营销管理（亚洲版 第6版）英文PP课件 科特勒 -Chapter 17 Designing And Managing Integrated Marketing Communications；Chapter 18 Managing Mass

CommunicatingValue2

DesigningAndManagingIntegratedMarketingCommunications17LearningIssuesforChapterSeventeenWhatistheroleofmarketingcommunications?Howdoesmarketingcommunicationwork?Whatarethemajorstepsindevelopingeffectivecommunication?Whatisthecommunicationsmixandhowshoulditbeset?Whatisanintegratedmarketingcommunicationsprogram?3ChapterOutlineModernmarketingcallsformorethandevelopingagoodproduct,pricingitattractively,andmakingitaccessible.Companiesmustalsocommunicatewithpresentandpotentialstakeholders,andwiththegeneralpublic.Formostmarketers,therefore,thequestionisnotwhethertocommunicatebutratherwhattosay,howandwhentosayit,towhom,andhowoften.4ChapterOutlinecommunicationgetsharderasmorecompaniesclamourtograbtheconsumer’sincreasinglydividedattention.Toeffectivelyreachandinfluencetargetmarkets,holisticmarketersarecreativelyemployingmultipleformsofcommunications.Doneright,marketingcommunicationscanhaveahugepayoff.5TheRoleofMarketingCommunicationsMarketingcommunicationsarethemeansbywhichfirmsattempttoinform,persuade,andremindconsumers—directlyorindirectly—abouttheproductsandbrandsthattheysell.Marketingcommunicationsrepresentthe“voice”ofthebrandandareameansbywhichitcanestablishadialogueandbuildrelationshipswithconsumers.Marketingcommunicationsalsoworkforconsumerswhentheyshowhowandwhyaproductisused,bywhom,where,andwhen.Marketingcommunicationsallowscompaniestolinktheirbrandstootherpeople,places,events,brands,experiences,feelings,andthings.6TheChangingMarketingCommunicationEnvironmentTechnologyandotherfactorshaveprofoundlychangedthewayconsumersprocesscommunicationsandevenwhethertheychoosetoprocesstheinformation.TherapiddiffusionofpowerfulbroadbandInternetconnectionsandad-skippingdigitalvideorecordershaveerodedtheeffectivenessofthemassmedia.Consumersnotonlyhavemorechoicesofmedia,theycanalsodecidewhetherandhowtheywanttoreceivecommercialcontent.7TheChangingMarketingCommunicationEnvironmentMarketingcommunicationsinalmosteverymediumandformhavebeenontherise,andsomeconsumersfeeltheyareincreasinglyinvasive.Marketersmustbecreativeinusingtechnologybutnotintrudeinconsumers’lives.8MarketingCommunicationsandBrandEquityInthisnewcommunicationsenvironment,althoughadvertisingisoftenacentralelementofamarketingcommunicationsprogram,itisusuallynottheonlyone—oreventhemostimportantone—intermsofbuildingbrandequityanddrivingsales.9UsingMCToBuildBrandEquity—IKEAinJapanRatherthanusingmereposterads,IKEAJapangeneratedbuzzbydeliveringabrandexperiencewithitsout-of-the-box“trainjack”adcampaign.10IKEA—InJapan,IKEAengagedinalarge-scalebuzzmarketingcampaignthatincludedadvertisingontrainsandbuses,andbelow-the-linedisplays.InJapaneseadvertisingparlance,IKEA“trainjacked,”thatis,itboughttheentireadslotsinsidethetrainandhadtailor-madegraphicsplacedontheexteriorstoo.ItleveragedonitsinteriordecorationexpertisebyrefurbishingthetraininIKEAdécor,thusdeliveringabrandexperience.Itreplacedthetrain’sstandardwindowshadeswiththosefromitsownstores;convertedtheseatstosofaswithIKEAupholstery;andaddedwallcoverings.Italsosetup14smallso-called“IKEA4.5Museums”inthecenterofTokyo,wherepassers-bycoulddiscovertheIKEAspirit.TheroomsintypicalJapanesesmallsizeshowedIKEA’smultiplepossibilitiesofusingconfinedspacetoitsfullcapacity.MarketingCommunicationsMixThemarketingcommunicationsmixconsistsofeightmajormodesofcommunication:Advertising—Anypaidformofnon-personalpresentationandpromotionofideasgoods,orservicesbyanidentifiedsponsorviaprint,broadcast,network,electronicanddisplaymedia.Sales

