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Integrated Marketing Communication 1


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Introduction to Integrated Marketing Communication (IMC)
IMC as an Integral Part of Marketing
Buying Decision Process
Communication Response Hierarchy
Setting Communication Objectives: DAGMAR Approach
Budgeting for Marketing Communication.

Published in: Marketing

Integrated Marketing Communication 1

  1. 1. INTEGRATED MARKETING COBMUNI CAT ION . ‘-x: ' ' “‘-‘ . /7,‘ 1 / »~ , , -; ~¢ ‘x, I / -1‘ ‘ i _ ‘ (I / ,_ > _ _, ‘I 7' . "G ‘ I V‘ ‘N ( ' ' . x
  2. 2. Definition “ an approach to achieving the objectives of a marketing campaign through a we| |—coordinated use of different promotional methods that are intended to reinforce each other. AMERC, AN ASSOCAT0N or ADV ERT SNG AGENCAES
  3. 3. Meaning An approach to achieve the objectives of a marketing campaign, through a well coordinated use of different promotional methods that are intended to reinforce each other.
  4. 4. Difforoot Promotional Mothools /7 Tools of HMC [Advertising 'Pub| ic Relations Pubhcfiy um [Sales Promotion | | Direct Marketing I [Event Management / Marketing l
  5. 5. The Evolution of IMC During the 1980s, many companies began taking a broader perspective of marketing communication and seeing the need for a more strategic integration of their promotional tools.
  6. 6. The Evolution of IMC The decade was characterized by the rapid development of areas such as sales promotion, direct marketing, and public relations, which began challenging advertising’s role as the dominant form of marketing communication.
  7. 7. The Evolution of IMC These firms began moving toward the process of integrated marketing communications (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firm’s customers.
  9. 9. Importance ~ The IMC approach is being adopted by both large and small companies and has become popular among firms marketing consumer products and services as well as business—to— business marketers.
  10. 10. Importance ° Synergy Advantage: By coordinating their marketing communications efforts, companies can avoid duplication, take advantage of synergy among promotional tools, and develop more efficient and effective marketing communications programs. ‘ SYi(: .j=2BY I / T. Advantage
  11. 11. Importance ° It is one of the easiest ways for a company to maximize the return on its investment in marketing and promotion.
  12. 12. Importance ° Decrease in Audience size to medias can be overcome using IMC D 1. 9 gw: 5.. . .1 T 9!? L 1 ((( "' I I " E rt‘) l l‘_ ' I f) “"‘ l — E: _J ‘I I2: I I I2: ’
  13. 13. IMC as an Integral Part of Marketing - Case Study
  14. 14. @€4%%’ INTEGRATED MARKET| NG? _., ... I co M M u N ICATI on
  15. 15. Introduction Coca Cola is a pioneer company in 360° communications as they rapidly understood they had to get in touch with consumers to create links and to look for them wherever they are.
  16. 16. Introduction Coke always focuses on fun and entertainment as it is the main message they want to deliver. They adapt their message to the target market but they are always based on the same values: sharing, happiness, fun, tradition of coke. ..
  17. 17. Introduction One of the most spectacular action for by Coca Cola done to show their leadership is certainly the one made for their 125th birthday:
  18. 18. The beginning Tho l[Mll‘@. rfnpaign has started in 2006, with the new brand platform ’aste the Coke side of life’'.
  19. 19. The beginning From there, the company had to rethink its whole organization in communications department. Such an approach means creating new jobs, new departments, different recruitment process and strategy. ..
  20. 20. Element of IMC mix This depends on not only on the market & the product but also on the objectives. Advertising Direct marketing Interactive marketing & social media Sales promotion PR
  21. 21. Advertising Advertising: very important for Coca as it cater mass consumers market worldwide. They allow building a brand image and creating brand awareness.
