INTEGRATED MARKETING

COMMUNICATION
COURSE CODE: MRM 103C

Dr. Pratibha Rai

OBJECTIVES OF THIS COURSE
To familiarize the students with the nature,
purpose and complexities in planning and
execution of an effective Integrated Marketing
Communication (IMC) Programme.
LEARNING OUTCOME
Upon completion of the course students should be able to:

1. Explain the role of IMC in the overall marketing program.

2. Develop a detailed understanding of various marketing communication

tools and their effectiveness in contemporary time.

3. Analyze the creative and message strategies used in different

advertising campaigns.

4. Explain common methods used to measure effectiveness of marketing

communication programs.

5. Apply IMC concepts to develop a comprehensive IMC plan for a brand.

SYLLABUS
UNIT 1: Introduction
Introduction to IMC and the Communication Process, Evolution of IMC and reasons for its
Growth, IMC Planning Process, Role of IMC in Marketing Process, Communication Process:
Traditional and Alternative Response Hierarchy Models, Establishing Objectives and
Budgeting, Determining Promotional Objectives, Sales Vs. Communication Objectives,
DAGMAR, Problems in Setting Objectives, Setting Objectives for the IMC Program.
UNIT 2: Creative and Media Strategy
The Creative Process, Advertising- Types and Functions, Advertising Agencies – Types,
Functions and Compensation Structure, Advertising Appeals and Execution, Advertising
Copy, Media Planning and Strategy, Developing a Media Plan, Market Analysis and
Establishing Media Objectives, Developing and Implementing Media Strategies,
Evaluation and follow up, Advertising Spiral.
UNIT 3: Managing Mass Communication
Developing and Managing Advertising Programs, Deciding on Media and
Measuring Effectiveness, Sales Promotion, Events and Experiences, Public Relations
and Publicity.
UNIT 4: Managing personal Communication
Direct Marketing, Interactive Marketing, Word of Mouth, Personal Selling.

UNIT 5: Evaluation of Broadcast, Print, Internet and Support Media

Evaluation of TV, Radio, Print and Support Media, Advantages and Limitations of
TV, Radio, Internet and Support Media.
TEXTBOOK: 1. Clow, K.E., Baack, D.; Integrated Advertising, Promotion and Marketing
Communication; Pearson Education

REFERENCE BOOK/ SUGGESTED READING:

1. Belch, G.E., and Belch, M.A. and Keyoor Pranami; Advertising and Promotion: An
Integrated Marketing Communications Perspective; McGraw Hill
2. Shah, Kruti, D’Souza, A.; Advertising and Promotions: An IMC Perspective; McGraw
Hill
3. Kotte Berry Armstrong and Praful Agnihotri; Principles of Marketing; 17th Edition.
Pearson Education
4. Batra, R., Myers, J.G., and Aaker, D.A.; Advertising Management; Pearson
Education
5. Kotler, Philip, Armstrong, Gary and Prafulla Agnihotri; Principles of Marketing;
Pearson Education, 17th Edition (2018)
 UNIT I
INTRODUCTION

Introduction to IMC and the Communication Process,

Evolution of IMC and reasons for its Growth,
IMC Planning Process, Role of IMC in Marketing Process,
Communication Process: Traditional and Alternative Response
Hierarchy Models,
Establishing Objectives and Budgeting,
Determining Promotional Objectives,
Sales Vs. Communication Objectives,
DAGMAR,
Problems in Setting Objectives, Setting Objectives for the IMC Program.
 Integrated marketing communication refers to
integrating all the methods of brand promotion to
promote a particular product or service among
target customers.
INTEGRATED MARKETING
COMMUNICATION
In integrated marketing communication, all aspects of
marketing communication work together for increased
sales and maximum cost effectiveness.
Integrated Marketing Communications (IMC):

