Post on 27-Nov-2014
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