Mktg 430 Ch 7

Front 1

marketing objectives

Back 1

Goals to be accomplished by an organization's overall marketing program such as sales, market share, or profitability.

Front 2

integrated marketing communications objectives

Back 2

Statements of what various aspects of the integrated marketing communications program will accomplish with respect to factors such as communication tasks, sales, market share, and the like.

Front 3

carryover effect

Back 3

A delayed or lagged effect whereby the impact of advertising on sales can occur during a subsequent time period.

Front 4

DAGMAR

Back 4

An acronym that stands for defining advertising goals for measured advertising results. An approach to setting advertising goals and objectives developed by Russell Colley.

Front 5

communications task

Back 5

Under the DAGMAR approach to setting advertising goals and objectives, tasks that can be performed by and attributed to advertising such as awareness, comprehension, conviction, and action.

Front 6

benchmark measures

Back 6

Measures of target audience's status concerning response hierarchy variables such as awareness, knowledge, image, attitudes, preferences, intentions, or behavior. Taken at the beginning of ad or promo campaign to determine degree to which a target audience must be changed or moved by a promo campaign.

Front 7

zero-based communications planning

Back 7

An approach to planning the integrated marketing communications program that involves determining what tasks need to be done and what marketing communication functions should be used to accomplish them and to what extent.

Front 8

contribution margin

Back 8

The difference between the total revenue generated by a product or brand and its total variable costs.

Front 9

marginal analysis principle

Back 9

A principle of resource allocation that balances incremental revenues against incremental costs.

Front 10

concave-downward function model

Back 10

An advertising/sales response model that views the incremental effects of advertising on sales as decreasing.

Front 11

S-shaped response curve model

Back 11

A sales response model that attempts to show sales responses to various levels of advertising and promotional expenditures.

Front 12

top-down budgeting approaches

Back 12

Budgeting approaches in which the budgetary amount is established at the executive level and monies are passed down to the various departments.

Front 13

affordable budget method

Back 13

A method of determining the budget for advertising and promotion where all other budget areas are covered and remaining monies are available for allocation.

Front 14

arbitrary allocation budget method

Back 14

A method for determining the budget for advertising and promotion based on arbitrary decisions of executives.

Front 15

percentage of sales method

Back 15

A budget method in which the advertising and/or promotions budget is set based on a percentage of sales of the product.

Front 16

clipping service

Back 16

A service which clips competitors' advertising from local print media allowing the company to monitor the types of advertising that are running or to estimate their advertising expenditures.

Front 17

competitive parity method

Back 17

A method of setting the advertising and promotion budget based on matching the absolute level of percentage of sales expenditures of the competition.

Front 18

ROI budgeting method (return on investment)

Back 18

A budgeting method in which advertising and promotions are considered investments, and thus measurements are made in an attempt to determine the returns achieved by these investments.

Front 19

objective and task budget setting method

Back 19

A build-up approach to budget setting involving a three-step process: (1) determining objectives, (2) determining the strategies and tasks required to attain these objectives, and (3) estimating the costs associated with these strategies and tasks.

Front 20

buildup approach budget method

Back 20

A method of determining the budget for advertising and promotion by determining the specific tasks that have to be performed and estimating the costs of performing them. See objective and task method.

Front 21

payout budgeting plan

Back 21

A budgeting plan that determines the investment value of the advertising and promotion appropriation.

Front 22

computer simulation models

Back 22

Quantitative-based models that are used to determine the relative contribution of advertising expenditures on sales response.

Front 23

economies of scale

Back 23

A decline in costs with accumulated sales or production. Often occurs in media purchases as the relative costs of advertising time and/or space may decline as the size of the media budget increases.