“is the coordination and integration of all marketing

communications tools, avenues, and sources within a
company into a seamless program that maximizes
the impact on consumer and other end users at a
minimal cost.”
Clow and Baack, 2004
 IMC
Integrated Marketing Communication is a management concept that is designed to
make all aspects of marketing communication such as advertising, sales promotion,
public relations, and direct marketing work together as a unified force, rather than
permitting each to work in isolation.
It ensures that all forms of marketing communications and messages are carefully
linked together.
For example, the brand Surf Excel uses the tagline “Daag Ache Hai”. The ads are
published in newspaper, magazines and banners. The brand also broadcasts the
ads in radio, internet, etc. The brand uses the consistent tagline in all the
communication. Consistency is the key to the success of IMC.
 IMC is a holistic marketing approach .
Integrated Marketing Communications (IMC) is a process under which a company integrates
and coordinates all its communications channels to deliver a clear and consistent message.
The main aim of IMC is to ensure two things, which are, firstly the consistency of the
message that they want to deliver and secondly the complementary use of media.
 In the IMC process, all the marketing tools, approaches and resources available within a
company are used in a way that results in maximum profits and minimum cost.
DEFINITIONS
IMC is the concept under which a company carefully integrates and coordinates its
many communications channels to deliver a clear, consistent and compelling message
about the organisation and its products.- Kotler
An organisation’s unified, coordinated effort to promote a brand concept through the
use of multiple communications tools that ‘speak with a single voice’- Shimp
"The process of strategically controlling or influencing all messages and encoring
purposeful dialogue to created and nourish profitable relationships with consumers
and other stakeholders." (Duncan & Caywood, 1996
EVOLUTION OF IMC
During the 1980s, many companies came to see the need for more of a strategic
integration of their promotional tools. These firms began moving toward the process of
integrated marketing communications (IMC), which involves coordinating the various
promotional elements and other marketing activities that communicate with a firm's
customers.
The term Integrated Marketing Communications was first coined in 1989.
In 1993, Don Schultz and his team published the first text-book dedicated to IMC.[71]
Their work, simply entitled, Integrated Marketing Communications, described IMC as a
totally new way of looking at the whole of marketing communications, rather than
looking at each of the parts separately. And, in the same year, the Medill School at
Northwestern University changed their curriculum to include a focus on this new idea of
integrated marketing communications rather than the traditional program which had
emphasized advertising.
Since the mid-1990s, virtually every text-book on the subject of marketing
communications has adopted an integrated perspective or has added chapters on IMC
in new editions of standard works.
COMMUNICATION MIX
Communications Mix defines the ways you communicate with your customers, i.e.,
the tools you use.
Traditionally, the marketing communications mix encompassed the five
channels advertising, sales promotion, direct marketing, personal selling, and public
relations.
However, the mix of channels and media available to marketers in order to
disseminate information and engage with potential customers has evolved since mass
communication was established, and it keeps evolving with new technologies arising
and communication behaviors adapting on a continuous basis.
 MAJORLY USED IMC TOOLS
Advertising: This tool of IMC refers to any paid form of non personal
promotions of products and services by a public figure and identified sponsor.
The various forms of media used are print, broadcast, network, electronic and
display. Advertising form of communication reached geographically dispersed
consumers.

Sales Promotions: Sales promotions are a variety of short-term incentive to

encourage trial or purchase of product or service. This usually includes
consumer promotions- such as distribution of free samples, coupons on purchase
of higher quantity, discounts and premiums or trade promotions, focusing on
retailers, such as display and merchandising allowances, volume discounts, pay
for performance incentives and incentives on salespersons.
Personal Selling: This tool of marketing is done through face-to-face interaction with
consumers. The whole purpose of personal selling is making presentations, answering
questions and taking orders. Personal selling helps in maintaining long term relations with
the customer. The main advantage is that the message can be customized as per the
needs of the customer.
Public Relations: PR is a two-way communication process which is directed towards
improving the relationship between the organization and the public. This method of
communication monitors the feedback of the customers and adjusts its message for
providing maximum benefits to them.
Direct Marketing: This method of communication includes the usage of mail, telephones,
fax or internet to communicate with or respond back to the customers or prospects.
Companies usually have a database of contact details of consumer through which they
directly contact the customers to send catalogues and other marketing material making it
easier for the consumer to purchase online.
Events and Experiences: These are the activities sponsored by the company and the
programs designed to create brand related interactions with customers. Companies
provide customers to get an experience of using the product which eventually ends up
leading to a higher brand recall than their competitors. These events and experiences
leave the customers heart filled with an emotional touch and memory that they carry
along.
Social Media Marketing: This tool of marketing is currently the most common way to
attract most audience in the digital era. This basically refers to the process of
promoting business or websites through social media platforms. These platforms help
companies to get major attention of customers and interact with them.
Mobile Marketing: This form of marketing involves communicating with the customer
directly via their mobile devices, by sending simple marketing messages. This method is
cheaper than the traditional forms of promotions and is a really streamlined version of
online marketing. Advertisements that we see on mobile applications are a common
example of mobile marketing.
COMMUNICATION
PROCESS
INTEGRATED MARKETING COMMUNICATION
PROCESS
The marketing communication process is slightly more complex. Prof
Barbara Stern at Rutgers University in the USA developed a more
sophisticated communication process model for advertising, known as the
Stern model
ELEMENTS OF COMMUNICATION PROCESS IN IMC

