Marketing management: Budgets, budget-setting

 

Top management has many things to consider over the course of this recession, but Chris Halliburton argues that CEOs are the ultimate brand managers and all actions should be taken with that responsib

Being asked to cut budget is a sign that a marketer is unable to prove the financial value of the investment. Continuous measurement is thus essential, and nowadays possible. How to cut in the absence

This paper argues that conventional wisdom about how to cut budgets in recession is flawed, and outlines the best approach for marketers. 1) Establish why cuts are required: usually survival, need for

Budget-cutting should be done carefully and strategically, with an eye to the future. Funds should be allocated to those activities necessary to preserve the foundation of future success. Key points:

A ready-reckoner to help assess whether a marketing budget is liable to be cut in recession. The lower the score on the five questions, the more vulnerable the budget will be. The questions all turn o

Budget and resource allocation decisions require careful, disciplined thinking, especially in times of downturn. Spending aggressively to gain share, or to match share of voice, is not risk-free: the

This article offers a new solution to the advertising budgeting problem, developed through empirical optimization. This method combines axioms with empirical generalizations to simulate profits. The r

This paper details five simple questions a CEO (or CFO) can ask senior marketing executives in to understand an organisation's core marketing strengths and weaknesses and realign marketing priorities ...

Trade spending has become the single biggest cost for most fmcg manufacturers, as an increasingly condensed grocery retailer market finds more and more ways to squeeze money out of suppliers. Companie ...

For all the hype about social media, ROI, and putting the consumer in control, marketing is still stuck in the dark ages when it comes to setting budgets, frequently using the same techniques that wer ...

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 ...