Escolar Documentos
Profissional Documentos
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McGraw-Hill/Irwin
Value of Objectives
involved
Plans
and
Decisions
They
serve
as criteria for
developing
Types of Objectives
Marketing Objectives
IMC Objectives
Product Quality
Technology
The Economy
Promotion
SALES
Competition
Distribution
Price Policy
Communication Objectives
Conative
Realm of motives.
Ads stimulate or direct
desires.
Affective
Realm of emotions.
Ads change attitudes
and feelings
Movement
toward purchase
Purchase
Point of purchase
Retail store ads, Deals
Last-chance offers
Price appeals, Testimonials
Conviction
Preference
Liking
Competitive ads
Argumentative copy
Image copy
Status, glamour appeals
Cognitive
Knowledge
Realm of thoughts.
Ads provide
information and facts.
Announcements
Descriptive copy
Classified ads
Slogans, jingles, skywriting
Awareness
Teaser campaigns
90% Awareness
i ti
gn
Co
70% Knowledge
ve
40% Liking
Af
fe
iv
ct
25% Preference
20% Trial
e
ti v
na
Co
5% Use
Define
Advertising
for
Goals
Measuring
Advertising
Characteristics of Objectives
DAGMAR Difficulties
Legitimate Problems
Response Hierarchy
Problems
Doesn't always define
process
people use to
the
reach purchase/use.
Attitude - Behavior
Attitude change
Relationship
doesn't
always lead to change in
actions or behavior.
Questionable Objections
Sales Objectives Are
Needed
Sales are all that
really counts, not
communications
objectives.
Costly and
Impractical
The research and
efforts cost more then
the results are worth.
Inhibition of
Creativity
Attitude
s
Knowledge
Preference
Conviction
Linear
Acting on Consumers
Purchase
Behavior
Budgeting Decisions
Budgeting decisions involve determining how much
money will be spent on advertising and promotion
each year and how the monies will be allocated
Marginal Analysis
Sales in $
Sales
Gross Margin
Ad. Expenditure
Profit
Point A
Advertising / Promotion in $
. .equal
IF: to the
Hold
TheSpending
increasedLevel.
cost is
incremental (marginal) return.
Assumption:
Sales are the principal
objective advertising and/or
promotion.
Assumption:
Sales are the result of
advertising and promotion and
nothing else.
of
Range A
High Spending
Little Effect
Advertising Expenditures
Middle Level
High Effect
Incremental Sales
B. S-Shaped Response
Function
Initial Spending
Little Effect
Incremental Sales
A. Concave-Downward
Response Curve
Range B
Range C
Advertising Expenditures
Top-Down Budgeting
Top-Down Approaches
Bottom-Up Budgeting
Total Budget Is Approved by
Top Management
Cost of Activities are Budgeted
Activities to Achieve Objectives
Are Planned
Promotional Objectives Are Set
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Payout Planning
To determine how much to spend,
marketers develop a payout plan that
determines the investment value of the
advertising and promotion appropriation
Example of a three-year payout plan ($ millions)
Year 1
Product sales
Year 2
Year 3
15.0
35.50
60.75
7.5
17.75
30.38
Advertising/promotions
15.0
10.50
8.50
Profit (loss)
(7.5)
7.25
21.88
(7.5)
(0.25)
21.63
Profit contribution