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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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SMART OBJECTIVES
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SALES OBJECTIVE
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Sales
Objectives
Communications
Objectives
• Primary goal is
increased sales
• Requires economic
justification
• Should produce
quantifiable results
• Sales volume,
market share, profits,
ROI
• Increased brand
knowledge, interest,
favorable attitudes
and image
• Immediate response
not expected
• Goal is creating
favorable
predispositions
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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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COMMUNICATIONS
OBJECTIVE
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Conative (behavioral)
Ads stimulate or
direct desires
Affective (feeling)
Ads change attitudes and
feelings
Cognitive (thinking)
Ads provide
information and facts
Purchase
Purchase intentions
Favorable attitudes and
image
Brand knowledge
and interest
Brand awareness
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Education.
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THE DAGMAR METHOD OF
SETTING OBJECTIVE
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Define
Advertising
Goals for
Measuring
Advertising
Results
Making the consumer
aware of the existence
of the brand or
company
Developing an
understanding of what
the product is and
what it will do for the
consumer
Developing a mental
disposition in the
consumer to buy the
product
Getting the
consumer to
purchase the
product
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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 7.5 - 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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BUDGET ADJUSTMENTS
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Figure 7.12 - Top-Down versus BottomUp Approaches to Budget Setting
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OBJECTIVE AND TASK
METHOD
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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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