Chap07 Establishing Objectives and Budgeting For The Promotional Program
Chap07 Establishing Objectives and Budgeting For The Promotional Program
Marketing Objectives
IMC Objectives
Promotion
Product Quality Competition
Knowledge Announcements
Cognitive Descriptive copy
Realm of thoughts. Classified ads
Slogans, jingles, skywriting
Ads provide
information and facts. Awareness Teaser campaigns
Inverted Pyramid of Communications Effects
90% Awareness
Co
gn
70% Knowledge
iti
ve
40% Liking
Af
fe
25% Preference
ct
iv
e
20% Trial
Co
5% Use
na
tiv
e
The DAGMAR Approach
Define
Advertising
Goals for
Measuring
Advertising
Results
Characteristics of Objectives
One-Way
Purchase
Attitudes Knowledge Preference Conviction
Behavior
Linear
Acting on Consumers
Budgeting Decisions
Ad. Expenditure
Profit
Point A
Advertising / Promotion in $
BASIC Principles of Marginal Analysis
¾ Assumption:
Sales are the principal objective of
advertising and/or promotion.
¾ Assumption:
Sales are the result of advertising
and promotion and nothing else.
Advertising Sales/Response Functions
Incremental Sales
High Effect
Middle Level
Little Effect
Initial Spending
Little Effect
High Spending
Range A Range B Range C
Advertising Expenditures
Advertising Expenditures
Top-Down Budgeting
Establish
EstablishObjectives
Objectives
(create
(createawareness
awarenessofofnew
newproduct
productamong
among
20
20percent
percentof
oftarget
targetmarket)
market)
Determine
DetermineSpecific
SpecificTasks
Tasks
(advertise
(advertiseon
onmarket
marketarea
areatelevision
televisionand
and
radio
radioand
andlocal
localnewspapers)
newspapers)
Estimate
EstimateCosts
CostsAssociated
Associatedwith
withTasks
Tasks
(create
(createawareness
awarenessofofnew
newproduct
productamong
among
20
20percent
percentof
oftarget
targetmarket)
market)
Payout Planning
¾ Client/Agency Policies
¾ Size of Market
¾ Market Potential
¾ Market Share Goals
¾ Market Share and Economies of Scale
¾ Organizational Characteristics
Share of Voice and Ad Spending