Communication Process

Promotion Mix
Determining Advertising Budget

Communication
is the process of transmitting information from one person to another to
create a shared understanding.

Steps of the Communication Process

1. Sender
This is the person that is delivering a message to a recipient.
2. Message
This refers to the information that the sender is relaying to the receiver.
3. Communication Channel
This is the transmission or method of delivering the message.
4. Decoding
This is the interpretation of the message. Decoding is performed by the
receiver.
5. Receiver
The receiver is the person who is getting or receiving the message.
6. Feedback
In some instances, the receiver might have feedback or a response for the
sender. This starts an interaction.
PROMOTIONAL MIX
-refers to the types of promotional
techniques a business can use to target
their intended audience. It is about using
the best. methods of communication to
increase sales and awareness of the
business and its product.

Components of the promotion mix

Advertising
-is a paid promotion method where a sponsor calls for public attention through paid
announcements. 
Sales Promotion
-is the offering’s promotion using attractive short-term incentives to stimulate demand
and increase sales.
Direct Marketing
-is a promotion strategy where the target customers are contacted directly by the brand
instead of having an indirect medium like a retailer or wholesaler.
Public Relations
it involves communicating to the target audience and getting their attention
using earned media channels like news, word of mouth, government
announcements, etc.
Personal Selling
is a personalized promotion that involves person-to-person interaction
between a brand representative and a prospective customer.

Advertising Budget
An advertising budget is an amount set aside by a company planned for the
Eting Objectives & Budget
promotion of its goods and services. Promotional activities include conducting a
market survey, getting advertisement creative made and printed, promotion by
way of print media, digital media, and social media, running ad campaigns, etc.

Determining an Advertising Budget: 5 Methods

Method # 1. The Percentage of Sales Approach
is a forecasting tool that makes financial predictions based on previous and
current sales data. This data encompasses sales and all business expenses related
to sales, including inventory and cost of goods.
Method # 2. The All-You-Can Afford Approach
a simple method of determining a budget (for advertising, etc) in which the
amount allocated is the amount that can be afforded; also called the What-We-
Can Afford Method, the Affordable Method and the Arbitrary Method.
Method # 3. The Return on Investment Approach
 is a performance measure used to evaluate the efficiency or profitability of
an investment or compare the efficiency of a number of different investments.
ROI tries to directly measure the amount of return on a particular investment,
relative to the investment’s cost.
Method # 4. The Objective and Task Approach
a system in which a company allocates a certain amount of money to its
marketing budget based on specific objectives, rather than choosing an arbitrary
amount or basing its marketing budget on sales revenues or projections alone.
Method # 5. The Competitive Parity Approach
a budgeting method in which a company spends the same amount of
money on advertising and marketing as its competitors. As a business strategy,
competitive parity is designed to defend a competitive position by not
overspending on promotion and marketing budgets.
Thank you
and God
Bless