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    Mam Sait George Marketing Assignment

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    saitical
    Setting advertising objectives and setting the total promotion budget are two major advertising decisions. There are four methods for setting the advertising budget: affordable method, percentage-of-sales method, competitive parity method, and objective-and-task method. The objective-and-task method is considered the most logical as it requires defining specific promotion objectives and determining the tasks needed to achieve the objectives. Marketing has both positive and negative impacts on individual consumers and society. It can influence consumer behavior both ethically and unethically. Marketers must consider their social responsibilities.

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    Mam Sait George Marketing Assignment

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    112 views6 pages
    Setting advertising objectives and setting the total promotion budget are two major advertising decisions. There are four methods for setting the advertising budget: affordable method, percentage-of-sales method, competitive parity method, and objective-and-task method. The objective-and-task method is considered the most logical as it requires defining specific promotion objectives and determining the tasks needed to achieve the objectives. Marketing has both positive and negative impacts on individual consumers and society. It can influence consumer behavior both ethically and unethically. Marketers must consider their social responsibilities.

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    Setting advertising objectives and setting the total promotion budget are two major advertising decisions. There are four methods for setting the advertising budget: affordable method, percentage-of-sales method, competitive parity method, and objective-and-task method. The objective-and-task method is considered the most logical as it requires defining specific promotion objectives and determining the tasks needed to achieve the objectives. Marketing has both positive and negative impacts on individual consumers and society. It can influence consumer behavior both ethically and unethically. Marketers must consider their social responsibilities.

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    Download as TXT, PDF, TXT or read online from Scribd
    Download as txt, pdf, or txt
    112 views6 pages

    Mam Sait George Marketing Assignment

    Uploaded by

    saitical
    Setting advertising objectives and setting the total promotion budget are two major advertising decisions. There are four methods for setting the advertising budget: affordable method, percentage-of-sales method, competitive parity method, and objective-and-task method. The objective-and-task method is considered the most logical as it requires defining specific promotion objectives and determining the tasks needed to achieve the objectives. Marketing has both positive and negative impacts on individual consumers and society. It can influence consumer behavior both ethically and unethically. Marketers must consider their social responsibilities.

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    MAM SAIT GEORGE

    MARKETING ASSIGNMENT

    1) A.
    ADVERTISING

    • Any paid form of non personal


    communication that is transmitted to
    consumer through such mass media
    as television, radio, news paper,
    magazine, direct mail, and out door
    displays.

    B. Discuss two major advertising decisions

    1. Setting Advertising Objectives


    Setting advertising objectives is the first step in developing an advertising
    program. These
    objectives should be based on past decisions about the target market, positioning,
    and
    marketing mix, which define the job that advertising must do in the total
    marketing program. An
    advertising objective is a specific communication task to be accomplished with a
    specific
    target audience during a specific period of time. Advertising objectives can be
    classified by
    primary purpose as:
    1). Informative advertising, which is used to inform consumers about a new product
    or
    feature or to build primary demand.
    2). Persuasive advertising which is used to build selective demand for a brand by
    persuading consumers that it offers the best quality for their money.
    3). Comparison advertising which is advertising that compares one brand directly
    or
    indirectly to one or more other brands.
    4). Reminder advertising, which is used to keep consumers thinking about a
    product. This
    form of advertising is more important for mature products.

    2. Setting the Total Promotion Budget


    One of the hardest marketing decisions facing a company is how much to spend on
    promotion.
    How does a company decide on its promotion budget? We look at four common methods
    used to
    set the total budget for advertising: the affordable method, the percentage-of-
    sales method, the competitive parity
    method, and the objective-and-task method.
    a. Affordable Method
    Some companies use the affordable method: They set the promotion budget at the
    level they
    think the company can afford. Small businesses often use this method, reasoning
    that the company
    cannot spend more on advertising than it has. They start with total revenues,
    deduct operating
    expenses and capital outlays, and then devote some portion of the remaining funds
    to advertising.
    Unfortunately, this method of setting budgets completely ignores the effects of
    promotion on
    sales. It tends to place advertising last among spending priorities, even in
    situations in which
    advertising is critical to the firm's success. It leads to an uncertain annual
    promotion budget, which
    makes long-range market planning difficult. Although the affordable method can
    result in
    overspending on advertising, it more often results in under spending.
    b. Percentage-of-Sales Method
    Other companies use the percentage-of-sales method, setting their promotion budget
    at a
    certain percentage of current or forecasted sales. Or they budget a percentage of
    the unit sales
    price. The percentage-of-sales method has advantages. It is simple to use and
    helps management
    think about the relationships between promotion spending, selling price, and
    profit per unit.
    Despite these claimed advantages, however, the percentage-of-sales method has
    little to justify it. It
    wrongly views sales as the cause of promotion rather than as the result. "A study
    in this area found
    good correlation between investments in advertising and the strength of the brands
    concerned—
    but it turned out to be effect and cause, not cause and effect. . . . The
    strongest brands had the
    highest sales and could afford the biggest investments in advertising!" Thus, the
    percentage-of sales
    budget is based on availability of funds rather than on opportunities. It may
    prevent the
    increased spending sometimes needed to turn around falling sales. Because the
    budget varies with
    year-to-year sales, long-range planning is difficult. Finally, the method does not
    provide any basis
    for choosing a specific percentage, except what has been done in the past or what
    competitors are
    doing.
    c. Competitive-Parity Method
    Still other companies use the competitive-parity method, setting their promotion
    budgets to
    match competitors' outlays. They monitor competitors' advertising or get industry
    promotion
    spending estimates from publications or trade associations, and then set their
    budgets based on the
    industry average.
    Two arguments support this method. First, competitors' budgets represent the
    collective wisdom
    of the industry. Second, spending what competitors spend helps prevent promotion
    wars.
    Unfortunately, neither argument is valid. There are no grounds for believing that
    the competition
    has a better idea of what a company should be spending on promotion than does the
    company
    itself. Companies differ greatly, and each has its own special promotion needs.
    Finally, there is no
    evidence that budgets based on competitive parity prevent promotion wars.
    d. Objective-and-Task Method
    The most logical budget-setting method is the objective-and-task method, whereby
    the company
    sets its promotion budget based on what it wants to accomplish with promotion.
    This budgeting
    method entails (1) defining specific promotion objectives, (2) determining the
    tasks needed to
    achieve these objectives, and (3) estimating the costs of performing these tasks.
    The sum of these
    costs is the proposed promotion budget.
    The objective-and-task method forces management to spell out its assumptions about
    the
    relationship between amount spent and promotion results. But it is also the most
    difficult method
    to use. Often, it is hard to figure out which specific tasks will achieve specific
    objectives. What
    specific advertising messages and media schedules should be used to attain this
    objective? How
    much would these messages and media schedules cost?

