Chpt 7 Flashcards
Factors effecting sales
technology economy product quality price distribution ads and promo competition
Problems with sales objectives
carryover effect: advertising does not have immediate effect on sales
DAGMAR approach
Define Advertising Goals for Measuring Advertising Results
Awareness
Comprehension
Conviction
Action
Balancing objectives and objectives
what were willing and able to spend and what we need to reach objective
Top down budgeting
top management sets pending limit
promo budget set to stay within spending limit
Bottom up budgeting
promo obj set
activities needed to achieve objectives
costs of promo activities budgeted
Total promo budget approved by management
Top down budgeting methods
Affordable method:Firm determines the amount to be spent in various areas such as production and operation, and then allocate what’s left to advertising and promotion.
Arbitrary allocation: •Determined solely on the basis of what management feels necessary•Most commonly used by small companies
Percentage of sales method: •Based on sales of last year or projected sales of the coming year•Most commonly used by large companies
Competitive Parity method: •Established by matching the competition’s percentage-of-sales expenditures
Objective and task method
establish objectives (make awareness for new product)
Determine specific tasks (advertise)
Estimate costs associated with tasks (tv ads etc)
