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    Establishing Objectives and Budgeting For The Promotional Program

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    Ahmad Khalid Ridwan
    Establishing Objectives and Budgeting for the Promotional Program. Establish a Budget (marginal analysis) for the promotion. Budget Adjustments can be made if the cost cost is is more than the marginal marginal return return.

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    Establishing Objectives and Budgeting For The Promotional Program

    Uploaded by

    Ahmad Khalid Ridwan
    67 views24 pages
    Establishing Objectives and Budgeting for the Promotional Program. Establish a Budget (marginal analysis) for the promotion. Budget Adjustments can be made if the cost cost is is more than the marginal marginal return return.

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    Lecture_5_MKT.ppt

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    Establishing Objectives and Budgeting for the Promotional Program. Establish a Budget (marginal analysis) for the promotion. Budget Adjustments can be made if the cost cost is is more than the marginal marginal return return.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    67 views24 pages

    Establishing Objectives and Budgeting For The Promotional Program

    Uploaded by

    Ahmad Khalid Ridwan
    Establishing Objectives and Budgeting for the Promotional Program. Establish a Budget (marginal analysis) for the promotion. Budget Adjustments can be made if the cost cost is is more than the marginal marginal return return.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 24

    7

    Establishing Objectives
    and Budgeting for the
    Promotional Program

    McGraw-Hill/Irwin

    Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

    Value of Objectives

    Specific
    Objectives

    Communications
    Communications
    Planning
    Planning &
    &
    Decision
    Decision Making
    Making
    Measurement
    Measurement
    &
    & Evaluation
    Evaluation

    Characteristics of Objectives

    Specific

    Attainable

    Realistic

    Measurable

    Quantifiable

    Measurable Results

    Marketing vs. Communications Objectives

    Sales Objectives

    Increased Market Share


    Increased Sales

    Brand Extensions

    Factors Influencing Sales

    Competition

    Technology

    The
    economy

    Advertising
    & promotion

    Product
    quality
    Distribution
    Price

    Where Sales Objectives are Appropriate

    From Awareness to Action

    Conative

    Realm of motives.
    Ads stimulate or
    direct desires

    Affective

    Realm of emotions.
    Ads change attitudes
    and feelings

    Purchase
    Conviction
    Preference

    Testimonials
    Competitive ads
    Argumentative copy

    Liking

    Image copy
    Status, glamour appeals

    Knowledge

    Announcements
    Descriptive copy
    Classified ads, slogans,
    Jingles, skywriting

    Cognitive

    Realm of thoughts.
    Ads provide
    information and facts

    Point of purchase
    Retail store ads, deals
    Last-chance offers
    Price appeals

    Awareness

    Teaser campaigns

    Creating an Image

    5% Use
    20% Trial

    25% Preference

    Co
    gn

    i ti

    ve

    Af

    fe

    ct
    iv

    Co

    na

    tiv

    Communications Effects Pyramid

    40% Liking
    70% Knowledge/Comprehension
    90% Awareness

    The DAGMAR Approach

    Define
    Advertising
    Goals for
    Measuring
    Advertising
    Results

    Awareness
    Awareness
    Comprehension
    Comprehension

    Conviction
    Conviction
    Action
    Action

    Consumer response: Attention, Interest,


    Desire and Action (AIDA model)

    Characteristics of Objectives

    Concrete,
    measurable tasks

    Well-defined
    audience

    Benchmark
    measures

    Specified
    time period

    Advertising-Based View of Communications

    Ads

    Acting on Consumers

    Utilizing a Variety of Media

    Establishing & Allocating the Promotional Budget

    Sponsorship
    Underwriting

    Direct
    Marketing

    Public
    Relations

    Group Sales

    Sales
    Promotions

    Internet

    Establishing a Budget (Marginal Analysis)

    Budget Adjustments

    Increase
    Increase
    Spending
    Spending

    If
    If the
    the cost
    cost is
    is less
    less than
    than the
    the
    marginal
    marginal return
    return

    Hold
    Hold
    Spending
    Spending

    If
    If the
    the cost
    cost is
    is equal
    equal to
    to the
    the
    incremental
    incremental return
    return

    Decrease
    Decrease
    Spending
    Spending

    If
    If the
    the cost
    cost is
    is more
    more than
    than the
    the
    incremental
    incremental return
    return

    Assumptions for Marginal Analysis

    Sales are a
    direct measure
    of advertising
    and promotions
    efforts

    Sales are
    determined
    solely by
    advertising
    and promotion

    Sales Response Models

    Advertising Expenditures

    Initial Spending
    Little Effect

    Middle Level
    High Effect

    High Spending
    Little Effect

    B. S-Shaped Response
    Function

    Incremental Sales

    Incremental Sales

    A. Concave-Downward
    Response Curve

    Range A

    Range B

    Range C

    Advertising Expenditures

    Share of market vs Share of Voice

    Factors Influencing Advertising Budgets

    Product
    life cycle

    Hidden product
    qualities

    Product
    durability

    Product
    price

    Differentiation

    Purchase
    frequency

    Top-Down vs. Bottom-Up Budgeting

    Allocating to IMC Elements

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