  22. 22. Direct marketing offerings throughout partnerships such as restaurants, hotel. .., but also campaigns including emailing, texting/ SMS, sponsorships. .. TO 2653 : . H) AND RRTIVI Ri('Il. ‘£ AR UPDATES ON COKE STUDIO
  23. 23. Interactive marketing & social media interactive & entertaining website, social networks, advertising. .. O Joi mI| I'ons of " ' 0 Coca-Cola Fans ' ‘- ‘ ’ ' on Facebook Q I
  24. 24. Sales promotion It is really important for Coke to be distinguished from its competitors in supermarkets, city markets. .. thus, the company uses different strategies, oriented toward consumer or toward trade: — Consumer oriented strategy: Visibility in shelves, eye—catching positions. .. - Trade: Discounts, merchandising, free goodies, return back allowance. .. “THE HAPPINESS TRUCK INDIA CAMPAIGN”
  26. 26. Coke uses PR in its strategy through events (culture, music, cinema. ..), social causes, CSR, ... Coca Cola has made Americans vote for their favorite park, and the beverage giant donated S 175,000 total to the three top vote—getters : w ~ ""'-- ~ , .., g ,4. ,7 '* _~, -, ._ 5"" RK ’ Cocatola WI” announce the names 0! the winnin arks on Thursday, August 16 Do you wan! to be amen t- rust to now who won bi is year? Foiiow on Twitter 4: WCi_'l 12 OOPM to l 00F'M E 0 get the exciting news M5!‘ Not on Twitter’ Even without .3 pcrsoiiai account, you can still see the Coca—CaIa Twitter proiiiu visiting K-" i. -v -~ Or check back here fin tha afternoon August 16 to see the linai rcsuIis' SEE MORE tit. i.| ,,'/ Jfll, -'L, 'Ui: .1Ar; .J. !:/ .11’ , .«. -.. Jl/2"‘ Lt) . I win‘, ‘ '
  27. 27. Conclusion Cokes uses a lot interaction with its consumers throughout PR and social media advertising.
  29. 29. Conclusion Hence, IMC is an INTEGRAL PART OF MARKETING in any company irrespective of the fact that the firm is small or big. ..! OPEN HAPP| NESS. ... ..! !!!
  30. 30. Consumer Buying Behaviour
  31. 31. INTRODUCTION - All of us are consumers. ° We consume things of daily use, we also consume and buy these products according to our needs, preferences and buying power. - These can be consumable goods, durable goods, specialty goods or, industrial goods.
  32. 32. What we buy, how we buy, where and when we buy, in how much quantity we buy depends on our perception, self concept, social and cultural background and our age and family cycle, our attitudes, beliefs values, motivation, personality, social class and many other factors that are both internal and external to us.
  33. 33. While buying, we also consider whether to buy or not to buy and, from which source or seller to buy
  34. 34. To understand the likes and dislikes ofthe consumer, extensive consumer research studies are being conducted What the consumer thinks of the company's products and those of its competitors? How can the product be improved in their opinion? How the customers use the product? What is the customers attitude towards the product and its advertising? What is the role of the customer in his family?
  35. 35. Consumer Market Consists of all the individuals and households who buy or acquire goods and services for personal consumption.
  36. 36. Consumer Buying Decision Process 39
  37. 37. Consumer Buying Decision Process Problem ’ Information Evaluation of Recognition Search Alternatives Post- Purchase Purchase . . Decision Evaluation
  38. 38. CASE STU DY . . . —-/ 5*‘ . i‘ ‘7 ; v-Li 'I: ‘_ - K v [_ Tu , ' . . . __ . ._: ; ' ‘. !1A. V_3_°L3_1.! The marketer has to learn about the needs and changing of the consumer behaviour and practice the Marketing Concept.
  39. 39. The Beginning Levi Strauss &Co. were selling jeans to amass » . _market and did not bother about segmenting I B the market till their sales went down I. e 9V S
  40. 40. The Search The ‘study into consumer behaviourshowed their greatest market of the BABYBOOMETRS hadgoutgrown and their NE. EDs ‘had changed. A person who was born between 1946 and 1964. The—baby boomer generation makes upa substantial ‘portion of the, North American population. ’ Representing nearly 20% of the American public, baby boomers havea significant impactonthe 73' economy. As a result, baby boomers are often the focus of marketing campaigns and business plans.
  41. 41. ThefSolution They ‘therefore cameout with Khaki or dockers to different segments and comfortable action stocks for the consumers in the 50 age group.
  42. 42. of The Result Thus "by separating the market and targeting I various groups, and fulfilling. their needs, they I not only made up for the lostsales but far exceededthe previous sales. I. e 9V S
  43. 43. The Resullt They also targeted the women. consumers for jeans andlboth men andwomen start_ed. wearing jeans in greater numbers. The offering givenby thecompany must be enlargedto suit various segments. I E . . , i i: ii6M: N-sfJt: '$y’s ‘ I, . I ‘ I i'/ I‘!
