Integrated Marketing Communications
Budgeting and Control
7
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
proGile
corporate
marketing
communications
resources scheduling
Fill, 2011
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 cam
paign
or time-‐frame
the organisation
communications agencies
the media channels
the target audience
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 inGlation percentage of sales budget is set in relation to the level of historic or
forecast sales, may be based on traditional Gigures affordable what is left after all other costs in relation to
production, manufacturing and distribution are accounted for Girst 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
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 inGluences sales
share of voice as above but the idea is to increase share of voice in the market
…but how much do things cost?
…but how much do things cost?
…but how much do things cost?
…but how much do things cost?
…but how much do things cost?
http://www.wordstream.com/articles/google-‐statistics, 2012
There is no easy way to determine a budget...
It is difGicult 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 thin
gs!
No communications are truly free… they are either paid-‐for, owned or earned
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
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 Ginal total
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
proGile
corporate
marketing
communications
resources
scheduling
Fill, 2011
scheduling
Glighting
continuity
pulsing
scheduling -‐ Glighting
time volume of advertising
time volume of advertising
time volume of advertising
erratic Glighting regular Glighting
start-‐up Glightin
g
scheduling -‐ continuity
time volume of advertising
time volume of advertising
time volume of advertising
perfect continuity
rising continuity
falling continuity
scheduling -‐ pulsing
time volume of advertising
time volume of advertising
time volume of advertising
regular pulsing irregular pulsing
block pulsing
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
proGile
corporate
marketing
communications
resources scheduling
Fill, 2011
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
SpeciGic, 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 measu
re performance
gap analysis… If we know what we want to achieve as a met
ric…
…and when we want to achieve it by…
We can conduct a simple gap analysis
timeframe
Measure… let’s say
increase sales by 10%
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