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Advertising & Promotions: Exam 3

Terms in this set (173)

What are IMC objectives?
statements of what various aspects of the IMC program will accomplish and using promotional mix elements to effectively deliver the appropriate messages to the target audience
What are the 3 values of objectives?
communications, planning and decision making, & measurement and evaluation of results
Communications
objectives facilitate coordination of the various groups and keeps everyone focused on common goals
Planning and Decision Making
objectives guid decision making and development of the integrated marketing communications plan
Measurement and Evaluation of Results
objectives provide a benchmark to measure success or failure
Sales-Oriented Objectives
1. aim to increase sales
2. require economic justification
3. required to produce quantifiable results
What are some problems with sales objectives?
1. successful implementation requires all marketing elements to work together
2. advertising has carryover effect
3. it is difficult to determine precise relationship between advertising and sales
Carryover Effect
money spent on advertising that does not have immediate impact on sales
What are the factors that influence sales?
technology, economy, product quality, price, distribution, advertising & promotion, and competition
Communication Objectives
1. provide relevant information
2. create favorable predispositions toward the brand
3. set using models wherein consumers pass through three stages (cognitive, affective, conative [behavioral])
What are some problems with communication objectives?
1. translating sales goals into communication objectives (promotional planners have difficulty estimating what constitutes adequate levels of awareness, knowledge, liking, preference, or conviction)
2. no formulas or guidelines
When is a budget formulated?
when a new product is introduced, or when internal/external factors necessitate a change in maintain competitiveness
What is used to establish a budget?
economic theory, marginal analysis, and contribution margin
Contribution Margin
difference between the total revenue generated by a brand and its total variable costs
Marginal Analysis
increase in advertising/promotional expenditures increases sales and gross margins to a point, after which they level off
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