promotion—Avarietyofshort-termincentivestoencouragetrialorpurchaseofaproductorservice,includingconsumer,trade,andbusinessandsalesforcepromotions.11MarketingCommunicationsMixEventsandexperiences—Company-sponsoredactivitiesandprogramsdesignedtocreatedailyorspecialbrand-relatedinteractionswithconsumers,includingsportsarts,andcauseevents.Publicrelationsandpublicity—Avarietyofprogramsdirectedinternallytoemployeesofthecompanyorexternallytoconsumers,otherfirms,thegovernment,andmediatopromoteorprotectacompany’simageoritsindividualproducts.12MarketingCommunicationsMixDirectmarketing—Useofmail,telephone,fax,email,ortheInternettocommunicatedirectlywithorsolicitresponseordialoguefromspecificcustomersandprospects.Interactivemarketing—Onlineactivitiesandprogramsdesignedtoengagecustomersorprospectsanddirectlyorindirectlyraiseawareness,improveimage,orelicitsalesofproductsandservices.13MarketingCommunicationsMixWord-of-mouthmarketing—People-to-peopleoral,written,orelectroniccommunicationsthatrelatetothemeritsorexperiencesofpurchasingorusingproductsorservices.Personalselling—Face-to-faceinteractionwithoneormoreprospectivepurchasersforthepurposeofmakingpresentations,answeringquestions,andprocuringorders.14Table17.1:CommonCommunicationPlatforms15MarketingCommunicationsMixCompanycommunicationgoesbeyondthosespecificplatforms.Theproduct’sstylingandprice,theshapeandcolorofthepackage,thesalesperson’smanneranddress,thestoredécor,thecompany’sstationery—allcommunicatesomethingtobuyers.Everybrandcontactdeliversanimpressionthatcanstrengthenorweakenacustomer’sviewofthecompany.16HowDoMarketingCommunicationsWork?Marketingcommunicationactivitiesineverymediumcontributetobrandequityanddrivesalesinmanyways:bycreatingbrandawareness,forgingthebrandimageinconsumers’memories,elicitingpositivebrandjudgmentsorfeelings,andstrengtheningconsumerloyalty.Thewaybrandassociationsareformeddoesnotmatter.17MarketingCommunicationEffectsThestartingpointinplanningmarketingcommunicationsisacommunicationauditthatprofilesallinteractionscustomersinthetargetmarketmayhavewiththecompanyandallitsproductsandservices.Marketersneedtoassesswhichexperiencesandimpressionswillhavethemostinfluenceateachstageofthebuyingprocess.18MarketingCommunicationEffectsArmedwiththeseinsights,theycanjudgemarketingcommunicationsaccordingtotheirabilitytoaffectexperiencesandimpressions,buildcustomerloyaltyandbrandequity,anddrivesales.Inbuildingbrandequity,marketersshouldbe“medianeutral”andevaluateallcommunicationoptionsoneffectiveness(howwelldoesitwork?)andefficiency(howmuchdoesitcost?).19TheCommunicationProcessModelsMarketersshouldunderstandthefundamentalelementsofeffectivecommunication.Twomodelsareuseful:amacromodelandamicromodel.20MacromodeloftheCommunicationProcessFigure17.1showsamacro-communicationmodelwithnineelements.Twoelementsrepresentthemajorpartiesinacommunication—senderandreceiver.Tworepresentthemajorcommunicationtools—messageandmedia.Fourrepresentmajorcommunicationfunctions—encoding,decoding,response,andfeedback.Thelastelementinthesystemisnoise(randomandcompetingmessagesthatmayinterferewiththeintendedcommunication).21Figure17.1:ElementsinCommunicationProcess22MacromodeloftheCommunicationProcessThemodelemphasizesthekeyfactorsineffectivecommunication.Sendersmustknowwhataudiencestheywanttoreachandwhatresponsestheywanttoget.Theymustencodetheirmessagessothatthetargetaudiencecandecodethem.23MacroModeloftheCommunicationProcessTheymusttransmitthemessagethroughmediathatreachthetargetaudienceanddevelopfeedbackchannelstomonitortheresponses.Themorethesender’sfieldofexperienceoverlapswiththatofthereceiver,themoreeffectivethemessageislikelytobe.Notethatselectiveattention,distortion,andretentionprocesses—conceptsfirstintroducedinChapter6—maybeoperatingduringcommunication.24MicromodelofConsumerResponsesMicromodelsofmarketingcommunicationsconcentrateonconsumers’specificresponsetocommunications.

