Types of Budgets Percentage of Sales      Sales of current year, or next year      Simple      Tends to work in the op...
Types of Budgets Meet the competition      Seeks to prevent market share loss      Highly competitive markets      Dol...
Types of Budgets What we can afford      Set after all other items budgeted      Not understand importance of marketing
Types of Budgets Objective and task      Budgets determined by objectives      Best method of budgeting      Used by 5...
Types of BudgetsPayout planning     Ratio—advertising to sales or market share     Larger percent at product launch    ...
Types of BudgetsQuantitative models     Computer simulations     Develop models based on historical data
IMC Components   Traditional advertising   Trade promotions   Consumer promotions   Media spending   Alternative medi...
Breakdown of Marketing Expenditures                                               Consumer               Trade            ...
U.S. Ad Spending by Media                                              Other, 1.3%               Internet, 7.6%           ...
U.S. Alternative Media Spending                                       Social Media                                        ...
U.S. B-to-B Direct Marketing Spending                                                                                 Tele...
Restaurant ChainsU.S. Market Share vs Media Ad Spending  Rank                                Market Share          Media A...
Automotive BrandsU.S. Market Share vs Media Ad Spending  Rank                                        Market        Media A...
Shampoos/ConditionersU.S. Market Share vs Media Ad Spending  Rank                                     Market           Med...
Successful Globally Integrated MarketingCommunications Tactics         Understand the international market         A bor...
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Presupuestos publicitariosune3

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Material para la clase de Presupuestos Publicitarios UNE

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  • In terms of total marketing expenditures, approximately 41.1% is spent on some form of advertising. Consumer promotions account for 27.9% and trade promotions for 27.5%. These percentages will vary from industry to industry. It will also be different for products and services, and for consumer companies and B-to-B firms.
  • In the United States, most ad dollars are spent on television advertising, 43.6%. Magazines are second with 20% and newspapers are third with 17.7%. The Internet accounts for only 7.6%, but is the fastest growing media.
  • When looking at alternative media spending, the largest category is for online and mobile, 40%. The second largest expenditure is for branded entertainment, 30%.
  • The business-to-business market, telephone marketing is first with 32.2%. Direct mail is second at 15.8% and Internet marketing is third with 14.5%.
  • Presupuestos publicitariosune3

    1. 1. Types of Budgets Percentage of Sales  Sales of current year, or next year  Simple  Tends to work in the opposite direction  Does not meet special needs
    2. 2. Types of Budgets Meet the competition  Seeks to prevent market share loss  Highly competitive markets  Dollars may not be spent efficiently
    3. 3. Types of Budgets What we can afford  Set after all other items budgeted  Not understand importance of marketing
    4. 4. Types of Budgets Objective and task  Budgets determined by objectives  Best method of budgeting  Used by 50% of firms
    5. 5. Types of BudgetsPayout planning  Ratio—advertising to sales or market share  Larger percent at product launch  Lower percent when brand established  Based on threshold effect
    6. 6. Types of BudgetsQuantitative models  Computer simulations  Develop models based on historical data
    7. 7. IMC Components Traditional advertising Trade promotions Consumer promotions Media spending Alternative media spending Business-to-business media spending
    8. 8. Breakdown of Marketing Expenditures Consumer Trade promotions, Other, 3.3% promotions, 27.9% 27.5% Advertising, 41.1%
    9. 9. U.S. Ad Spending by Media Other, 1.3% Internet, 7.6% Magazines, 20.0% Television, 43.6% Newspapers, 17.7 % Radio, 7.2% Outdoor, 2.6% Source: Adapted from “U.S. Ad Expenditures,” 2008 Marketing Fact Book, Marketing News, July 15, 2008, p. 22.
    10. 10. U.S. Alternative Media Spending Social Media $1.43 Brand Entertainment 2% Interactive Marketing $22.30 $11.91 30% 16% Entertainment/Digital Online/Mobile out-of-home $29.94 $9.28 40% 12% Source: Adapted from “U.S. Alternative Media Spending,” 2008 Marketing Fact Book, Marketing News, July 15, 2008, p. 18, 22.
    11. 11. U.S. B-to-B Direct Marketing Spending Telephone marketing 32.2% Internet marketing (non email) 14.5% Other 1.5% Insert media 0.5% Commercial e-mail 0.3% Direct mail (catalog) Television 9.6% 12.3% Radio 2.9% Newspapers Direct mail (non-catalog) 5.1% 15.8% Magazine 5.3% Source: Adapted from “U.S. Alternative Media Spending,” 2008 Marketing Fact Book, Marketing News, July 15, 2008, p. 24.
    12. 12. Restaurant ChainsU.S. Market Share vs Media Ad Spending Rank Market Share Media Ad Cost Per Share Brand Spend (Mil) Pt. (Mil) (Thousands) 1 McDonald’s 7.7% $ 727.7 $ 93.9 2 Burger King 2.4% $ 268.8 $ 113.2 3 Wendy’s 2.3% $ 374.7 $161.5 4 Subway 2.2% $ 325.2 $150.1 5 Taco Bell 1.9% $ 231.7 $125.1 Source: “Top 10 Restaurant Chains,” www.adage.com, accessed October 1, 2008
    13. 13. Automotive BrandsU.S. Market Share vs Media Ad Spending Rank Market Media Ad Cost Per Brand Share Spend (Mil) Share Pt. (Mil) (Thousands) 1 Toyota Camry 5.4% $ 65.6 $ 12.1 2 Honda Accord 4.6% $ 114.3 $ 24.8 3 Honda Civic 3.9% $ 112.0 $ 28.7 4 Nissan Altima 3.2% $ 132.1 $ 41.2 5 Chevrolet Impala 3.1% $ 58.5 $ 18.8 Source: “Top 10 Auto Brands,” www.adage.com, accessed October 1, 2008
    14. 14. Shampoos/ConditionersU.S. Market Share vs Media Ad Spending Rank Market Media Ad Cost Per Brand Share Spend (Mil) Share Pt. (Mil) (Thousands) 1 Pantene 19.3% $ 175.8 $ 9.1 2 Suave 7.3% $ 16.1 $ 2.2 3 Clairol Herbal 5.7% $ 22.6 $ 3.9 Essence 4 L’Oreal 5.1% $ 38.9 $ 7.6 5 Head & 4.9% $ 52.5 $ 10.7 Shoulders Source: “Top 10 Shampoos/Conditioners,” www.adage.com, accessed October 1, 2008
    15. 15. Successful Globally Integrated MarketingCommunications Tactics  Understand the international market  A borderless marketing plan  Thinking globally but acting locally  Local partnerships  Communication segmentation strategies  Market communication analysis  Solid communication objectives

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