2. Ch. 7: Objectives and Budgeting for Promotional Programs n Why should we establish objectives for promotional programs?

3. Marketing Objectives vs. IMC Objectives n Marketing objectives are generally stated in the firm’s marketing plan and are statements of what is to be accomplished by the overall marketing program within a given time period. n IMC objectives are statements of what various aspects of the IMC program will accomplish. They should be based on the particular communication tasks that are required to deliver the appropriate message to the target audience.

4. IMC Objectives: Sales vs. Communication Perspective n Sales-Oriented Objectives: n What are the potential problems with this perspective? n Communication-Oriented Objectives: n What are the potential problems with this perspective?

5. Characteristics of Good Objectives n Concrete and measurable n Specify a well-defined audience n Establish benchmark measures n Specify a time period n Attainable n Realistic

6. Promotional Budget: Theoretical Issue Assumptions: 1) sales are a direct measure of advertising and promotions efforts; 2) sales are determined solely by advertising and promotions. Sales Ad expenditure Sales

7. Promotional Budget: Practical Approach Top-Down Budgeting Top Management sets the spending limit Promotion budget set to stay within spending limit Affordable method Percentage of sales ** Competitive parity Arbitrary allocation

8. Promotional Budget: Practical Approach Build-up Budgeting Promotion objectives are set Activities needed to achieve objectives are planned Costs of promotion activities are budgeted Total promotion budget is approved by top management Objective and task method** Payout planning Quantitative models