advertising planning

The Advertising Plan

Advertising Plan Components

Introduction

Situation Analysis

Objectives

Budgeting

Strategy

Execution

Evaluation

Advertising Plan Components

Introduction • Executive summary• Overview

Situation Analysis

• Historical context• Industry analysis• Market analysis• Competitor Analysis

Advertising Plan ComponentsSituation Analysis

Conduct a Situation Analysis to specify goals and discover what problems and opportunities exist in the marketplace.Conducting a Situation Analysis enables the advertiser to select a target segment and position based on facts.Annual “reality check.”

Advertising Plan ComponentsSituation Analysis

•Start by considering your goals.•Marketing Objectives—how much sales or market share should be increased•Advertising or Communication Objectives—what should be said or communicated in the ad (awareness of new product or feature, etc.)

Advertising Plan ComponentsSituation Analysis

•Client/Product Analysis•Competitive/Industry Analysis•Market Analysis

Advertising Plan ComponentsClient/Product Analysis

• How the client arrived at the current situation• Brief history of specific product/brand• Strengths, weaknesses, problems, opportunities• Past ad budgets, campaigns, successes and failures

Advertising Plan ComponentsCompetitive/Industry Analysis

•Analyze two primary competitors•Focus on industry developments and trends•Discusses the most important aspects of an industry

Advertising Plan ComponentsCompetitive/Industry Analysis

• Evaluate your primary competitors just like you evaluate your own product/service.• How/Why are their offerings better, worse, similar, different, etc.?• What are their advertising budgets, strategies, campaigns, etc.?• How well can they counter your strategies?

Advertising Plan Components

Market Analysis

•Who is your primary target segment?•What are the primary characteristics they share?•Describe their demographics, psychographics, geographics, benefit segment, usage pattern, commitment level, etc.

Advertising Plan Components

Objectives

• Start by considering your goals• What do we want to accomplish and how should we accomplish it?• Marketing Objectives—how much sales or market share should be increased.• Advertising or Communication Objectives—what should be said or communicated in the ad (awareness of new product or feature, etc.)

Sales vs. Communication Objectives

Advertising = Sales?Advertising = Communication?Effective Communication = Sales?

Focusing on communications objectives allows advertisers to consider a broad range of strategies. Building brand loyalty can take years.

Advertising Plan Components

Objectives• Quantitative benchmarks• Measurement methods• Criteria for success• Time frame

Workable Objectives

1. Establish a quantitative benchmark• Current market share• Awareness• Attitude

2. Specify success measurements and criteria3. Specify a time frame

• Direct response: short• Brand awareness: long

BudgetingMethods

• Percentage of sales• Share of market/voice• Response models• Objective and Task

Advertising Plan Components

Determine cost based on build-up analysis

• Production costs• Ancillary costs• Other promotion

• Reach• Frequency• Time frame• Media

Compare costs against industry and corporate benchmarks

Reconcile and modify budget

Determine timeFrame for payout

Implementing Objective and Task Budgeting

Strategy• Brand name recognition?

• Repetition and frequency• Rhyming games

• Trial Use Stimulation?• Introductory offers• Product guarantees

• Brand Switching?• Value Propositions• Product comparisons

Advertising Plan Components

Advertising Plan Components

Execution• Copy strategy• Media plan• Integrated brand promotion

Evaluation• Criteria• Methods• Consequences

Advertising Plan Components

Evaluation

Evaluate whether we’ve achieved the objectives we set for the advertising

•Pretests—evaluate ads before the ad campaign starts (or is exposed to the public through the media)•Posttests—evaluate ads during or after the ad campaign starts

Advertising Plan Components

Types of Consumer Reactionsto evaluate using Pretests & Posttests

Cognitive or thinking reactionsAffective or emotional reactionsConative or behavioral reactions

Advertising Plan Components

Campaign Evaluation

• Cognitive—what do you want targeted consumers to learn or think after seeing your ad?

