IMC Lecture 7

Integrated Marketing Communications

Budgeting and Control

7

The Integrated Marketing Communications

planning framework…

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context analysispromotional objectivespromotional strategy

coordinated communications mix

implementationControl and evaluation

push

pull

profile

corporate

marketing

communications

resourcesscheduling

Fill, 2011

budgeting...

two main concerns…

how much should be spent on each individual communications tool

budget is usually determined by a combination of up to four different stakeholder groups

how much should be allocated to promotion for the campaign or time-frame

the organisation

communications agencies

the media channels

the target audience

budgeting approaches

budget-setting method explanation

arbitrary based on guess work on behalf of the most senior management – budget for resources determined as each demand arises

inertia the same amount of budget as was spent on previous communications is made available

media multiplier last years budget is increased by the rate of inflation

percentage of sales budget is set in relation to the level of historic or forecast sales, may be based on traditional figures

affordable what is left after all other costs in relation to production, manufacturing and distribution are accounted for first then we’re left with what’s left

objective and task the resources needed to achieve each objective are determined and costed and brought into an overall, total budget

adapted from Fill, 2006

further budgeting approaches

competitor parity

organisations deliberately spend the same as key competitors

advertising-to-sales ratiobudget is based on competitor spend and percentage of market share in relation to an industry average

only suitable for stable FMCG markets where advertising is the key tool that influences sales

share of voiceas above but the idea is to increase share of voice in the market

…but how much do things cost?

http://www.bradinsight.com/BRAD

2013 ITV Spots cost file Cost for one transmission – split by region

11:00 18:45 19:30 21:30 23:05

ITV DAYTIME - EARLYCORONATIO

N MOVIE or LATE NIGHT

REGIONTHIS

MORNINGEVENING NEWS STREET DRAMA MOVIE

ANGLIA £480 £2,950 £3,740 £5,170 £1,180

MERIDIAN £650 £3,970 £5,030 £6,510 £1,590

LONDON £1,690 £6,510 £11,490 £13,270 £2,770

CENTRAL £850 £5,340 £9,090 £16,540 £1,530

HTV W&W £410 £1,970 £3,340 £3,250 £570 WESTCOUNT

RY £110 £700 £1,190 £1,120 £200

SCOTLAND £450 £2,420 £3,750 £3,280 £580

GRANADA £620 £3,240 £5,470 £4,190 £1,080

BORDER £50 £230 £390 £350 £80

YORKSHIRE £500 £2,610 £4,400 £3,930 £870

TYNE TEES £220 £1,160 £1,950 £1,700 £390

UTV £170 £1,170 £1,480 £1,080 £270

TOTAL £6,200 £32,270 £51,320 £60,390 £11,110


2013 ITV Spots cost file Cost for one transmission – split by region

NOTESAll spot costs assume a 30" advert.These airtime costs are estimates based on typical traded discounts off projected 2012 annual average CPT's.Ratings for programmes listed have been calculated based on typical average TVR's for traded audience.Estimates for adult views (impacts) and ratings are for reference/comparison only.Rates can fluctuate +/- 20% or more from these depending on month and channel.Where applicable, there is a second transmission on the +1 channel, these are not included in the spot estimates

TERMS AND CONDITIONShttp://www.itvmedia.co.uk/advertising-on-itv/terms-and-conditions

CONTACThttp://www.itvmedia.co.uk/advertising-on-itv/contact-us-



https://adwords.google.com/ko/KeywordPlanner/

There is no easy way to determine a budget...

It is difficult to quantify exactly how much is needed…

How much does it cost to build brand awareness?

How much does it cost for the audience to think, feel and act in the desired way?

…and communications budgets aren’t neat, ordered things!

No communications are truly free… they are either paid-for, owned or earned

paid, earned and owned…A relatively new concept but can be related to budgeting

We pay for most of our communications media

…and we can earn media and communications over time

We own some media but there is an internal cost

Budgeting in context...

Be realistic… think about what you want to achieve

Bring the costs into your implementation plan

You may want to work under Objective and Task

Break down by activity, time and also a final total

http://stakeholders.ofcom.org.uk/market-data-research/market-data/communications-market-reports/cmr14/



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push

pull

profile

corporate

marketing

communications

resourcesscheduling

Fill, 2011

scheduling

flighting

continuity

pulsing

scheduling - flighting

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erratic flightingregular flighting

start-up flighting

scheduling - continuity

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perfect continuity

rising continuity

falling continuity

scheduling - pulsing

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regular pulsing

irregular pulsing

block pulsing



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push

pull

profile

corporate

marketing

communications

resourcesscheduling

Fill, 2011

promotional objectives...

avoid solely focusing on sales

help to determine/clarify position

help highlight the balance of tactics needed

provide a time frame

provide a means of evaluation and measurement

link back to marketing and corporate objectives

types of objectives…

awareness, interest, repositioning, reinforcement

leads, conversions from leads, page views, time, value per visit

sales, sales from leads, sales value, sales volume, average order value

active customers, brand mentions, sentiment, shares, virality

Unique visitors, traffic, bounce rate, revenue, search percentage

Specific, Measureable, Achievable, Realistic and Time-bound

Think… what do I want to achieve, where, with what audience and by when

They need to be SMART…

Make sure you can measure performance

…developing intelligent objectives

Objective Substantiation Strategies to achieve goals

KPI’s

Link to stage of consumer journey and SMART

Link to audit findings

Link to STP, brand and 3P’s

What will you be measuring?

Conversion – increase average order value to £30 per customer

Increase in disposable incomeIncreased desire for product

Position as luxury against key competitorsDifferentiation through featuresOVP – exclusivity

% of unique visitors responding to promotions

gap analysis…

If we know what we want to achieve as a metric…

…and when we want to achieve it by…

We can conduct a simple gap analysis

timeframe

Mea

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IMC Lecture 7

Education

Transcript of IMC Lecture 7