Tasksrequiredtoachieveobjectivesare determined

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Unformatted text preview: Recognition, recall, and behavioral measures are assessed May suggest changes in product/promotion • Step 6: Collecting Feedback 15 ­ 16 Setting the Promotional Budget and Mix • Setting the Total Promotional Budget Affordability Method afford Budget is set at a level that a company can Percentage­of­Sales Method Competitive­Parity Method Past or forecasted sales may be used Budget matches competitors’ outlays 15 ­ 17 Setting the Promotional Budget and Mix • Setting the Total Promotional Budget Objective­and­Task Method Specific objectives are defined Tasks required to achieve objectives are determined Costs of performing tasks are estimated, then summed to create the promotional budget 15 ­ 18 Setting the Promotional Budget and Mix • Setting the Overall Promotion Mix Determined by the nature of each promotion tool and the selected promotion mix strategy 15 ­ 19 Setting the Promotional Budget and Mix • Advertising Promotion Tools • • • • • • • Personal Selling • Sales Promotion • Public Relations • Direct Marketing Reaches large, geographically dispersed audiences, often with high frequency Low cost per exposure, though overall costs are high Consumers perceive advertised goods as more legitimate Dramatizes company/brand Builds brand image; may stimulate short­term sales Impersonal; one­way communication 15 ­ 20 Setting the Promotional Budget and Mix • Advertising Promotion Tools • • • • • • Most effective tool for building buyers’ preferences, convictions, and actions Personal interaction allows for feedback and adjustments Relationship­oriented Buyers are more attentive Sales force represents a long­ term commitment Most expensive of the promotional tools 15 ­ 21 • Personal Selling • Sales Promotion • Public Relations • Direct Marketing Setting the Promotional Budget and Mix • Advertising Promotion Tools • • • • Personal Selling • Sales Promotion • Public Relations • Direct Marketing • • • May be targeted at the trade or ultimate consume...
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