Advertising Plan Components

Campaign Evaluation

• Affective—what do you want consumers to feel after exposure to the ad?

Advertising Plan Components

Campaign Evaluation

• Conative—what do you want consumers to do after exposure to your ad?

The Role of the Advertising Agency in Advertising Planning

• The advertiser brings to the table an assessment of the brand’s value, the external environment, and opportunities and threats.• The advertising agency’s role is to assess the current marketing and market status of the brand, develop advertising objectives and strategies, and ultimately create advertisements and IBP materials.

The Planning Cycle

The Planning Cycle

Are we there?

If not,why not?

Where arewe?

Where couldwe be?

MarketConsumers

Results Feedback

SituationAnalysis

Co. Potential

Where doWe want to go?

Objectivesand Strategy

How do we get there?

Let’s get there

Plan

Implementation

Whose job is it?

• Normally the brand manager.• In some cases it could be the advertising

manager, the marketing manager, the product manager and similar designations

Role of the Brand Manager

• CEO of the brand• Accountable for the sales, profits, contribution

and fortunes of the brand• Needs to interact with all functionaries,

internally and externally and do whatever it takes to ensure the progress of his brand

Strategic Role of the Brand Manager

Brand Manager

MR

Finance

Sales

DespatchMarketing

Head Agency

New Product Planning/R&D

ProductionMaterials

Role of advertising within the communications mix

• To increase awareness of the brand and its characteristics• To encourage non-users to sample the product• To develop the belief among both users and ideally, non-

users that a brand is technically superior to competitors for reasons A, B, C, etc.

• To inform consumers especially lapsed consumers that the product has been improved or reformulated

• To encourage retail trade to stock and display the product

Is it an investment or revenue expense ?

Conservative accounting principles does not recognise the future

positive effects of current advertising expenditure

Is advertising an expense or an investment?

• How to treat it in the books?• Risk• Benefits obtained from the expenditure

Is advertising related to sales?

Yes and No.

Factors influencing sales

• Govt. policy• Taxes• Promotions• Economic climate• Seasonalities• And so on

• Advertising• Price• Distribution• Packaging• Product features• Competition• Consumer tastes

Impact of Advertising

Advertising

New customers

Immediate sales

Change attitudeImprove image

Future Sales

You can attain temporary share of the market with anew product or a

smart promotion, but to enjoy a really healthy share of market (in

three year’s time) you have to start now, to build a share of mind– Leo

Burnett

“I am astonished to find how many manufacturers, on both sides of the

Atlantic, still believe that women can be persuaded by logic and argument to buy one brand in preference to another. The greater the similarity between products,

the less part reason plays in brand selection” – David Ogilvy

“Half my advertising is wasted, but the problem is I don’t know

which half”- John Wanamaker

Demand stimulated by advertising not only increases sales but the value of the brand in

the minds of the consumer

Successful advertising helped increase prices by 22% than not so

successful advertising

The average % increase in sales to be expected from 1 %

reduction in price is 1.8%

The average % increase in sales to be expected by 1 % increase in adspend

is 0.2%

Advertising Objectives

• Communication and coordination device• Criterion for decision making• Evaluating results

Advertising Goal - DAGMAR

A specific communication task to be accomplished among a defined

target audience to a given degree in a given period of time

Customer Dynamics

Consumers not using product category

Consumers using brand

Consumers usingdifferent brands

Targetting

• Who is the target segment?• What is the behaviour within that segment

that advertising is attempting?• What is the process that would lead to desired

behaviour?• Is it necessary to create awareness, build

attitudes/ brand equity/associated feelings/type of user personality ?

Increasing Turnover

• Increasing customers• Increasing usage per customer• Reduce time between purchases

Situation Analysis

• Cost structure of industry

• Skills of the firm• In – house skills vs

those of competitors• Financial resources of

the firm

• Nature of demand• Extent of demand• Nature of competition• Environmental climate• Stage of PLC