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INTRODUCTION
This is a very large chapter with a lot oI important inIormation. Advertising planning takes a lot oI work, but the extra eIIort
is worth it. Working on your advertising plan today will pay oII with more customers walking through the door tomorrow.
This chapter is oriented toward media advertising, but it applies equally to other marketing materials like brochures or direct
mail. For more speciIic inIormation on these, please also read the EIIective Brochure Design and Direct Mail Advertising
chapters.

Why You Need a Marketing Plan First
An eIIective advertising plan is only one part oI your overall marketing plan. EIIective advertising and promotional materials
are born Irom your strong marketing plan. You want everything integrated and working together. The better your marketing
plan is, the more eIIective your advertising plan will be.
1. Marketing is probably your company`s only source oI income, and as such your marketing plan is probably the most
important document you have.
2. Your marketing plan accurately describes your market, your customers, your products and services, and your competition.
3. Your marketing plan calculates the size or potential oI your market.
4. Your marketing plan will help you to eIIiciently allocate money and resources.
5. Your marketing plan provides Iocus, guidance, and direction Ior eIIective advertising and business practices.
6. Your marketing plan positions your company in the marketplace.
7. Your marketing plan will help with proper customer management and retention.
8. Your marketing plan will deIine your communications strategy. It will help your entire company give a planned, clear,
comprehensive, and consistent message to your customers, employees, investors, and business partners.
A strong marketing plan guides your advertising plan. You don`t want to back into an overall marketing strategy based on
your advertising plan.
This doesn`t mean you need a Iorty-page document about your marketing. But you absolutely need a clear, realistic picture oI
your business environment and oI your customers. II you want great advertising, start with a solid marketing plan.
Please note: These pages do not try to undertake a comprehensive review oI the entire marketing process. Our Iocus here is
on eIIective advertising. As such, we recommend that you separately review the components oI marketing and business
planning.
OI course ProIessional Advertising marketing consultants are well versed in marketing and business planning, and we are
available to assist you with all oI your planning needs.

Why You Need an Advertising Plan
Going astray in advertising is all too easy. The most creative advertising in the world is worthless iI it misses the target
audience. The best oIIer in the world is worthless iI it does not oIIer the beneIits your clients want.
Even well planned and executed advertising has little value iI you don`t keep it in Iront oI your customers. In today`s world
oI inIormation, it takes at least three exposures just to get your message through the Iirst time. And then you Iace a huge rate
oI IorgetIulness Irom your clients.
Think about it. EIIective advertising comes Irom good planning, good budgeting, a long-term commitment, and a lot oI work.
You need great ads that get results. And you need to keep them in Iront oI your customers Ior the long term.
1. EIIective advertising lowers your cost oI doing business. Your phone rings, and clients walk in the door. It`s a Iact.
2. Minimal, limited duration, or random advertising equals wasted money.
3. Advertising is not creative or Iunny iI it does not bring in clients.
4. Advertising has a cumulative eIIect, and is a long-term investment. Sales response builds over time iI advertising is
consistent.
5. With consumer goods and services, marketing and advertising aIIects your market share more than price does.
6. EIIective advertising comes Irom solid planning and high quality production.
7. Synergy is a real thing in advertising. It comes Irom the cumulative eIIect oI all oI your marketing materials working
together.
8. There are limits to what advertising can accomplish, even with an unlimited budget. Advertising cannot make up Ior poor
quality, service, or timing.
9. Every company should go through the advertising planning process.



Create an Effective Advertising Plan
Product, Price, Place, & Promotion
Your marketing plan has positioned your company in terms oI product, price, and place. You have made decisions about
what market segment you will compete in. You have considered products and services, distribution, pricing, guarantees,
quality, policies, etc. You have set objectives and goals.
Now it`s time to decide how you will promote your company to achieve those objectives and goals.

Define Your Customers.
The number one reason advertising Iails is because it is poorly targeted. No advertising is going to be successIul iI its target
audience is not well deIined and understood. Talk to your customers and potential prospects. Listen to them. Understand
them.
We have provided you with some excellent strategies Ior deIining your customers. Please read the Market Targeting Strategy
and the Generating Better QualiIied Prospects chapters. These two chapters will give you insight into deIining your
customers, and knowing what they need, want, and desire.
There are a Iew things to note here about your customers. First, your target group does not include the whole world. II you try
to advertise to the whole world, you will go out oI business.
Second, in many companies, 20 oI the customers account Ior 80 oI sales, and oIten 100 oI the proIits. These are the
high usage customers that you want to target. DeIine who they are.
Third, one out oI ten people strongly inIluence the other nine. They are the movers and shakers oI the world. They participate
heavily in community and business activities. They interact with several diIIerent large groups on a regular basis. They can
and they will inIluence your success. DeIine who they are, because you also want to get your message to them.
Make no mistake your advertising plan needs a clear, concise, written deIinition oI who your customers are. Age, sex,
marital status, economic status, geographic location, what they read, think, trust, value, desire, and any and all other relevant
inIormation should be included in your deIinition.

Define What Makes You Unique
In your marketing plan, you described the market you compete in. You probably narrowed a larger market down into an area
that you specialize in. You have chosen an area oI specialization, and that makes you special.
With your advertising, you want to clearly and concisely tell people about what makes you special and diIIerent Irom your
competition. In your advertising plan, you want to describe your area oI specialization in one unique message.
Look, iI you really want to be successIul with marketing and advertising, you need a simple, unique, easy to understand
message. In advertising it`s called a Unique Selling Position (USP). It`s what diIIerentiates you Irom all oI your competitors,
and it makes you special.
Don`t skip over this, because it`s too important. Let`s take a closer look at deIining your unique selling position (USP). Here
are some questions |and some reading| Ior you to consider.
Unique Selling Position Example:
Dominos pizza 'Free Delivery
That`s it. Dominos diIIerentiated themselves by oIIering Iree delivery, and they repeated that one message over and over and
over. The message is clear, concise, and easy to understand. The beneIit is selI-evident and real.
Your message needs to be just as clear, concise, and easy to understand. The beneIit you oIIer needs to be just as desirable.
Make a list oI the beneIits you oIIer that make you unique in comparison to your competitors. Now:
What beneIit is most important to your customers? |Ask them|.
What beneIit is hard Ior your competitors to copy?
What beneIit can be clearly communicated to your customers? Is it easy to understand? Is the beneIit really desirable to the
customer?
Remember you can compete on price, quality, geographic location, services or products, knowledge, implementation,
Iollow up, targeting, doing something better than the next guy, and many other ways.
The key to success with your advertising is to pick the strongest one beneIit that makes you special. Unless you have a very
big advertising budget, you will only be able to communicate one message to your customers. Make sure it is the strongest
one you can.
Picking your unique selling position is about competitive positioning. The better you have deIined and analyzed your
competition in your marketing plan, the better you will be able to uniquely position yourselI in the market with your
advertising.

We have provided you with many strategies Ior diIIerentiating yourselI in the marketplace. Please read Competitor Analysis
From Your Customers Perspective, Pricing Strategy in Advertising, and Advertising Image, Credibility, and Trust Ior more
inIormation.
For your advertising plan, you want a short, one-line description oI what makes you special. Until you Iind your unique
selling position, your advertising will not be eIIective.

Set Advertising Goals and Objectives
Your marketing plan outlined some broad sales goals Ior your company. You know the total market size, the strength oI your
competitors, and the amount oI business that may be available Ior you to take. In your advertising plan, it`s time to deIine
how you are going to get there.
Your advertising plan will be modiIied according to your choice oI media. Direct mail is diIIerent Irom newspaper
advertising. How many times you send a brochure will diIIer Irom how many times someone reads your ad in the yellow
pages.
For the purpose oI this discussion, let`s look at how advertising in the newspaper works. But even iI you don`t use the
newspaper, the basic Iundamentals oI advertising planning described below apply to you.
Sometimes businesses set goals in advertising that are too vague. You want to list speciIic things that you want your
advertising to accomplish. To give you a better idea oI speciIic goals that you may choose, please read What Your Print
Advertising Can Do and write down your goals. Remember, ads are supposed to do more than just bring you customers -they
are supposed to bring you more proIitable customers.

