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Part Four Objectives and Budgeting for Integrated Marketing
Communications Programs
Belch: Advertising and
Promotion, Sixth Edition
Figure 7-1 Factors
influencing sales
Exhibit 7-4 MINI USA
used a non-traditional,
integrated campaign to
relaunch the MINI brand in
the US market
IV. Objectives and
Budgeting for Integrated
Marketing
Communications Programs
Advertising
and promotion
7. Establishing Objectives
and Budgeting for the
Promotional Program
Competition
Distribution
SALES
Technology
Price
© The McGraw−Hill
Companies, 2003
The economy
Product quality
consumer enters the market for the product, which may occur later. A review of econometric
studies that examined the duration of cumulative advertising effects found that
for mature, frequently purchased, low-priced products, advertising’s effect on sales
lasts up to nine months. 6 Models have been developed to account for the carryover
effect of advertising and to help determine the long-term effect of advertising on
sales. 7 The carryover effect adds to the difficulty of determining the precise relationship
between advertising and sales.
Another problem with sales objectives is that they offer little guidance to those
responsible for planning and developing the promotional program. The creative and
media people working on the account need some direction as to the nature of the
advertising message the company hopes to communicate, the intended audience, and
the particular effect or response sought. As you will see shortly, communications
objectives are recommended because they provide operational guidelines for those
involved in planning, developing, and executing the advertising and promotional
program.
Where Sales Objectives Are Appropriate While there can be many
problems in attempting to use sales as objectives for a promotional campaign, there
are situations where sales objectives are appropriate. Certain types of promotion
efforts are direct action in nature; they attempt to induce an immediate behavioral
response from the prospective customer. A major objective
of most sales promotion programs is to generate
short-term increases in sales. The “ads” in Exhibit 7-4
were part of BMW Group’s non-traditional integrated
marketing campaign that simultaneously relaunched the
MINI brand, introduced two new models; the MINI
Cooper and MINI Cooper S and established a new automotive
segment (MINI is the smallest car on the American
road) to the American public. Over 5.3 million Classic
Mini’s were sold worldwide from 1959–2000 but only
10,000 Classic Minis were sold in the US from
1960–1967. Over the years, MINI became a British automotive
icon, with milkmen, rock stars and royalty alike
behind the wheel. Since the SUV dominated the American
marketplace, the spirit of the MINI brand values and