IMC Lecture 7 201213

Integrated Marketing Communications

Budgeting and Control

7

The Integrated Marketing

Communications planning framework…

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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?





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



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push

pull

proGile

corporate

marketing

communications

resources

scheduling

Fill, 2011

scheduling

Glighting

continuity

pulsing

scheduling -‐ Glighting

time volume of advertising



erratic Glighting regular Glighting

start-‐up Glightin

g

scheduling -‐ continuity




perfect continuity

rising continuity

falling continuity

scheduling -‐ pulsing




regular pulsing irregular pulsing

block pulsing



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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%

Education

IMC Lecture 7 201213