Barbara Stern at Rutgers University proposed a more sophisticated communication

model, derived from the traditional oral one but more specific to advertising. The
Stern model acknowledges that the source, the message, and the receiver ye multiple
dimensions.
a. Source dimensions : the sponsor, the author, and the persona Certainly the
sponsor is legally responsible, for the communication, but it usually does not actually
produce the message. The author of the communication is actually a copywriter, an
art directory, or, most often, a group at the agency. However, within the text of the
ad, some spokesperson, real or imagined, usually gives the ad or commercial a voice.
To the consumer, this persona is the source of the within-text message.
b. Message dimensions : autobiography, narrative, drama Multiple types of
messages are communicated in advertising. Some messages are autobiographical. In
narrative messages a third-person persona tells a story about others to an imagined
audience. Finally, in the drama, the characters act out events directly in front of an
imagined empathetic audience. In the encoding process, the advertising professional
usually begins by studying the emotions, attitudes, and concepts that drive particular
Customer. Once those are identified, symbols are developed are then placed in the
most suitable format for the message dimension and the medium in which they are to
appear.
 c. Receiver dimensions: implied, sponsorial, and actual consumers
 Implied. Implied consumers are those who are imagined by the advertisement's
creators to be ideal consumers who will relate to the message and be persuaded
to behave in the way the advertisement requires them to. This is most likely the
group of consumers who have been identified as the core target audience in the
creative brief from the sponsor to the agency authors.
 Sponsorial. Before a message is released, the first audience may include the key
decision-makers at the sponsor's company or organization. These sponsorial
consumers are the gatekeepers who decide whether to approve the message.
 Actual. Should the message get approved, the message is finally exposed to the
actual consumers (after production and media choices have also been approved).
The message is then released to people in the real world who hopefully comprise
the sponsor's target market. The message may also reach those it had not
intended to reach (for example, alcohol brands that sponsor sports teams may
see their brand being exposed to children, technically something that they have
to avoid).
Decoding occurs when the message reaches one or more of the receiver's senses. Most consumers
both hear and see television or video ads (on YouTube, Facebook, Instagram and other platforms).
Other consumers may handle (touch) and read (see) a brochure. The advertiser's objective is made
harder by the fact that the message is not always decoded by the receiver in the manner intended. The
way in which the actual target audience encounters and decodes an advertisement is what ultimately
determines the degree to which the advertiser's objectives are fulfilled. In other words, if the message is
correctly decoded in the manner in which the advertiser intended, there is a good chance that the
objectives for the campaign will be achieved. A challenge for consumer marketers (sponsors or authors)
is that actual consumers often do not usually think or behave the same as the implied consumer, or even
the sponsorial consumer. All elements of the message sender team must apply their thinking to how the
actual consumer will decode, or interpret, the message. This is where understanding decision making
consumer behaviour and research are helpful.
 Noise and feedback:
All along the process of sending and receiving messages there is the phenomenon of noise. This noise
is the clutter of competitors' messages and other forms of attention taking entertainment. There is also
noise from other people you trust (people you know well and whose opinions you value), when they
dispense their advice or suggestions. Because of this internal and external noise, the advertising agency
aims to eclipse these noise sources through techniques that make the consumer focus on the actual
advertising message. This is often referred to as 'breakthrough' advertising.
Feedback is essential in the advertising process because it provides the sponsor with an indication of
whether the message has been received and decoded correctly, and whether their original objectives
have been achieved. Even if the feedback is negative or disappointingly low, it enables the sponsor to
adapt the messaging and to try again. Feedback employs a sender–message–receiver pattern and is then
directed from the receiver back to the source. In advertising, feedback can take many forms, including:
 Increased or decreased sales
 Phone/website/social media enquiries or complaints
 Communication with the product dealer
 Requests for more information
 Viral chat (positive or negative)
IMC PLANNING PROCESS
1. Review of marketing plan
Examine overall marketing plan & objectives
Role of advertising and promotion
Competitive analysis
Asses environmental influences

