Marketing Budgets Types

Types of Budgets

• There are several types of budgets, including "what we can afford", objective and task, payout planning, and quantitative models.
• "What we can afford" budgets are set after all other items are budgeted and do not view marketing as important.
• Objective and task budgets are determined by objectives and are considered the best method of budgeting, used by 50% of firms.
• Payout planning budgets use a ratio of advertising to sales or market share, with a larger percentage at product launch and a lower percentage when the brand is established.
• Quantitative models use computer simulations and develop models based on historical data.

Communication Schedules

• There are three types of communication schedules: pulsating, flighting, and continuous.

IMC Components

• IMC (Integrated Marketing Communications) components include traditional advertising, trade promotions, consumer promotions, media spending, alternative media spending, and business-to-business media spending.

Marketing Expenditures

• A breakdown of marketing expenditures shows that advertising accounts for 41.1% of the budget, while trade promotions and consumer promotions account for 27.5% and 27.9%, respectively.

Global Ad Spending by Media

• Television accounts for 57.6% of global ad spending, while newspapers account for 18.9%, radio accounts for 5.4%, outdoor accounts for 3.5%, and digital accounts for 4.3%.

Successful Globally Integrated Marketing Communications Tactics

• To be successful, globally integrated marketing communications require understanding the international market, a borderless marketing plan, thinking globally but acting locally, local partnerships, communication segmentation, and solid communication objectives.

Product Positioning

• Product positioning is the perception created in the consumer's mind regarding the nature of the company and its products relative to the competition.
• Positioning is created by factors such as product quality, price, distribution, image, and marketing communications.

Product Positioning Approaches

• There are several approaches to product positioning, including product attributes, competitors, use or application, price/quality, product user, product class, and cultural symbol.

Elements of Positioning

• Positioning is never completely fixed and applies to business-to-business markets as well.
• International positioning is important, and positioning is a critical component of image and brand management.

Marketing Communications Objectives

• Marketing communications objectives include developing brand awareness, increasing category demand, changing customer beliefs and attitudes, enhancing purchase actions, encouraging repeat purchases, building customer traffic, enhancing firm image, increasing market share, and increasing sales.

Methods of Determining Marketing Communication Budgets

• Methods of determining marketing communication budgets include percentage of sales, meet-the-competition, "what we can afford", objective and task, payout planning, and quantitative models.