Simulation of primary and selective demand
09/December/2025 23:46
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Below is a single, complete, exam-oriented answer covering ALL your questions on:
✔ Simulation of Primary & Selective Demand
✔ Objectives of Advertising
✔ How Advertising Objectives Are Set
✔ Approaches to Advertising Objectives
✔ Specific Objectives
✔ Factors Determining Advertising Objectives
This answer is written in MBA/BBA exam style, including definitions, points, explanations, examples, and case-study references.
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1. Simulation of Primary and Selective Demand
Advertising aims to create demand. There are two types:
(A) Primary Demand
Primary demand means creating demand for the entire product category, not just one brand.
Example:
Ads promoting milk consumption → benefits of drinking milk.
Government ads: “Use Solar Energy.”
Apple’s early iPhone ads → educated people about smartphones.
Objectives of Primary Demand Advertising
1. To create awareness of a new product category
2. To educate customers
3. To stimulate first-time use
4. To develop early market acceptance
5. To attract non-users into the market
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(B) Selective Demand
Selective demand means creating demand for a specific brand within that category.
Example:
Colgate vs. Pepsodent ads
Samsung Galaxy vs. iPhone
Amul butter vs. Britannia butter
Objectives of Selective Demand Advertising
1. To differentiate the brand
2. To create brand preference
3. To increase market share
4. To encourage brand loyalty
5. To influence customers during purchase decision
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2. What Are the Objectives of Advertising?
Advertising objectives are the goals a company wants to achieve through promotional messages.
Main Objectives:
(1) Informative Objectives
Used in the introduction stage of a product.
Example: “Introducing a new 5G smartphone.”
Activities:
Create awareness
Educate customers
Explain product features
Announce new uses
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(2) Persuasive Objectives
Used during growth and competition.
Example: “Why our toothpaste is better than others.”
Activities:
Build brand preference
Convince customers
Influence purchase decisions
Encourage switching
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(3) Reminder Objectives
Used in maturity stage.
Example: “Amul: The Taste of India.”
Activities:
Maintain brand awareness
Remind customers to repurchase
Keep the brand in consumer memory
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(4) Reinforcement Objectives
Assures customers they made the right purchase.
Example:
“Congratulations on choosing Maruti Suzuki – India’s No.1 trusted car.”
Activities:
Reduce post-purchase anxiety
Build confidence
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3. How is an Advertising Objective Set? (Process)
Step 1: Analyze Market Situation
Competition
Consumer attitudes
Product life cycle
Market trends
Step 2: Identify Communication Problems
Low awareness?
Misconceptions?
Low brand recall?
Step 3: Decide Target Audience
Age, income, lifestyle, location
Step 4: Set SMART Objectives
Objectives must be:
S – Specific
M – Measurable
A – Achievable
R – Realistic
T – Time-bound
Step 5: Select Communication Response Model
AIDA (Attention → Interest → Desire → Action)
DAGMAR (Discussed below)
Step 6: Set Budget According to Objective
Higher objective → higher advertising budget.
Step 7: Evaluate & Revise
Post-campaign evaluation.
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4. Approaches to Setting Advertising Objectives
1. DAGMAR Approach (Most Important)
DAGMAR = Defining Advertising Goals for Measured Advertising Results
By Russel Colley.
According to DAGMAR, communication goals must pass through:
1. Awareness
2. Comprehension
3. Conviction
4. Action
Example of DAGMAR Objective:
“Achieve 40% brand recall within 6 months.”
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2. AIDA Approach
A – Attention
I – Interest
D – Desire
A – Action
Used for emotional and brand-building advertising.
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3. Hierarchy of Effects Model
Awareness → Knowledge → Liking → Preference → Conviction → Purchase
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4. Sales-Oriented Objective Approach
Focus on increasing:
Sales
Market share
Profit
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5. Communication-Oriented Objective Approach
Focus on:
Attitude change
Brand awareness
Message understanding
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5. Specific Objectives of Advertising
1. Creating brand awareness
Example: New app launches use introductory ads.
2. Building brand image
Example: TATA – Trust, Safety, Family values.
3. Generating leads
Example: Real estate ads.
4. Increasing sales
Example: Seasonal ads, Amazon Big Billion Day.
5. Promoting new uses of a product
Example: Baking soda for cleaning.
6. Supporting sales-force efforts
Example: Pharma ads for doctors.
7. Combating competition
Example: Pepsi vs Coca-Cola ads.
8. Encouraging brand loyalty
Example: Reward program ads.
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6. Factors Determining Advertising Objectives
1. Product Life Cycle (PLC) Stage
Introduction → Informative
Growth → Persuasive
Maturity → Reminder
Decline → Limited promotional support
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2. Nature of Product
FMCG needs frequent advertising
Industrial goods require informative advertising
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3. Target Market
Demographics, lifestyle, location.
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4. Budget Availability
Small firms use reminder ads, large firms go for high-impact media.
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5. Competition Level
High competition → aggressive persuasive advertising.
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6. Market Conditions
Demand changes, purchasing power, seasonality.
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7. Overall Marketing Strategy
If company uses premium pricing → brand-building ads.
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8. Media Availability
TV, digital, print, outdoor options affect objectives.
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7. Case Studies (For 10–20 Mark Answers)
Case Study 1: Apple iPhone
Objective: Stimulate selective demand
Approach: Premium advertising
Result: Strong desire and brand loyalty.
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Case Study 2: Amul
Objective: Reminder advertising
Approach: Daily topical ads
Result: Top-of-mind recall for decades.
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Case Study 3: Swachh Bharat (Government)
Objective: Primary demand stimulation → Cleanliness
Approach: Informative mass advertisements
Result: Improved public awareness.
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8. Short Notes for Quick Revision
Primary vs. Selective Demand
Primary → whole category
Selective → specific brand
Objectives of Advertising
Inform, persuade, remind, reinforce
Approaches
DAGMAR, AIDA, Sales-based, Communication-based
Factors Affecting Objectives
PLC, budget, product nature, competition
