Marco is working on promoting his company's Glazer brand of electronic razors. The company estimates 50 million potential users and sets a target of attracting eight percent of the market
Marco sets an objective of reaching 80 percent of the potential customers with an advertising message that results in 25 percent of the brand-aware prospects trying the Glazer. He further estimates that 40 percent of all triers will become loyal users, and the cost of exposing one percent of the target population to one impression is $4500. What is the advantage of Marco's budgeting method, and why do you think marketers sometimes prefer methods without this advantage?
Marco is using the objective-and-task method, which requires him to spell out his assumptions about the relationship among dollars spent, exposure levels, trial rates, and regular usage. In this way, the method connects spending to goals. Student answers may vary, but students should notice that other methods such as percentage of sales or the affordable method require much less thought and may attract decision makers as an easy way to answer the question.
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