Goal setting Part Two
Your number one goal is probably to reach a certain level oI dollar sales. Let`s take a look at how you plan to achieve your
sales goal. And stick with us here it`s time to do some math.
Step One
You start by dividing your desired sales by the value oI each customer. This will give you the number oI customers your ads
need to bring you over a given time period to achieve your desired sales.
|Desired Sales / Value per customer # oI customers required|.
Let`s work on the assumption that Iive exposures to your advertising will be enough to generate an understanding oI your
message Ior the target audience. |II you have been running your ads consistently, it would only take two or three exposures|.
Step Two
OK. You know how many customers you need. You believe that each customer needs to see your ad Iive times beIore they
seriously consider your current oIIer.
Now you are trying to Iigure out how much space you must buy in how many diIIerent newspapers in order to get that
number oI customers and that number oI exposures. |You will want to read Budgeting For Your Advertising Campaign Ior
additional help on this|.
II you have careIully positioned your company with a unique selling position |USP|, and you are making a competitive oIIer,
then you can assume a certain rate oI response Irom your target audience.
II your oIIer is at least equal to the competitions, then your market share should be close to the share oI total market
advertising that you run. In other words, iI you run 10 oI the total advertising in the market, then over time you should get
10 oI the total business, everything else being equal.
OI course the better you position yourselI, the better you target your customers, and the better your advertising strategy, the
better you will do. Alternatively, poor strategy and low quality advertising will get you bad results.
But ultimately, only experience will really tell you what you are going to get. II you are just starting out, you are going to
have to guess at your customer response rate. And don`t be overly optimistic. Budget Ior the long haul. Read Newspaper
Advertising Ior more on this.
The good news is that by measuring your response rate over time, you will be able to calculate the eIIectiveness oI any given
advertising campaign. And, you will be able to accurately predict how many customers will walk in the door on a regular
basis. Read Testing and Tracking Ads Ior more.
So let`s say that you expect a .01 response rate |1 percent|. For every one hundred people in your target audience that is
exposed to your ad Iive times over a given time period, you will get one customer. Now you know how many exposures you
need to achieve among your target audience.
|II you want 50 customers, you need 50 x 100 5000 target customers x 5 exposures each 25,000 exposures|.




Step Three
Now you look at the demographic proIile that your newspaper is promising you. II your newspaper promises you 5,000
people in your speciIic target audience, then you can expect to get 50 customers when 5,000 x .01 percent oI them have seen
your ad Iive times each.
II your newspaper can`t deliver that big oI an audience, then you can`t expect that big oI a response. To get your 50
customers, you know you will have to do additional advertising elsewhere.
But even iI your newspaper can deliver, how much space do you have to buy?
Well, iI you took out a Iull-page ad Iive days in a row, you would get your 50 customers. Alternatively, iI you ran a classiIied
ad once per month, you would probably never get your 50 customers.
Here is a rough estimate oI what happens in the real world when people read the newspaper. With a Iull-page ad, you would
get 75 oI the people to notice it. A halI page would get you 50 oI the people. A quarter page ad would get you 30 oI the
people. An eighth page ad would get you 15. A sixteenth would get you 8 or so.
Thus, your 1/8 page ad would be seen by 15 oI the 5,000 people in your target audience each time it runs. II you need
25,000 exposures to get your 50 customers, then you need to run your 1/8 page ad .15 x 5000 x 33 times 25,000 exposures.
You need to run your ad 33 times to get the required exposure.
Now we have some good inIormation. You know that you have to pay to produce and run your ad 33 times to get 50
customers. So, what is the liIetime value per customer versus the cost oI getting that customer? You can now answer that
question, and determine iI you should invest in newspaper advertising.
One more note here. This was a simpliIied example. Your ad may get a huge response immediately, depending on how good
it is. And sales build over time as you keep your ads running. II you are a consistent advertiser, your customers will look Ior
your ads. You may only need to run it a Iew times to get all 5,000 people to understand your oIIer. That is the value oI
consistent advertising.
The best we can do up Iront is to estimate what is going to happen, and make sure we are being realistic about what our ads
can do. Advertising planning is about making the best decisions based on what we know, and what we can estimate.
For more inIormation on how best to use media, please read Using Media More EIIectively.

Set a Sustainable Budget for Your Advertising
As we always say, consistent advertising is the key to success. Budgeting Ior consistent advertising thereIore is critical.
Please read Budgeting For Your Advertising Campaign Ior more.
Here are some additional ideas to consider when setting your budgeting plan.
1. Small businesses commonly spend 1 3 oI sales on their advertising. For many companies, like jewelry stores, theaters,
and Iurniture or appliance stores, the normal expenditure is 4 7.
2. It is more eIIective to reinIorce a strong selling season with more advertising than to strengthen a weak selling season.
Only reduce your advertising during peak seasons iI you can`t handle the volume oI business coming in.
3. Your advertisement must be large enough to contain all oI the inIormation consumers need to make a contact decision.
You must budget to buy a big enough space.
And oI course you want to run the ad as regularly as you can. In the newspaper, this means every week. You can skip
every Iourth week iI you really need to, and you can skip every other week oII-season |although we don`t normally
recommend it|. But an ad that does not contain enough inIormation, or that does not appear on a regular basis, will Iail.
4. Many things will aIIect your advertising budget. II your store is in a poor location, you are going to have to outspend your
better-located competition to bring people in. |OIten it`s better to pay Ior a superior location|.
II you are a new business, you must outspend the competition. A rough Iormula is to spend 20 - 50 more than your
desired market share as a percentage oI total advertising in the market. |II you want 20 oI the market, then you buy 30
oI the total advertising in the market until you get your 20 market share|.
II you are an existing company with a good reputation, you can do less advertising, or you can Iocus more oI your
advertising on your repeat customers. But you must always watch what the competition is doing, and respond. II someone
is outspending you, they will eventually take your market share.
5. Any money you spend on advertising outside oI your trade area is a complete waste. Ask your customers where they live,
and draw a circle around your location on a map. Only advertise within that circle, unless you can`t avoid it, or there are
special circumstances.
6. Your advertising budget should align with your sales. II you made a chart oI your advertising budget expenditures over
time, it should Iollow your sales almost exactly. II there are peaks and valleys in your advertising, while your sales remain
constant, then you need to smooth out your advertising to better match your sales.
7. BeIore you decide to increase your advertising budget because oI weak sales, make sure that advertising is your problem.
Weak sales are not necessarily a reIlection oI poor or under-Iunded advertising. |This is an advertising Iirm telling you
this|.
BeIore you increase your advertising, do a competitive review to make sure you are properly positioned and competitive.
Also talk to your customers to see what is going on. Advertising can`t make up Ior poor service or quality.

8. Keep some Ilexibility in your advertising budget Ior emergencies and opportunities. Keep a contingency Iund available
Ior special circumstances, special deals, competitor actions, etc.
9. II you want to reallocate your advertising budget, test your ideas slowly. Try smaller changes, and watch Ior results. The
key to eIIective advertising is to test not only your message, media, and oIIer - but also your advertising schedule.

Choose Your Media
For this example oI advertising planning, we are discussing using the newspaper Ior your advertising. So, which newspaper is
best, and why?
Part oI the answer to that question will be Iound in Using Media More EIIectively. That chapter will help you in selecting
and using any oI the diIIerent Iorms oI media, including newspapers. You will also want to read Newspaper Advertising iI
you are running a newspaper campaign.
For this advertising planning example, consider the Iollowing points beIore you select what newspaper to use:
1. What are the demographics the paper is oIIering? The publisher will send you a complete description oI their market.
How well is your speciIic target group represented? How well is your trade area covered? Compare diIIerent local
newspapers against each other Ior better coverage oI your market.
2. Depending on your target market size, don`t overlook the small community newspapers and newsletters. A community
paper may cover your trade area much better than a larger regional paper. Local papers are inexpensive to advertise in,
and they are well read. Communities like their own little newspapers, and people read them to get the local scoop.
And don`t Iorget that the regional paper can sell you advertising that only appears in your local market. It costs a little
more per person reached, but you are reaching the right people.
3. How much will it cost? You measure media cost by dividing the cost oI the media by the total number oI viewings or
impressions you get |how many people in your target market that see your ad|. It is common to talk about your cost per
thousand impressions, or your CPM.
|Cost / # oI target market viewings X 1000 CPM|.
In the simplest example, iI two newspapers are charging the same amount Ior an ad space, and one paper delivers twice as
many people in your target audience, then your cost per thousand is halI what it is in the other paper.
Don`t assume that one paper is better than another. Talk to your customers, and ask them what they read and why. Ask
them iI they read each newspaper by name, and how oIten they read it. Ask iI they are subscribers, and ask how many
other people in the house |and in your target audience| read the paper.
Make each newspaper send you their demographic inIormation |in writing not verbally Irom the salesperson|. Tell them
exactly who your target audience is, and ask how they speciIically target that audience. Each newspaper has special
sections, issues, and coverage that are designed to appeal to speciIic target audiences. What do they have Ior your target
audience?
Remember, the most important thing is whether or not the paper is being read by your target group. A large, regional
paper may have a huge subscriber base oI people that only lightly read the paper |except on Sunday when they read it
thoroughly|. A local, weekly paper Iocusing on your speciIic neighborhood may get read cover to cover, every time. Ask
your customers.
4. You normally want to advertise in the same newspaper as your competition is advertising in. That is probably where most
oI your clients are looking Ior inIormation.
Sometimes this goes against some oI the other strategies Ior picking the best paper to run your ad in. II you can, run ads in
diIIerent papers Ior six to eight weeks with diIIerent coupons, and see which works better. The longer test you run, the
better. Testing is the key to eIIective advertising.
5. It is a good strategy to spend your advertising budget where your current customers are coming Irom. Certainly you can
try new outlets Ior getting new customers, but it is normally more expensive to get new customers Irom new media than it
is to get new customers Irom your regular media. As always, go slow, and test.
6. There is also advertising theory to consider when you decide on what newspaper to choose. The recency theory oI
advertising states that you want to reach as many people as you can as close to the time that they are going to make a
purchase as possible.
This means that you want them to receive your advertisement in the Saturday morning newspaper Ior their Saturday
aIternoon shopping. To best take advantage oI this timing, you may have to change what newspaper you are advertising
in. As always, testing is the way to Iind out.

