What it is:
DAGMAR is a marketing term that stands for "define advertising goals, measure advertising results."
How it works (Example):
For example, let's assume that Company XYZ wants to measure the effectiveness of the marketing campaign for its latest Widget. The company starts testing a commercial that is designed to move potential customers through the four stages of the purchase process:
1) In the awareness stage, Company XYZ makes the consumer aware that there is a new Widget on the market.
2) In the comprehension stage, Company XYZ shows consumers the new Widget's features and reminds the consumer of Company XYZ's logo and brand name.
3) In the conviction stage, Company XYZ helps the consumer emotionally attach to the new Widget so that the consumer establishes an emotional preference for the Company XYZ brand.
4) In the action stage, Company XYZ gets the sale.
Company XYZ then measures the success of the marketing effort using DAGMAR. The company gauges how far the customer proceeded through the four stages of the purchase process, and how many sales were generated. If the customers get stuck in one of the first three stages and the company doesn't meet sales goals, the company knows it needs to change its ad campaign.
Why it Matters:
The DAGMAR method is a long-established method of creating effective advertising. The idea behind the method is to communicate rather than sell.