TP2

Proposal for Increased Marketing Budget

Introduction

  • Background: Internal proposal to increase digital marketing budget from current allocation.
  • Objective: Request an additional $1,000,000 to enhance digital marketing initiatives.

Company and Product Context

  • Fictitious Company Creation:
    • Choose a name for your fictitious company to help write the proposal in the third person.
    • Example products: candles, glassware, jackets.
  • Sales Distribution: Products sold through retailers like Meijer and Target.

Financial Overview

  • Current Fiscal Year Sales Projection:
    • Target revenue: $250,000,000
  • Cost Analysis:
    • Cost of Goods Sold (COGS): 65% of revenue.
    • Gross profit margin: 35%, translating to a gross profit of $87,500,000.
  • Operating Expenses:
    • Planned Selling, General, and Administrative (SG&A) Expenses: $60,000,000.
    • Marketing expenses currently accounted: $20,000,000.
  • Target Operating Profit: $27,500,000.
  • Proposal Focus: Justify the increase of marketing budget to $21,000,000 (an increase of $1,000,000).

Project Structure

  • Overall Structure:
    • 5 to 6 page document including a pro forma at the end.

Proposed Marketing Budget Allocation

  • Selection of Digital Platforms: Choose three digital marketing mechanisms/platforms to focus on in the proposal.
    • Suggested platforms include:
    • Search Engine Optimization (SEO)
    • Social Media Marketing
    • Content Marketing
    • Email Marketing
    • Influencer Marketing
    • Emphasize understanding of "push" and "pull" marketing strategies in relation to retail.

Persuasive Document Structure

  • Thesis Statement: Clearly articulate the primary argument for increasing digital marketing investment.
    • Example: "XYZ Company should invest an additional $1,000,000 in digital marketing initiatives this year. The proposed initiatives are A, B, and C, which are expected to yield marketing value effects (D, E, and F) and financial value effects (G, H, and I), summarized in a two-year pro forma."

Background Context on Digital Marketing

  • Importance of Digital Marketing:
    • Present evidence and case studies showing successful implementations of digital marketing in various companies.
    • Create urgency by articulating trends in consumer behaviors shifting towards digital channels.

Digital Marketing Investments

  1. First Digital Marketing Investment
    • Describe first platform and its relevance to the product.
    • Use logical and credible arguments (Logos, Ethos) to convince decision-makers of efficacy.
  2. Second Digital Marketing Investment
    • Follow same structure as above, focusing on a different platform.
  3. Third Digital Marketing Investment
    • Repeat the approach to showcase the final chosen platform.
  4. Counterarguments
    • Address common objections against digital