Budgeting In Public Relations


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Budgeting In Public Relations

  1. 1. Budgeting
  2. 2. Reasons for budgeting <ul><li>Estimate cost for PR programme </li></ul><ul><li>Estimate what could be done for a given sum of money </li></ul><ul><li>Check-up on planning </li></ul><ul><li>Setting discipline </li></ul><ul><li>Measurement after campaign </li></ul>
  3. 3. Four major elements <ul><li>Labour </li></ul><ul><li>Materials </li></ul><ul><li>Expenses </li></ul><ul><li>Office overheads </li></ul>
  4. 4. Making the estimate… <ul><li>Compute hourly charges - for your work: news releases, attendance at presentations, preparations, briefings, etc hr = salary/wages+overheads(+profit) </li></ul>
  5. 5. secondly <ul><li>Estimate the material costs Postage, stationery Printing Tapes charge at cost </li></ul>
  6. 6. thirdly <ul><li>Expenses as they may arise at cost </li></ul>
  7. 7. Finally <ul><li>Add contingency reserve 10% or so refundable if not spend </li></ul>
  8. 8. Budgeting: <ul><li>Cash system </li></ul><ul><li>Cowboy Accounting </li></ul>
  9. 9. PPBS <ul><li>The Planning Programme Budget System </li></ul>
  10. 10. PPBS <ul><li>Prepare an overall PPBS </li></ul><ul><li>Prepare PPBSs for all projects </li></ul>
  11. 11. Overall PPBS <ul><li>Prepare list of programmes etc that will accomplish goals and objectives </li></ul><ul><li>Make list of the budgets using experimental data </li></ul>
  12. 12. Overall PPBS <ul><li>Prepare a list of the programmes for the budget year and show associated costs </li></ul><ul><li>Prioritise programmes </li></ul><ul><li>Prepare short overview for what happens if programme is nor carried out </li></ul><ul><li>Present to management as a series of programmes </li></ul>
  13. 13. Project PPBS <ul><li>State name, purpose and objectives </li></ul><ul><li>Show how this programme influences approved goals and objectives </li></ul><ul><li>Provide cost estimates </li></ul>
  14. 14. Project PPBS <ul><li>State alternatives and evaluate them (i.e. why not taken) </li></ul><ul><li>State alternatives in the organisation </li></ul><ul><li>Present assessment on what effect 25% over- or under-funding might have </li></ul><ul><li>Present with time-line etc </li></ul>
  15. 15. ZBB <ul><li>Zero Based Budgeting </li></ul>
  16. 16. Apple Case
  17. 17. Current Situation <ul><li>Sales up 21% </li></ul><ul><li>New design </li></ul><ul><li>Centre of your digital lifestyle </li></ul><ul><li>Not-compatible </li></ul><ul><li>Expensive </li></ul><ul><li>MHz Myth </li></ul>
  18. 18. Marketing <ul><li>Marketing around the iMac </li></ul><ul><li>“Digital Hub Strategy” </li></ul><ul><li>Commercials on TV (MTV etc) </li></ul><ul><li>Posters </li></ul><ul><li>Ads in Health/Fitness/Lifestyle press </li></ul><ul><li>Young appeal </li></ul>
  19. 19. Publics <ul><li>Current consumers - Professionals - Home </li></ul><ul><li>Potential consumers - Professionals - Home </li></ul><ul><li>Employees </li></ul><ul><li>Shareholders </li></ul><ul><li>Community </li></ul><ul><li>Retailers </li></ul><ul><li>Press </li></ul>
  20. 20. Messages <ul><li>Centre of your digital lifestyle </li></ul><ul><li>Everything is easier on a Mac </li></ul><ul><li>Audio/Music -> iTunes </li></ul><ul><li>Video/DVD -> iMovie </li></ul><ul><li>Photography -> iPhoto </li></ul>
  21. 21. Objectives <ul><li>Show the Mac-platform as the ultimate multimedia machine at the centre of the digital lifestyle. </li></ul><ul><li>Everything is easier and more fun on a Mac </li></ul>
  22. 22. Strategies/Tactics <ul><li>Exhibition(s) - Participation in exhibitions with themes connected to music, video and digital photography - keynotes and product presentations - conferences connected to exhibitions - seminars for home users </li></ul>
  23. 23. Strategies/Tactics <ul><li>Feature articles - coinciding with exhibitions - reinforcement of messages </li></ul><ul><li>Video/Music/Photography-Contests - showcase of “Made on a Mac” - Home video showcases </li></ul>
  24. 24. Strategies/Tactics <ul><li>Road-Show “Music” - Students/younger potential customers - Centred on/around music festivals - Showcase of digital-lifestyle - Special emphasis on “2000 songs in your pocket” </li></ul>
  25. 25. Strategies/Tactics <ul><li>Co-operation with TV- “Video” - Home-video of the month - “Young artists” series - possibly MTV as partner </li></ul>
  26. 26. Strategies/Tactics <ul><li>Local workshops “Photography” - co-operation with PC World(?) and/or local retailers - One-day workshops for digital photography - Seminar about digital photography - Possibility to make pictures (field-trip) - Hands-on experience with equipment </li></ul>
  27. 27. Strategies/Tactics <ul><li>Last year school workshops - esp. focus on last year school workshops - lease of equipment for limited time (road show visit?) - hands-on experience for school-leavers before going to uni </li></ul>
  28. 28. Leaflets <ul><li>Digital lifestyle leaflets - Explain digital hub - MHz Myth explained - Compatibility explained </li></ul>
  29. 29. Evaluation <ul><li>Questionnaires for participants </li></ul><ul><li>Pre-/After-poll </li></ul><ul><li>Sales figures in areas with seminars </li></ul>
  30. 30. Questions? <ul><li>Regarding the exam: </li></ul><ul><li>[email_address] </li></ul>