Marketing management: Budgets, budget-setting

 

This paper points to six studies, dating as far back as the 1920s, showing that brands with sustained advertising expenditure through recessions have a competitive advantage by stealing share of voice ...

This article explains how risk assessment techniques can be applied to market budgeting. Econometric analyses, however accurate, cannot predict what will happen, so its use must be based on informed g ...

Stephan Butscher and Javier Christie, from Simon-Kucher & Partners, argue here that consumer goods companies use their customer trade funding (deals, discounts, overriders, trade promotions, rebates e ...

This article offers guidance for marketers on how to choose what to cut when forced to reduce marketing budgets. Key candidates are the company's operational sacred cows, the over-use of any one mediu ...

This paper discusses Customer Franchise Value (CFV), a concept whereby marketers can express the future value, in terms of customer retention and the expected value from those customers, of current ex ...

With trade funding growing to some 20% of sales revenue, often at the expense of above-the-line budgets, Brian Moore, managing director of EMR-NAMNEWS, debates the increasing influence of key account ...

Paul Longhurst, from Unique Digital, asks why brand advertising budgets for online activity are so pathetically small given the growth and reach of the medium. He argues that planners, through lazines ...

Pat McGowan and David Meer, from Marakon Associates, argue that over-reliance on ROI (return on investment) analysis for advertising budget setting will lead to disappointments and missed opportunitie ...

David Dixon and Sebastian Shapiro, from Ninah Consulting, maintain that current ROMI (return on marketing investment) marketing-mix models provide an incomplete view of how marketing drives value, and ...

The Admap report for November 2006 contains a number of articles relating to communications and marketing budgeting and budget allocation. In his introduction, Roderick White, Admap's editor, addresse ...

The issue of how much to spend on advertising is perhaps the most important challenge that faces marketers, but it is a problem without a simple solution. As well as the range of marketing tools to be ...

Patrick Mosimann, founding partner of PMSI, argues that marketing accountability is essential for survival in today's world. He maintains that profit pool analysis - via the construction of a clear ma ...

Marketing fraud remains a serious problem, even though accountancy practices have been improved to eliminate bad practices and legal frameworks have been tightened (e.g. the Sarbanes Oxley Act). Some ...

Argues that marketing departments often fail to engage with (and be valued by) other parts of the organisation because they rely on the creative aspect of their work (the ‘magic’), and do not recognis ...

Peter Rosenwald, author of Accountable Marketing: The Economics of Data-driven Marketing, explores the cost/benefit relationship of CRM. Using examples he illustrates how CRM costs can be modelled, an ...

Marketing’s credibility suffers from beliefs that its profitability cannot be calculated. Generalising from success stories and relying on `marketing metrics’ such as awareness, preference or satisfac ...

Using detailed examples Peter Rosenwald, founding partner with Consult Partners, argues that ROMI (return on marketing investment) is a valuable metric that allows management to compare strategies and ...

Coordinating and controlling advertising strategy within contractual and administered vertical marketing systems (VMSs) can be a complex task given the number of channel members involved in the proces ...

In the past, B2B companies were likely to see marketing as the cosmetic sheen to be papered on to a commodity in the hope of faking distinctiveness. Heavy-duty B2B companies didn’t need it. Alexander ...

Paul Dyson, founder of D2D (an independent modelling and analysis agency) outlines six conventional ways of setting marketing and advertising budgets, then sets out a seventh category, called ‘brand-l ...

Summarises five tactics managers use at budget-setting time to manipulate senior executives to fund their own pet projects. From MIT Sloan Management Review, “Games Managers Play”, 2004, 45(3).

Andy Farr, Millward Brown, suggests an alternative to econometrics in determining and justifying the advertising budget. He proposes that brand and media managers adopt the mindset of an investor man ...

Karl Weaver, Data2Decisions Ltd, and David Merrick, Business Economics Ltd, look at two recent articles on how to determine the communications budget, and argue that combining the two approaches – res ...

In this introduction to two articles on marketing budget setting the author discusses the realities facing most marketing managers/directors. A few key source articles are listed.

Many marketing scholars and practitioners would agree that the ideal relationship between a client and its advertising agency is that of a strategic partnership. Yet, one element of the strategic mark ...

The authors contend that the media budget should be treated as a single, central entity. They illustrate the business planning process and assert that overall return on investment improves when the al ...

Phil Gullen discusses what he calls the Budget Bearing Model which consists of five steps to effective budget planning. The first step is to determine all the possible methods for calculating an appro ...

This is an introductory piece to three articles on marketing budgets. It lists fifteen ways in which budgets may be set from 'rule of thumb' on the one hand, to 'media weight tests' on the other. It e ...

Paul Dyson discusses the use of models when setting advertising budgets, he suggests that modelling agencies should realise that marketing teams are now more sophisticated than in the 1980s and early ...

Paul Richards argues that cost cutting of marketing budgets during a recession is a false economy. He lists examples of major brand's corporate missions, all of which centre on delivering value to s ...