Methods of Setting Media Budget: Status Quo, Inflation Adjusted, Advertising Sales, Case Rate & Advertising Margin Method, Share of Market

19th November 2021 0 By indiafreenotes

Status Quo

When a company’s owners feel that they have captured a strong market share they can realistically hold on to, they may attempt to maintain the status quo instead of expanding into other areas. This strategy is usually a temporary adaptation to circumstances rather than a long-term stance.

The status quo approach is one of several adaptive strategies in business. Adaptive strategies are responses to circumstances that may be localized or temporary and are therefore subject to change if the situation changes. If a company has a good, consistently profitable product in a competitive business but no obvious way to claim a larger market share, the owners may decide to concentrate on holding the line until something changes. They will defend the company’s existing market share, but won’t try to introduce new products or locations. This strategy is also referred to as active waiting, because the owners try to maintain the status quo while waiting for an opportunity.

Inflation Adjusted

Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time. The rise in the general level of prices, often expressed as a percentage, means that a unit of currency effectively buys less than it did in prior periods.

Shifts in demand

A shift in demand can occur for the following reasons:

  • A change in government spending
  • A change in consumption
  • A change in taxes
  • A change in the monetary rule

Advertising Sales

  • Persuading clients to buy advertising space or time.
  • Finding out who controls the advertising budget in target organisations and contacting them.
  • Explaining the benefits of your medium, using statistics on readership or viewing figures.
  • Offering a price and negotiating around it.
  • Closing the deal and recording the details.

The Ad Sales Process

Selling advertising space to other companies requires a great deal of patience and planning in order to be effective.

The first step in any ad sales process is proactively prospecting for potential clients. This step isn’t optional if you want to be successful in the sales world, and the ultimate goal is to build a sales pipeline by consistently connecting with potential customers.

When reaching out to prospects, many factors come into play. Not only targeting the right segments, but your sales positioning and the timing of your outreach. 64% of customers are more willing to have a conversation when they have dollars available in their advertising budget.

In order to connect with the correct decision-maker at precisely the right time, we recommend following these six tips:

Define your audience

The idea of prospecting can be overwhelming, but defining your audience is the ideal place to start. By defining the characteristics of your ideal partners, you can narrow the field to a more manageable search of who exactly your target audience is and the best way to reach them. Winmo revs up prospecting efforts with powerful sales intelligence that allows you to source leads quickly and accurately. Our team of researchers works to find contacts at hard-to-reach agencies, provide sales predictions, and stay on top of what media clients are buying, and we house all of this information under one roof in our platform.

Personalize your outreach

In order to stand out from the crowd, it’s imperative to personalize your outreach. Shooting out a generic email to a big list of contacts is not the way to go. Rather than sending emails with your fingers crossed hoping to get a response, make your efforts count and provide relevant and interesting information in your prospect’s inbox. Personalization demonstrates your willingness to speak directly to a prospect and work a little harder for the sale.

Strike while the iron is heating up

In business, timing is everything. It’s critical to pitch to a prospect when they’re ready to buy. In order to stay one step ahead of your competition, prospect proactively and keep an eye out for business triggers such as new hires, new funding, spending shifts, and product launches to name a few. We will break down each of these and more later on in this article.

Make prospecting a habit

Prospecting is not optional if you want to be successful in the sales world. In order to keep it a priority, we recommend blocking time out each day to update lists, craft emails, and follow up with potential prospects. Prospecting is important because it creates opportunities, and we’ve got the numbers to prove it.

Find commonality

It’s a known fact that people are hardwired to like people who seem similar, so be sure to do your homework on the prospect’s current work, interests, and how your service or product could potentially meet their needs. Taking the time to personalize your outreach in this way will set you apart.

Track rejections

While it’s essential to stay positive in prospecting, it’s also grave to keep track of contacts that said no, and their reasons for doing so. Why? So you can improve future pitches and be prepared to address common concerns. Successful ad sales reps understand the value of rejection in the selling process. Rather than taking rejection personally, use it as an opportunity to receive constructive criticism and determine how you could make your outreach better in the future.

Case Rate & Advertising Margin Method

In the world of business and finance, a margin is the difference between two values or sums of money. Marketing involves a company’s attempt to inform potential buyers of its product or service, drawing attention to it in such a way that an audience will be willing to purchase it. A marketing margin applies to a company that buys a product with the intent to resell it.

When companies buy a product to act as a distributor or retailer, it must sell the product at a higher price than that at which they purchased it. In such situations, the marketing margin of a product is the difference between what a company pays for the product and what it charges for the product.

Share of Market

The Market Share Method is yet another sales forecasting method, wherein the company first works on the industry forecast, then applies the market share factor and then finally arrive at the company’s forecast. Simply, the company’s sales forecast is deduced from the data gathered on the industry sales and from the market share of the company.

The market share of the firm is the key factor in this method, and it can be determined through the past sales records, company’s present position its plans for future, competitor’s sales records its plans and marketing strategies, customer’s brand preferences, etc.