  45. 45. Introduction According to Don Schultz: IMC is the process of developing and implementing various forms of persuasive communication programs with customers and prospects over time.
  46. 46. The goal of IMC The goal of IMC is to influence or directly affect the behaviour of the selected audience. IMC makes use of all forms of communication which are relevant to the customer or prospect, and to which they might be receptive.
  48. 48. Introduction * A number of models have been developed to depict the stages a consumer may pass through in moving from a state of not being aware of a company, product, or brand to actual purchase behavior.
  49. 49. Traditional Response Hierarchy Models AIDA Hierarchy of effects Innovation adoption Information processing
  50. 50. SATISFACTION ATTENTION Create an amazing user experience Attract the attention ofthe for your visitors so that they are Visitor with an appealing GPSIQI1 satisfied with your website WilI(Ii ill and | |'1fU| ‘|V9 LODY result in repeat VlSI[S and referrals ti. 1 INTEREST Acnon I"C'935“ II‘? '"“’'95‘ °I "*9 V'5"°' IN Include elements that facilitate visitors in “"“99"3"Y ""'°dU| ’"‘9 P9"9f‘T5 3"“ completing their intended task and lead advantages rather than focusing on SEIi—pIaISQ you, ,, ,,, ,o, § to the tonvemon fumjgl as done in traditional marketing DESIRE Create a desire tor the goal that you want your visitors to accomplish throuqh wellrknit Information arthitenure
  51. 51. Elmo Lewis - Year 1898 — AID T - Year 1900 Developed as a sales guide for salesmen to ’“ be successful in moving I Y a prospect to buy.
  52. 52. 1. AIDA Model AIDA is an acronym used in marketing and advertising that describes a common list of events that may occur when a consumer engages with an advertisement The AIDA model was developed to represent the stages a salesperson must take a customer through in the personal-selling process.
  53. 53. "ounexpected content, situation, animation, Osurprise oattractive graphics or titles ‘X 1;: 1;’: I I l‘f; l '6 -; - relevant message -promise of reward or satisfaction 0 raising tence or mystery '0 special offer, urgency, feeling of special situation 0 communicating unique benefits °building unique brand-image and must-to-have effect ma‘: '; -Purchase Oorder osubscription -Conversion ofcall or sending message through online contactform
  54. 54. HIE if I‘ I4 / AIDA CASE STUDY Apple Website ‘ av f _ it. I ' -. -. ' . . i J-» , , . ’
  55. 55. A = Attention
  56. 56. I = Interest
  57. 57. . . v N» lv Email Features to fh°10'Re'31ed b Build “Desire” -eatures to Build Desire”
  58. 58. Shop iPad Starting at S 329 Shop online. Order your iPad online and have it engraved and shipped to your door — free Shop iPad - n Visit a store. Buy iPad at your favorite Apple Retail Store and we'll set it upjust the way you like Find a store > A = Action Call Apple. Get answers about iPad before you buy Talk with a knowledgeable Specialist l—800—MY—APPLE
  59. 59. Hierarchy of Effects Model
  60. 60. Introduction -° The Hierarchy of Effects Model was created in 1961 by RobertJ Lavidge and Gary A Steiner. ~ This marketing communication model, suggests that there are six steps from viewing a product advertisement (advert) to product purchase. 0 The job of the advertiser is to encourage the customer to go through the six steps and purchase the product.
  61. 61. Purchase Conviction Preference Liking Knowledge Awareness Tlii - - - ilfi ll;
  62. 62. Awa reness: * The customer becomes aware of the product through advertising. t This is a challenging step, there is no guarantee that the customer will be aware of the product brand after they view the advert. * Customers see many adverts each day but will only remember the brand of a tiny fraction of products.
  63. 63. Knowledge: it The customer begins to gain knowledge about the product for example through the internet, retail advisors and product packaging. ° Consumers will quickly move to competitor brands if they do not get the information they want. 6 The advertiser's job is to ensure product information is easily available.
  64. 64. Liking * As the title states, this step is about ensuring that the customer likes your product.
  65. 65. Preference G Consumers may like more than one product brand and could end up buying any one of them. * At this stage advertisers will want the consumer to disconnect from rival products and focus on their particular product * Advertisers will want to highlight their brand's benefits and unique selling points so that the consumer can differentiate it from competitor brands.