Timing & Scheduling
Your goal as an advertiser is to hit the right prospect with the right advertising message at the right time. To do this, you need
an advertising schedule.
We discussed recency theory in advertising. You want your clients to see your message as close as possible to the time that
they are ready to make a purchase. The key to success is to know when your customers are ready to buy, and to get your
message to them at that time.

The very best way to predict Iuture consumer behavior is to keep good records oI your previous sales. II you know that
during the month oI May you did 20 oI your annual sales, then you can saIely predict that you will do it again next May. II
you know that you did one-third oI your weekly sales on Friday, then you can saIely predict that you will do it again.
Your advertising budget and your advertising scheduling should reIlect these predictions. II you predict that you are going to
do 20 oI your sales in May, then you should schedule to spend 20 oI your advertising budget in May. II you want to
increase your May sales, then you should increase your advertising accordingly.
Here are some tips on scheduling your advertising:
1. You want to schedule and budget your advertising on a weekly basis. Also track your expenditures, and track the resulting
sales. This will give you excellent control, and you will be ready to go when you plan your advertising next year. There is
a great and simple tool to do this. Please see The Advertising Calendar Ior more.
2. You want to pay attention to things that aIIect your sales, and schedule your advertising accordingly. For example:
A. What day is payday Ior local, large employers? Alternatively, iI everyone is broke on the Iirst oI the month, you may
want to cut back on your advertising. Measure your sales accurately, and Iind out.
B. What promotions will your suppliers be having during the year? You want to take Iull advantage oI any national
advertising they will be doing by running your ads at the same time. Ask your suppliers.
C. What annual promotions do your competitors do? II they are bigger than you, you may gain additional sales by
riding on their coat tails. II you are really good, you might beat them badly with a better oIIer while they are running
their 'biggest sale oI the year.
D. What days oI the week do you get the most traIIic? Remember, it`s easier to increase traIIic on heavy days than on
slow days.
E. What related merchandise will be getting increased promotion in your area? Can you associate yourselI with other
big merchandising events? Pizza companies have done well to run promotions during Iootball season. What can you
tie into?
F. What special dates and events should you try to promote? Which should you try and avoid? Track your sales to Iind
out what days seem stronger, and schedule your advertising accordingly. For example, you may not want to compete
against the county Iair, or a super big annual sale Irom other local retailers, even iI they are not your direct
competition.
3. Work with your media representative so that you understand the required lead time Ior placing ads. Don`t Iorget to give
your ad designers as much time as possible to get the best quality work.
4. Monitor your competition, and any national advertising, to understand what lead-time they give beIore the start oI the
season. Certainly Christmas starts earlier every year. What is happening in your business? You want to schedule
accordingly.
5. This also applies to new product rollouts. You can build expectation among your prospects iI you advertise new items
ahead oI time. Normally your advertising increases as the release date gets closer. What works Ior other stores? What
does your supplier recommend? Will they put their money behind their recommendation?
6. Don`t Iorget that consistent advertising is eIIective advertising. For a new advertiser, it may take Iive or more impressions
Ior a person to even notice your oIIer. For a consistent advertiser, your clients may respond immediately to a new oIIer.
7. The number oI impressions you are going to have to make with your target audience depends on the complexity oI your
oIIer. II your oIIer is hard to understand, you are going to have to run your ad with more Irequency, or longer, than iI the
oIIer is simple.
8. Don`t Iorget that you want to run your ad on the same days, and in the same place, as your competitors do. II people
expect to Iind your type oI business in the metro section oI the Thursday evening newspaper, then that is where you have
to be. II you run your ad on Wednesday, or iI you run it in the sports section, they probably won`t even see it.
9. Don`t Iorget that ads wear out. A strong ad may run once a week Ior a very long time in the newspaper, but you should be
testing other oIIers and other ads to see iI you can do better. As a general rule, when the majority oI your target audience
has seen your ad twenty times, it time to change your ad.

Don`t Reinvent the Wheel
BeIore you Iinalize any advertising plan, go and read Things Not To Do In Business Advertising, and evaluate your plan
according to our recommendations there. You don`t want to reinvent the wheel.
Also, we strongly recommend that you ask a marketing proIessional to review your ads and your advertising strategy. It
really is a very good investment. Your advertising is too important to take chances with.

Evaluation and Follow Through
You must plan how you are going to track the response to your ads. Read Testing and Tracking Ads Ior more inIormation.
This is pretty simple you only get what you measure. You will never know how good, or how bad, your ads or your
marketing materials are unless you test them. You need to measure your results, or all oI your planning will be wasted.
EIIective advertising comes Irom always trying to beat your previous best ad.


SEGMENTATION, TARGETING, AND POSITIONING
Segmentation, targeting, and positioning together comprise a three stage process. We Iirst (1) determine which kinds oI
customers exist, then (2) select which ones we are best oII trying to serve and, Iinally, (3) implement our segmentation by
optimizing our products/services Ior that segment and communicating that we have made the choice to distinguish ourselves
that way.
Segmentation is the process oI grouping
people or organizations within a market
according to similar needs, characteristics, or
behaviors
Dividing the market into groups
O an entire market rarely has the same tastes
and preIerences
O it is diIIicult to handle all preIerences too
O Mercedes Benz, Ior example (only high-
end)
Segmentation involves Iinding out what
kinds oI consumers with diIIerent needs
exist. In the auto market, Ior example, some
consumers demand speed and perIormance,
while others are much more concerned about
roominess and saIety. In general, it holds true that 'You can`t be all things to all people, and experience has demonstrated
that Iirms that specialize in meeting the needs oI one group oI consumers over another tend to be more proIitable.
Generically, there are three approaches to marketing. In the undiIIerentiated strategy, all consumers are treated as the same,
with Iirms not making any speciIic eIIorts to satisIy particular groups. This may work when the product is a standard one
where one competitor really can`t oIIer much that another one can`t. Usually, this is the case only Ior commodities. In the
concentrated strategy, one Iirm chooses to Iocus on one oI several segments that exist while leaving other segments to
competitors. For example, Southwest Airlines Iocuses on price sensitive consumers who will Iorego meals and assigned
seating Ior low prices. In contrast, most airlines Iollow the diIIerentiated strategy: They oIIer high priced tickets to those
who are inIlexible in that they cannot tell in advance when they need to Ily and Iind it impractical to stay over a Saturday.
These travelersusually business travelerspay high Iares but can only Iill the planes up partially. The same airlines then
sell some oI the remaining seats to more price sensitive customers who can buy two weeks in advance and stay over.
Note that segmentation calls Ior some tough choices. There may be a large number oI variables that can be used to
diIIerentiate consumers oI a given product category; yet, in practice, it becomes impossibly cumbersome to work with more
than a Iew at a time. Thus, we need to determine which variables will be most useIul in distinguishing diIIerent groups oI
consumers. We might thus decide, Ior example, that the variables that are most relevant in separating diIIerent kinds oI soIt
drink consumers are (1) preIerence Ior taste vs. low calories, (2) preIerence Ior Cola vs. non-cola taste, (3) price sensitivity
willingness to pay Ior brand names; and (4) heavy vs. light consumers. We now put these variables together to arrive at
various combinations.
Several diIIerent kinds oI variables can be used Ior segmentation.
O Demographic variables essentially reIer to personal statistics such as income, gender, education, location (rural vs. urban,
East vs. West), ethnicity, and Iamily size. Campbell`s soup, Ior instance, has Iound that Western U.S. consumers on the
average preIer spicier soupsthus, you get a diIIerent product in the same cans at the East and West coasts. Facing Ilat
sales oI guns in the traditional male dominated market, a manuIacturer came out with the Lady Remmington, a more
compact, handier gun more attractive to women. Taking this a step Iarther, it is also possible to segment on liIestyle and
values.
O Some consumers want to be seen as similar to others, while a diIIerent segment wants to stand apart Irom the crowd.
O Another basis Ior segmentation is behavior. Some consumers are 'brand loyali.e., they tend to stick with their
preIerred brands even when a competing one is on sale. Some consumers are 'heavy users while others are 'light users.
For example, research conducted by the wine industry shows that some 80 oI the product is consumed by 20 oI the
consumerspresumably a rather intoxicated group.
O One can also segment on beneIits sought, essentially bypassing demographic explanatory variables. Some consumers, Ior
example, like scented soap (a segment likely to be attracted to brands such as Irish Spring), while others preIer the 'clean
Ieeling oI unscented soap (the 'Ivory segment). Some consumers use toothpaste primarily to promote oral health, while
another segment is more interested in breath Ireshening.

