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Rossiter-Percy Grid

Percy Elliott, 2005


Four Communication Objectives (Percy Elliott, 205)

• Category need • Interest in product category

• Brand awareness • Brand identification in detail to


enable purchase or use

• Brand attitude • Known or felt about the brand

• Brand purchase • Desire to try or use the brand


intention
Brand Communication Management

Budgeting for the Promotional


Program

© 2010 Diederich Bakker


Last Lecture

• Brand Communication Strategy


Integrated Marketing Communications Planning Model
Review of marketing plan
Promotional program situation analysis
Analysis of the communications process

Budget determination

Develop integrated marketing communications programs

Sales PR/ Personal Direct Internet/


Advertising
promotion publicity selling marketing interactive

Advertising Sales PR/ Personal Direct Internet/


promotion publicity selling marketing interactive
objectives objectives objectives objectives objectives objectives
Advertising Sales PR/ Personal Direct Internet/
promotion publicity selling marketing interactive
strategy strategy strategy strategy strategy strategy
message and message and message and Sales message message and message and
media strategy media strategy media strategy strategy and media strategy media strategy
and tactics and tactics and tactics sales tactics and tactics and tactics

Integrate and implement marketing communications strategies


Monitor, evaluate and control IMC Program
Marketing Versus Communications Objectives

Marketing
Marketing Communications
Communications
Objectives
Objectives Objectives
Objectives

•• Generally
Generally stated
stated in in the
the •• Derived
Derived from
from the
the overall
overall
firm’s
firm’s marketing
marketing plan plan marketing
marketing plan
plan
•• Achieved
Achieved through
through the the •• More
More narrow
narrow than
than
overall
overall marketing
marketing plan plan marketing
marketing objectives
objectives
•• Quantifiable,
Quantifiable, such
such as as Vs. •• Based
Based onon particular
particular
sales,
sales, market
market share,
share, ROI ROI communications
communications taskstasks
•• To
To be
be accomplished
accomplished in in aa •• Designed
Designed to to deliver
deliver
given
given period
period ofof time
time appropriate
appropriate messages
messages
•• Must
Must bebe realistic
realistic andand •• Focused
Focused onon aa specific
specific
attainable
attainable to
to be
be effective
effective target
target audience
audience
Many Different Factors Affect Sales

$ ALE$
$ALE $

Advertising
Advertising Product
Product
and
and Competition
Competition quality
quality
promotion
promotion

The
The
Distribution
Distribution Technology
Technology Price
Price economy
economy
Balancing Objectives and Budgets

What we’re What we need


willing and to achieve our
able to spend objectives
Dollars Goals
Marginal Analysis

Sales Gross Margin


Sales in $

Ad. Expenditure

Profit
Point A

Advertising / Promotion in $
Top-Down Budgeting Methods

Competitive
Competitive
Parity
Parity

Arbitrary
Arbitrary Percentage
Percentage
Allocation
Allocation Top of
of Sales
Sales
Top
Management
Management

Return
Return on
on Affordable
Affordable
Investment
Investment Method
Method
Bottom-Up Budgeting

Total
Total Budget
Budget Is
Is Approved
Approved by
by
Top
Top Management
Management

Cost
Cost of
of Activities
Activities are
are Budgeted
Budgeted

Activities
Activities to
to Achieve
Achieve Objectives
Objectives
Are
Are Planned
Planned

Promotional
Promotional Objectives
Objectives Are
Are Set
Set
Objective and Task Method
Establish
Establish Objectives
Objectives
(create
(create awareness
awareness of
of new
new product
product
among
among 2020 percent
percent of
of target
target market)
market)

Determine
Determine Specific
Specific Tasks
Tasks
Determine
Determine Specific
Specific Tasks
Tasks
(advertise
(advertise on
on market
market area television
areaother
television and
and
(advertising,
(advertising, promotions,
promotions, other IMC)
IMC)
radio
radio and
and local
local newspapers)
newspapers)

Estimate
Estimate Costs
Costs Associated
Associated with
with Tasks
Tasks
(determine
(determine costs
costs of
of advertising,
advertising,
promotions,
promotions, etc.)
etc.)

Monitor
Monitor and
and Adjust
Adjust
(monitor
(monitor performance
performance and
and adjust)
adjust)
Budget Allocation

2006 Advertising Spend Australia

Medium $m
Newspapers 3.793
Free-to-air TV 3.208 (-0.26%)
Online 1.001 (+62%)
Magazines 749
Radio 925
Outdoor 379 (+7%)
Pay-TV 212 (+33%)
Cinema 86
Classified directories 1.306 (-10.4%)
All Media 11.903 (+3%)
Source: CEASA
Tomorrow

• Bring 1 print ad for each of the


following communication objectives to
the next seminar:
– Informational low involvement
– Informational high involvement
– Transformational low involvement
– Transformational high involvement