The Importance Of Marketing And Communication

Marketing and communication objectives are goals that the various marcom elements aspire to individually or collectively achieve during a scope of time such as a business quarter of fiscal year. Objectives provide the foundation for all remaining decisions.
The objectives that marketing and communications in its various forms must accomplish are varied, but regardless of the substance of the objective, there are three major reasons why it is essential that objectives be established prior to making the all important implementation decisions regarding message selection, media determination, and how the various marcom elements should be mixed and maintained.
1. The process of setting objectives literally forces top marketing executives and marcom

A framework called the hierarchy of effects is appropriate for accomplishing this understanding. The hierarchy framework reveals that the choice of marcom objective depends on the target audience’s degree of experience with the brand prior to commencing a marcom campaign.
The Hierarchy-of-Effects metaphor implies that the marketing and communications to be successful, the various marcom elements must advance consumers through a series of psychological stages, much in the way a person climbs a ladder step by step. A variety of hierarchy models have been formulated, all of which are predicted on the area of marcom elements, if successful, move people from an initial state of unawareness about a brand to initially purchasing that brand. Intermediate stages in the hierarchy represent progressively closer steps to brand purchase. The hierarchy goes a step further by establishing brand loyalty as the top step in the

A new budget is formulated every year each time a new product is introduced, or when either internal or external factors necessitate a change to maintain competitiveness. While it is one of the most critical decisions, budgeting has perhaps been the most resistant to change. The theoretical basis for establishing budget is based on economic theory and marginal analysis.
According to the Marginal Analysis advertising and promotional expenditures increase, sales and gross margin minus advertising expenditures. Using this theory to establish a budget, a firm would continue to spend advertising promotional dollars as long as the marginal revenues created by these expenditures exceeded the incremental advertising and promotional costs.
The Sales to Advertising Response Function refers to the relationship between money invested in advertising and the response, or output, of that investment in terms of revenue generated. As with any mathematical function, the sale to advertising function maps the relationship between an “output” (in this case, sales revenue) to each meaningful level of an “input” (advertising