Advertising Planning and Strategy

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Advertising Planning and Strategy


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Learning Objectives

Learn about major components of theadvertising plan.

Understand the importance of settingobjectives.

Discuss the success factors of introductoryadvertising and the relationship between

advertising and sales.Discuss various budgeting methods used inadvertising.


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The Advertising Planning Cycle

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?


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Advertising Planning and Decision Making

SituationAnalysis

Marketing

Program

Advertising

Plan

Implementation

The

Communication/

Persuasion

Process

Consumer/Market AnalysisCompetitive 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 2-1 Framework for advertising planning and decision making


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The Advertising Plan

An Advertising Plan Matches the Right

Audience to the Right Message and Presents

It in the Right Medium to Reach ThatAudience & Has Three Elements.

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?


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Understanding of Comm.

ProcessA typical communication process model

A model of persuasion process

Ad exposure

Different functions of advertising messages

Brand attitude

Purchase behavior


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Developing an Advertising

PlanAdvertising objectives and target marketselection

Creative plan: Message strategy and tactics

Media plan: media strategy and tacticsEvaluation (research)

==> IMC approach: identify roles of various

forms of IMC and repeat the process.


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Typical Advertising or Campaign

Plan Outline (Tab. 7.1)I. Introduction

Executive Summary or Overview is provided.

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 Advertising or Campaign

Plan Outline (Tab. 7.1)IV. The Creative PlanV. 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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Situation Analysis

Opportunity analysis: to spot andcapitalize on favorable demand trends

examples of such trends

Competitive analysis: to achieve andmaintain a competitive advantage

examples of competitive advantages

Target market selection

examples of target marketing

==> Marketing plan (4Ps)


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Creative Platform & Message Strategy

Creative platform is a document thatoutlines the message strategy decisions for

an individual ad.Creative platforms combine the basicadvertising decisions problems,objectives, and target markets with thecritical elements of the sales messagestrategy main idea and details about howthe idea will be executed.


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Product

Benefit

Promises

Reason Why

Unique SellingProposition

Support

Advertisements that focus on the productitself by looking at attributes.

Product is promoted on the basis of what itcan do for customers.

Promises that something will happen if youuse the advertised product.

Based on logic and reasoning and clearlystates a reason for the benefit gained.

A benefit statement that is both unique to theproduct and important to the user.

Lends credibility to the selling premise.

Selling Premises


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Defining Advertising Goals for Measured

Advertising Results (1962, 1995, S. Dutka)

The 6M approach

Merchandise: important benefits to sell

Markets: who to reachMotives: why people buy or fail to buy

Media: how to reach

Measurements: how to evaluate (time andchange)

Messages: key ideas to convey to move


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Setting Objectives

Why set objectives?:

-- Planning and decision making

-- Communication-- Measurement and evaluation

Sales vs. Communication objectives

-- Problems with sales objectives When sales objectives are appropriate

-- Challenges with communication objectives


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What is Good Objectives?

Good Objectives

Concrete and

Measurable

Specify a well-

defined audience

AttainableSpecify a time

periodEstablish bench-

Mark measures Realistic


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Setting Objectives Using the

Communications Effects Pyramid

Product: Backstage Shampoo

Time period: Six months

Objective 1: Create awareness among 90 percentof target audience. Using repetitive advertising innewspapers, magazines, TV and radio programs. Simple

message.

Objective 2: Create interest in the brand among 70percent of target audience. Communicate informationabout 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 the

communications effects pyramid

Objective 3: Create positive feelings about the

brand among 40 percent and preference among

25 percent of the target audience.Create favorableattitudes by conveying information, promotions, sampling, etc.

Objective 4: Obtain trial among 20 percent of the

target audience.Use sampling and cents-off coupons alongwith advertising and promotions

Objective 5: Develop and maintain regular use ofBackstage Shampoo among 5 percent of the

target audience.Use continued reinforcement advertising,fewer coupons and promotions


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Factors Related to Success of

Advertising for New Products

1.Communicating that something is differentabout the product. Successful introductorycommercials communicated some point of difference

for the new product

2.Positioning the brand difference in relationto the product category. Successfulcommercials positioned their brands difference within

a specific product category. For example, a newbreakfast product was positioned as the Crispiestcerealor a new beverage as the smoothest softdrink.


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Factors Related to Success of

Advertising for New Products

3.Communicating that the productdifference is beneficial to consumers.Nearly all of the successful commercials linked a

benefit directly to the new products difference.4.Supporting the idea that something about

the product is different and/or beneficial toconsumers.All the successful commercials

communicated support for the products differenceclaim or its relevance to consumers. Support took theform of demonstrations of performance, informationsupporting a uniqueness claim, endorsements, ortestimonials.


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Several Ways to Increase Sales

(what mktg.comm. can do to help?)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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McDonalds Advertising Response Function

Sales

Advertising


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Relationship of Adv. to Sales & Profits

In consumer goods marketing, increases in marketshare are closely related to increases in themarketing budget.

There are minimum levels below which advertisingexpenditures 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 aconsistent investment is important.

Culture and competition impose saturation limitsabove which no amount or advertising can increase

sales.


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Advertising Budgeting

MethodsObjectives-and-tasks method

Percentage-of-sales method

Competitive parity method

All-you-can-afford

Arbitrary allocation

Quantitative or experimental model


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Historical Method

Task-Objective Method:

Bottom-Up

Percentage-of-Sales

Method

Common budgeting method.May be based on last years witha percentage increase.Nothing to do with advertisingobjectives.

Most common method.Looks at objectives set for eachactivity, and determines the costof accomplishing each objective.

Compares total sales with the totaladvertising (or marketingcommunication) budget during aprevious time period to compute apercentage.

The Advertising Budgeting

Methods


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Competitive Methods

All You Can Afford

Method

Relates the amount invested inadvertising to the products shareof market.

Must understand share-of-mind.

Allocates whatever is left over to

advertising.Companies who use this dontvalue advertising very much.

The Advertising Budgeting

Methods


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Top-10 Beer Brands SOMs and SOVs (1997)

Brand

Total Sales

($ Billions) SOM

Media

Expenditure

($ Millions) SOV1. Budweiser $ 35.6 29.2% $ 98.4 20.4%

2. Bud Light 22.8 18.7 55.7 11.5

3. Miller Lite 16.2 13.3 149.0 30.8

4. Coors Light 13.7 11.2 91.9 19.0

5. Busch 7.9 6.5 2.4 0.5

6. Natural Light 7.1 5.8 0.1 0.0

7. Miller Genuine Draft 5.5 4.5 21.5 4.4

8. Miller High Life 4.7 3.9 61.1 12.69. Busch Light 4.5 3.7 0.0 0.0

10. Milwaukees Best 3.9 3.2 3.1 0.6

TOTAL $ 121.9 100% $483.2 100%


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Review

Learn about major components of theadvertising plan.

Understand the importance of settingobjectives.

Discuss the success factors of introductoryadvertising and the relationship between

advertising and sales.Discuss various budgeting methods used inadvertising.

Advertising Planning and Strategy

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