Question

A major problem facing marketing managers is how to allocate their marketing communication budgets, for both traditional and digital media, in order to improve consumer attitudes, market shares, sales, and profits. In addition, managers are subject to organizational realities which include political and historical influences. With this in mind, respond to the following in the Discussion:

• What factors would you consider when making marketing communication and budget allocation decisions?
• How do these factors relate to the relative allocations between advertising and sales promotion?
• Be prepared to discuss and defend your choices in your response to your peers.

Answer 1

A marketing communication budget provides a formal process for planning, tracking and measuring the impact of your expenditures on marketing communications activities such as advertising, direct marketing, online or events. The budget sets out the funding required to meet your communications objectives and provides a method of managing the expenditure over a budget year.

Objectives of Marketing Communication Budget

The marketing communication budget is part of the wider marketing planning process. Your marketing strategy establishes how you will achieve your marketing objectives. Marketing communications strategy describes the techniques you will use to deliver key messages to the target audience. The objective of the marketing communication budget is to achieve the communication goals as cost effectively as possible and demonstrate a successful return on investment. Some organizations separate above-the-line expenditures on advertising from below-the-line activities such as product information, social media or direct marketing.