IMC Plan Management
Communication Budget (Try searching for the promotional budget of a competitor or like company to get a sense of what is typically spent. If you cannot find this information, then budget $75 million for the total IMC campaign)
Percentage of Sales Method
Budgets can be based on sales from the previous year or anticipated sales for the next year.
Meet the competition seeks to prevent loss of market share by raising or lowering expenditures to match the competition.
“What We Can Afford” Method
This method sets the marketing budget after all of the company’s other budgets have been determined. Money is allocated based on what company leaders feel they can spend.
Objective and Task Method
This method begins with a list of all communication objectives to pursue during the year and then calculates the cost of accomplishing each objective.
This occurs when management establishes a ration of advertising to sales or market share. This method normally allocates greater amounts in early years to yield payouts in later years.
Quantitative models are simulations of relationships between advertising and sales or profits. They may be difficult to create accurately.
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