5/20/2021 IGNITOR Student

to elevate their own levels ot advertising spending. The Geico case illustrates unmistakably that Oly'em'wseuingand
creative advertising backed with sufficient advertising budget can accomplish various marcom Budgeting
objectives such as increasing awareness, attracting new customers, and boosting market share.

Sources: Adapted from Mya Frazier, Geico’s Big Spending Pays Off, Study Says,” Advertising Age, June 26, NOTES
2007, httpfladagenam (acoessed June 27, 2007).

Introduction
Returning again to the model of the marcom process, you will recall that the framework
described various forms of ”fundamental" and "implementation" decisions. We continue
with this theme as it relates specifically to advertising objective setting and budgeting. These
activities, along with targeting and positioning, are the bedrock of all subsequent marcom
decisions. Marcom strategy built on a weak foundation is virtually guaranteed to fail. Intel-
ligent objectives and an adequate budget are critical for success. Let us not forget the mantra
introduced in Chapter 1:

All marketing communications should be (I) directed to a particular target market, (2) clearly
positioned, (3) created to achieve a specific objective, and (4) undertaken to accomplish the
objective within budget constraint.

This chapter milnfinates the discussion of fundamental marcom decisions by examining

objective setting and budgeting. Both topics have been treated in the past mostly from the
perspective of advertising rather than marcom in general. However, because the issues ane
similar regardless of the form of marketing communications, in this chapter we will pull from
the advertising literature and apply it to all forms of marketing communications.
This chapter argues that objective setting and budgeting decisions must be formal and
systematic rather than haphazard. Both topics represent key decisions that set the stage for
the subsequent set of “implementation" decisions, which include the choice of messages,
media, mixture of marcom elements, and the achievement of a continuous message pres-
ence, or momentum. (Please note that these four "implementation" decisions, along with the
”fundamental" decisions, were introduced in the model of the marcom process in Chapter 1.
It would be useful to review this model in Figure 1.1 to reacquaint yourself with the overall
scope of marcom strategy.)

Setting Marcom Objectives

say…
Marcom objectives are goals that the various marcom elements aspire to achieve individu- M , - I 85
ally or collectively during a scope of time such as a business quarter er fiscal year. Objectives

https://reader.ignitorlearning.com/#/book/ff1a9b80—8f7c—4436-b4ad-6669ffd72907/00re/content-player/ed363abd-1eb3-b147-7814-56d95ae17. . . 93/295