chapter 7 establishing objectives and budgeting for the promotional program
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Chapter 7 Establishing Objectives and Budgeting for the Promotional Program. Value of Objectives. Communications Objectives facilitate coordination of the various groups Planning and decision making - PowerPoint PPT PresentationTRANSCRIPT
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Chapter 7 Establishing Objectives
and Budgeting for the
Promotional Program
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Value of Objectives
Communications Objectives facilitate coordination of the various
groups
Planning and decision making Objectives guide decision making and development
of the integrated marketing communications plan
Measurement and evaluation of results Objectives provide a benchmark to measure success
or failure
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Marketing Objectives versus Integrated Marketing Communications Objectives
Marketing objectives
• Identify what is to be accomplished
by the overall marketing program
• Defined in terms of specific and
measurable outcomes
• Must be quantifiable, realistic, and
attainable
Integrated marketing communications objectives
• Statements of what various
aspects of the IMC program will
accomplish
• Based on the particular
communications tasks required to
deliver the appropriate messages
to the target audience
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Figure 7.1 - Factors Influencing Sales
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Problems with Sales Objectives
Successful implementation requires all marketing elements to work together
• Carryover effect: Monies spent on advertising do not have immediate impact on sales
Advertising has carryover effect
It is difficult to determine precise relationship between advertising and sales
Do not offer much guidance for planning and developing promotional program
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Figure 7.2 - Communications Effects Pyramid
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Criticisms of DAGMAR
Problems with the response hierarchy
Sales objectives
Practicality and costs
Inhibition of creativity
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Figure 7.4 - Traditional Advertising-Based View of Marketing Communications
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Figure 7.5 - Objectives and Strategies in the Social Consumer Decision Journey
Source: Expert interviews; McKinsey analysis
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Figure 7.8 - Marginal Analysis
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Figure 7.9 - Advertising Sales/ResponseFunctions
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Figure 7.10 - Factors Influencing Advertising Budgets
Note: 1 relationship means the factor leads to a positive effect of advertising on sales; 2 relationship indicates little or no effect of advertising on sales.
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Figure 7.12 - Top-Down versus Bottom-Up Approaches to Budget Setting
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Figure 7.15 - Investments Pay Off in Later Years
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Figure 7.16 - Competitors’ Advertising Outlays do not Always Hurt
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Figure 7.18 - The Objective and Task Method
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Steps to Develop and Implement the Budget
Employ comprehensive strategy
Develop strategic planning framework that employs an integrated marketing communications philosophy
Develop contingency plans
Focus on long-term objectives
Evaluate effectiveness of programs have to be consistently
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Figure 7.21 - How Advertising and Promotions Budgets Are Set
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Budget Allocation: Factors to Consider
Allocating to IMC elements
Client/agency policies
Market size
Market potential
Market share goals
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Figure 7.24 - The Share of Voice (SOV)Effect and Ad Spending: Priorities in Individual Markets
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