Targeting is the actual selection oI the segment you want to serve the target market is the group oI people or organizations
whose needs a product is speciIically designed to satisIy
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again.

In the next step, we decide to one or more segments. Our choice should generally depend on several Iactors. First, how well
are existing segments served by other manuIacturers? It will be more diIIicult to appeal to a segment that is already well
served than to one whose needs are not currently being served well. Secondly, how large is the segment, and how can we
expect it to grow? (Note that a downside to a large, rapidly growing segment is that it tends to attract competition). Thirdly,
do we have strengths as a company that will help us appeal particularly to one group oI consumers? Firms may already have
an established reputation. While McDonald`s has a great reputation Ior Iast, consistent quality, Iamily Iriendly Iood, it would
be diIIicult to convince consumers that McDonald`s now oIIers gourmet Iood. Thus, McD`s would probably be better oII
targeting Iamilies in search oI consistent quality Iood in nice, clean restaurants.

Positioning is the use oI marketing to enable
people to Iorm a mental image oI your product in
their minds (relative to other products)
Positioning involves implementing our targeting.
For example, Apple Computer has chosen to
position itselI as a maker oI user-Iriendly
computers. Thus, Apple has done a lot through its
advertising to promote itselI, through its
unintimidating icons, as a computer Ior 'non-
geeks. The Visual C soItware programming
language, in contrast, is aimed a 'techies.
Michael Treacy and Fred Wiersema suggested in
their 1993 book The Discipline oI Market Leaders
that most successIul Iirms Iall into one oI three
categories:
O Operationally excellent Iirms, which maintain a strong competitive advantage by maintaining exceptional eIIiciency, thus
enabling the Iirm to provide reliable service to the customer at a signiIicantly lower cost than those oI less well organized
and well run competitors. The emphasis here is mostly on low cost, subject to reliable perIormance, and less value is put
on customizing the oIIering Ior the speciIic customer. Wal-Mart is an example oI this discipline. Elaborate logistical
designs allow goods to be moved at the lowest cost, with extensive systems predicting when speciIic quantities oI supplies
will be needed.
O Customer intimate Iirms, which excel in serving the speciIic needs oI the individual customer well. There is less emphasis
on eIIiciency, which is sacriIiced Ior providing more precisely what is wanted by the customer. Reliability is also stressed.
Nordstrom`s and IBM are examples oI this discipline.
O Technologically excellent Iirms, which produce the most advanced products currently available with the latest technology,
constantly maintaining leadership in innovation. These Iirms, because they work with costly technology that needs
constant reIinement, cannot be as eIIicient as the operationally excellent Iirms and oIten cannot adapt their products as well
to the needs oI the individual customer. Intel is an example oI this discipline.
Treacy and Wiersema suggest that in addition to excelling on one oI the three value dimensions, Iirms must meet acceptable
levels on the other two. Wal-Mart, Ior example, does maintain some level oI customer service. Nordstrom`s and Intel both
must meet some standards oI cost eIIectiveness. The emphasis, beyond meeting the minimum required level in the two other
dimensions, is on the dimension oI strength.
Repositioning involves an attempt to change consumer perceptions oI a brand, usually because the existing position that the
brand holds has become less attractive. Sears, Ior example, attempted to reposition itselI Irom a place that oIIered great sales
but unattractive prices the rest oI the time to a store that consistently oIIered 'everyday low prices. Repositioning in
practice is very diIIicult to accomplish. A great deal oI money is oIten needed Ior advertising and other promotional eIIorts,
and in many cases, the repositioning Iails.
To eIIectively attempt repositioning, it is important to understand how one`s brand and those oI competitors are perceived.
One approach to identiIying consumer product perceptions is multidimensional scaling. Here, we identiIy how products are
perceived on two or more 'dimensions, allowing us to plot brands against each other. It may then be possible to attempt to
'move one`s brand in a more desirable direction by selectively promoting certain points. There are two main approaches to
multi-dimensional scaling. In the a priori approach, market researchers identiIy dimensions oI interest and then ask
consumers about their perceptions on each dimension Ior each brand. This is useIul when (1) the market researcher knows
which dimensions are oI interest and (2) the customer`s perception on each dimension is relatively clear (as opposed to being
'made up on the spot to be able to give the researcher a desired answer). In the similarity rating approach, respondents are
not asked about their perceptions oI brands on any speciIic dimensions. Instead, subjects are asked to rate the extent oI
similarity oI diIIerent pairs oI products (e.g., How similar, on a scale oI 1-7, is Snicker`s to Kitkat, and how similar is
Toblerone to Three Musketeers?) Using a computer algorithms, the computer then identiIies positions oI each brand on a
map oI a given number oI dimensions. The computer does not reveal what each dimension meansthat must be leIt to
human interpretation based on what the variations in each dimension appears to reveal. This second method is more useIul
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and then insert it again.

when no speciIic product dimensions have been identiIied as being oI particular interest or when it is not clear what the
variables oI diIIerence are Ior the product category.

PERCEPTION
Background. Our perception is an approximation oI reality. Our brain attempts to make sense out oI the stimuli to which
we are exposed. This works well, Ior example, when we 'see a Iriend three hundred Ieet away at his or her correct height;
however, our perception is sometimes 'oIIIor example, certain shapes oI ice cream containers look like they contain more
than rectangular ones with the same volume.
Factors in Percpetion. Several sequential Iactors inIluence our perception. Exposure involves the extent to which we
encounter a stimulus. For example, we are exposed to numerous commercial messages while driving on the Ireeway: bill
boards, radio advertisements, bumper-stickers on cars, and signs and banners placed at shopping malls that we pass. Most oI
this exposure is randomwe don`t plan to seek it out. However, iI we are shopping Ior a car, we may deliberately seek out
advertisements and 'tune in when dealer advertisements come on the radio.
Exposure is not enough to signiIicantly impact the individualat least not based on a single trial (certain advertisements, or
commercial exposures such as the 'Swoosh logo, are based on extensive repetition rather than much conscious attention).
In order Ior stimuli to be consciously processed, attention is needed. Attention is actually a matter oI degreeour attention
may be quite high when we read directions Ior getting an income tax reIund, but low when commercials come on during a
television program. Note, however, that even when attention is low, it may be instantly escalatedIor example, iI an
advertisement Ior a product in which we are interested comes on.
Interpretation involves making sense out oI the stimulus. For example, when we see a red can, we may categorize it as a
CokeO.
Weber`s Law suggests that consumers` ability to detect changes in stimulus intensity appear to be strongly related to the
intensity oI that stimulus to begin with. That is, iI you hold an object weighing one pound in your hand, you are likely to
notice it when that weight is doubled to two pounds. However, iI you are holding twenty pounds, you are unlikely to detect
the addition oI one pounda change that you easily detected when the initial weight was one pound. You may be able to
eliminate one ounce Irom a ten ounce container, but you cannot as easily get away with reducing a three ounce container to
two (instead, you must accomplish that graduallye.g., 3.0 --~ 2.7 --~ 2.5 --~ 2.3 --~ 2.15 ~ 2.00).
Several Iactors inIluence the extent to which stimuli will be noticed. One obvious issue is relevance. Consumers, when they
have a choice, are also more likely to attend to pleasant stimuli (but when the consumer can`t escape, very unpleasant stimuli
are also likely to get attentionthus, many very irritating advertisements are remarkably eIIective). One oI the most
important Iactors, however, is repetition. Consumers oIten do not give much attention to a stimuliparticularly a low
priority one such as an advertisementat any one time, but iI it is seen over and over again, the cumulative impact will be
greater.
Surprising stimuli are likely to get more attentionsurvival instinct requires us to give more attention to something unknown
that may require action. A greater contrast (diIIerence between the stimulus and its surroundings) as well as greater
prominence (e.g., greater size, center placement) also tend to increase likelihood oI processing.
Subliminal stimuli. Back in the 1960s, it was reported that on selected evenings, movie goers in a theater had been exposed
to isolated Irames with the words 'Drink Coca Cola and 'Eat Popcorn imbedded into the movie. These Irames went by so
Iast that people did not consciously notice them, but it was reported that on nights with Irames present, Coke and popcorn
sales were signiIicantly higher than on days they were leIt oII. This led Congress to ban the use oI subliminal advertising.
First oI all, there is a question as to whether this experiment ever took place or whether this inIormation was simply made up.
Secondly, no one has been able to replicate these Iindings. There is research to show that people will start to giggle with
embarrassment when they are brieIly exposed to 'dirty words in an experimental machine. Here, again, the exposure is so
brieI that the subjects are not aware oI the actual words they saw, but it is evident that something has been recognized by the
embarrassment displayed.

