The Slideshow describes the process of advertizing planning and methods for budgeting.

1. Department of Management Studies
Sanketika Vidya Parishad Engineering College
Visakhapatnam
1
Advertizing Planning and
Strategy

2.  Learn about major components of the advertising
plan.
 Understand the importance of setting objectives.
 Discuss the success factors of introductory
advertising and the relationship between
advertising and sales.
 Discuss various budgeting methods used in
advertising.
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Learning Objectives

3. 3
1. Where are we? 2.Why are we there?
3.Where could we be?
4. How could we get there?
5. Are we getting
there?
The Advertising Planning Cycle

4. 4
Situation
Analysis
Marketing
Program
Advertising
Plan
Implementation
The
Communication/
Persuasion
Process
Consumer/Market Analysis
Competitive Analysis
Role of Advertising, Sales
Force, Price, Promotion, Public
Relations
Objectives/Segmentation/Positioning
Message Strategy and Tactics
Media Strategy and Tactics
‘Facilitating’Agencies
Social and Legal Constraints
Figure 1: Framework for Advertizing Planning and Decision Making
Advertising Planning and Decision Making

5. 5
An Advertising Plan Matches the Right Audience
to the Right Message and Presents it in the
Right Medium to Reach that Audience & has
Three Elements.
Advertising Planning
Targeting the Audience: Whom are you trying to reach?
Message Strategy: What do you say to them?
Media Strategy: When & where will you reach them?

6.  A typical communication process model
 A model of persuasion process
 Ad exposure
 Different functions of advertising messages
 Brand attitude
 Purchase behavior
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Understanding Communication Process

7.  Advertising objectives and target market
selection
 Creative plan: Message strategy and tactics
 Media plan: media strategy and tactics
 Evaluation (research)
 IMC Approach: Identify roles of various
components of IMC and repeat the process.
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Developing an Advertizing Plan

8. I. Introduction
- Executive Summary or Overview
II. Situation Analysis
- Advertising Problems
- Advertising Opportunities
III. Key Strategy Decisions
- Advertising Objectives
- Target Audience
- Competitive Product Advantage
- Product Image and Personality
- Product Position
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Typical Advertizing or Campaign Plan:
Outline

9. IV. The Creative Plan
V. The Media Plan
VI. The Communication Plan
- Sales promotion
- Public relations
- Direct marketing
- Personal selling
- Sponsorships, merchandising, packaging, etc.
VII. Implementation and Evaluation
VIII. Evaluation
IX. Budget
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Typical Advertizing or Campaign Plan:
Outline

10. 1. Opportunity Analysis
To spot and capitalize on favorable demand trends
2. Competitive Analysis
To achieve and maintain a Competitive Advantage
3. Target Market Selection
4. Marketing plan (4Ps)
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Situation Analysis

11. 1. Creative Platform is a document that outlines the
message strategy decisions for an individual ad.
Creative Platform combines the basic advertising
decisions – problems, objectives, and target
markets – with the critical elements of the sales
message strategy – main idea and details about
how the idea will be executed.
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Creative Platform & Message Strategy

12. 12
Product
Benefit
Promises
Reason Why
USP
Support
Advertisements that focus on the product
itself by looking at attributes.
Product is promoted on the basis of what it
can do for customers.
Promises that something will happen if you
use the advertised product.
Based on logic and reasoning and clearly
states a reason for the benefit gained.
A benefit statement that is both unique to
the product and important to the user.
Lends credibility to the selling premise.
Selling Premises

13. The 6M Approach
 Merchandise: Important benefits to sell
 Markets: Who to reach
 Motives: Why people buy or fail to buy
 Media: How to reach
 Measurements: How to evaluate (time and change)
 Messages: Key ideas to convey to move
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Defining Advertising Goals for Measured
Advertising Results (1962, 1995, S Dutka)

14. Why set objectives?
- Planning and decision making
- Communication
- Measurement and evaluation
Sales objectives
Communication objectives
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Setting Objectives

15. Specific
Measurable & Concrete
Realistic & Challenging
Establish Benchmarks
Time-bound
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Good Objectives: Characteristics

16. Product: Backstage Shampoo
Time period: 6 months
Objective 1:
Create awareness among 90 percent of target audience.
- Using repetitive advertizing in newspapers, magazines, TV and
radio programs. Simple message.
Objective 2:
Create interest in the brand among 70 percent of target
audience.
- Communicate information about the features and benefits of the
brand-I.e., that it contains no soap and improves the texture of
the hair
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Setting Objectives using
Communications Effects Pyramid

17. Objective 3: Create positive feelings about the brand among
40 percent and preference among 25 percent of the target
audience.
- Create favorable attitudes by conveying information,
promotions, sampling, etc.
Objective 4: Obtain trial among 20 percent of the target
audience.
- Use sampling and cents-off coupons along with advertising and
promotions
Objective 5: Develop and maintain regular use of Backstage
Shampoo among 5 percent of the target audience.
- Use continued reinforcement advertising, fewer coupons and
promotions
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Setting Objectives using
Communications Effects Pyramid

18. 1.Communicating that something is different about the
product.
- Successful introductory commercials communicated some
point of difference for the new product
2.Positioning the brand difference in relation to the
product category.
- Successful commercials positioned their brand’s
difference within a specific product category. For example,
a new breakfast product was positioned as the ‘Crispiest
cereal’ or a new beverage as the ‘smoothest soft drink’.
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Factors Related to Success of
Advertizing for New Products

19. 3.Communicating that the product difference is
beneficial to consumers.
- Nearly all of the successful commercials linked a benefit
directly to the new product’s difference.
4.Supporting the idea that something about the
product is different and/or beneficial to consumers.
- All the successful commercials communicated support for
the product’s difference claim or its relevance to
consumers. Support took the form of demonstrations of
performance, information supporting a uniqueness claim,
endorsements, or testimonials.
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Factors Related to Success of
Advertizing for New Products

20.  New customers from other brands
 New customers from other categories
 Increasing Share of Requirements (SOR)
 Increasing brand loyalty and reducing attrition and
price elasticity
 Increasing usage
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Several Ways to Increase Sales -
What Marketing Communication can do to help?

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Sales
Advertising
McDonald’s Advertising Response Function

22.  In consumer goods marketing, increases in market
share are closely related to increases in the
marketing budget.
 There are minimum levels below which advertising
expenditures have no effect on sales.
 Sales normally increase with additional advertising.
At some point, however, the rate of return declines.
 There will be some sales even with no advertising.
 Sales response to advertising may build over time,
but the durability of advertising is brief, so a
consistent investment is important.
 Culture and competition impose saturation limits
above which no amount or advertising can increase
sales.
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Relationship of Advertizing to Sales &
Profits

23. Objectives-and-tasks method
Percentage-of-sales method
Competitive parity method
All-you-can-afford
Arbitrary allocation
Quantitative or experimental model
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Advertising Budgeting Methods

24. Learn about major components of the
advertising plan.
Understand the importance of setting
objectives.
Discuss the success factors of introductory
advertising and the relationship between
advertising and sales.
Discuss various budgeting methods used in
advertising.
24
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