before developing a promotional plan, marketer must understand

Where the company has been
Current position in the market
Where it intends to go how it plan to go there.
STEP 2: PROMOTIONAL PROGRAM SITUATION ANALYSIS
Commonly referred to as a SWOT Analysis, this is basically a structured method of
evaluating the internal strengths and weaknesses, and external opportunities and
threats that can impact your brand
A situation analysis involves the internal analysis and external analysis. Internal
analysis assesses relevant area involving the product/service offering and the firm
itself.
The capabilities of the firm and its ability to develop and implement a successful
promotional programme, the organization of promotional department and the success
and failures of past programmes are reviewed.
 STEP 3. ANALYSIS OF COMMUNICATION PROCESS:
This stage involves to know how the company can effectively communicate with
consumers in its target market. It involves the communication decision regarding the
use of various sources, messages and channel factors. It involves the analysis of
effects of various types of advertising messages might have on consumers and
whether they are appropriate for the product or brand.
An important part of this stage of the promotional planning process is establishing
communication goals and objectives. Communication objectives refer to what the
firm wants to accomplish with its promotional programs.
The communication objectives may include:
creating awareness or knowledge about a product and its attributes or benefits,
creating an image or developing favorable attitudes, preferences or purchase
intentions.
 STEP 4. BUDGET DETERMINATION:

In budget determination, the two basic questions that should be asked includes:
What will the promotional program's cost?
How will these funds be allocated?.
Budget determination procedure involves selecting the various budgeting approaches
and integrating them. At this stage, the budget is often tentative. It may not be
finalized until specific promotional mix strategies are developed.
STEP 5. DEVELOPING THE
INTEGRATED MARKETING
COMMUNICATIONS
PROGRAMME:

At this stage, decisions are

made regarding the role and
importance of each element
and their coordination with
one another. Each
promotional mix element
has its own set of objectives
and a budget and strategy for
meeting them.
 STEP 6. MENTORING, EVALUATION AND CONTROL:

This stage determine how well the promotional programme is

meeting communication objectives and helping the firm accomplish
its overall marketing objectives.
This stage is designed to provide managers with continual
feedback concerning the effectiveness of the promotional
programme which is used as input to subsequent promotional
planning and strategy development.
COMMUNICATIONS MODELS : RESPONSE
HEIRARCHY MODELS
 AIDA
AIDA was created by Strong in 1925 and is a behavioral model that has as purpose to
make sure that an advertisement raise awareness, stimulate interest, and leads the
customer to desire and eventually action.
The model is seen as a highly persuasive and is said to often unconsciously affect our
thinking
With the AIDA model Strong suggests that for an advertisement to be effective it has to
be one that:
1. Commands Attention
2. Leads to Interest in the product
3. And thence to Desire to own or use the product
4. and then finally leads to Action
HIERARCHY-OF-EFFECTS” MODEL
The hierarchy of effects model is a model which tells advertisers to make an
advertisement in such a way that the customer goes through all these six
stages namely awareness, knowledge, liking, preference, conviction and
purchase. It is created by Robert J Lavidge and Gary A Steiner in 1961,
the hierarchy of effects model suggests six steps to consumer buying
behaviour.
HIERARCHY-OF-EFFECTS” MODEL
1. AWARENESS

This is the most crucial step and the starting point for purchase. Brands must
make sure that the consumer is aware of the presence of your brand in a
particular product segment.
For example, if Tina wants to buy a toothbrush, and you as the marketing
manager of XYZ want her to buy your brand’s toothbrush, you have to make
sure that you advertise well so that she is aware of the existence of such a
brand for toothbrushes.
2. KNOWLEDGE

This is where your product will be evaluated against other brands by the
consumer. Make sure enough (positive) knowledge is available about your
product – through the internet, retail stores and the product package itself.
For example, now Tina, aware that there is a XYZ brand will try figure out
what unique features and benefits you are offering over any other brand like
Colgate and Oral-B.
3. LIKING

This is where the consumer builds a liking to your product. This is where
your product is being considered for its emotional benefits; be sure to make
them prominent.
For example, now Tina has evaluated the pros and cons of buying a XYZ
brush but might not like the colour of it, or might feel that this brush is for the
elderly. As the marketing manager of XYZ, you have to make sure that these
features, that leave emotional impact, are taken care of properly in the
marketing communication program.
4. PREFERENCE

By this time consumer may be convinced to try out your product, but may like
other brands of toothbrush too. So what is it that will make her prefer XYZ
over the other brands? These points of differentiations or unique selling
points need to be highlighted to make sure that the consumer likes your
brand more than the others in her consideration list.
For example, Tina now may be actually considering buying a XYZ
toothbrush. But is she thinking that she’ll buy it to try it only or is she thinking
that the next buy will also be a XYZ brush
5. CONVICTION

