Public relations cannot work for dedicated brand-building in a ...

[CharlieWard]

Public relations cannot work for dedicated brand-building in a digital and social media environment.
 a. True
  b. False
 Indicate whether the statement is true or false

Question 2

You are the marketing manager for an online merchandiser of a diverse line of casual sportswear, athletic clothing, and outerwear for both men and women. Write a brief memo to your advertising agency. In the memo, explain why you'd like the agency to abandon its recommendation for a share-of-market strategy in creating the budget. Give several reasons why this approach is unfavorable. Then explain why you want the agency to adopt an objective-and- task method. Also, there are four main steps that must be taken to implement this approach after advertising objectives are determined. List as many as you can. (It is not necessary to describe the steps in detail.)

[abro1885]

Answer to Question 1

False

Answer to Question 2

Share-of-market strategy. In the memo, you will want to explain that you can run into several problems associated with the share-of-market method of setting advertising objectives. First, it may be difficult to gain access to precise information about your competitors' expenditures. Second, there is no reason to believe that your competitors are spending their money wisely, or in a way even remotely related to what your firm wants to accomplish. Third, a likely outcome of budgeting in this fashion is that your firm will make little headway over the competition and but will simply maintain the status quo. Fourth, the flaw in logic behind this method is the presumption that every advertising effort has the same goals, is of the same quality, and will have the same effect from a creative execution standpoint.
Objective-and-task strategy. Now your memo will address the preferred alternative. The objective-and-task approach will allow you to focus on the relationship between your spending and your advertising objectives. The budget is formulated by identifying the specific tasks necessary to achieve different aspects of the objectives. The four major steps that must be taken after advertising objectives have been set are (1) using a build-up analysis to determine costs; (2) comparing the costs against industry and corporate benchmarks; (3) reconciling and modifying the budget; and (4) determining the time frame for payout.