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  • IMC Budgeting

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    This document discusses establishing objectives and budgeting for promotional programs. It provides characteristics that effective objectives should have such as being specific, measurable, attainable, realistic and quantifiable. Marketing objectives aim to achieve overall marketing plan goals through communications, while communications objectives are more narrow and focus on delivering messages. The document also discusses factors that influence sales objectives and budgets, such as competition, advertising, distribution and price. It provides models for how sales may respond to different levels of spending. Finally, it outlines top-down and bottom-up approaches to budgeting and factors within organizations that influence budget decisions.

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    IMC Budgeting

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    This document discusses establishing objectives and budgeting for promotional programs. It provides characteristics that effective objectives should have such as being specific, measurable, attainable, realistic and quantifiable. Marketing objectives aim to achieve overall marketing plan goals through communications, while communications objectives are more narrow and focus on delivering messages. The document also discusses factors that influence sales objectives and budgets, such as competition, advertising, distribution and price. It provides models for how sales may respond to different levels of spending. Finally, it outlines top-down and bottom-up approaches to budgeting and factors within organizations that influence budget decisions.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
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    Download as ppt, pdf, or txt
    222 views22 pages

    IMC Budgeting

    Uploaded by

    nipun9143
    This document discusses establishing objectives and budgeting for promotional programs. It provides characteristics that effective objectives should have such as being specific, measurable, attainable, realistic and quantifiable. Marketing objectives aim to achieve overall marketing plan goals through communications, while communications objectives are more narrow and focus on delivering messages. The document also discusses factors that influence sales objectives and budgets, such as competition, advertising, distribution and price. It provides models for how sales may respond to different levels of spending. Finally, it outlines top-down and bottom-up approaches to budgeting and factors within organizations that influence budget decisions.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 22

    7

    Establishing Objectives
    and Budgeting for the
    Promotional Program
    Value of Objectives

    Specific
    Objectives Communications

    Planning &
    Decision Making

    Measurement
    & Evaluation
    Characteristics of Objectives

    Specific

    Attainable Measurable

    Realistic Quantifiable
    Marketing vs. Communications Objectives

    Marketing Communications
    Objectives Objectives

    • Generally stated in the • Derived from the overall


    firm’s marketing plan marketing plan
    • Achieved through the Vs.
    • More narrow than
    overall marketing plan marketing objectives
    • Quantifiable, such as • Based on particular
    sales, market share, ROI communications tasks
    • To be accomplished in a • Designed to deliver
    given period of time appropriate messages
    • Must be realistic and • Focused on a specific
    attainable to be effective target audience
    Sales Objectives

    Increased Market Share

    Increased Sales Brand Extensions


    Factors Influencing Sales

    Technology
    Competition

    The
    Advertising economy
    & promotion

    Product
    quality
    Distribution
    Price
    Where Sales Objectives are Appropriate
    Communications Effects Pyramid

    5% Use

    20% Trial

    25% Preference

    40% Liking

    70% Knowledge/Comprehension

    90% Awareness
    The DAGMAR Approach

    Define Awareness

    Advertising
    Goals for Comprehension

    Measuring Conviction
    Advertising
    Results Action
    Characteristics of Objectives

    Concrete, Well-defined
    measurable tasks audience

    Benchmark Specified
    measures time period
    Pros and Cons of DAGMAR

    Pros Cons
    Focus on communications Relies heavily on the
    objectives response hierarchy

    Measurement of stages May not increase sales

    Better understanding of
    Practicality and cost
    goals and objectives

    Less subjective Inhibition of creativity


    Advertising-Based View of Communications

    Ads

    Acting on Consumers
    Establishing & Allocating the Promotional Budget

    Sponsorship Direct
    Underwriting Marketing

    Public Group Sales


    Relations

    Sales Internet
    Promotions
    Establishing a Budget
    Assumptions for Marginal Analysis

    Sales are a Sales are


    direct measure determined
    of advertising solely by
    and promotions advertising
    and promotion
    efforts
    Sales Response Models

    A. Concave-Downward B. S-Shaped Response


    Response Curve Function
    Incremental Sales

    Incremental Sales

    Initial Spending

    High Spending
    Middle Level

    Little Effect
    Little Effect

    High Effect
    Range A Range B Range C
    Advertising Expenditures Advertising Expenditures
    Factors Influencing Advertising Budgets

    Product Hidden product


    life cycle qualities

    Product Product
    durability price

    Purchase
    Differentiation frequency
    Top-Down vs. Bottom-Up Budgeting
    Top-Down Budgeting Methods

    Affordable
    Method

    Return on Arbitrary
    Top
    Investment Allocation
    Management

    Competitive Percentage
    Parity of Sales
    Object and Task Method

    Isolate objectives

    Determine tasks required

    Estimate required expenditures

    Monitor

    Reevaluate objectives
    Organizational Characteristics

    • Factors that influence advertising and


    promotion budgets
    – The organization’s structure
    – Power and politics
    – The use of expert opinions
    – Characteristics of the decision maker
    – Approval and negotiation channels
    – Pressure on senior managers to arrive
    at the optimal budget
    Thank You !

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