HOW TO PREPARE AN ADVERTISING PLAN
Well, it`s the start oI a new year, and iI you haven`t already done so, it`s time to give some serious thought to your
advertising budget.
Now I`m going to assume you`re not a huge multinational with an unlimited budget, and that you`re going to give the big
institutional advertising channels a miss Ior the time being.
Percentage advertising
Traditionally, business owners have used a percentage oI annual revenue to dictate how much money they can aIIord to
spend on advertising, but there`s no hard and Iast rule about how large that percentage needs to be.
II you haven`t done this beIore, I`d suggest you start with a modest Iigure oI 1-2 oI your company`s annual revenue (or
projected revenue iI you`re a startup).

Then answer the 3 advertising planning questions below to calculate whether your advertising spend is possible within your
budget. II it is, great. II not, you either need to increase the percentage oI revenue you spend or reduce the amount oI
advertising you buy.
Question 1 - Who do you want to advertise to?
As part oI your marketing strategy you will have identiIied a number oI target markets you want to sell to. The Iirst thing you
need to do is decide what portion oI your advertising budget is going to be allocated to each market segment, and why.
For example, a target market you`re already active in may not need to be peppered with advertising. II you`ve done your job
properly, word oI mouth and reIerrals will be responsible Ior most oI your new business in this market.
Conversely, iI you`re about to enter a market that`s new Ior your company, or that has a number oI established competitors, a
large chunk oI your advertising budget is going to be needed to make an impact.
At this point, things can start getting a bit messy, especially iI you`re planning on targeting a large number oI markets, so it`s
a good idea to use a spreadsheet to work things out. Simply create a column Ior each target market you`re interested in, and
allocate a percentage oI your budget to each market.
I usually start with an equal split oI budget percentage Ior each target market and increase or decrease each allocation as I go.
AIter a bit oI tinkering, things will start to look right and you`ll be ready to move on to the next question.
Question 2 - Why do you want to advertise?
There are a number oI reasons you may want to advertise. Some or all oI the Iollowing could be good reasons:
O To introduce a your company to a new market.
O To build your brand.
O To let your market know about new products or services.
O To maintain your market visibility.
Bear in mind, the reasons you want to advertise will be diIIerent Ior each market segment you`re targeting. Pull out that
spreadsheet again, and list each reason below each target market.
Now take a look at your allocated percentages again, and decide whether you`ve allowed a large enough percentage Ior the
objectives you need to achieve.
Question 3 - How do you want to spread your message?
So, you`ve decided who you want to advertise to, and why you need to advertise. And with a little bit oI math, you`ll be able
to see exactly how much money you have Ior each oI your target markets.
Now all you need to do is decide what you want to spend your money on. UnIortunately, this part is diIIicult, and only
research, experience and knowledge oI your industry will help. There are hundreds oI ways to reach people through
advertising, but only a Iew will work Ior you.
You may want to ask your existing customers what publications they read, how they respond to email marketing, or iI they
use the Internet Ior research. You could also take a look at what your competitors are doing to advertise their businesses.
Finally, you could just carry out a small trial campaign and measure the results. That way, iI it doesn`t work, you won`t have
lost much.
In conclusion
Once you`ve answered the questions above, you`ll have the Iramework Ior a useIul advertising plan. It may not look pretty,
but it will be a lot more eIIective than simply sticking an advert in the Yellow Pages and hoping Ior the best.
And the good news is that all this work is excellent ground work Ior next year`s advertising plan.

SETTING ADVERTISING OB1ECTIVES
As we noted in the Promotion Decisions tutorial, marketing promotion, which includes advertising, can be used to address
several broad objectives including: building product awareness, creating interest, providing inIormation, stimulating demand
and reinIorcing the brand. To achieve one or more oI these objectives, advertising is used to send a message containing
inIormation about some element oI the marketer`s oIIerings. For example:
Message About Product Details about the product play a prominent role in advertising Ior new and existing products. In
Iact, a very large percentage oI product-oriented advertising includes some mention oI Ieatures and beneIits oIIered by the
marketer`s product. Advertising can be used to inIorm customers oI changes that take place in existing products. For
instance, iI a beverage company has purchased the brands oI another company resulting in a brand name change, an
advertising message may stress "New Name but Same Great Taste".
Message About Price Companies that regularly engage in price adjustments, such as running short term sales (i.e., price
markdown), can use advertising to let the market know oI price reductions. Alternatively, advertising can be used to
encourage customers to purchase now beIore a scheduled price increase takes place.
Message About Other Promotions Advertising oIten works hand-in-hand with other promotional mix items. For instance,
special sales promotions, such as contests, may be announced within an advertisement. Also, advertising can help salespeople

gain access to new accounts iI the advertising precedes the salesperson`s attempt to gain an appointment with a prospective
buyer. This may be especially eIIective Ior a company entering a new market where advertising may help reduce the
uncertainty a buyer has about a new company.
Message About Distribution Within distribution channels, advertising can help expand channel options Ior a marketer by
making distributors aware oI the marketer`s oIIerings. Also, advertising can be used to let customers know locations where a
product can be purchased.
Process of Setting Advertising Objectives
The advertising objectives must Ilow Irom prior decisions on target market, market positioning, and marketing mix.
InIormative advertising:
It is heavily used in the pioneering stage oI a product category, where the aim is to build primary demand.
Ujala commercial, where the ad talks about how diIIerent it is Irom the age old 'neel by talking about its solution contents
and showing how diIIerent your clothes look when washed with Ujala.
Persuasive advertising:
It is generally used when the product is in the competitive stage, where the company`s objective is to build selective demand
Ior a particular brand.
Whirlpool ice magic positions itselI as being a quick icemaker and was the Iirst one oI its kind to use this as a marketing
platIorm.
Reminder advertising:
It is very important to use these when the product is in the maturity stage. They are intended to remind people to purchase
your brand.
Thums up, Coke, Pepsi ads all these ads no more are shown to create awareness or persuasion because people are already
aware oI their presence and already have chosen the brand oI their choice. These are just reminder ads to keep the brand or
the company Iresh in the minds oI the consumers or have the brand top oI mind.
ReinIorcement advertising:
It seeks to ensure the buyers that they have made the right choice by purchasing your brand.
Hamara Bajaj advertisements make the owner oI the two wheelers oI Bajaj proud oI their possession by giving it a patriotic
positioning.

DEVELOPING ADVERTISING STRATEGIES
Advertising is the most important tool to grow your business. In Iact it not only helps your business to grow. Advertisement
is necessary also Ior the establishment oI a business. A great advertising strategy reIlects a number oI things starting Irom the
company's objective to business consideration, budget to brand development eIIorts and so on.
While making an ad you should remember that consumers buy a product because they need it. So your ad must appeal to the
rational Iaculty oI a consumer. On the other hand the consumers choose one brand though several brands oI the same product
category exist in the market. This is dictated by the emotional selI oI a consumer. The best ad is one which combines both
reason and emotion to drive a sale.
Aim of an Advertisement
An advertisement has three goals mainly. First oI all an advertisement is created to inIorm the consumers about a company
and its products or services. Once the customers have been inIormed the next aim is to attract customers to stimulate sale. A
customer comes to know about you, buy your product or service. Now it is obvious that you want that customer to get back to
you. For achieving this purpose you need to remind them over and again about the value they have got with your product or
service and this is the third aim oI an ad.
Recognizing the Target Audience
BeIore you make an advertisement you should recognize your target audience. Knowing the age group, gender, job, income
and hobby is very important Ior you. The next thing to detect is the consumer's behaviors and their shopping habits (Irom
whom do they buy). Finally you should concentrate on their needs and desires. II you can determine the consumer need
(develop a desire to buy your product) with your products or services halI oI your work is done.
Put Yourself in Your Consumer's Shoe
Once you identiIy your target customers put yourselI in their shoe to understand what they expect Irom you. You should
develop your product concept the way the consumers want to perceive it. Your product is actually a "bundle oI values" as
described by Courtland L. Bovee and William F. Arens. Emphasize on the quality the consumers would like to have in your
product.
Advertising Medium
There are a number oI mediums through which you can transmit your message to the customers. You should identiIy the
medium your target audience is exposed to. It can be newspaper ads, popular magazine ads, radio ads, TV ads, Internet ads,

banner ads, direct mail and so on. Instead oI going Ior a particular medium you can go Ior multiple mediums since no one
concentrate on a single medium these days.
Create Unique Advertising Message
You have crossed all the necessary steps. Now comes the most important part. It is time to create the advertising message that
covers your marketing objectives as well as your product or service value. You should Iocus on the unique Ieatures oI your
products or services. Emphasize the point that will persuade the customers. Your advertising message is a combination oI
content and visual. Use attractive visual and inIormative content to win the trust oI your customers.

