Chapter 7 - Establishing objectives and budgeting for the promotional program. After completing this unit, you should be able to: To recognize the importance and value of setting specific objectives for advertising and promotion, to understand the role objectives play in the IMC planning process and the relationship of promotional objectives to marketing objectives, to know the differences between sales and communications objectives and the issues regarding the use of each,. | Chapter 7 Establishing Objectives and Budgeting for the Promotional Program 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 Marketing Objectives versus Integrated Marketing Communications Objectives Marketing objectives Identify what is to be accomplished by the overall marketing program Defined in terms of specific and measurable outcomes Must be quantifiable, realistic, and attainable Integrated marketing communications objectives Statements of what various aspects of the IMC program will accomplish Based on the particular communications tasks required to deliver the appropriate messages to the target audience Figure - Factors Influencing Sales Problems with Sales Objectives Successful implementation requires all marketing elements to work together Carryover effect: Monies spent on advertising do not have immediate impact on sales Advertising has carryover effect It is difficult to determine precise relationship between advertising and sales Do not offer much guidance for planning and developing promotional program Figure - Communications Effects Pyramid Criticisms of DAGMAR Problems with the response hierarchy Sales objectives Practicality and costs Inhibition of creativity Figure - Traditional Advertising-Based View of Marketing Communications Figure - Objectives and Strategies in the Social Consumer Decision Journey Source: Expert interviews; McKinsey analysis Figure - Marginal Analysis Figure - Advertising Sales/Response Functions Figure - Factors Influencing Advertising Budgets Note: 1 relationship means the factor leads to a positive effect of advertising on sales; 2 relationship . | Chapter 7 Establishing Objectives and Budgeting for the Promotional Program 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 Marketing Objectives versus Integrated Marketing Communications Objectives Marketing objectives Identify what is to be accomplished by the overall marketing program Defined in terms of specific and measurable outcomes Must be quantifiable, realistic, and attainable Integrated marketing communications objectives Statements of what various aspects of the IMC program will accomplish Based on the particular communications tasks required to deliver the appropriate messages to the target audience Figure - Factors Influencing Sales Problems with Sales Objectives Successful .
