active consideration of the product's benefits.

Promotional methods used during the awareness and interest stage...

- Are likely to be methods which create awareness and are informative. These may include:

- Above-the-line: Attractive advertising (e.g. posters or Internet adverts) Television adverts, Magazine/Newspaper adverts

- Below-the-line: Sponsorship, product packaging, trade fairs, public relations (press conferences/releases)

Desire and action should be encouraged via...

- Inducing a favourable attitude towards the products, which makes them more desirable than that of the competition and then causing a customer to act, by stressing the immediate desirability of the product.

- This is likely to be achieved via persuasive advertising (Why is the product more desirable than others?)

Promotional methods used during the desire and action stage...

Merchandising (influencing customers at the point of sale),

Sales promotion: special credit terms, competitions, free gifts, 'money off' coupons etc. (more desirable when compared with competitors)

Direct mailing (more convenient than competition?)

Personal selling

Advantages of using AIDA

Can be useful for marketing individual products

Can identify how individual products can be marketed

Disadvantages of using AIDA

Not useful for promoting a line of products

May be innacurate

May not be appropriate for all products

DAGMAR is...

- An advertising model, which stands for Defining Advertising Goals for Measured Advertising Results.

- It is used to measure the effectiveness of advertising.

- Like AIDA it is used to show states of mind which consumers pass through when purchasing a good or service. Promotion is used to move consumers through the spectrum.

The stages of the DAGMAR process...

- Unawareness of the product

- Awareness as a result of advertising (the audience knows about the brand)

- Comprehension. (recognition and understanding of the product.)

- Conviction (Firm attitude towards the product. The development of a preference towards the brand)

- Action (move towards purchase, usually by sales promotion)

Advantages

- It defines advertising goals and measures their results

- Easy to understand and implement

- Makes it easier for a business to construct a successful advertisement (Above-the-line)

Disadvantages

- It is rare for a single advert to have the power to move customers from complete unawareness to action.

- Assumes that all consumers react in the same way to advertising

SWOT analysis...

This involves looking at:

- The internal strengths and weaknesses, these are factors within the businesses control

- The external opportunities and threats, these are factors outside the businesses control

Aims of SWOT analysis...

- To take advantage of strengths and opportunities

- To minimise weaknesses and threats

Advantages of discovering strengths...

- Promotion can be focused around these aspects

- Helps identify areas where a firm is more competent than competitors.

- Products might be considered the best in the market

Advantages of discovering weaknesses...

- Can identify areas which need to be improved, especially if competitors are able to perform them better (such as promotional campaigns, distribution channels or product features).

- May influence a business to avoid promoting such areas.

Advantages of discovering opportunities...

- Can identify new ventures, which may gain a competitive advantage, such as new markets.

- May identify weaknesses of competitors, which firms could take advantage of.

- Technological advancements may permit the development of new products

Advantages of discovering threats...

- Businesses can create strategies in order the minimise the affect of such threats

- If a firm is losing customers in certain markets, it could carry out market research or increase promotion.

- Identifying a competitors advantage may help a firm to respond or develop their own advantage or USP.

- Things such as environmental factors can be considered and changes can be made to certain products.

Disadvantages of SWOT analysis...

- Many factors are vulnerable to change, so information may not be useful for long periods

- Incredibly subjective, as it is carried out internally. This means information may be inaccurate and based on opinion rather than fact.

- Doesn't advise a business on what to do, simply points out certain information

- Can be time consuming to conduct.

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