This is the stage where the doubt in consumers’ minds about buying the
product of your brand needs to be converted into action. Marketers can aid in
this step by giving out free samples, test drives etc. This step should also
decide if the consumer will stick to your brand i.e. actually buy your brand, or
switch after testing the sample.
For example, Tina tried the brush you gave her for a month and then when
time came to buy one, she bought an Oral-B one. Make sure that doesn’t
happen and that trial builds loyalty. Incorporate such unique features in your
brand that will encourage purchase.
6. PURCHASE

The last and the most crucial stage of the consumer buying cycle is the
purchase. You need to make sure that purchase experience is easy and
perhaps even enjoyable for the consumer. Some of the ways to encourage
purchase is by keeping simple and multiple paying options, making the
product available easily, easy to understand usage instructions, offers etc.
For example, now that Tina has decided to buy your brand after trying it out
for a month, make sure she knows where to buy it from and how she can
pay. You may also give her a tube of toothpaste free to delight her.
 HIERARCHY OF EFFECTS CONSUMER
BEHAVIOUR STAGES

Lavidge and Steiner further grouped these six stages into three main stages of
consumer behaviour:
1. Cognitive
Also called the “thinking” stage, this is where the consumer gathers knowledge about
the product and becomes aware of it. This can be said to be a rational step where
pros and cons, product specifications etc. of a product are evaluated.
2. Affective
Also called the “feeling” stage is when the consumer starts developing a liking for the
product, and may even develop strong positive (or negative) feelings toward it.
3. Conative
This is the “behaviour” stage of the process. This is when the consumer, after
weighing the pros and cons, and deciding his/her preference actually buys the
product.
The main aim of this tool that serves as a marketing communication tool is to
encourage consumers to go through the six steps that end in purchase of
product. It is not necessary that consumers always go through all the six
steps but the aim is to land a purchase.
INNOVATION ADOPTION” MODEL
Model is evolved from work on the diffusion of innovations. This model
represent the stages a consumer passes through in adopting an innovation—
innovation such as a new product.
•AWARENESS
This is the primary stage of Innovation-Adoption Model. takes action is the awareness
stage of the model where the consumer becomes aware of a brand or a product mostly
through advertisements.
•INTEREST
This is the second phase of the Innovation-Adoption Model. This is a stage in which
the information about the brand or a product multiplies in the market and triggers the
interest of the potential buyers of the product to gain more knowledge and information
about the product.
EVALUATION
Evaluation is the third stage of the Innovation-Adoption Model that supplements the
necessary information regarding the product to the consumers. In this stage, the
consumers evaluate and try to gain a deeper understanding of the product that
stimulated interest in them.
•TRIAL
In this stage, the customers try the product before making the final choice to
purchase the product.

•ADOPTION
Adoption is the final stage of the Innovation-Evaluation Model. In this stage,
the customer accepts the product, makes a purchase decision and finally
purchases the product.
 INFORMATION-PROCESSING
MODEL
The Information-Processing Model is a structure used by cognitive
psychologists to define the mental processes. This model links the human
thought process to the computer functions. It signifies that the human mind,
like the computer takes in information, organizes, and stores the information
to be repossessed later. It claims that just like the computer possesses an
input device, a processing unit, a storage unit, and an output device, the
human mind also has a parallel framework.
•PRESENTATION
The presentation is the fundamental stage in the Information-Processing
Model. This is the awareness phase where the consumer becomes aware of
his needs and seeks a product to satiate his needs.

•ATTENTION
This is the second stage of the Information-Processing Model, where the
product seizes the attention of the potential customers

•COMPREHENSION
In this stage of the Information-Processing Model, the consumer compares
and evaluates various products of different brands accessible in the market to
ascertain the product that actually meets his requirement.
•YIELDING
This is a stage in which the customer figures out what exactly he wants and
the brand and its product that balances his needs to its specifications.

•RETENTION
This is the fifth stage in the Information-Processing Model. This is the stage
in which the customer remembers the key features and attributes, the
benefits and all the positive aspects of the products that he is seeking to
purchase.

