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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
Types of Budgets


 Meet the competition
      Seeks to prevent market share loss
      Highly competitive markets

      Dollars may not be spent efficiently
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 50% of firms
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
Types of Budgets


Quantitative models
     Computer simulations
     Develop models based on historical data
IMC Components

   Traditional advertising
   Trade promotions
   Consumer promotions
   Media spending
   Alternative media spending
   Business-to-business media spending
Breakdown of Marketing Expenditures




                                               Consumer
               Trade                          promotions,
                          Other, 3.3%
            promotions,                          27.9%
               27.5%




                               Advertising,
                                 41.1%
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.
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.
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.
Restaurant Chains
U.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
Automotive Brands
U.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
Shampoos/Conditioners
U.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
Successful Globally Integrated Marketing
Communications 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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Presupuestos publicitariosune3

  • 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. Types of Budgets Meet the competition  Seeks to prevent market share loss  Highly competitive markets  Dollars may not be spent efficiently
  • 3. Types of Budgets What we can afford  Set after all other items budgeted  Not understand importance of marketing
  • 4. Types of Budgets Objective and task  Budgets determined by objectives  Best method of budgeting  Used by 50% of firms
  • 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. Types of Budgets Quantitative models  Computer simulations  Develop models based on historical data
  • 7. IMC Components  Traditional advertising  Trade promotions  Consumer promotions  Media spending  Alternative media spending  Business-to-business media spending
  • 8. Breakdown of Marketing Expenditures Consumer Trade promotions, Other, 3.3% promotions, 27.9% 27.5% Advertising, 41.1%
  • 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. 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. 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. Restaurant Chains U.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. Automotive Brands U.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. Shampoos/Conditioners U.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. Successful Globally Integrated Marketing Communications 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

Notas del editor

  1. 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.
  2. 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.
  3. When looking at alternative media spending, the largest category is for online and mobile, 40%. The second largest expenditure is for branded entertainment, 30%.
  4. 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%.