07
Download
1 / 15

Establishing Objectives and Budgeting for the Promotional Program - PowerPoint PPT Presentation


  • 78 Views
  • Uploaded on

07. Establishing Objectives and Budgeting for the Promotional Program. Characteristics of Objectives. Specific. Attainable. Measurable. Realistic. Quantifiable. 7- 2. Sales vs. Communications Objectives. Sales Objectives. Communications Objectives. Primary goal is increased sales

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Establishing Objectives and Budgeting for the Promotional Program' - wayde


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

07

Establishing Objectivesand Budgeting for thePromotional Program


Characteristics of objectives
Characteristics of Objectives

Specific

Attainable

Measurable

Realistic

Quantifiable

7-2


Sales vs communications objectives
Sales vs. Communications Objectives

SalesObjectives

Communications Objectives

  • Primary goal is increased sales

  • Requires economic justification

  • Should produce quantifiable results

  • Increased brand knowledge, interest, favorable attitudes and image

  • Immediate response not expected

  • Goal is creating favorable predispositions

7-3


Factors influencing sales
Factors Influencing Sales

Technology

Competition

The economy

Advertising & promotion

Product quality

Distribution

Price

7-4


Communications effects pyramid
Communications Effects Pyramid

5% Use

Conative

20% Trial

25% Preference

Affective

40% Liking

70% Knowledge/comprehension

Cognitive

90% Awareness

7-5



The dagmar approach
The DAGMAR Approach

Awareness

Comprehension

Conviction

Action

Define

Advertising

Goals for

Measuring

Advertising

Results

7-7


Advertising based view of marketing
Advertising-Based View of Marketing

Ads

Acting on Consumers

7-8



Budget adjustments
Budget Adjustments

Increase Spending

If cost is less than the marginal revenue generated

Hold

Spending

If the cost is equal to the marginal revenue generated

Decrease Spending

If the cost is more than the marginal revenue generated

7-10


Sales response models
Sales Response Models

A. Concave-Downward Response Curve

B. S-Shaped Response Function

Incremental Sales

Incremental Sales

Initial Spending

Little Effect

High Spending

Little Effect

Middle Level

High Effect

Range A

Range B

Range C

Advertising Expenditures

Advertising Expenditures

7-11


Factors influencing advertising budgets
Factors Influencing Advertising Budgets

Hidden productqualities

Product life cycle

Productprice

Productdurability

Purchasefrequency

Differentiation

7-12



Build up approaches
Build-Up Approaches

  • Objective and Task Method

    • Define communications objectives to be accomplished

    • Determine specific strategies and tasks needed to attain them

    • Estimate costs associated with performance of these strategies and tasks

7-14


Implementing the objective and task approach
Implementing the Objective and Task Approach

Isolate objectives

Determine tasks required

Estimate required expenditures

Monitor

Reevaluate objectives

7-15


ad