Term
Economic Approach to budgeting
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Definition
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Term
| Top- Down budget approaches |
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Definition
top down:
affordable method: what they can afford, ok method common in small firms
arbitrary allocation: estimated guess, bad way
percentage of sales method: most common method as percent of sales or unit cost
competitive parity: based on competitors ad budget
return on investment: advertising and promotions considered investments and budgetary appropriation leads to certain returns |
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Term
| Bottom up approach to budgeting |
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Definition
bottom up: look at communications objectives and determine what is needed to obtain these goals
objective and task: 1. defining communications objectives
2. determine specific tasks and strategies to obtain them
3. estimate cost associations |
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Term
| Value of Budgeting Objectives |
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Definition
Focus and coordination: help orient everyone involved toward one common goal
plans and decisions: serve as criteria for developing plans and making decisions
measurement and control: provide standards and benchmarks for evaluating results |
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Term
| 4 communication objectives |
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Definition
Awareness and knowledge
memorable image
change/ strengthen attitudes
purchase intentions/ actions |
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Term
| Cognitive advertising and movement towards action |
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Definition
Cognitive: realm of thoughts ads provide information and facts (knowledge)
-announcements
-descriptive copy
-slogans and jingles
(awareness)
-teaser campaigns |
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Term
| Affective advertising and movement towards action |
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Definition
affective: realm of emotions, ads change feelings and attitudes(preference)
-competitive ads
-argumentative copy
(liking)
-image copy
-status/ glamour appeals |
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Term
| Conative advertising and movement towards action |
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Definition
conative: realm of motives, ads stimulate or direct desires (Conviction, purchase)
-point of purchase
-retail store ads
-last chance offers
-price appeals and testimonials |
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Term
| What does DAGMAR stand for and what is it? |
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Definition
Definign advertising goals for measured advertising results
unaware=>aware=>comprehension=>attitude=> action
(ex. availability goes with establish brand and so on below)
Aware: availability/ accessability> "establish brand awareness" "maintain/ increase"
comprehension: availability/ accessability/ desirability> "establish memory for" "maintain/ increase" "maintain/ increase"
attitude/ conviction: affective/ cognitive > "establish/ maintain/ increase"
Action: trial/ loyalty/ switch |
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Term
| Concave downward function model |
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Definition
as amount of advertising increases incremental value decreases
fewer ad dollars may be needed |
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Term
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Definition
after a certain budget level is reached, ads begin to have an effect.
operate in middle to maximize return |
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