  66. 66. Conviction This stage is about creating the customer's desire to purchase the product. Advertisers may encourage conviction by allowing consumers to test or sample the product. Examples of this are inviting consumers to take a car for a test drive or offering consumers a free sample of a food product. This reassures consumers that the purchase will be a safe one.
  67. 67. Purchase 0 Having proceeded through the above stages, the advertiser wants the customer to purchase their product. ‘F This stage needs to be simple and easy, otherwise the customer will get fed up and walk away without a purchase. * For example a variety of payment options encourages purchase whilst a complicated and slow website discourages purchases.
  68. 68. Innovation Adoption
  69. 69. Everett M. Rogers Everett Rogers, a professor of rural sociology, popularized the theory in his 1962 book Diffusion of Innovations. He said : - "diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social system. ”
  71. 71. Rogers Adoption Innovation Curve Rogers‘ Innovation Adoption Model Adoption Early , I Adoplers Innovators ; The innovation adoption curve of Rogers is a model that classifies adopters of innovations into various categories, based on the idea that certain individuals are inevitably more open to adaptation than others.
  72. 72. Innovation Adoption at Rogers’ model studies diffusion from a change communication framework to examine the effects of all the components involved in the communication process on the rate of adopfion.
  73. 73. How is diffusion defined in Rogers‘ Model? Diffusion is a process by which an innovation is communicated through certain channels over time among the members of a social system.
  74. 74. The definition indicates that: The adopters can be an individual, groups, or organization at different levels of social system. The target is innovation The process is communication The means is communication channels The context of innovation is a social system it It is a change over time.
  75. 75. How can we categorize different types of adopter? Innovators (risk takers) - 2.5% Early adopters (hedgers) — 13.5% Early majority (waiters) — 34% Late majority (skeptics) — 34% Late adopters (slowpokes) — 16%
  76. 76. Explanation of the Model * Innovators and early adopters make up only a small proportion of any population (2.5% are innovators and early adopters about 13%) and there are not enough of them to have an impact on embedding innovation in an organisation.
  77. 77. Explanation of the Model * The early and late majority (called the mainstream adopters) make up 64 % of any population and these are the ones who can make the difference to whether an innovative practice is embedded in an organisation.
  78. 78. Explanation of the Model * The early majority are more practical: they do think through the pros and cons of a new idea before they adopt, so they help to make it more tangible and acceptable.
  79. 79. Explanation of the Model * The late majority, on the other hand, are creatures of habit and predictability. t They want to know the rules, they love systems.
  80. 80. Explanation of the Model * Laggards are very set in their way, and will only adopt innovation when it has become mainstream ~ i. e. standard practice in an organisation.
  81. 81. Influences of Adoption Relative Advantage Compatibility Complexity Trialability Observability
  83. 83. ° The innovation Early Stage of cellular telephones was first offered to American consumers in 1983, and an amazing 13 million were sold in the following 10 years. - This telephone rechargeable b operates with a built—in attery, so that it is portable. - It is called cellular because each metropolitan area is divided miles in radius. into cells, each from 1 to 25
  84. 84. Who? it Former general manager for the systems division at Motorola Dr. Martin Cooper
  85. 85. * As one drives from one cell to another, the telephone system automatically switches a call from one cell to another without interrupting service.
  86. 86. * The usual charges for a cellular telephone are a one—time activation fee of $35, a flat rate per month of S30, and an air charge of from 25 to 50 cents per minute (depending on whether it is a peak calling time or not) for both incoming and outgoing calls.
  87. 87. e The first adopters of cellular phones in 1983 were male executives whose companies provided a cellar phone as an office perk. * At that time, a cellular phone cost about $3,000. ~ Soon the quality of cellular service improved, the price of a cellular phone dropped to only $250, and the product became so miniaturized that it could fold into a shirt pocket.
  88. 88. ~ Rather quickly cellular telephones became a general consumer product. ° In 1993, one in three cellular phones was sold for non—business use.
  89. 89. * Cellular phones have an almost ideal set of perceived attributes, and this is undoubtedly one reason for the innovation's very rapid rate of adoption in the U. S.
