1Session 4: MKTG1041
Marketing Communication
Communication Objectives and Budgeting
Acknowledgement of Country
RMIT University acknowledges the people of the Woi
wurrung and Boon wurrung language groups of the
eastern Kulin Nations on whose unceded lands we
conduct the business of the University. RMIT University
respectfully acknowledges their Ancestors and Elders,
past and present. RMIT also acknowledges the
Traditional Custodians and their Ancestors of the lands
and waters across Australia where we conduct our
business.
• Introduction and announcements
• Lecture recap
• Activity – Working in groups
• Assignment Activity – What’s the ad’s main function?
• What’s next…
Agenda
Lecture Recap
Communication Objectives and Budgeting
5LO1: The magnitude of advertising
• Characterised as impersonal and one-way
communication.
• Paid for by the sponsor and predominantly used to
build brand awareness.
• Advertising is not just a current expense, but an
investment in long-term success.
• Consistent investment spending is the key factor
underlying successful advertising.
• Stopping or reducing advertising can cause a brand to
lose some of its equity and market share.
6Arguments for investing
in advertising
• Investment in advertising
requires that incremental
revenue exceeds
advertising expense
Arguments for reducing
advertising expenditure
• Decreasing advertising
expenses will increase
profits, if all other
expenses are held
constant
Putting marketing communication
in perspective
7LO2: Marketing communication
functions and process
Informing
Persuading
Reminding
Adding value
Assisting other company efforts
8The marketing communications
management process
1. Formulating the IMC strategy: setting objectives, budgeting,
message strategy and selecting media vehicles
2. Implementing the strategy: the tactical, day-to-day activities
3. Assessing effectiveness: a critical aspect requiring baseline
measures.
9An expression of
marketing
management
consensus
Guide the budgeting,
message and media
aspects of a brand’s
advertising strategy
Provide standards
against which results
can be measured
LO3: Setting marketing
communication objectives
10
Include a precise
statement of who,
what and when
Be quantitative
and measurable
Specify the
amount of change
Be realistic Be internally consistent
Be clear and put it
in writing
SETTING ACHIEVABLE ADVERTISING OBJECTIVES
LO3: Setting marketing
communication objectives
11
The hierarchy-of-
effects framework
Moving consumers
from one goal to the
next
12
1. The
objective
2.
Competitor’s
activity
3. Funds
available
LO4: Budgeting for marketing
communications
• Share of voice (SOV)
• Share of market (SOM)
• Encoding variability
hypothesis
PRACTICAL BUDGETING CONSIDERATIONS
13
Practical budgeting methods
• Percentage-of-sales budgeting
• Competitive parity method
• Objective-and-task method
• Affordability method
Activity:
Working in groups
15
—
Activity: Working in groups
Let’s talk about these 5 statements:
1. Do teams need a leader?
2. Everyone must contribute equally to all aspects of a
team project.
3. I usually get work done
4. In your opinion, being late for team meetings means …
5. It is better to work with people that you like rather than
those with the most relevant skills.
16
—
Activity: Working in groups
To complete the Group Workflow Agreement answer the following
questions:
• As a group, what do you hope to achieve?
• How and when will you assess the quality of each other’s
individual work?
• How will you provide honest but constructive feedback?
• What will you do if that work doesn’t meet the standard you set?
• What will you do if a member does not submit work on time?
• When will you hold meetings and how will they be conducted? Is
it important for everyone to be present?
• How will you share information?
Assignment Activity:
What is the ad’s main function?
18
—
Activity: What is the ad’s main function?
Search the Internet for advertisements for fast moving
consumer goods (FMCG) that demonstrate two of the five
advertising functions below:
1. Informing
2. Persuading
3. Reminding
4. Adding value
5. Assisting other company efforts
What’s next…
Your tasks from here
20
Tasks to complete
1.Test your knowledge using the Student self-
learning Quiz and Discussion Questions
2.Watch next session’s pre-recorded lecture
3.Read chapter 5 of the recommended text
4.Check out the “Industry Connect: Linking
Theory to Practice” section on Canvas
5.Move to breakout rooms to commence work in
groups on Assignment 1