tài liệu truyền thông - chap06 - thiết lập mục tiêu và ngân sách

© 2010 South-Western, a part of Cengage Learning
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Eighth Edition
Objective Setting
and Budgeting
CHAPTER
6
1. Understand the process of marcom objective setting and
the requirements for good objectives.
2. Appreciate the hierarchy-of-effects model and its relevance
for setting marcom objectives.
3. Comprehend the role of sales as a marcom objective and
the logic of vaguely right versus precisely wrong thinking.
4. Know the relation between a brand’s share of market
(SOM) and its share of voice (SOV) and the implications
for setting an advertising budget.
5. Understand the various rules of thumb, or heuristics, that
guide practical budgeting.
Chapter Objecves
After reading this chapter you should be able to:
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–2
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Cengage Learning. All rights
reserved.
6–3
Setting Marcom Objectives
Setting Marcom Objectives
•
Marcom Objectives

Marcom Objectives

Goals that the various marcom elements aspire to
Goals that the various marcom elements aspire to
achieve individually or collectively during a scope of
achieve individually or collectively during a scope of
time such as a business quarter or fiscal year
time such as a business quarter or fiscal year
•
Setting Marcom Objectives
Setting Marcom Objectives

Is an expression of management consensus
Is an expression of management consensus

Guides the budgeting, message, and media aspects
Guides the budgeting, message, and media aspects
of advertising strategy
of advertising strategy

Provides standards against which results can be
Provides standards against which results can be
measured
measured
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Cengage Learning. All rights
reserved.
6–4
Marcom Objectives and Tools
Marcom Objectives and Tools

Marcom Objective
Marcom Objective
Marcom Tool
Marcom Tool
Facilitate the successful introduction of new
Facilitate the successful introduction of new
brands
brands
Brand naming and packaging, advertising, sales
Brand naming and packaging, advertising, sales
promotions, word-of-mouth buzz generation, and
promotions, word-of-mouth buzz generation, and
point-of-purchase (P-O-P) displays
point-of-purchase (P-O-P) displays
Build sales of existing brands by increasing
Build sales of existing brands by increasing
the frequency of use, the variety of uses, or
the frequency of use, the variety of uses, or
the quantity purchased
the quantity purchased
Advertising and sales promotions
Advertising and sales promotions
Inform the trade (wholesalers, agents or
Inform the trade (wholesalers, agents or
brokers, and retailers) and consumers about
brokers, and retailers) and consumers about
brand improvements
brand improvements
Personal selling and trade-oriented advertising
Personal selling and trade-oriented advertising

Create brand awareness
Create brand awareness
Advertising, packaging, and P-O-P messages).
Advertising, packaging, and P-O-P messages).
Enhance a brand’s image
Enhance a brand’s image
Brand naming and packaging, advertising, event
Brand naming and packaging, advertising, event
sponsorship, cause-oriented marketing, and
sponsorship, cause-oriented marketing, and
marketing-oriented public relations
marketing-oriented public relations
Generate sales leads
Generate sales leads
Advertising
Advertising
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reserved.
6–5
Marcom Objectives and Tools (cont’d)
Marcom Objectives and Tools (cont’d)
Marcom Objective
Marcom Objective
Marcom Tool
Marcom Tool
Persuade the trade to handle the
Persuade the trade to handle the
manufacturer’s brands
manufacturer’s brands

Trade-oriented advertising and personal
Trade-oriented advertising and personal
selling
selling
Stimulate point-of-purchase sales
Stimulate point-of-purchase sales
Brand naming and packaging, P-O-P
Brand naming and packaging, P-O-P
messages, and external store signage
messages, and external store signage
Increase customer loyalty
Increase customer loyalty
Advertising and sales promotions
Advertising and sales promotions
Improve corporate relations with special
Improve corporate relations with special
interest groups
interest groups
Marketing-oriented PR
Marketing-oriented PR
Offset bad publicity about a brand or generate
Offset bad publicity about a brand or generate
good publicity
good publicity
Marketing-oriented PR
Marketing-oriented PR
Counter competitors’ communications efforts
Counter competitors’ communications efforts
Advertising and sales promotions
Advertising and sales promotions

Provide customers with reasons for buying
Provide customers with reasons for buying
immediately instead of delaying a purchase
immediately instead of delaying a purchase
Advertising and sales promotions
Advertising and sales promotions
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reserved.
6–6
Hierarchy of
Marcom Effects
Figure 6.1
The hierarchy of effects
metaphor implies that for
marketing communications to
be successful it must move
consumers from one goal to
the next goal.
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reserved.
6–7
The Hierarchy of Marcom Effects
The Hierarchy of Marcom Effects
•
Advancing Consumers from Unawareness to
Advancing Consumers from Unawareness to
Awareness
Awareness


Advertising is the most effective and efficient method
Advertising is the most effective and efficient method
for quickly creating brand awareness.
for quickly creating brand awareness.
•
Creating an Expectation
Creating an Expectation

Product benefits from buying and experiencing a
Product benefits from buying and experiencing a
brand
brand
•
Encouraging Trial Purchases
Encouraging Trial Purchases

Free samples, coupons, major price discounts and
Free samples, coupons, major price discounts and
rebate offers encourage trial behaviors
rebate offers encourage trial behaviors
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reserved.
6–8
The Hierarchy of Marcom Effects (cont’d)
The Hierarchy of Marcom Effects (cont’d)
•
Forming Beliefs and Attitudes
Forming Beliefs and Attitudes


Beliefs form the basis for developing an overall
Beliefs form the basis for developing an overall
attitude toward the brand.
attitude toward the brand.