ADVERTISING BUDGETING
There are two ways to set a budget Ior your advertising campaign:
You can ask yourselI what you can aIIord to spend,
or,
You can calculate the investment needed Ior your advertising campaign in order to generate the sales required to make your
business successIul.
Let's say that again: Your advertising must generate the sales you need to stay in business. You must budget Ior it. Anything
short oI that is a complete waste.
|Note that Budgeting Ior Your Advertising Campaign, Advertising Planning, and Using Media More EIIectively should be
read together.|

Honesty Is the Only Policy in Business
It`s time Ior some real honesty Ior people new to selI-employment.
Probably all oI your company`s revenues come Irom your marketing. That means that your marketing plan is probably the
most important document you have. Your advertising campaign is just as important as payroll and rent and taxes. Advertising
is not an option. It is not an extra expense that can be cut. II you cut your advertising campaign, your business will die.
The number one reason why businesses Iail is because oI poor management. Normally it`s poor Iinancial planning.
Management Iails to create a budget. Management Iails to do cash Ilow estimates. Management selects a location based on
what they think they can aIIord instead oI what will generate the traIIic they need. Management extends credit to new
customers. Management sinks cash into long-term Iinancial commitments. And management does not set a sustainable
advertising campaign budget.
And yes, this applies to all oI the business school graduates out there. The business Iailure rate among MBA`s is almost as
high as among everybody else. Almost 1 MILLION businesses Iail, go bankrupt, or terminate every year in the United States.
Don't let it happen to you.

Budgeting For Your Advertising Campaign
II there is a golden rule Ior running an advertising campaign, it is that you have to stick to it. Sustained Advertising
Recognition Trust Sales. Your advertising campaign is a long-term investment that takes time to show a return. Your
budget must reIlect this reality. Expect to run your advertising campaign Ior two to Iour months beIore your phone really
starts ringing.
When setting your advertising campaign budget, there are two costs to consider: production costs, and media costs.
Budgeting Ior both is critical Ior success.

Advertising Production Costs
We certainly do not want you wasting money on your advertising campaign. With that in mind, here is a Iact that you should
know:
Companies that cut corners on advertising planning and production are wasting a large percentage oI their budget.
Quality advertising production costs money - all oI it up Iront. But that cost is spread out over time. On an annual basis,
production costs will only be a small Iraction oI your media costs. You don't want to buy expensive media space to run poor
quality ads.
Is high quality advertising production really worth it Ior your advertising campaign?
Let`s say you spend 5 oI gross sales on your advertising campaign. II you expect $400,000 in sales this year, you have an
advertising campaign budget oI $20,000.
II you did everything right with your advertising, in theory you could reach your target market 100 oI the time with the
right message. But no company ever gets it 100 right. The question is, how much will you miss it by?

What iI halI oI your customers never see your ad? Or don`t immediately understand your ad? Or don`t get the inIormation
they need? Or are insulted by it? What iI they think that your advertising campaign is oI a lesser quality than your
competitors? What iI you make the wrong oIIer, or sell the wrong beneIit?
You will have wasted halI oI your advertising campaign budget or $10,000 in the Iirst year alone.
And there is more. What iI you have a great ad, but you pick the wrong media, or use the media poorly? What iI you pay too
much Ior the media you are using? What iI your client never opens your direct mail piece, or doesn`t get the right
motivation? Good planning and design pays Ior itselI many times over.
Here is one more thing to consider: Good planning and production work have a long liIe span. Many companies never change
their basic message and advertising. They start with proIessional marketing and production, and they use it indeIinitely. This
is normally a good strategy, assuming your advertising campaign is working.
Make no mistake: Advertising planning and high quality production are critical to your advertising campaign. ProIessionally
produced materials make you look good, and they bring you customers. That is what ProIessional Advertising is all about.

Setting A Media Budget
Setting a media budget Ior your advertising campaign can be tricky, especially Ior new companies. But as you track and
measure the eIIectiveness oI your advertising over time, you will get a better idea oI how much to budget to generate the
business you need.
Spending too little on your advertising campaign will cost you more than spending too much. You need to stay in Iront oI
your customers. A random or inIrequent advertising campaign schedule equals wasted money.
We can assist you with some industry guidelines, but as a general rule, we recommend that you at least match your direct
competitors spending on advertising as a percentage oI sales.
II you want to grow your business, you will probably want to invest more than your competitors are spending as a percentage
oI sales. |20 more would be a minimum starting point|.
In general, you will get a better response iI you use more than one medium. A larger company will do better to spend money
on some combination oI print, mail, radio, Internet, outdoor, and/or television advertising than to spend the budget all in one
place. For smaller companies, you will do better to spread your advertising campaign budget between print and direct mail to
get the best return Ior your investment.
But there are no hard rules in advertising. Much depends on your products or services, and the relative eIIectiveness oI each
type oI media Ior delivering your speciIic message. Please read Using Media More EIIectively and Advertising Planning Ior
more speciIic ideas on what media to use.
You will also get a better response iI you run smaller, more Irequent ads. Don`t trade Irequency Ior a one-time big bang in
your advertising campaign. Don`t trade Irequency in print Ior a less Irequent television schedule.

Here are some oI the methods companies use to set their advertising campaign budgets.
The Percent of Sales Method: The advertising campaign budget is a constant percentage oI desired sales. A car
manuIacturer may spend less than 1 oI sales, while a small retailer may budget 3 -7 oI sales. A jewelry store may budget
8 -12 oI sales, and other companies may budget 20 or more.
This method works as long as the advertising campaign budget is set as a percentage oI desired sales. II the budget is set to
actual sales, and sales drop, you do not want to cut your advertising campaign budget, or you will get caught in a downward
spiral.
The Task Objective Method: How much money do you need to spend to reach the speciIic goals you have outlined Ior the
advertising campaign? This is especially eIIective when you are starting out, or iI you are trying to grow rapidly. Some
advertising campaign strategies call Ior heavy spending upIront in order to win long-term customers.
The Historical Method: How much did you spend to reach your sales goals in previous years or periods? You will Iind that
by tracking your ads, you will know in advance what you need to do to accomplish your goals.
Share of Market - Share of Voice: This method links market share to advertising expenditure. A company with a 20
market share would spend slightly more than 20 oI the total advertising dollars spent in the market Ior that product or
service. For new companies, expenditures would be 1.5 times the desired market share until that position is attained. |So iI
you want 20 market share, you spend 30 oI total advertising dollars in that market until you get it|.
Competitive Parity: With competitive parity you spend in equal amounts to your competitors as a percentage oI market
share. This is a selI-deIense method oI budgeting marketing and advertising expenditures.
The Combination Method: The best advertising campaign budget you can set will be based on some combination oI all oI
the previous models. You want to maintain a minimum level oI advertising, IulIill speciIic goals, maintain your market share,
keep up with your competitors, and compare everything to last year.



