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The dvertisingPlan

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Advertising Plan

Components

Situation Analysis

Objectives

Budgeting

Strategy

Execution

Evaluation

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Advertising Plan Components

SituationAnalysis

Historical context

Industry analysis

Market analysis

Competitor Analysis

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Product Analysis

Brief history of specific product/brand

Strengths, weaknesses, problems,

opportunities

Past ad budgets, campaigns, successes

and failures

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Competitive/Industry Analysis

Analyze two primary

competitorsFocus on industry

developments and trends

Discusses the most importantaspects of an industry

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Competitive/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?

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MarketAnalysis

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.

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Objectives

What do we want to accomplish andhow should we accomplish it?

Marketing Objectiveshow much sales

or market share should be increased.

Advertising or CommunicationObjectiveswhat should be said or

communicated in the ad (awareness of

new product or feature, etc.)

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To create or maintain brand

awareness.

To change consumer beliefs or

attitudes. To influence purchase intent.

To stimulate trial use.

To convert one-time users intorepeat purchasers.

To encourage brand switching.

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StrategyBrand name recognition?

Repetition and frequency

Rhyming games

Trial Use Stimulation?

Introductory offers

Product guarantees

Brand Switching?

Value Propositions

Product comparisons


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What is the

strategy in this ad?

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Strategy & the Creative Mix

Enhanced Kim-

Lord grid

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Budgeting

Methods


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BASICPrinciples of MarginalAnalysis

IncreaseSpending . . . IF:The increased cost is less than the incremental

(marginal) return.

DecreaseSpending . . . IF:The increased cost is more than the incremental

(marginal) return.

Hold Spending Level. . . IF:The increased cost is equal to the incremental

(marginal) return.

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Problems with Marginal

Analysis

Assumption that sales are a direct

measure of advertising and promotional

efforts.

Assumption that sales are determined

solely by advertising and promotion.

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The Promotion Budget Is Set to Stay Within theSpending Limit

Top Management Sets the Spending Limit

Top-Down Budgeting

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Affordable

Method

Competitive

Parity

Percentage

of Sales

Top-Down Budgeting Methods

Top

Management

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Total Budget Is Approved by

Top Management

Cost of Activities are Budgeted

Activities to Achieve Objectives

Are Planned

Promotional Objectives Are Set

Cost of Activities are Budgeted

Activities to Achieve Objectives

Are Planned

Promotional Objectives Are Set

Bottom-Up Budgeting

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Execution

Copy strategy

Media plan

Integrated brand promotion

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Evaluation

Evaluate whether weve achieved the

objectives we set for the advertising

Pretestsevaluate ads before the ad

campaign starts (or is exposed to the

public through the media)

Posttestsevaluate ads during or after

the ad campaign starts

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Ch 5 ASP

Documents