Beliefs and attitudes are mutually reinforcing
Beliefs and attitudes are mutually reinforcing
•
Reinforcing Beliefs and Attitudes
Reinforcing Beliefs and Attitudes

Marcom serves to reinforce consumer beliefs and
Marcom serves to reinforce consumer beliefs and
attitudes based on product usage experience
attitudes based on product usage experience
•
Accomplishing Brand Loyalty
Accomplishing Brand Loyalty

Brands that continue to satisfy expectations foster
Brands that continue to satisfy expectations foster
brand-loyalty which reduces price sensitivity
brand-loyalty which reduces price sensitivity
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reserved.
6–9
Advertisement
Illustrating

Hierarchy of
Marcom Effects
Figure 6.2
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reserved.
6–10
Criteria That Good Marcom Objectives Must Satisfy
Figure 6.3
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Cengage Learning. All rights
reserved.
6–11
Should Marcom Objectives Be Stated in
Should Marcom Objectives Be Stated in
Terms of Sales?
Terms of Sales?
•
Objectives of Presales Communication
Objectives of Presales Communication

To increase the target audience’s brand awareness
To increase the target audience’s brand awareness

To enhance the target ir attitudes toward the brand
To enhance the target ir attitudes toward the brand

To shift their preferences from the competitors’ brand
To shift their preferences from the competitors’ brand
•

Sales Objectives
Sales Objectives

The marcom objective literally is to increase sales by
The marcom objective literally is to increase sales by
a particular amount.
a particular amount.
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6–12
The Logic of Vaguely Right versus Precisely Wrong Thinking
Figure 6.4
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reserved.
6–13
Should Marcom Objectives Be Stated
Should Marcom Objectives Be Stated
in Terms of Sales?
in Terms of Sales?
The Heretical
The Heretical
View
View
(Antithesis)
(Antithesis)
•
Marcom objectives should always be stated in terms of sales or
market share gains and that failure to do so is a cop-out

•
Marcom’s purpose is to generate sales.
The Traditional
The Traditional
View
View
(Thesis)
(Thesis)
Using sales response as the objective for a branded product’s
marcom effort is unsuitable for two reasons:
•
A host of factors (e.g., advertising, sales promotions, and other
elements of the marcom program) can affect sales.
•
Marcom’s effect on sales is typically delayed, or lagged.
Accountability
Accountability
Perspective
Perspective
(Synthesis)
(Synthesis)
•
Companies and their chief executives and financial officers are
demanding greater accountability from marcom programs
•
Efforts should not also be made to assess whether marcom
affects pre-sales goals.
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Cengage Learning. All rights
reserved.

6–14
Marcom Budgeting
Marcom Budgeting
•
Budgeting in Theory
Budgeting in Theory

The best (optimal) level of any investment is the level
The best (optimal) level of any investment is the level
that maximizes profits
that maximizes profits

Marginal revenue = Marginal cost, MR=MC
Marginal revenue = Marginal cost, MR=MC

Marginal Cost =
Marginal Cost =
Change in total cost
Change in total cost
=
=
∆
∆
TC
TC
Change in quantity
Change in quantity
Q
Q


Marginal Revenue =
Marginal Revenue =
Change in total revenue
Change in total revenue
=
=
∆
∆
TR
TR


Change in quantity
Change in quantity
Q
Q

Advertisers should increase their advertising
Advertisers should increase their advertising
investment as long as it is profitable to do so
investment as long as it is profitable to do so
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Cengage Learning. All rights
reserved.
6–15
Marcom Budgeting
Marcom Budgeting
•
Sales-to-Advertising Response Function
Sales-to-Advertising Response Function


The relationship between money invested in
The relationship between money invested in
advertising and the response, or output, of that
advertising and the response, or output, of that
investment in terms of revenue generated
investment in terms of revenue generated
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Cengage Learning. All rights
reserved.
6–16
Hypothetical Sales-to-Advertising Response Function
Table 6.1
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6–17
Budgeting in Practice
Budgeting in Practice
•
Percentage-of-Sales Budgeting
Percentage-of-Sales Budgeting

Brand advertising budget is a fixed percentage of past
Brand advertising budget is a fixed percentage of past
(e.g., last year’s) or anticipated (e.g., next year’s)
(e.g., last year’s) or anticipated (e.g., next year’s)
sales volume.
sales volume.