  90. 90. RELATIVE ADVANTAGE One of the main benefits of the cellular telephone is that it saves an estimated two hours per week in avoiding missed appointments and delayed schedules, and improves time management. These time savings are especially important for individuals living in cities like Los Angeles, New York, and Chicago, who are frequently trapped in traffic congestion. The portable nature of cellular phones frees users from being in any fixed place. One special advantage of a cellular phone in one's car is that it can be used for disabled vehicle calls or for medical emergency calls.
  91. 91. RELATIVE ADVANTAGE * From the beginning, cellular phones have been an important status symbol. t This is one reason why they are so often used by individuals in public places like restaurants and bars.
  92. 92. RELATIVE ADVANTAGE ° Evidence of the prestigious nature of the innovation is provided by the widespread sale of replicas of cellular phones; more than 40,000 "Cellular Phoneys, " a $16 non—working model manufactured by a California company, Fax Systems, were sold. ° The falling cost of a cellular phone and its decreasing size, also spurred the rate of adoption. ° Gradually, cellular telephones came out of the automobile trunk and into people's pockets and purses.
  93. 93. COMPATIBILITY * A cellular phone connects into the existing telephone system, and allows the user to talk with anyone who has a regular telephone. Thus formation of a critical mass of cellar phone users was not necessary in the early stages of this innovation's diffusion.
  94. 94. COMPLEXITY * From the user's perspective, a cellular telephone operates exactly the same as a regular phone, and so it was unnecessary to learn‘ any new skills
  95. 95. OBSERVABILITY ° Uses of cellular phones in automobiles, restaurants, and other public places helped emphasize their status—conferra| to potential buyers. The innovation was highly observable.
  96. 96. TRIALABILITY it It is possible to borrow a friend's cellular for trial use. Rental cars often came equipped with a cellular telephone, which provided a trial of the innovation for many individuals.
  97. 97. INFORMATION PROCESSING MODEL McGuire’s Information Processing Model Or Yale model of information-processing
  98. 98. INFORMATION PROCESSING MODEL McGuire of the Yale University prepared the Information-Processing model from his studies on persuasion in the 1940s. This model demonstrates the changes in attitude and behavior in response to persuasive communication.
  99. 99. The six conditions The six conditions for bringing about this change are outlined by him: “the message must be presented ‘the message must be attended ‘the message must be comprehended tthe message must be accepted “the message must be retained “the message much lead to behavior change
  100. 100. McGuire / Yale Model ' Exposure I‘ I I I I I Attention '<--- N ‘Comprehension <"' Acceptance <"" Retention
  101. 101. Setting communication objective — Dagmar approach
  102. 102. DAGMAR stands for Defining Advertising Goals for Measured Advertising Results.
  103. 103. DEVELOPMENT DAGMAR Model was developed by RUSSELL COLLEY in 1961 for setting advertising objectives and measuring advertising results.
  104. 104. II III I 'I: i TE 7 ELI EI 7I"l"I'E According to DAGMAR Model the ultimate objective of advertising involves a communication task, intended to create awareness, impart information, develop attitude and induce action.
  105. 105. THE MODEL - Advertising objective is to carry a consumer through four levels of understanding : - 1. From unawareness to awareness - consumer must be aware of product or company, Comprehension — what the product is and its benefits, Conviction - mental conviction to buy the product, and Action — finally buy the product.
