Lecture Advertising and promotion: An integrated marketing communications perspective (10/e): Chapter 7 - George E. Belch, Michael A. Belch

Chapter 7 
Establishing 
Objectives
and Budgeting 
for the
Promotional 
Program

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Value of Objectives
 Communications
 Objectives facilitate coordination of the various 
groups

 Planning and decision making
 Objectives guide decision making and  development 
of the integrated marketing communications plan

 Measurement and evaluation of results
 Objectives provide a benchmark to measure success 
or failure
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Marketing Objectives versus Integrated 

Marketing Communications Objectives 
Marketing objectives
• Identify what is to be

Integrated marketing
communications
objectives
• Statements of what various

accomplished by the overall

aspects of the IMC program will

marketing program

accomplish

• Defined in terms of specific and
measurable outcomes
• Must be quantifiable, realistic,
and attainable

• Based on the particular
communications tasks required
to deliver the appropriate
messages to the target
audience

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3


Figure 7.1 ­ Factors Influencing Sales

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Problems with Sales Objectives
Successful implementation requires all
marketing elements to work together
Advertising has carryover effect
• Carryover effect: Monies spent on advertising do not have
immediate impact on sales

It is difficult to determine precise
relationship between advertising and sales
Do not offer much guidance for planning
and developing promotional program
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5


Figure 7.2 ­ Communications Effects 

Pyramid

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Criticisms of DAGMAR
Problems with the response
hierarchy
Sales objectives
Practicality and costs
Inhibition of creativity
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Figure 7.4 ­ Traditional Advertising­Based 
View of Marketing Communications

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Figure 7.5 ­ Objectives and Strategies in 

the Social Consumer Decision Journey

Source: Expert interviews; McKinsey analysis

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Figure 7.8 ­ Marginal Analysis

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Figure 7.9 ­ Advertising Sales/Response
Functions

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Figure 7.10 ­ Factors Influencing 
Advertising Budgets

Note: 1 relationship means the factor leads to a positive effect of advertising on sales;
         2 relationship indicates little or no effect of advertising on sales.

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Figure 7.12 ­ Top­Down versus Bottom­
Up Approaches to Budget Setting

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Figure 7.15 ­ Investments Pay Off in 
Later Years

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Figure 7.16 ­ Competitors’ Advertising 
Outlays do not Always Hurt

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Figure 7.18 ­ The Objective and Task 
Method

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Steps to Develop and Implement the 
Budget
Employ comprehensive strategy
Develop strategic planning framework that employs
an integrated marketing communications
philosophy
Develop contingency plans
Focus on long-term objectives
Evaluate effectiveness of programs have to be
consistently
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Figure 7.21 ­ How Advertising and 
Promotions Budgets Are Set

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Budget Allocation: Factors to Consider
Allocating to IMC elements
Client/agency policies
Market size
Market potential
Market share goals
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Figure 7.24 ­ The Share of Voice (SOV)
Effect and Ad Spending: Priorities in Individual Markets

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