Allmodelsassumethatthebuyerpassesthrougha:CognitivestageAffectivestageBehavioralstage(inthatorder)25MicroModelofConsumerResponsesThis“learn-feel-do”sequenceisappropriatewhentheaudiencehasahighinvolvementwithaproductcategoryperceivedtohavehighdifferentiation.Analternativesequence,“do-feel-learn”isrelevantwhentheaudiencehashighinvolvementbutperceiveslittleornodifferentiationwithintheproductcategory.Athirdsequence,“learn-do-feel”isrelevantwhentheaudiencehaslowinvolvementandperceiveslittledifferentiationwithintheproductcategory.Bychoosingtherightsequence,themarketerscandoabetterjobofplanningcommunications.26Hierarchy-of-EffectsModelHerewewillassumethatthebuyerhashighinvolvementwiththeproductcategoryandperceiveshighdifferentiation.Ahierarchy-of-effectsmodelinthecontextofamarketingcommunicationcampaign:AwarenessKnowledgeLikingPreferenceConvictionPurchaseSeeFigure17.227Hierarchy-of-EffectsModelToincreasetheoddsforasuccessfulmarketingcommunicationscampaign,marketersmustattempttoincreasethelikelihoodthateachstepoccurs.SeeFigure17.2.28Figure17.2:ResponseHierarchyModels29Hierarchy-of-EffectsModel—KeyStagesAwareness—Ifmostofthetargetaudienceisunawareoftheobject,thecommunicator’staskistobuildawareness.Knowledge—Thetargetaudiencemighthavebrandawarenessbutnotknowmuchmore.Liking—Iftargetmembersknowthebrand,howdotheyfeelaboutit?Preference—Thetargetaudiencemightliketheproductbutnotpreferittoothers.Inthiscase,thecommunicatormusttrytobuildconsumerpreferencebycomparingquality,value,performance,andotherfeaturestolikelycompetitors.30Hierarchy-of-EffectsModel—KeyStagesConviction—Atargetaudiencemightpreferaparticularproductbutnotdevelopaconvictionaboutbuyingit.Thecommunicator’sjobistobuildconvictionandpurchaseintentamongthetargetaudience.Purchase—Finally,somemembersofthetargetaudiencemighthaveconvictionbutmaynotquitegetaroundtomakingthepurchase.Thecommunicatormustleadtheseconsumerstotakethefinalstep,perhapsbyofferingtheproductatalowprice,offeringapremium,orlettingconsumerstryitout.31DevelopingEffectiveCommunicationThereareeightstepsindevelopingeffectivecommunications.Thefivebasiconesare:identifyingthetargetaudience,determiningtheobjectives,designingthecommunications,selectingthechannels,andestablishingthebudget.32Figure17.3:StepsinDevelopingEffectiveCommunications33IdentifytheTargetAudienceTheprocessmuststartwithacleartargetaudienceinmind:potentialbuyersofthecompany’sproducts,currentusers,deciders,orinfluencers;individuals,groups,particularpublics,orthegeneralpublic.34IdentifytheTargetAudienceThetargetaudienceisacriticalinfluenceonthecommunicator’sdecisionsonwhattosay,andhow,when,where,andtowhomtosayit.35IdentifytheTargetAudienceAlthoughwecanprofilethetargetaudienceintermsofanyofthemarketsegmentsidentifiedinChapter8:It’softenusefultodosointermsofusageandloyalty.Isthetargetnewtothecategoryoracurrentuser?Isthetargetloyaltothebrand,loyaltoacompetitor,orsomeonewhoswitchesbetweenbrands?Ifabranduser,isheorsheaheavyorlightuser?Communicationstrategywilldifferdependingontheanswers.Imageanalysiscanbeconductedtoprofilethetargetaudienceintermsofbrandknowledgetoprovidefurtherinsight