In the competitive environment it takes huge sums of money, sometimes over long periods, for media campaigns to be really effective. DGS (Gaming System for Dell Computer) is an innovative product which needs creative and unique media campaign to attract potential consumers. Advertisers, on the other hand, should take the attitude that it is indeed possible to know what works, and what doesn’t and why. As a result they can confidently reject attempts to obscure their inquiries or fob off their concerns about whether their advertising is working. Belief in the exclusive power and province of the tribal medicine man belongs to an era that has passed (Evans et al, 2004).
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The media campaign budget will be based on purchase of media time and space. The main media selected for campaign are TV, press and the Internet. Also, the budget will involve all direct and indirect costs of the campaign. The budget should be aligned with the goals and aims of the campaign. The budget process sets up procedures (financial regulations) for authorizing expenditure and the headings under which money can be expended. The accounting system provides information on the levels of actual expenditure against budgeted expenditure. Taking into account experience and success of Dell’s competitor Sony, it will require $127M for media campaign. Dell should be able to get much more effectiveness out of their media campaign budget and out of working with their advertising agency And consumers should be able to accept, without necessarily feeling threatened, that advertising does influence which brands they choose, especially when it does not matter to them personally which brands they choose. Indirect costs will involve personal and administration costs. Usually, it takes 25% of the budget ($31,75M for Dell).
The appropriate media for the selected strategies and budget will be TV, press and the Internet. The main advantage of TV and commercials is that moving color pictures of actual scenes, people and products have a realism which his not possible via other media. Any effort is necessary for a viewer to absorb television advertising. Commercials will help to reach wide target audience and inform potential buyers about the new product. A television advertisement can be timed to the hour, day, week or program. The advertisement can be repeated every few hours, daily, weekly, etc. A special attention should be given to TV ads. One of the seductive attractions of 15-second commercials is that advertisers can get more repeat exposure for the same ad budget than they can with a 30-second ad (Evans et al, 2004).
Press is another powerful medium for a new product. This media is cost-effective where offering has broad appeal. It can create an impact and be persuasive. It allows more scope for testing than TV and can use advertorials – ad and editorial combined. The advantage of this medium is that it supports TV and the Internet and persuades potential buyers to try a new product. It can also offer postal response route.
The Internet medium is important for such product as a gaming system because many potential consumers are advanced Internet users looking for innovative products and solution via this channel. Web banner require low production costs; can use free banner ad exchange schemes or negotiate charges per click through; get more than a response (Evans et al, 2004).
Billboards and posters will be used in big cities around the country in order to ensure high response rate. Also, it is necessary to use repetition in promotion campaign because it is as important as the promotion itself. Research has shown that over 95 percent of people forget the exact message within six weeks of seeing it.
Budget for Dell Gaming System (Total budget – $127M)
|spending||Media||Million, dollars||% of the budget|
|Press (newspapers, magazines )||$37,75M||25%|
Evans, M., O’Malley, L., and Patterson, M., (2004), Exploring Direct & Customer Relationship Marketing, 2nd edition, London: Thomson