How Do We Determine What the Optimum Marcom Budget Should Be?

One of the most important services we provide our clients is solid advice on how much money is needed to achieve the objectives. Spend too much and there's waste. Spend too little and we may never reach the critical pressure level to achieve results.

Some important questions to answer and steps to take are:

  • What are the supply, demand and awareness levels for the product? And do we have current research in hand to tell us?
  • How newsworthy is it?
  • How identifiable and addressable are the individuals in our target audience?
  • What's the power of the creative? This needs to be tested and measured before we really know.
  • What's the cost and power of the offers? This needs to be tested and measured.
  • What's the effective reach for the message and the medium? We define effective reach as the frequency required to move a consumer to think or do what we've intended. Once this frequency is determined, we determine the reach (size of unduplicated audience) necessary to achieve our volume objectives.

All of the above can best be answered by following these steps:

  • Benchmark research.
  • Development of alternative campaigns.
  • Testing the effectiveness of the media and the message.
  • Measuring the results.
  • Changing the variables and testing the results.
  • Repeating the above steps for continuous improvement.