Chapter 15 - Step 9: Budget & Funding Plans

Question 1

Shrinkflation

Answer 1

Contents in goods/services being reduced while price point is kept the same

Question 2

4 ways to determine budgets (ACOC)

Answer 2

Affordable method
Competitive-parity method
Objective-and-task method
Cost per sale method/percentage-of-sales methods

Question 3

Affordable method

Answer 3

Set budget at a level that the company thinks it can afford

Question 4

Cost per sale/ Percentage-of-sales method

Answer 4

Sets the budget at a certain percentage of current or forecasted sales or unit sales price

Question 5

Competitive-parity method

Answer 5

Setting the promotion budget to match cmmpetitors’ outlays

Question 6

Objective-and-task method

Answer 6

Define specific objective
Determine tasks that will achieve this objective
Estimate cost of these tasks

Question 7

5 types of costs (PPPPE) in the objective-and-task method

Answer 7

Product-related costs
Price-related costs
Place-related costs
Promotion-related costs
Evaluation-related costs

Question 8

Product-related costs

Answer 8

Associated with producing or purchasing any accompanying tangible goods and developing or enhancing associated services needed to support change

Question 9

Price-related costs

Answer 9

Associated with incentives, rewards, etc

Question 10

Place-related costs

Answer 10

Involve providing new or enhanced access or delivery channels

eg: cell centers, online purchasing, etc

Question 11

Promotion-related costs

Answer 11

Associated with developing, producing, and disseminating communications including transcreation or translation into other languages

Question 12

Evaluation-related costs

Answer 12

Include any planned measurement and tracking surveys

Question 13

Two components to justify budget

Answer 13

The ROI
Estimate on returns

Question 14

Sources for additional funding

Answer 14

Government grants and appropriations
Advertising and media partners
Coalitions and other partnerships
Corporations

Question 15

Government grants and appropriations

Answer 15

Federal, state, and local government agencies are the most common source of funds and grants for social marketing efforts

There are more than 120,000 independent corporate community and grant-making foundations in the US

Question 16

Advertising and media partners

Answer 16

Advertising agencies often provide pro bono services to support social causes

Question 17

Coalitions and other partnerships

Answer 17

Coalition members may be able to pool resources to implement larger-scale campaigns

Question 18

Corporations - cause-related marketing

Answer 18

Increasing popular strategy with a win-win-win proposition

eg: Dawn saving ducks

Question 19

Corporations - Grants and contributions

Answer 19

Cash contributions from corps are awarded for a variety of purposes, including sponsorship mentions in communications, potential for building traffic at retail or internet sites, etc

Question 20

Corporations - In-kind contributions

Answer 20

In-kind donations are more appealing than cash. Easier for corps to give products or allocate personnel to help

Question 21

Corporations - use of distribution channels

Answer 21

Companies can provide tremendous visibility and support for your efforts by giving you space in their stores for such things as car seat safety checks, etc

Question 22

Principles for influencing funders

Answer 22

Identify and prioritize potential funders
Describe the planned campaign purpose
Formulate clear, specific potential requests
Deepen understanding of the funders’ wants, needs, and perspectives
Refine and finalize the specific request
Develop a strategy using all element of the marketing intervention mix

Question 23

If funding is still inadequate, how can you revise your plan?

Answer 23

Develop campaign phases
Strategically reduce costs by eliminating certain strategies and tactics
Adjust goals of the campaign