Marketing Budgets Types

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Questions and Answers

What percentage of firms use the objective and task budgeting method?

30%

20%

50% (correct)

40%

Which type of budgeting is based on the ratio of advertising to sales or market share?

Quantitative models

What we can afford

Payout planning (correct)

Objective and task budgeting

What is the main goal of pulsating schedule in communication?

To have a consistent advertising budget

To have a high advertising budget at product launch

To have a low advertising budget when brand is established

To have a varying advertising budget (correct)

Which of the following is NOT a component of IMC?

Public relations Signup and view all the answers

What percentage of marketing expenditures is allocated to consumer promotions?

27.9% Signup and view all the answers

According to the figure, what percentage of global ad spending is allocated to television?

57.6% Signup and view all the answers

What is the main goal of successful globally integrated marketing communications?

To understand the international market Signup and view all the answers

Which of the following is an example of an integrated campaign in action?

All of the above Signup and view all the answers

What is the main goal of quantitative models in budgeting?

To develop models based on historical data Signup and view all the answers

What is the main goal of communication segmentation strategies?

To segment the market based on demographics Signup and view all the answers

What is the primary goal of consumer-oriented research?

To understand the context of product use Signup and view all the answers

What is a critical aspect of the IMC planning process?

Identifying target markets through research Signup and view all the answers

What is the primary purpose of target-market research?

To identify feasible market segments Signup and view all the answers

What is product positioning primarily concerned with?

The perception of a company's products in the consumer's mind Signup and view all the answers

What is a key step in determining if a market segment is viable?

Identifying the homogeneous characteristics of the segment Signup and view all the answers

Which of the following is NOT a product positioning approach?

Advertising budget Signup and view all the answers

What is the role of marketing communication objectives in the IMC planning process?

To interact with the other elements of the IMC planning process Signup and view all the answers

What is a key component of the IMC planning process?

IMC components Signup and view all the answers

What is the primary goal of marketing communications?

To develop brand awareness Signup and view all the answers

What is the primary focus of product-specific research?

Identifying key selling points of a product Signup and view all the answers

Which of the following methods of determining marketing communication budgets is based on a percentage of sales?

Percentage of sales Signup and view all the answers

What is the relationship between marketing communication objectives and the IMC planning process?

Marketing communication objectives interact with the other elements of the IMC planning process Signup and view all the answers

What is the primary advantage of the objective and task method of determining marketing communication budgets?

It is based on specific goals and objectives Signup and view all the answers

What is the main limitation of the meet the competition method of determining marketing communication budgets?

Dollars may not be spent efficiently Signup and view all the answers

Which of the following is a key factor in determining the effectiveness of advertising?

The brand recognition and market share Signup and view all the answers

What is a critical component of image and brand management?

Product positioning Signup and view all the answers

Which of the following is a marketing communication objective?

To enhance firm image Signup and view all the answers

What is the primary goal of positioning strategies?

To create a perception of the company and its products in the consumer's mind Signup and view all the answers

Study Notes

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.

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Description

This quiz covers different types of budgets used in marketing, including what we can afford, objective and task, and payout planning. Learn about the characteristics of each budget type and their applications.