Criticism: budget becomes a function of sales
Criticism: budget becomes a function of sales

Sales =
Sales =
ƒ(Advertising) versus Advertising
ƒ(Advertising) versus Advertising
=
=
ƒ(
ƒ(
Sales
Sales
)
)
•
Objective-and-Task Budgeting
Objective-and-Task Budgeting

Advertising decision makers specify what role they
Advertising decision makers specify what role they
expect advertising (or some other marcom element)
expect advertising (or some other marcom element)
to play for a brand and then set the budget
to play for a brand and then set the budget
accordingly.
accordingly.
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Cengage Learning. All rights
reserved.

6–18
Budgeting in Practice (cont’d)
Budgeting in Practice (cont’d)
•
Percentage-of-Sales Budgeting
Percentage-of-Sales Budgeting

Brand advertising budget is a fixed percentage of past
Brand advertising budget is a fixed percentage of past
(e.g., last year’s) or anticipated (e.g., next year’s)
(e.g., last year’s) or anticipated (e.g., next year’s)
sales volume.
sales volume.

Criticism: budget becomes a function of sales
Criticism: budget becomes a function of sales
Sales =
Sales =
ƒ(Advertising) versus Advertising
ƒ(Advertising) versus Advertising
=
=
ƒ(
ƒ(
Sales
Sales
)
)
•
Objective-and-Task Budgeting

Objective-and-Task Budgeting

Advertising decision makers specify what role they
Advertising decision makers specify what role they
expect advertising (or some other marcom element)
expect advertising (or some other marcom element)
to play for a brand and then set the budget
to play for a brand and then set the budget
accordingly.
accordingly.
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Cengage Learning. All rights
reserved.
6–19
Steps in Objective-and-Task Budgeting
Steps in Objective-and-Task Budgeting
1.
1.
Establish specific marketing objectives to be
Establish specific marketing objectives to be
accomplished
accomplished
2.
2.
Assess communication functions required to
Assess communication functions required to
accomplish overall marketing objectives
accomplish overall marketing objectives
3.
3.

Determine advertising’s role in the total
Determine advertising’s role in the total
communication mix
communication mix
4.
4.
Establish specific measurable communication
Establish specific measurable communication
response level goals required to achieve marketing
response level goals required to achieve marketing
objectives.
objectives.
5.
5.
Establish the budget based on estimates of
Establish the budget based on estimates of
expenditures required to accomplish the advertising
expenditures required to accomplish the advertising
goals.
goals.
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6–20
Budgeting in Practice (cont’d)
Budgeting in Practice (cont’d)
•
Competitive Parity Method Budgeting
Competitive Parity Method Budgeting


Setting the marcom budget to match or exceed what
Setting the marcom budget to match or exceed what
competitors are doing
competitors are doing

Share of Market (SOM)
Share of Market (SOM)

The ratio of one brand’s revenue to total category revenue
The ratio of one brand’s revenue to total category revenue

Share of Voice (SOV)
Share of Voice (SOV)

The ratio of a brand’s advertising expenditures to total
The ratio of a brand’s advertising expenditures to total
category advertising expenditures
category advertising expenditures
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Cengage Learning. All rights
reserved.
6–21
Choosing Marcom Pathways
Choosing Marcom Pathways
•
Encoding Variability Hypothesis
Encoding Variability Hypothesis

Contends that people’s memory for information is
Contends that people’s memory for information is

enhanced when multiple
enhanced when multiple
pathways
pathways
, or connections
, or connections
are created between the object to be remembered
are created between the object to be remembered
and the information about the object that is to be
and the information about the object that is to be
remembered
remembered
•
Enhancing Memory for Advertised Information
Enhancing Memory for Advertised Information

The advertising message itself
The advertising message itself

The advertising media in which the message is
The advertising media in which the message is
placed
placed
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6–22
Advertising Spend, SOV, and SOM
for Top-10 Wireless Phone Brands
Table 6.2

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6–23
Advertising Spend, SOV, and SOM for Top-10 Beer Brands
Table 6.3
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Cengage Learning. All rights
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6–24
The SOV Effect and Ad Spending Implications
Figure 6.5
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6–25
Budgeting in Practice (cont’d)
Budgeting in Practice (cont’d)
•
The Affordability Method
The Affordability Method

Spending on advertising only those funds that remain
Spending on advertising only those funds that remain
after budgeting for everything else.
after budgeting for everything else.

Relegating marcom to a position of comparative
Relegating marcom to a position of comparative
insignificance (vis-à-vis other investment options)

insignificance (vis-à-vis other investment options)

Marcom are implicitly considered relatively
Marcom are implicitly considered relatively
unimportant to a brand’s present success
unimportant to a brand’s present success

Challenge is to demonstrate that marcom do produce
Challenge is to demonstrate that marcom do produce
results
results