IMC Lecture 7
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The document discusses integrated marketing communications budgeting and control. It notes that determining budgets involves balancing the needs of multiple stakeholders and choosing an appropriate budgeting approach. Common approaches include basing the budget on a percentage of sales, what is affordable after other costs, or what is needed to achieve specific objectives. The document also discusses concepts like paid, owned and earned media as they relate to budgeting, and emphasizes setting realistic and measurable objectives.
IMC Lecture 7
- 1. Integrated Marketing Communications Budgeting and Control 7
- 2. The Integrated Marketing Communications planning framework… 1 2 3 4 5 6 context analysis promotional objectives promotional strategy coordinated communications mix implementation Control and evaluation push pull profile corporate marketing communications resources scheduling Fill, 2011
- 3. budgeting... two main concerns… how much should be spent on each individual communications tool budget is usually determined by a combination of up to four different stakeholder groups how much should be allocated to promotion for the campaign or time-frame the organisation communications agencies the media channels the target audience
- 4. budgeting approaches budget-setting method explanation arbitrary based on guess work on behalf of the most senior management – budget for resources determined as each demand arises inertia the same amount of budget as was spent on previous communications is made available media multiplier last years budget is increased by the rate of inflation percentage of sales budget is set in relation to the level of historic or forecast sales, may be based on traditional figures affordable what is left after all other costs in relation to production, manufacturing and distribution are accounted for first then we’re left with what’s left objective and task the resources needed to achieve each objective are determined and costed and brought into an overall, total budget adapted from Fill, 2006
- 5. further budgeting approaches competitor parity organisations deliberately spend the same as key competitors advertising-to-sales ratio budget is based on competitor spend and percentage of market share in relation to an industry average only suitable for stable FMCG markets where advertising is the key tool that influences sales share of voice as above but the idea is to increase share of voice in the market
- 6. …but how much do things co
- 7. …but how much do things cost?
- 8. …but how much do things cost?
- 9. …but how much do things cost?
- 10. …but how much do things cost?
- 11. …but how much do things cost?
- 12. …but how much do things cost?
- 13. …but how much do things cost?
- 14. There is no easy way to determine a budget... It is difficult to quantify exactly how much is needed… How much does it cost to build brand awareness? How much does it cost for the audience to think, feel and act in the desired way? …and communications budgets aren’t neat, ordered things! No communications are truly free… they are either paid-for, owned or earned
- 15. paid, earned and owned… A relatively new concept but can be related to budgeting We pay for most of our communications media …and we can earn media and communications over time We own some media but there is an internal cost
- 16. Budgeting in context... Be realistic… think about what you want to achieve Bring the costs into your implementation plan You may want to work under Objective and Task Break down by activity, time and also a final total
- 18. The Integrated Marketing Communications planning framework… 1 2 3 4 5 6 context analysis promotional objectives promotional strategy coordinated communications mix implementation Control and evaluation push pull profile corporate marketing communications resources scheduling Fill, 2011
- 20. scheduling - flighting time volumeofadvertising time volumeofadvertising time volumeofadvertising erratic flighting regular flighting start-up flighting
- 21. scheduling - continuity time volumeofadvertising time volumeofadvertising time volumeofadvertising perfect continuity rising continuity falling continuity
- 22. scheduling - pulsing time volumeofadvertising time volumeofadvertising time volumeofadvertising regular pulsing irregular pulsing block pulsing
- 23. The Integrated Marketing Communications planning framework… 1 2 3 4 5 6 context analysis promotional objectives promotional strategy coordinated communications mix implementation Control and evaluation push pull profile corporate marketing communications resources scheduling Fill, 2011
- 24. promotional objectives... avoid solely focusing on sales help to determine/clarify position help highlight the balance of tactics needed provide a time frame provide a means of evaluation and measurement link back to marketing and corporate objectives
- 25. types of objectives… awareness, interest, repositioning, reinforcement leads, conversions from leads, page views, time, value per visit sales, sales from leads, sales value, sales volume, average order value active customers, brand mentions, shares, virality, awareness Unique visitors, traffic, bounce rate, revenue, search percentage
- 26. Specific, Measureable, Achievable, Realistic and Time-bound Think… what do I want to achieve, where, with what audience and by when They need to be SMART… Make sure you can measure performance
- 27. …developing intelligent objectives Objective Substantiation Strategies to achieve goals KPI’s Link to stage of consumer journey and SMART Link to audit findings Link to STP, brand and 3P’s What will you be measuring? Reach – raise awareness of Foundation UK by 10% in general through social media posting by December 2016 Weakness in brand awareness – very low Increased charity competition Raise awareness of work done Target broad audience Focus on Profile strategy % increase in awareness via pre and post testing
- 28. gap analysis… If we know what we want to achieve as a metric… …and when we want to achieve it by… We can conduct a simple gap analysis timeframe Measure…let’ssayincrease salesby10%