  106. 106. Awareness ‘ These steps are also Comprehension I known as ACCA ADVERTISING FORMULA Conviction Communication Process in DAGMAR Approach
  107. 107. Awareness Before the purchase behaviour is expected from target audience it is necessary to make the audience aware with the product or company. The initial communication task of the advertising activity is to increase the consumer awareness of the product or offer. SONY rnclte-. L>el4_= ve —-r-1'7"": durable and water resistant The Xperia" 2 has tempered glass with anti-shatter film and is water resistant to one metre. XPERIA nor! /mobio corn’; -reorder
  108. 108. Comprehension Only Awareness is not be sufficient to stimulate a purchase, sufficient knowledge and information about product or organisation is necessary. This step involves the target audience to learn something about product, organisation, or offer. Here communication task of advertising activity is to make consumer learn about product - product characteristics, benefits; or uses. WE DESIGN EVERY VOLVO TO LOOK LIKETHIS. ‘l II I - "
  109. 109. Attitude or Conviction By creating interest and preference, buyers are moved to a position where they are convinced that a particular product in the class should be tried at the next opportunity. At this step communication task of advertising activity is to mould the audience's beliefs about the product and this is often done through messages that demonstrate the product's superiority over a rival or by talking about the rewards as a result of using the product. It doesn’_t take a genius. The Next Big Thing Is Already Here GALAXY "; l|l SIIMSUNG
  110. 110. t “II: I‘I h"x. l fll 3 Finally, communication must encourage buyer to engage in purchase activity. Samsung GALAXY r — *3 H V‘ I ' <5: fl _v; ~, ... .. _ I . ( »r I . CASH ®®= I I so BACK "' ' _. ‘ 2.1;? ‘ ‘'‘'‘“"‘‘"i'' 3 , V “ rrisiri5:, ~~ I‘ _: r 2 F I in -' . nu lZL‘| s 0 l2L. '.'. |s o in. ’ 0 DOWN PAYMENT V2. 3 2.666 {L790 33.1 l l % INTEREST I PROCESSING FEE
  111. 111. Budgeting for marketing communication
  112. 112. What Is a Marketing Communication Budget? A MARKETING COMMUNICATION BUDGET provides a formal process for planning, tracking and measuring the impact of firm’s expenditures on marketing communications activities such as advertising, direct marketing, online or events. The budget sets out the funding required to meet the firm’s communications objectives and provides a method of managing the expenditure over a budget year.
  113. 113. Promotional budget * A real barrier to implementing any promotional strategy is the size of the promotional budget. Q Mass media advertising tends to be expensive although the message can reach large numbers of people and hence the cost per contact is relatively low.
  114. 114. Promotional budget * For many new or smaller firms the costs are unaffordable and they are forced to seek less efficient but cheaper methods.
  115. 115. Introduction * When budgeting a marketing plan, it is important to allocate funds appropriately to the different facets of integrated marketing. * Marketing budgets aid in the planning of operations by forcing managers to prioritize activities and consider how conditions may change.
  116. 116. Objectives ° The marketing communication budget is part of the wider marketing planning process. ° Firm’s marketing strategy establishes how you will achieve your marketing objectives. a The objective of the marketing communication budget is to achieve the communication goals as cost effectively as possible and demonstrate a successful return on investment.
  117. 117. Problems to be addressed * Two big budgeting decisions should be resolved up front: how shall marketing efforts be funded, and who will benefit from the new program?
  118. 118. Determining a Budget ° As with all business activities, marketing budgets help the planning of actual operations by forcing managers to prioritize activities and consider how conditions might change.
  119. 119. Determining a Budget ° It also helps coordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments, which is a key component of integrated marketing.
  120. 120. The essential purposes of budgeting To control resources To communicate plans to various responsibility center managers To motivate managers to strive to achieve budget goals To evaluate the performance of managers To provide visibility into the company's performance
  121. 121. The Fact According to the Public Relations Society of America, organizations increased their communications spending in 2011 by 4.2 percent over the previous year.
  122. 122. The Planning Process * Develop your marketing communications in combination with the marketing plan. t This way, you are sure that the communications objectives are clearly supporting the marketing objectives. * The marketing budget includes an overall line item for the marketing communications budget
  123. 123. BUDGETING APPROACHES * Top-Down Approach ~ Bottom-Up Approach * Percentage of Sales
  124. 124. Top-Down Approach Many companies give departments a budget for operational expenses. As the business owner, you allocate a total to marketing communications. One way to do this is to research your industry to see what other companies are spending on marketing communications. The Top Men and the staff will then prioritize your communications tactics using the given budget
  125. 125. Bottom-Up Approach G For a bottom—up approach, the marketing communications staff outlines the communications tactics with a line-item budget and presents it for approval. e The tactics should support the marketing objectives. * If the requested budget is too much, the top mgt. don't simply remove tactics to cut specific amounts; they consult with the marketing communications staff to see how it will affect the overall marketing plan first.
  126. 126. Percentage of Sales Some companies set marketing budgets as a percentage of sales, allocating a percentage to marketing communications. This number can also be compared to an industry standard. Factors affecting this method may include where you are in your business life cycle. For example, if you are a young company with little recognition, you may need to spend more in the first few quarters on promotion to get name recognition. A new product or new competitor can also temporarily affect marketing communications spending.
  127. 127. End of Module 1