Marketing costs – where to go for advice
Find out how much it will cost and where to go if you need more help
Generally, promotional budgets tend to be much smaller those allocated to advertising. Exact costs can only be worked out once the campaign has been planned in detail, although a budget has usually been set well in advance of this stage.
While established brands tend to have a fixed percentage of their sales allotted to promotional activity, it is not always easy to determine how much to spend on a new brand.
Theoretically, a figure can be determined using a maximum cost per new consumer, depending on the promotional objectives. In practice, this is virtually impossible to calculate.
It is important to bear in mind that promotions do not always have a fixed cost. For example, a gift with purchase promotion can be preset, according to the number of units produced.
A competition, on the other hand, will require an estimation of the number of responses, to gauge the cost of fulfilment – receiving in and judging. Coupon redemption and uptake on mail-in offers is harder still to assess.
Sales promotion is a complex business. If you are considering running any promotional activity at all, it is vital to obtain further information and advice. The following organisations may be able to help:
Institute of Sales Promotion Arena House 66-68 Pentonville Road London N1 9HS Tel: 020 7837 5340 Website: www.isp.org.uk
Advertising Standards Authority Brook House 2-16 Torrington Place London WC1E 7HN Tel: 020 7580 5555
British Promotional Merchandise Association (BPMA) BPMA Secretariat Suite 12 4th Floor Parkway House Sheen Lane East Sheen London SW14 8LS Tel: 020 8878 0825
Chartered Institute of Marketing (CIM) Moor Hall Cookham Maidenhead Berkshire SL6 9QH Tel: 01628 524922
Direct Marketing Association (DMA)Haymarket House 1 Oxenden Street London SW1Y 4EE Tel: 020 7321 2525
Promotions do not always have a fixed cost.