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INTRODUCTION
Creativity is an essential resource to survive in the market and Ior this reason we always look Ior it. Companies entrust their
image to advertising agencies to realize ever more creative, innovative and amazing advertising.
Among advertising agencies, VP Graphic boasts experience and proIessional competence. It is an agency which works,
thanks to its collaborators, with great passion, dynamism and eIIicacy.
Advertising is seduction, art and investment. VP Graphic is based on a simple philosophy: advertising sells (a product, a
brand, an idea) when it has a quality thought expressed through targeted and original communication strategies.
To advertise does not mean to create an instruction manual to use a product, but to communicate innovative and clever ideas
to increase your income.
Advertising must be Iunny, clever, unique and exciting, Ior this reason VP Graphic Design places the most ambitious and
creative minds at your disposal. We want to oIIer to you the best advertising, this is our mission.
Creativity in Advertising Today
A typical creative team might consist oI a writer, an art director, an account planner, and an account manager who work
together to produce ads, commercials, and other marketing communications. The team begins with a strategy that has been
agreed upon by the agency and the client. A strategy is a statement oI the goal oI a campaign, such as communicating a
particular message about the brand to a particular group oI consumers. The strategy, which operates at a general level, can be
expressed in speciIic creative brieIs, or directives to creative teams about the speciIic message they need to communicate and
to whom they are to direct it. It then becomes the work oI the creative team to devise ways oI communicating the message.
The team, or possibly some portion oI it, will begin conceptingin other words, brainstormingabout possible ways to
communicate the message to the intended audience. For some oI the team's best ideas, the art director will draw images or
even storyboards and the writer will produce the headlines and words to accompany them. The account planner will attempt
to keep the team Iocused and on mission by Ieeding in inIormation about how consumers use the brand, what market research
reveals, what the competition's advertising says, and so on. The account manager coordinates and oversees the team's work.
Eventually, when a number oI working ideas have been developed by the creative team, they are presented to the client, who
responds to them. When the client and agency agree upon a proposal Ior consumer communication (that may take the Iorm oI
a print advertisement, a TV commercial, a billboard, a website, etc.), the creative process moves into production. Throughout
the production phase, the creative process continues as new words and images are revised and additional inIormation helps
tweak the Iinal product.
BeIore the creative idea is communicated through appropriately selected media (such as TV, outdoor, digital, etc.), various
other steps may be taken. The communication may be tested, reedited, or otherwise adjusted to the point where both agency
and client believe they have produced the best communication strategy Ior the brand.

VISUALIZATION IS IMPORTANT FOR CREATIVE IDEAS
Today we will let you know about idea visualization Ior making advertisements. Innovative ideas just don`t come
immediately, it requires time to go through all the aspects oI the product and then start visualizing the things. Good ideas can
come any time. It can come when you are working in the oIIice or sitting in a coIIee shop. Idea comes Irom visualizing the
common elements around you. Looking at roads, streets, children playing in the park etc. etc. still there are some basic
approaches which is generally Iollowed while promoting a product or a brand.
The Iour basic approaches to visualization are showing
1. Product alone:
When we show the product alone the entire emphasis is given to the product itselI. Usually the product appears to be
suspended in space with no background, no people and no props or scenery. This approach is commonly used when the
emphasis in the ad is on the product design, style, model colour, beauty, packaging etc. New Product introduction oIten
use this approach to Iocus attention on the Central idea that is the new product. Product selling points are oIten stressed.
Sometimes the Product is shown by itselI to enhance its prestige.
2. Product in a setting:
In this approach, the emphasis is on the product in the realistic situation or setting how it looks in real liIe. Sceneries,
props and other materials are used to add mood and atmosphere. Focus is broadened Irom the product itselI to the product
as it might actually be seen. The product can be shown in such Iamiliar settings as on a kitchen table, in a den with a
roaring Iire, or on a business person`s desk. Mood lighting can be used.
3. Product in Use:
The third alternative is to show people actually using the product. This approach emphasizes beneIits gained Irom using
the product rather than selling points, OIten the setting is simpliIied so as not to detract Irom the Iocus on the product and

its use. People should not be shown Just standing around or gazing at the product, but they should be seen actually using
the product.
In some cases, the use oI the product is implied rather than shown. For example, in a perIume ad showing a woman
elegantly attired and seductively posed, the reader assumes that the man Is wearing (that is using) the product.
4. Product BeneIit:
Closely related to the product in use visualization, this treatment shows the beneIit derived Irom using the product.
Laundry detergents, spot removers, and household cleaners are all naturals Ior this type oI visualization.

PACKAGE DESIGNING
Package designing is useIul Ior Promoting the product Ieatures and beneIits, process oI design and attract the consumers.
Mostly package design contains preservative details, health inIormation and rate oI the product. The purpose oI packaging is
physical protection, Barrier protection, Containment or agglomeration, InIormation transmission, Marketing and Security oI
the product. In today`s modern and competitive retail market world, you only have one chance to make a Iirst impression.
Make that Iirst impression a creative and memorable one, with a custom design that will capture consumers attention Soon.
Because 'Adorable(attractive) packaging design can help to sell a product.Packaging design is one area oI graphic design
more than a logo design. Most oI the retail market companies like Tesco, Wal-Mart and Ikea are working on creative package
designs and Green emissions too.
Role of package design
Package design plays important roles to help sell the product at the point oI purchase.So, once Iunctional activities oI the
package are completed the most important thing is it`s design how to be creative and tell a story that stands out Irom the
crowd.
History of package design
In the 80s & 90s also the designers concerned about Structural design oI packaging,Graphic design Ior packaging, Health,
SaIety and environmental issues, Environmental regulations.Eco labeling systems. They used their designs as a
communication tool. In this post we present some creative package designs.It contains paper packaging, Bottle packaging,
and plastic packaging etc.

IMPACT OF COLORS IN ADS
Human brain receives signals Iaster through eyes rather than ears. Visual appearance is supposed to be more appealing when
compared to any other senses, no matter what the medium oI presentation is. So, there are methods by which one can increase
the visual appeal. Other senses Iacilitate visual appeal, and are also important to concentrate on.
Typical example is color when accompanied with audio, and writing. According to a study, big budget companies spend
billions in the color market research, which helps in product and packaging development. Color, along with content, helps to
pertain the interest oI the visitor and makes him/her surI the website longer. A colorIul article will make the reader read it till
the end. Color makes things look more amiable.
Colors are known to inIluence the behavior oI a person. Like blue color is said to have a relaxing eIIect. Red represents
passion and love. A dating website can have red as the background color. Fast Iood restaurants have bright picture oI Iood
beautiIully decorated pasted on the walls. This tempts the taste buds oI the customer and the customer pounces on the Iood,
eats and leaves quickly. And this is exactly the reaction expected.
Light eIIects can also be used to play with the mind oI the on-looker. Advertisements, especially Ior Iood products, have
strategically placed lights. The light eIIects trigger the hormones in the brain, which increases the hunger. II the same is
placed in a slightly dim light, it won`t be equally tempting.
Countries around the world have diIIerent cultures that relate a color to an occasion or emotion. Climatic conditions also
attribute to this. Like in America, people relate black to death and where as in Asia, white is related to death. People living
near the equator like warm colors and people living nearer to the poles like cold colors.
It`s a must Ior an advertiser to have the knowledge about the colors and what they reIer too. Black stands Ior elegance,
sophistication, seduction and mystery. White stands Ior peace, pure, clean, mild and youthIul. Gold stands Ior prestige,
luxury and elite. Silver stands Ior prestige, scientiIic and cold. Yellow stands Ior warmth, happiness and cheer. Orange stands
Ior warmth, playIulness, and vibrant. Red stands Ior love, excitement, strength, passion, and danger. Pink stands Ior nurture,
sweet, soIt, and security. Green stands Ior nature, Iresh, Iertility and abundance. Blue stands Ior cool, trust, belonging and
reliability. And lastly Purple stands Ior spiritual, royalty, and dignity.
From the advertiser`s point oI view, we can conclude that colors can determine the shopping habits oI customers. Black, blue,
red and orange attract impulsive buyers. Smart shoppers are attracted to pink, light blue and navy blue colors. Companies use
colors in logo, advertisement, etc., to pass the right message to the customer. Wal-Mart advertise has a navy blue background
and its catch line is 'We sell Ior less, which means smart customers are their goal. Mercedes has a silver logo, true to its
class.


BeIore designing an advertisement, the targeted customers should be recognized and the advertisers shouldn`t use the colors
that are their personal Iavorites but according to the ad campaign. Advertisement Ior children should have bright and vibrant
colors. Yellow, red, blue and green, which are the primary colors, are the colors, which attract the children, which is why
parents buy those colors Ior their kids. These colors represent warmth, sweetness, trust, reliability, playIulness and security.
The meanings of colors
There are no "good" or "bad" colors. All colors have positive and negative eIIects depending on context, and evoke responses
tempered by the experience oI those viewing them. Some oI the more common Western cultural responses to colors are
outlined in the table below.
Colors and their common connotations in Western culture
Color Positive Negative
White Clean, innocent, pure Cold, empty, sterile
Red Strong, brave, passionate Dangerous, aggressive, domineering
Yellow Happy, Iriendly, optimistic Cowardly, annoying, brash
Brown Warm, earthy, mature Dirty, sad, cheap
Green Natural, tranquil, relaxing Jealous, inexperienced, greedy
Blue Strong, trustworthy, authoritative Cold, depressing, gloomy
None oI this is clear-cut. Because colors are capable oI so much variation, making absolute statements about meaning is
impossible. However, understanding some important concepts about color will help us appreciate how varying a color, and
combining it with others, can aIIect its impact. Let's take a look.

