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Advertising & Brand MAnagement

By :-Dr. Divya Chowdhry

Advertising Management

OUTLINE

Advertising Management

Choosing an Ad Agency

Advertising Planning and Research

Role of Ad Agency Account Execs

Role of Ad Agency Creatives

Communication Market Analysis

Communications Budget

Creative Brief

Advertising Management

Advertising Management Program:

process of preparing and integrating a companys advertising efforts within the overall IMC message

Advertising Strategy Media Selection Message Strategy Appeals Executional Framework

Choosing an Ad Agency

Advertising Expenditure: Media Time/Space, Ad Agency Commission, Media Production (big vs. small advertising accounts)

Get together in your teams and select a product or service you might want to promotethen:

thinking about your market competition and the relevant strategic message you might want to employ define the criteria you think would be most important in selecting your advertising agency. Summarize and be prepared to discuss your findings with the class.

Advertising Planning and Research

Getting together with the Ad Agency to develop the campaign:

1. Pre-planning Input Get to know the company (books, research, product use, people)

2. Product-specific Research Consumer testing problem detection and major selling idea - Strengths

and Weaknesses

3. Qualitative Research Focus Group Studies with market segment representation:

anthropology (direct observation) sociology (social issues, trends, cohorts, family cycles) psychology (motivation, cognition, and learning)

VALS psychological model to predict buyer behavior Personal Drive Analysis (PDA)

Role of Ad Agency Account Execs

Solicit Client

Liaison between client and creative (interpretation and management of strategic plan, information collection and dissemination, relationship connectivity)

Provide status opportunities to facilitate client comprehension on the value of expenditures

Manage the sales process and revenue stream

Role of Ad Agency Creatives

Those that develop the actual Ad

May involve: Creative Director

Artisans

Graphic Artists

Agency Staff or Free Lancers

Tend to work long hours under pressure (deadlines) and repetition/reiteration of concept development

CAMPAIGN MANAGEMENT: 1. Communication Market Analysis

Competitive Analysis

Opportunity Analysis

Target Market Analysis (proposed client base)

Customer Analysis (current client base)

Positioning Analysis (current and intended perception review)

Media Usage Analysis (target market and related competitive media employed)

CAMPAIGN MANAGEMENT: 2. Communication Objectives

Define Advertising Goals

E.g.: Building Brand Image

Informing

Persuading

Encourage Action

Integration of other marketing efforts

CAMPAIGN MANAGEMENT: 3. Communications Budget

Budget Allocation based on objectives

Looking at Reach/Frequency and Timing Reach

Frequency

Timing _ pulsate, flighting, continuous

CAMPAIGN MANAGEMENT: 4. Media Selection

Strategic and Tactical decisions: Message refinement

Advert design & development (can be long process)

Media tools and Media spot buys

CAMPAIGN MANAGEMENT: 5. Creative Brief

Objective

Target Audience

Message Theme

Support (evidence)

Constraints (legal, regulatory, physics-reality)

Team Challenge

Thinking of the product/service you choose previously when selecting your ad agencyget together in your groups and come up with:

Intended Message

Target Market within Nanaimo

Communication Objectives

Allocation of $40,000 Ad Budget

Description what media the competition in Nanaimo currently uses

Define proposed Media Tools you would use and why those might work for your target market

Next weekshare your findings with the class

ADVERTISING BUDGETING

Advertising Budget and Factors Affecting it

The market conditions to watch out for are as follows:

Frequency of the advertisement

Competition and Clutter

Market Share of the Product

Product Life Cycle Stage

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Historical Method

Task-Objective Method:

Percentage-of-Sales Method

Common budgeting method. May be based on last years with a percentage increase. Nothing to do with advertising objectives.

Most common method. With this method, the company will allocate its budget based on the objectives it sets.

Compares total sales with the total advertising (or marketing communication) budget during a previous time period to compute a percentage.

The Advertising Budgeting Methods

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Competitive Methods

All You Can Afford Method

Companies try to match their budgets to their competitors budgets by monitoring their competitors activities and researching estimates from trade sources.

Allocates whatever is left over to advertising. Companies who use this dont value advertising very much.

For example, KFC and Mcdonalds in Chinese market, because these two is main foreign fast food companies in China, they always use match-competitor method to set their advertising budget. They research each others budget in different provincies of China and following these numbers or exceed them to increase its own market share. Such as my city, first KFC built their shop and did a lot of advertisements, Mcdonalds is also coming in a quick time with plenty of commercials in different media.

Percentage of Sales Method:-

- Procedure used to set advertising budgets, based on a predetermined percentage of past sales or a forecast of future sales.

- This method of budget allocation is popular with advertisers because of its simplicity and its ability to relate advertising expenditures directly to sales

- For example, a firm expecting to do $50 million worth of business next year and choosing to allocate 5% of their sales to the advertising budget, would propose a $2.5 million advertising budget

CREATIVE STRATEGY

The creative strategy guides and directs the development of current and future sales messages, brochures, and advertising.

A written creative strategy becomes a potent management tool for directing the activities of advertising agencies.

Creative Strategy-Execution

Advertising Appeals and execution styles:-

-Appeal is the central idea of an advertisement.

-The approach to attract the attention of consumer

Types Of Appeals

Rational/Logical Appeal Price (Tide) Quality (Madhushree tea) Feature (Apple i-Fone) Competitive Advantage (Head & Shoulders) News (Colgate) Product/Service Popularity ( Hero Honda)

Emotional Appeal Humor (Sprite) Fear (Saffola) Music (Airtel) Sex (Axe)

Additional Appeal Star (ThumsUp) Reminder Advt. (Vardhman Wools) Teaser Advt. (Ponds)

Creative Format/Execution Style

Execution style

1. the way an appeal is turned into an advertising message.

2. the way the message is presented

A particular advertising appeal can be executed in a variety of ways and a particular means of execution can be applied to a variety of advertising appeals.

Creative Format/Execution Style

1. Factual message or straight sell

2. Dramatization

3. Testimonials

4. Comparison

5. Demonstration

6. Animation

7. Humor

Creative Format/Execution Style

8. Scientific or technical evidence

9. Slice of life

10. Fantasy

11. Combinations

12. Personality Symbol

Creative Format/Execution Style

1. Straight-sell or factual message-

this type of execution relies on a straightforward presentation of information about the product or service such as specific attributes or benefits.

Straight sell Logical -Feature

Dramatization

Creative Format/Execution Style

3. Testimonialsmany advertisers present their advertising messages in the form of a testimonial whereby a person speak on behalf of the product or service based on his or her personal use of and/or experiences with it.

Ex. Dove, Olay Total Effect.

Creative Format/Execution Style

4. Comparison this type of execution involves a direct or indirect comparison of a brand against the competition.

Creative Format/Execution Style

5. Demonstration- this type of execution involves demonstration

of the product features.

Creative Format/Execution Style

6. Animation - this technique used animated characters or scenes drawn by artists or on computer. Animation is often used as an execution technique for advertising targeted at children.

Creative Format/Execution Style

7. Humor Humor can be used as the basis for an advertising appeal. However, humor can also be used as a way of executing the message and presenting other types of advertising appeals.

Creative Format/Execution Style

9. Slice of Life - The ad attempts to portray a real-life situation involving a problem, conflict or situation consumers may face in their daily lives. The ad then focuses on showing how the advertiser's product or service can resolve the problem.