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    Digital Marketing

    Uploaded by

    Khushit Mehta
    The document discusses digital marketing and integrated marketing strategy. It covers establishing annual business, marketing, and communication plans with multiple campaigns. It also discusses e-marketing plans with recurring campaigns. Budgeting decisions involve determining spending amounts and allocating budgets. Marginal analysis principles for increasing, decreasing, or holding spending levels based on incremental returns are presented. Problems with relying solely on sales as the objective and result of promotions are noted. Response curves show relationships between spending levels and incremental sales. Top-down and bottom-up budgeting approaches as well as objective and task budgeting methods are outlined. Factors for allocating integrated marketing communication budgets are provided.

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    Download as PDF, TXT or read online from Scribd

    Digital Marketing

    Uploaded by

    Khushit Mehta
    133 views18 pages
    The document discusses digital marketing and integrated marketing strategy. It covers establishing annual business, marketing, and communication plans with multiple campaigns. It also discusses e-marketing plans with recurring campaigns. Budgeting decisions involve determining spending amounts and allocating budgets. Marginal analysis principles for increasing, decreasing, or holding spending levels based on incremental returns are presented. Problems with relying solely on sales as the objective and result of promotions are noted. Response curves show relationships between spending levels and incremental sales. Top-down and bottom-up budgeting approaches as well as objective and task budgeting methods are outlined. Factors for allocating integrated marketing communication budgets are provided.

    Original Description:

    Integrated Marketing Strategy

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    The document discusses digital marketing and integrated marketing strategy. It covers establishing annual business, marketing, and communication plans with multiple campaigns. It also discusses e-marketing plans with recurring campaigns. Budgeting decisions involve determining spending amounts and allocating budgets. Marginal analysis principles for increasing, decreasing, or holding spending levels based on incremental returns are presented. Problems with relying solely on sales as the objective and result of promotions are noted. Response curves show relationships between spending levels and incremental sales. Top-down and bottom-up budgeting approaches as well as objective and task budgeting methods are outlined. Factors for allocating integrated marketing communication budgets are provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    133 views18 pages

    Digital Marketing

    Uploaded by

    Khushit Mehta
    The document discusses digital marketing and integrated marketing strategy. It covers establishing annual business, marketing, and communication plans with multiple campaigns. It also discusses e-marketing plans with recurring campaigns. Budgeting decisions involve determining spending amounts and allocating budgets. Marginal analysis principles for increasing, decreasing, or holding spending levels based on incremental returns are presented. Problems with relying solely on sales as the objective and result of promotions are noted. Response curves show relationships between spending levels and incremental sales. Top-down and bottom-up budgeting approaches as well as objective and task budgeting methods are outlined. Factors for allocating integrated marketing communication budgets are provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 18

    Digital Marketing

    Session 8

    Integrated Marketing Strategy


    Step 1: Annual Business Plan
    Step 2: Annual Marketing Plan

    Step 3: Annual Communication Plan


    Campaign 1

    Campaign 2

    Campaign 3

    Campaign 4

    Continuous e-marketing activity: E-Marketing Plan


    E-Campaign 1

    E-Campaign 2

    E-Campaign 3

    E-Campaign 4

    Budgeting Decisions
    Budgeting decisions involve determining how much money
    will be spent on advertising and promotion each year and
    how the monies will be allocated

    Two major decisions


    Establishing the size of the budget
    Allocating the budget

    Marginal Analysis

    Gross Margin

    Sales in $

    Sales

    Ad. Expenditure

    Profit

    Point A
    Advertising / Promotion in $

    BASIC Principles of Marginal Analysis

    Increase Spending . . . IF:


    The increased cost is less than the incremental
    (marginal) return.

    Decrease Spending . . . IF:


    The increased cost is more than the incremental
    (marginal) return.

    Hold Spending Level. . . IF:


    The increased cost is equal to the incremental
    (marginal) return.

    Problems with Marginal Analysis


    Assumption:
    Sales are the principal objective of advertising
    and/or promotion.

    Assumption:
    Sales are the result of advertising and
    promotion and nothing else.

    Advertising Sales/Response
    Functions

    High Spending
    Little Effect

    Advertising Expenditures

    Middle Level
    High Effect

    Incremental Sales

    B. S-Shaped Response
    Function

    Initial Spending
    Little Effect

    Incremental Sales

    A. Concave-Downward
    Response Curve

    Range A Range B Range C

    Advertising Expenditures

    Top-Down Budgeting
    Top Management Sets the
    Spending Limit

    The Promotion Budget Is Set to Stay


    Within the Spending Limit

    Top-Down Approaches
    The Affordable Method
    What we have to spare. What's left to spend.

    Arbitrary Allocation Method


    No system. Seemed like a good idea at the time.

    Percentage of Sales Method


    Set percentage of sales or amount per unit.

    Competitive Parity Method


    Match competitor or industry average spending.

    Return on Investment Method


    Spending is treated as a capital investment.

    Bottom-Up Budgeting
    Total Budget Is Approved by
    Top Management
    Cost of Activities are Budgeted
    Activities to Achieve Objectives
    Are Planned

    Promotional Objectives Are Set

    Objective and Task Method


    Establish Objectives
    (create awareness of new product among
    20 percent of target market)
    Determine Specific Tasks
    (Increase online sales/ Increase Click
    through etc)
    Estimate Costs Associated with Tasks
    (create awareness of new product among
    20 percent of target market)

    Allocating the IMC Budget


    Factors Affecting Allocation to Various
    IMC Elements
    Client/Agency Policies
    Size of Market
    Market Potential
    Market Share Goals
    Market Share and Economies of Scale
    Organizational Characteristics

    Share of Voice and Ad Spending

    Setting Objectives
    Specific targets for online revenue contribution
    for different e-channels should be set for the
    future (Spreadsheet)
    Objectives should be set for the percentage of
    customers who are reached or influenced by each
    channel (or brand awareness in the target
    market) and the percentage of sales to be
    achieved through the channel
    The online revenue contribution should also
    consider cannibalization or online sales achieved
    at the expense of traditional offline channels

    Setting Objective
    Build brand awareness among 50 percent of
    the target market through online activities
    Increase loyalty from 50 percent to 70 percent
    among high spending customers over a five
    year period
    Life Time Value Model

    Situation Analysis for an e-Commerce


    Operation

    Digital Marketing:
    Campaign Planning
    Forecasting sales & profitability
    Life Time Value Model

    Customer Lifetime Value


    Customer Lifetime value is the net present
    value of the profit that you will realize on the
    average customer during a given number of
    years-typically three years.
    CLV Calculation

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