Marketing Communications

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Marketing Communications
Promotion Planning And Techniques


TRADITIONAL APPROACHES TO BUDGETING FOR PROMOTION


The traditional budgetary methods include:



  1. Arbitrary allocation – used for advertising or sales promotion.

  2. Percentage of sales – used for advertising or sales promotion.

  3. Return on investment – used for personal selling and publicity.

  4. Competitive parity – used for advertising.

  5. All the company can afford – used for advertising.

  6. Objective and task costing approach – used for advertising.


ORGANISING PROMOTION ACTIVITIES


These guidelines will help to prevent mistakes and maximize promotion results, though there is no specific
best way in organizing promotion activities to suit various firms or marketing communication situation.



  1. The marketing communication mix is only a part of and is subordinate to the overall
    marketing mix. Objectives set for the various communication tools should support and
    reinforce overall marketing objectives.

  2. The allocation of funds to the marketing communication tools should be commensurate
    with tasks to be performed by each tool.

  3. Authority to act must be delegated with responsibility to managers of various communication
    tools. Duties should be clearly delegated, so that managers can react quickly to take advantage
    of opportunities. The necessity for securing top management approval should be limited to
    decisions that seriously affect other parts of the organization or involve the expenditure of
    large amounts of scarce resources.

  4. To secure optimum coordination and integration, the various parts of the communication
    mix should be located with the same department. They should participate in the planning
    and budgeting of all marketing communication programmes.


SEPARATING PERSONAL SELLING AND MASS COMMUNIATION DEPARTMENTS


Most firms usually separate the function of personal selling from mass communication in the
organization chart.


There are reasons which top management of firms gives for this separation of two departments; some
of the reasons are that:



  1. Sales executives are not normally competent to evaluate an advertising programme.

  2. Advertising is a long-term investment and its programmes should be devised to cover a
    period of several years, personal selling programmes are usually set up on a fiscal year basis.

  3. Sales manager are quick to cut advertising programmes when cost problems are encountered
    in selling.

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