•BEHAVIOR
This is the last stage of the Information-Processing Model in which the
purchase action of a product of a particular band takes place.
OPERATIONAL MODEL
Operational Model is a strategic framework that works by three activities namely
the Non-Evaluative Thinking, Evaluative Thinking, and Action.
•NON-EVALUATIVE THINKING
This is the first stage of the Operational Model. In this stage, the consumers are
exposed to the different brands and the multiple products that they offer. This is the
awareness stage which creates awareness among the potential consumers.
•EVALUATIVE THINKING
Evaluative thinking is the second stage of the operational model. This is an
evaluation phase wherein the potential customers evaluate different products and
juggle the same with similar products of various brands to make that one choice
amongst the various alternatives available.
•ACTION
The action is the last stage in the Operational Model. This is a stage wherein a
consumer makes the final purchase decision and purchases the product.
DAGMAR APPROACH
The DAGMAR approach of advertising was devised by Mr Russell Colley
who was much appreciated for his work, as till date, DAGMAR is a concept
used in advertising to set advertising objectives and goals. DAGMAR is an
abbreviation for “Defining advertising goals to measure advertising results”.

Russell colley observed that although people were investing in advertising,

they had to invest a lot of time in other marketing activities to get the ROI of
advertising. This is because the ROI from advertising was unknown.
The 2 core things on which the DAGMAR Model stood were
1.Creation of a communication task to achieve goals
2.Defining the objective of the communication tasks in a manner that the
results can be measured.
THE COMMUNICATION TASKS INVOLVED IN THE
DAGMAR APPROACH.
 DEFINING OBJECTIVES IN THE DAGMAR
APPROACH .

The second most important task of DAGMAR was defining the objectives of
advertising or of the communication tasks which were to be created. Once
you defined the objectives, then the measuring of advertising results was
comparatively easier.
The objectives of advertising in DAGMAR (which are used to
create communication tasks) are as follows:

Concrete and measurable tasks – The tasks need to be a precise statement of what
the advertiser wants to achieve through the communication. Does he want to
strengthen the brand image, maximize the brand presence, penetrate new markets or
increase overall sales?
Define the target audience – Before the communication task commences, the target
audience needs to be defined as precisely as possible. Are you targeting youngsters,
adults, elderly? Any of the various forms of segmentation can be used to define the
target audience.
Degree of change sought – What level of perception, attitude or awareness of the
customer do you want to change? If a customer is aware of the product, do you want
his negative attitude to change to positive? Or if the market is completely unaware, do
you want the whole market to be aware or only partially the target group itself? These
degrees of change which are going to be the objective of the communication task
need to be defined in advance.
Time period – To achieve the objectives of the communication tasks, how
much time are you ready to allot. If you think that in a month, the product can
create awareness in the complete market, then you are very wrong. That’s
why major advertisers try to introduce the product for 3 months, and then
communicate the features and benefits in the next 3 months so that the brand
recall is high and the brand

DAGMAR approach involved defining the objective of a communication task,

and then creating communication tasks which were themselves measurable.

The DAGMAR approach is used by many promotional planners to set plans

of advertising and marketing. This approach is also used to set advertising
objectives and to measured the results against the plan.
ADVERTISING BUDGETING METHODS
An advertising budget is an amount set aside by a company planned for the
promotion of its goods and services. Promotional activities include
conducting a market survey, getting advertisement creatives made and
printed, promotion by way of print media, digital media, and social media,
running ad campaigns, etc.
PROCESS OF CREATING ADVERTISING BUDGET
The following steps are followed to set up this budget –
•Setting advertising goals based on the company’s objectives.
•Determine the activities that are required to be done.
•Preparing the components of the advertising budget;
•Getting the budget approved by management;
•Allocation of funds for activities proposed under the advertisement plan;
•Periodically monitoring the expenses being incurred during the advertising
process;
ADVERTISING BUDGET METHODS
 ADVERTISING BUDGET METHODS
•Percentage of Sales: Under this method, the advertising budget is set as a
percentage of either the past sale or expected future sales. Small
businesses usually use this method.

•Competitive Parity: This method advocates that a company sets an

advertising budget similar to the one set up by its competitor to yield similar
results.

•Objective and Task: This method is based on the advertising objectives of

this method. Once the objectives are decided, the cost is estimated to
complete those objectives, and accordingly, a marketing budget is set.
•Market Share: In this method, the advertising budget is based on a
company’s market share. For a higher market share, less marketing budget
is set.

•All available Funds: This is a very aggressive method under which all
available profits are allocated towards advertising activities. This method can
be used by start-up businesses that need advertisements to attract
customers.

•Unit Sales: Under this method, the advertisement cost per article is
calculated and based on the total number of articles, it is set.

•Affordable: As the name suggests, the company sets its budget based on
how much it can afford.