    2. Marketing ethics

    Ethics - origin
    Ethical standards - society expects them to follow
    Following ethical codes help organizations build a positive image in society.

    Ethics and marketing mix

    Product - not hazardous to the environment, packing should carry statutory


    warnings-cigarettes, medicine, toys, home appliances, open dating
    Warranty and service
    Redressal of customer complaints regarding a product

    Price - e.g. premium pricing for low fat food


    Place - illegally hoarding sticks for speculations
    Promotion - hallucination, violence, snobbery, nudity and indecency, value system,
    racism, exaggeration

    MARKETING INOVATIONS & ETHICS

    Just the other day I went to a store to buy a shirt & trouser. I went into the
    change
    room & tried it on!!! It looks perfect on me… I thought I looked tall, slim &
    perfectly
    in shape it that attire!!! I came back home very happy. The next day there was a
    party & I thought of flaunting my shapely body & dress to all. To my utter dismay,
    I
    didn’t look all that macho in my dressing table mirror… I was aghast & kept
    thinking
    how the hell have I put on weight overnight & if I have, how come I am still
    fitting
    snuggly into this new pair. Its then when a friend of mine who is an interior
    decorator told me how??? He explained to me that the mirrors in most of the
    change rooms in the malls are slightly tilted inside so that the image is
    stretched &
    you look a little leaner & taller. I felt cheated!!!
    We are all aware of the infamous Delhi Public School MMS case. I leave it to you
    to
    decide if a camera in a cell phone is a curse or a boom??? What to talk of other
    innovations like the internet connectivity MP4, voice recording facility & more. A
    cell-phone today, is a Phone too…
    Mc. Donald’s is known for its marketing wisdom. They innovate in Globalization
    with
    respect to all their Ps. Have you ever tried to know the calories in a snack at
    McDonalds? You will be surprised that one burger, coke & French fries has some
    1080 calories. In a country where obesity is a problem & about 70% adults in urban
    areas suffering from diabetes eating such rich food is colossal. Yet we find Mc D
    gives catchy ads - “I am loving it!!!” Are We friends??? Recently Dr. Tim Lobsten,
    Director of childhood obesity programmes at IOTF, USA, has said that 177 million
    children under 18, all across the world, are currently clinically overweight or
    obese
    & Developing country like India is worst hit. He has also recommended “No TV or
    Radio ads between 6am to 9pm”. But, do we have the Political & ethical will to
    enforce this???
    How many of you get phone calls in the afternoons when you are taking a cosy nap
    in the afternoon, only to hear the pseudo modern girl say in a mundane voice “
    Hallo, Ap ____ Bol rehe hain?? Kiya aap ko personal loan Ki requirement hain?” I
    get
    cheesed off & wonder how she got my number & name???
    The other day there was a news in the news paper where school children were
    involved in car thefts only to drive them for pleasure till the petrol lasted &
    then
    abandon them on the highway. This is the impact of myopic Advertising on these
    youngsters where latent needs are evoked leading them to indulge in anti social
    activities.
    And I can go on & on, but for the limitation of time & the decorum of this dias…
    Just think about it friends!!! In a bid to sell their products marketers bring in
    new
    product, features, marketing gimmicks to lure the markets not realizing the curse
    it
    is casting on the society as a whole. We talk of holistic marketing but only in
    the
    books & seminars…
    It’s high time now that Marketers become more socially responsible & understand
    that while they are accountable to their stakeholders for higher sales & profits,
    they
    are also accountable to the Society in leaving a more happier & healthier Earth
    for
    the generations to come.
    All Marketing innovations must be ethical…

    B. Marketing impact on individual consumers and society as a whole

    Marketing’s Impact on
    Individual Consumers
    .Shoddy or unsafe products
    .Planned obsolescence
    .Poor service to disadvantaged
    consumers

    Marketing’s Impact on Society as a Whole


    .False wants and too much
    materialism
    .Too few social goods
    .Cultural pollution
    .Too much political power
    Goal 1: Know the major social criticisms of marketing

    Marketing’s Impact on Other


    Businesses
    .Acquisitions of competitors
    .Marketing practices that create
    barriers to entry
    .Unfair competitive marketing practices
    Goal 1: Know the major social criticisms of marketing

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