Chapter 15 - Step 9: Budget & Funding Plans Flashcards
Shrinkflation
Contents in goods/services being reduced while price point is kept the same
4 ways to determine budgets (ACOC)
Affordable method
Competitive-parity method
Objective-and-task method
Cost per sale method/percentage-of-sales methods
Affordable method
Set budget at a level that the company thinks it can afford
Cost per sale/ Percentage-of-sales method
Sets the budget at a certain percentage of current or forecasted sales or unit sales price
Competitive-parity method
Setting the promotion budget to match cmmpetitors’ outlays
Objective-and-task method
Define specific objective
Determine tasks that will achieve this objective
Estimate cost of these tasks
5 types of costs (PPPPE) in the objective-and-task method
Product-related costs
Price-related costs
Place-related costs
Promotion-related costs
Evaluation-related costs
Product-related costs
Associated with producing or purchasing any accompanying tangible goods and developing or enhancing associated services needed to support change
Price-related costs
Associated with incentives, rewards, etc
Place-related costs
Involve providing new or enhanced access or delivery channels
eg: cell centers, online purchasing, etc
Promotion-related costs
Associated with developing, producing, and disseminating communications including transcreation or translation into other languages
Evaluation-related costs
Include any planned measurement and tracking surveys
Two components to justify budget
The ROI
Estimate on returns
Sources for additional funding
Government grants and appropriations
Advertising and media partners
Coalitions and other partnerships
Corporations
Government grants and appropriations
Federal, state, and local government agencies are the most common source of funds and grants for social marketing efforts
There are more than 120,000 independent corporate community and grant-making foundations in the US
Advertising and media partners
Advertising agencies often provide pro bono services to support social causes
Coalitions and other partnerships
Coalition members may be able to pool resources to implement larger-scale campaigns
Corporations - cause-related marketing
Increasing popular strategy with a win-win-win proposition
eg: Dawn saving ducks
Corporations - Grants and contributions
Cash contributions from corps are awarded for a variety of purposes, including sponsorship mentions in communications, potential for building traffic at retail or internet sites, etc
Corporations - In-kind contributions
In-kind donations are more appealing than cash. Easier for corps to give products or allocate personnel to help
Corporations - use of distribution channels
Companies can provide tremendous visibility and support for your efforts by giving you space in their stores for such things as car seat safety checks, etc
Principles for influencing funders
Identify and prioritize potential funders
Describe the planned campaign purpose
Formulate clear, specific potential requests
Deepen understanding of the funders’ wants, needs, and perspectives
Refine and finalize the specific request
Develop a strategy using all element of the marketing intervention mix
If funding is still inadequate, how can you revise your plan?
Develop campaign phases
Strategically reduce costs by eliminating certain strategies and tactics
Adjust goals of the campaign
