Transcript Carryover effect - McGraw Hill Higher Education

Chapter 7
Establishing
Objectives
and Budgeting
for the
Promotional
Program
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Value of Objectives
 Communications
 Objectives facilitate coordination of the various
groups
 Planning and decision making
 Objectives guide decision making and development
of the integrated marketing communications plan
 Measurement and evaluation of results
 Objectives provide a benchmark to measure success
or failure
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Marketing Objectives versus Integrated
Marketing Communications Objectives
Marketing objectives
Integrated marketing
communications objectives
• Identify what is to be accomplished
• Statements of what various aspects
by the overall marketing program
• Defined in terms of specific and
measurable outcomes
• Must be quantifiable, realistic, and
attainable
of the IMC program will accomplish
• Based on the particular
communications tasks required to
deliver the appropriate messages
to the target audience
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Figure 7.1 - Factors Influencing Sales
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Problems with Sales Objectives
Successful implementation requires all
marketing elements to work together
Advertising has carryover effect
• Carryover effect: Monies spent on advertising do not have
immediate impact on sales
It is difficult to determine precise relationship
between advertising and sales
Do not offer much guidance for planning and
developing promotional program
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Figure 7.2 - Communications Effects
Pyramid
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Criticisms of DAGMAR
Problems with the response hierarchy
Sales objectives
Practicality and costs
Inhibition of creativity
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Figure 7.4 - Traditional Advertising-Based
View of Marketing Communications
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Figure 7.5 - Objectives and Strategies in
the Social Consumer Decision Journey
Source: Expert interviews; McKinsey analysis
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Figure 7.8 - Marginal Analysis
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Figure 7.9 - Advertising Sales/Response
Functions
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Figure 7.10 - Factors Influencing
Advertising Budgets
Note: 1 relationship means the factor leads to a positive effect of advertising on sales;
2 relationship indicates little or no effect of advertising on sales.
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Figure 7.12 - Top-Down versus BottomUp Approaches to Budget Setting
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Figure 7.15 - Investments Pay Off in
Later Years
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Figure 7.16 - Competitors’ Advertising
Outlays do not Always Hurt
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Figure 7.18 - The Objective and Task
Method
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Steps to Develop and Implement the
Budget
Employ comprehensive strategy
Develop strategic planning framework that employs an
integrated marketing communications philosophy
Develop contingency plans
Focus on long-term objectives
Evaluate effectiveness of programs have to be
consistently
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Figure 7.21 - How Advertising and
Promotions Budgets Are Set
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Budget Allocation: Factors to Consider
Allocating to IMC elements
Client/agency policies
Market size
Market potential
Market share goals
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Figure 7.24 - The Share of Voice (SOV)
Effect and Ad Spending: Priorities in Individual Markets
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