Chapter 7: Establishing Objectives and Budgeting for the Promotional Program Flashcards
merketing objectives
statements of what is to be accomplished by a marketing program
integrated marketing communications (IMC) objectives
statements of what various aspects of the IMC program will be accomplished
carryover effect
problem with sales objectives where advertising monies spent does not imediately impact sales
factors influencing sales (7)
(1) competition
(2) technology
(3) the economy
(4) product quality
(5) price
(6) distribution
(7) advertising and promotion
sales-orientated objectives:
pros
cons
short-term increase in sales, direct-response,
carryover effect
communications objective
pros
cons
clearly communicates the goal to the audience
no defined way to translate communication and sales
DAGMAR (Defining Advertising Goals for Measured Advertising Results)
says that communications effects are the basis for advertising goals; involves a communications task that is specific and measurable
communications task’s four stages
(1) Awareness- making the consumer aware of the existance of the brand or company
(2) Comprehension- developing an understanding of what the product is and what it will do for the consumer
(3) Conviction- developing a mental disposition in the consumer to buy the product
(4) Action- getting the consumer to purchase the product
characteristics of objectives (4)
(1) concrete, measurable tasks
(2) target audience
(3) benchmark and degree of change; benchmark measures
(4) specified time period
problems with DAGMAR (4)
(1) problems with response heirarchy- consumers do not always go through sequences before purchasing)
(2) sales objective
(3) practicality and cost
(4) inhibition of creativity
zero-based communications planning
an approach to planning the IMC program that involves determining what tasks need to be done and what marketing vommunication functions should be used and to what extent
Types of top-down budgeting approaches (5)
(1) affordable method- firm allocates specific amount of money
(2) arbitrary allocation- budget is set by management on what they feel is necessary
(3) percentage of sales- advertising is based on the percentage of sales of the product
(4) competitive parity- managers establish budget through matching competition’s percentage of sales expenditures
(5) return on investment (ROI)- advertising is considered an investment
Types of build-up budgeting approaches (3)
(1) objective and task method- isolate objectives, determine tasks required, estimate required expenditures, moniter, reevaluate objectives
(2) payout planning- project revenues for 2-3 years, allocate money needed for advertisements
(3) quantitive models- computer simulated models
