Commercial Planning - Method Explanation - Tactical Planning - Promotion: Define Promotion Expenditures

Promotion: Define Promotion Expenditures

Description: a detailed budget for the promotion activities has to be defined. With this budget, the promotion of the new product can be designed and started.

Purpose: defining the promotion expenditures gives a clear view on the costs for promoting the new product. This information can be used in calculating the price level of the product.

Product: in combination with the “define sales force intensity” activity, it forms a promotion plan. This plan contains information about the promotion costs and activities and is part of the tactical plan.

Example: T-computing has to find out the combination of which, and how much, promotion activities are best for reaching the targeting customer group(s). The balance between promotion expenditures and promotion activities has to be found. Children under 16 years watch often TV, but seldom read books or magazines, so an expensive TV commercial is probably better than a, cheaper, advert in a magazine.

Read more about this topic:  Commercial Planning, Method Explanation, Tactical Planning

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