.36DeterminetheCommunicationObjectivesEstablishneedforcategory—Establishingaproductorservicecategoryasnecessarytoremoveaperceiveddiscrepancybetweenacurrentmotivationalstateandadesiredmotivationalstate.Buildbrandawareness—Fosteringthecustomer’sabilitytorecognizeorrecallthebrandwithinthecategory,insufficientdetailtomakeapurchase.BuildBrandattitude—Helpingconsumersevaluatethebrand’sperceivedabilitytomeetacurrentlyrelevantneed.InfluenceBrandpurchaseintention—Movingconsumerstodecidetopurchasethebrandortakepurchase-relatedaction.37DeterminetheCommunicationObjectives38Soldatpostoffices,theseKitKatMailgaveNestleaboostinsales.KitKat—NestléJapanwantedtoincreaseitsKitKatsales.ItsawtwoculturalcharacteristicsinJapanthatitthoughtcouldworkinitsfavor.One,theJapaneseareknownfortheirgiftgiving.Two,doingwellinentranceexamsisimportanttothem.KittoKatsuisasayinginstandardJapanesethatsoundslike“surewin,”anditisoftenusedtowishpeoplegoodluck.BecauseofitsresemblancetothenameKitKat,Nestlédecidedtoembarkonacampaigntogetpeopletowisheachothergoodluckbygivingitschocolatewafersasluckycharms.ItcollaboratedwithJapan’spostalservicetocreateaKitKatproductsentthroughthemail.Soldonlyatpostoffices,KitKatMail—aredboxwithspaceforanaddressononesideandamessageontheother—gaveKitKatthousandsofdistributioncenters.ItissoldfromlateDecembertoMarchduringtheentranceexamperiod.ThepromotionwoninternationalawardsforeffectivecommunicationandinfluencingpeopletobuymoreKitKat.DesigntheCommunicationFormulatingthecommunicationtoachievethedesiredresponsewillrequiresolvingthreeproblems:whattosay(messagestrategy)howtosayit(creativestrategy),andwhoshouldsayit(messagesource).39MessageStrategyIndeterminingmessagestrategy,managementsearchesforappeals,themes,orideasthatwilltieintothebrandpositioningandhelptoestablishpoints-of-parityorpoints-of-difference.Someofthesemayberelateddirectlytoproductorserviceperformance(thequality,economy,orvalueofthebrand).Othersmayrelatetomoreextrinsicconsiderations(thebrandasbeingcontemporary,popular,ortraditional).40MessageStrategyJohnC.Maloneysawbuyersasexpectingoneoffourtypesofrewardfromaproduct:RationalSensorySocialEgosatisfaction41CreativeStrategyCommunicationeffectivenessdependsonhowamessageisbeingexpressedaswellasthecontentofthemessageitself.Anineffectivecommunicationmaymeanthatthewrongmessagewasusedortherightmessagewasjustbeingexpressedpoorly.Creativestrategiesarehowmarketerstranslatetheirmessagesintoaspecificcommunication.Creativestrategiescanbebroadlyclassifiedasinvolvingeitherinformationalortransformationalappeals.42InformationalAppealAninformationalappealelaboratesonproductorserviceattributesorbenefits.Examplesare:ProblemsolvingadsProductdemonstrationadsProductcomparisonadsTestimonialsInformationalappealsassumeveryrationalprocessingofthecommunicationonthepartoftheconsumer—logicandreason“rule.”43TypesofInformationalAppealsTherearethreetypesofinformationalappeals:ConclusiondrawingOne-versustwo-sidedargumentsOrderofargumentpresentationsEachoftheseappealshastheirsupportersanddistractersanddependsheavilyuponthetargetaudienceforthemessage.44TransformationalAppealAtransformationalappealelaboratesonanon-product-relatedbenefitorimage.Itmightdepict:WhatkindofpersonusesabrandWhatkindofexperienceresultsfromusingthebrandTransformationalappealsoftenattempttostirupemotionsthatwillmotivatepurchase.45UseofTransformationalAppeals46HeavenandEarth—Coca-ColaSingaporelaunchedaninteractiveoutdoorcampaignfortheWesterntearangeofitsHeavenandEarthdrink.Itused3-Dmediascreensatbusshelters.Thecampaigninvitedtheaudienceto“TastetheFruityTeaExplosion”withthebrand’siceteavariant.Tominimizeengagementtimeandallowviewerstohaveinstantcontactwiththe3-Dimages,thescreenswereequippedwith“glasses.”Additionally,aHeavenandEarthTeaMastermadesurprisevisitstoselected3-Doutdoorsitestoofferconsumersasamplingexperience.UsingNegativeAppealCommunicatorsusenegativeappealssuchasfear,guilt,andshametogetpeopletodothings(brushtheirteeth,haveanannualhealthcheckup)orstopdoingthings(smoking,alcoholabuse,overeating).Fearappealsworkbestwhentheyarenottoostrong.Further,fearappealsworkbetterwhensourcecredibilityishighandwhenthecommunicationpromisestorelieve,inabelievableandefficientway,thefearitarouses.Messagesaremostpersuasivewhentheyaremoderatelydiscrepantwithwhattheaudiencebelieves.47EmotionalAppealCommunicatorsalsousepositiveemotionalappealssuchashumor,love,pride,andjoy.Motivationalor“borrowedinterest”devicesareoftenemployedtoattractconsumerattentionandraisetheirinvolvementwithanad.Borrowedinteresttechniquesarethoughttobenecessaryinthetoughnewmediaenvironmentcharacterizedbylowinvolvementconsumerprocessingandwhilecompetingwithadandprogrammingclutter.48GettingAttentionAttentiongettingtacticsareoftentooeffectiveanddistractfrombrandorproductclaims.Onechallengeinarrivingatthebestcreativestrategyisfiguringouthowto“breakthroughtheclutter”toattracttheattentionoftheconsumer—butstillbeabletodelivertheintendedmessage.Themagicofadvertisingistobringconceptstolifeinthemindsoftheconsumertarget.49MessageSourceMessagesdeliveredbyattractiveorpopularsourcescanpotentiallyachievehigherattentionandrecall,whichiswhyadvertisersoftenusecelebritiesasspokespeople.Celebritiesarelikelytobeeffectivewhentheypersonifyakeyproductattribute.Whatisimportantisthespokesperson’scredibility.Pharmaceuticalcompanieswantdoctorstotestifyaboutproductbenefitsbecausedoctorshavehighcredibility.50FactorsAffectingSourceCredibilityExpertiseisthespecializedknowledgethecommunicatorpossessestobacktheclaim.Trustworthinessisrelatedtohowobjectiveandhonestthesourceisperceivedtobe.Friendsaretrustedmorethanstrangersorsalespeople,andpeoplewhoarenotpaidtoendorseaproductareviewedasmoretrustworthythanpeoplewhoarepaid.Likabilitydescribesthesource’sattractiveness.Qualitieslikecandor,humor,andnaturalnessmakeasourcemorelikable.Themosthighlycrediblesourcewouldbeapersonwhoscoreshighonallthreedimensions.51MarketingInsights:CelebrityEndorsementsasaMessageStrategyAwell-chosencelebritycandrawattentiontoaproductorbrand.Celebritiescanplayastrategicrolefortheirbrands;usingcelebritiesposescertainrisks.52WesterncelebritiesareheavilyusedinJapan.JapanesefirmshavealargeradvertisingbudgetandtendtoremuneratecelebritieshigherthantheUnitedStates.PrincipleofCongruityIfapersonhasapositiveattitudetowardasourceandamessage,oranegativeattitudetowardboth,astateofcongruityissaidtoexist.Theprincipleofcongruityimpliesthatcommunicatorscanusetheirgoodimagetoreducesomenegativefeelingstowardabrandbutintheprocessmightlosesomeesteemwiththeaudience.53SelectingtheCommunicationChannelsSelectingefficientchannelstocarrythemessagebecomesmoredifficultaschannelsofcommunicationbecomemorefragmentedandcluttered.Communicationchannelsmaybepersonalandnon-personal.Withineacharemanysub-channels54PersonalCommunicationChannelsPersonalcommunicationchannelsinvolvetwoormorepersonscommunicatingdirectlyface-to-face,persontoaudience,overthetelephone,orthroughe-mail.Personalcommunicationchannelsderivetheireffectivenessthroughindividualizedpresentationandfeedback.Advocatechannelsconsistofcompanysalespeoplecontactingbuyersinthetargetmarket.Expertchannelsconsistofindependentexpertsmakingstatementstotargetbuyers.Socialchannelsconsistofneighbors,friends,familymembers,andassociatestalkingtotargetbuyers.55PersonalChannelsInTaiwan,wordofmouthspreadthepopularityofMisterDonut.56MisterDonut—ThisdoughnutchaincreatedastirinTaiwanwhenitfirstopenedforbusiness,attractingboththeuninitiatedandlong-timedoughnutlovers.AlthoughMisterDonutreliedonnothingbutwordofmouthtopromoteitself—noadswereplacedonTVorinnewspapers—peoplewaitedforhours,intherainandcoldweather,tobuythedoughnuts.MisterDonuthadtolimitthenumberofdoughnutseachcustomercouldpurchasepervisitandemployinternstoregulatelinesandmaintainorder.Unlikeotherdoughnutshops,MisterDonutoffersbreakfastpastriestailoredtoAsianpreferences.ItsdoughnutsarenotassweetandaremadefromimportedJapaneseingredients.27PersonalChannelsCarryMoreInfluenceOneiswithproductsthatareexpensive,risky,orpurchasedinfrequently.Theotheriswheretheproductsuggestsabouttheuser’sstatusortaste.Peopleoftenaskothersforarecommendationforadoctor,plumber,hotel,lawyer,accountant,architect,insuranceagent,interiordecorator,orfinancialconsultant.57PersonalChannelsCarryMoreInfluenceIfwehaveconfidenceintherecommendation,wenormallyactonthereferral.Insuchcases,therecommenderhaspotentiallybenefitedtheserviceprovideraswellastheserviceseeker.Serviceprovidersclearlyhaveastronginterestinbuildingreferralsources.58Nonpersonal(Mass)CommunicationChannelsNonpersonalcommunicationchannelsarecommunicationsdirectedtomorethanonepersonandincludesmedia,salespromotions,events,andpublicity.Muchoftherecentgrowthofnonpersonalchannelshasbeenwitheventsandexperiences.Acompanycanbuilditsbrandimagethroughcreatingorsponsoringeventssuchassports.VisaisanactivesponsoroftheOlympicsandHeinekensponsorssportsevents.59Non-Personal(Mass)CommunicationChannelsNotonlydoeventmarketerssponsorsportsevents,theyalsosponsortheartsandzoos,especiallyforentertainingclientsandemployees.Companiesaresearchingforbetterwaystoquantifythebenefitsofsponsorshipandaredemandinggreateraccountabilityfromeventownersandorganizers.Thesuccessfulonescapturethepublic’simaginationwhilereinforcingthebrandpositioningintheprocess.60Non-Personal(Mass)CommunicationChannelsCompaniescancreateeventsdesignedtosurprisethepublicandcreateabuzz.Theincreaseduseofattention-gettingeventsisaresponsetothefragmentationofthemedia.Thelastingeffectsofeventsonbrandawareness,knowledge,orpreferencewilldependuponthequalityoftheproduct,theeventitself,anditsexecution.61Non-Personal(Mass)CommunicationChannelsLG’srealityprankwithscaredjobintervieweesvividlydemonstratedthepicturequalityofitsUltraHDTVs.62IntegrationofCommunicationChannelsAlthoughpersonalcommunicationisoftenmoreeffectivethanmasscommunication,massmediamightbethemajormeansofstimulatingpersonalcommunication.Masscommunicationsaffectpersonalattitudestowardbehaviorthroughatwo-stepprocess:Ideasflowfrommassmediatoopinionleaders.Fromopinionleaderstothelessmedia-involvedpopulationgroups.63ImplicationsofTwo-StepFlowTheinfluenceofmassmediaonpublicopinionisnotasdirect,powerful,andautomaticassupposed.Itismediatedbyopinionleaders.Thistwo-stepflowchallengesthenotionthatconsumptionstylesareprimarilyinfluencedbya“trickledown”or“trickleup”effectfrommassmedia.64ImplicationsofTwo-StepFlowPeopleinteractprimarilywiththeirownsocialgroupsandacquireideasfromopinionleadersintheirgroup.Thetwo-stepprocesssuggeststhatmasscommunicatorsshoulddirectmessagesspecificallytoopinionleadersandletthemcarrythemessagestoothers.65EstablishtheTotalMarketingCommunicationsBudgetOneofthemostdifficultmarketingdecisionsisdetermininghowmuchtospendonpromotion.Industriesandcompaniesvaryconsiderablyinhowmuchtheyspendonpromotion.Companiesdecideonthepromotionbudgetinfourcommonways:theaffordablemethodpercentage-of-salesmethodcompetitive-paritymethodtheobjective-and-taskmethod66AffordableMethodSomecompaniessetthepromotionbudgetatwhattheythinkthecompanycanafford.Thismethodcompletelyignorestheroleofpromotionasaninvestmentandtheimmediateimpactonsalesvolume.Itleadstouncertainannualbudget,andmakeslong-rangeplanningdifficult.67Percentage-of-SalesMethodSomecompaniessetpromotionexpendituresataspecifiedpercentageofsales(currentoranticipated)orthesalesprice.Supportersofthepercentage-of-salesmethodseeanumberofadvantages.Promotionexpenditureswillvarywithwhatthecompanycan“afford.”Itencouragesmanagementtothinkoftherelationshipamongpromotioncost,sellingprice,andprofitperunit.Itencouragesstabilitywhencompetingfirmsspendapproximatelythesamepercentageoftheirsalesonpromotion.68DrawbacksofthePercentage-of-SalesMethodThepercentage-of-salesmethodhaslittletojustifyit.Itviewssalesasthedeterminerofpromotionratherthanastheresult.Itleadstoabudgetsetbytheavailabilityoffundsratherthanbymarketopportunities.Itdiscouragesexperimentationwithcountercyclicalpromotionoraggressivespending.69DrawbacksofthePercentage-of-SalesMethodYear-to-yearsalesfluctuationsinterferewithlong-rangeplanning.Thereisnologicalbasisforchoosingthespecificpercentage.Itdoesnotencouragebuildingthepromotionbudgetbydeterminingwhateachproductandterritorydeserves.70Competitive-ParityMethodSomecompaniessettheirpromotionbudgettoachieveshare-of-voiceparitywithcompetitors.Twoargumentsaremadeinsupportofthecompetitive-paritymethod.Competitors’expendituresrepresentthecollectivewisdomoftheindustry.Maintainingcompetitiveparitypreventspromotionwars.Neither