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Belch: Advertising and
Promotion, Sixth Edition
IV. Objectives and
Budgeting for Integrated
Marketing
Communications Programs
7. Establishing Objectives
and Budgeting for the
Promotional Program
extremely low brand awareness necessitated the development of a non-traditional
campaign that would uniquely position the MINI brand and break through the cluttered
automotive advertising environment. In the pre-launch phase, MINIs were
stacked on top of SUVs that toured the country to bring attention to the brand. Then,
seats were removed from sports stadiums in Oakland, CA and New Orleans, and
MINIs were put on display at Major League Baseball and NFL football games. At
these events, wallet cards were handed out encouraging interested parties to visit the
MINIUSA.com website to create their own customized MINI and sign up to become a
“MINI Insider.” For launch, traditional media (magazine and out-of-home) was used
in non-traditional ways and complemented by extensive public relations activities.
The campaign yielded over 115,000 “MINI Insider” registrants on the website, and
record click-through rates on outbound email campaigns. Thousands of MINIs were
pre-ordered even before the car was available in dealer showrooms, putting MINI well
on track to reach its sales goal of 20,000 units. 8
Direct-response advertising is one type of advertising that evaluates its effectiveness
on the basis of sales. Merchandise is advertised in material mailed to customers,
in newspapers and magazines, through the Internet, or on television. The consumer
purchases the merchandise by mail, on the Net, or by calling a toll-free number. The
direct-response advertiser generally sets objectives and measures success in terms of
the sales response generated by the ad. For example, objectives for and the evaluation
of a direct-response ad on TV are based on the number of orders received each time a
station broadcasts the commercial. Because advertising is really the only form of communication
and promotion used in this situation and response is generally immediate,
setting objectives in terms of sales is appropriate. The SkyTel interactive messaging
system shown in Exhibit 7-5 is an example of a product sold through direct-response
advertising.
Retail advertising, which accounts for a significant percentage of all advertising
expenditures, is another area where the advertiser often seeks a direct response, particularly
when sales or special events are being promoted. The ad for Mattress Gallery’s
special purchase sale shown in Exhibit 7-6 is designed to attract consumers to stores
during the sales period (and to generate sales volume). Mattress Gallery’s management
can determine the effectiveness of its promotional effort by analyzing store traffic
and sales volume during sale days and comparing them to figures for nonsale days.
But retailers may also allocate advertising and promotional dollars to image-building
Exhibit 7-5 Sales results are an
appropriate objective for directresponse
advertising
Exhibit 7-6 Retail ads often seek sales
objectives
© The McGraw−Hill
Companies, 2003
201
Chapter Seven Establishing Objectives and Budgeting for the Promotional Program