CREATIVE STRATEGIES IN ADVERTISING
In advertising, diIIerent creative strategies are used in order to obtain consumer attention and provoke shoppers to purchase
or use a speciIic product. Advertisers use diIIerent ways oI thinking to create catchy slogans that capture consumer attention.
Creative strategies promote publicity, public relations, personal selling and sales promotion.
These ways oI thinking are divided into three basic descriptions: Weak strategies, mid-strength strategies and strong
strategies. The strategies labeled "strong, mid-strength, and weak are generic phrases used in the text books reIerenced below
to help students understand the intensity oI each diIIerent type oI advertising strategy. Advertisements, weak, mid-strength,
and strong can be Iound in television, radio, and magazines/print.
Since the beginning oI advertising, strategies have been created, starting with the simplest (weak) strategies in the 1940s.

WRITING FOR DIFFERENT MEDIA
Unlike most other Iorms oI copywriting, where the medium Ior your text is Iixed (on screen Ior the web, printed paper Ior
direct mail and so on), advertising covers a wide range oI media, each requiring diIIerent styles and obeying diIIerent rules.
Writing banner ads Ior internet sites, Ior example, is a very diIIerent matter Irom scripting TV commercials, although in both
cases you still need to abide by the basic rules oI good copywriting described in Chapter 8.
Going into detail about how to approach each type oI medium is beyond the scope oI this book. Scriptwriting, Ior example, is
a major Iield in its own right. II you are going to be doing a lot oI work in this area then I would suggest you buy a specialist
book or take a course on the subject. However, here are some basic pointers to bear in mind regarding the main media used in
advertising, to help you with any occasional brieIs that might come your way.
The types oI media below are listed in rough order oI importance in terms oI their share oI the market. (July 2007 Iigures
Irom the Advertising Association showed press ad spend accounted Ior 43.7 per cent oI total UK advertising expenditure.
Figures Ior other media were: TV, 24.1 per cent; direct mail, 12.2 per cent; internet, 10.6 per cent; outdoor, 5.7 per cent;
radio, 2.8 per cent; and cinema, 1 per cent.)
Bear in mind that the range oI media used in advertising is increasing day by day. When approaching any brieI, don`t just
think about what your message should be, but also what medium it will work best on. Then start working on your copy.
Print
This is by Iar the most Irequently used medium, with Iormats ranging Irom small ads in the classiIied sections oI newspapers
to Iull-page display ads in glossy magazines.
Considerations Ior display ads are:
O Size and shape: will your ad work as well landscape as it does portrait?
O Colour or black and white: mainly a consideration Ior the art director or designer you are working with (iI you are working
in a team), but bear in mind that your copy may have to work harder iI you are not able to use a very strong image.
O Tone and style oI the publications: it goes without saying that your copy will have to Iit with the kind oI magazines or
newspapers it is going into iI it is to have the best impact with the publications` target audiences.

Television
Writing Ior television is the ultimate goal oI any serious advertising copywriter (and, indeed, many other writers, serious or
otherwise). It also demands very special skills, since your script is not only a sales tool but also a creative guide to the
director who will turn your words into images and sounds.
Some considerations are:
O Make sure your work is in a Iormat that a director can work with easily. Scripts need to be set in a single column down the
leIt-hand side oI the page, with dialogue indented and each actor indicated clearly in capital letters centred over their lines.
As a guide, take a look at some oI the scripts on specialist websites such as Simply Scripts (www.simplyscripts.com). You
may also want to buy script Iormatting soItware such as Scriptware (www.scriptware.com).
O An art director is almost indispensable as you will need to story-board your script prior to production.
O Use the action rather than the actors to tell your tale. (For more on this, the art oI exposition`, read Robert McKee`s
book on cinema scriptwriting, Story.)
Radio
Radio is not an easy medium to write Ior, since your words cannot get help Irom visual props and you have very little time to
develop an elaborate message.
Bear in mind the Iollowing:
O Timing is crucial. Try to pack as much impact and inIormation as you can into each ad.
O It is also important that your messages are short and clear. Remember that your copy could be delivered in any number oI
ways and listened to in any number oI environments.
O Think about using sound eIIects to bring the settings oI your ads to liIe. II the commercial is supposed to be set in an oIIice,
Ior example, include oIIice noise in the background.
O Jingles can be used to help deliver a consistent brand message over a number oI ads or even campaigns. II your ad includes
a jingle, make sure you practise it aloud to get it right a copy line on paper will not always sound as good when it is
spoken.
Outdoor
Outdoor` basically means posters, which are broken down into size categories depending on how many sheets oI paper make
them up, Irom six sheets to 96 sheets covering 400 square Ieet (the 48-sheet billboard Iormat, covering 200 square Ieet, is the
one commonly seen on roadsides). Recent years have seen an explosion in Iormats, including giant posters (usually
occupying special sites such as the sides oI buildings) and those with Trivision (the Iormat used by PIizer Consumer
Healthcare in the SudaIed ad example earlier on). A related type oI medium is ambient`, which reIers to advertising in the
environment (but not necessarily on posters) Ior example, ads on the back oI bus tickets. When approaching this kind oI
work, bear in mind:
O The size and location limitations oI the medium you are considering, plus how it is likely to be seen by an audience. You
can pack a lot oI copy into a poster on a train platIorm, Ior example, because people are likely to be standing in Iront oI it
Ior some time. II you are writing copy Ior a roadside billboard, however, your message needs to stand out in the two or
three seconds it may take a motorist to drive by.
O Whether you can use the context oI the poster to drive home your message. An ad such as You wait ages Ior an X and then
three come along at once` might be a bit hackneyed on the side oI a bus but elsewhere you may be able to improve the
eIIectiveness oI your advertising by relating the message to its environment.
O Whether it is possible to use the medium itselI to boost the eIIectiveness oI your copy. I once worked on a campaign (with
the PR agency Band & Brown Communications) where we built a client`s Iree-phone number in giant numerals on a
hillside at the side oI a motorway in the West Country, England; what made the campaign eIIective was not so much that it
was seen by motorists but that it made the news, along with an explanation oI the aims oI the campaign.
Online
The classic Iormat Ior online advertising is the banner ad, that ubiquitous commercial strip which has become a constant in
most website designs. Nowadays there are many other Iormats including towers` (vertical banner ads), buttons` (square
boxes) and ultra-annoying pop-ups, which leap onto your screen and slow your computer down whenever you try to access a
new site.
Points to bear in mind when producing online ad copy include:
O Stick to really simple messages. Online ads are small and limitations on screen deIinition mean you have to use relatively
large type (although some Ionts, such as Verdana, have been specially designed to be legible on-screen even at tiny point
sizes).
O Think in Irames, but do not overdo it. Animated giIs, the standard used Ior most banner ads, allow you to build up a
message in any number oI Irames. II you go overboard, however, you run the risk oI losing or boring your audience beIore

you get your message across, so stick to between around three and six Irames per ad unless you need more Ior special
animation eIIects.
O Beware oI the size oI the Iile you are creating. Most media owners restrict the Iile size oI banner ads to 12 kilobytes; you
can, however, get around this problem by using a Flash animation Ior your ad. II in doubt, talk to a graphic designer.
O Online media are designed to be interactive, so make sure your ads are, too. At the very least they should be designed to
encourage the viewer to click on them, so they will be taken to the advertiser`s web site. For more on what other types oI
interactivity can be built into your ads, talk to a web design agency you will probably be working with one on this kind oI
project anyway.











































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INTRODUCTION
Brand management begins with having a thorough knowledge oI the term brand lL lncludes developlng a promlse maklng
LhaL promlse and malnLalnlng lL lL means deflnlng Lhe brand poslLlonlng Lhe brand and dellverlng Lhe brand 8rand
managemenL ls noLhlng but an art oI creating and sustaining the brand. Branding makes customers committed to your
business. A strong brand diIIerentiates your products Irom the competitors. It gives a quality image to your business.
Brand management includes managing the tangible and intangible characteristics oI brand. In case oI product brands, the
tangibles include the product itselI, price, packaging, etc. While in case oI service brands, the tangibles include the
customers` experience. The intangibles include emotional connections with the product / service.
Branding is assembling oI various marketing mix medium into a whole so as to give you an identity. It is nothing but
capturing your customers mind with your brand name. It gives an image oI an experienced, huge and reliable business.
It is all about capturing the niche market Ior your product / service and about creating a conIidence in the current and
prospective customers` mlnds LhaL you are Lhe unlque soluLlon Lo Lhelr problem.
The aim oI branding is to convey brand message vividly, create customer loyalty, persuade the buyer Ior the product, and
establish an emotional connectivity with the customers. Branding Iorms customer perceptions about the product. It should
raise customer expectations about the product. The primary aim oI branding is to create diIIerentiation.
Strong brands reduce customers percelved moneLary soclal and safeLy rlsks ln buylng goods/servlces 1he cusLomers can
beLLer lmaglne Lhe lnLanglble goods wlLh the help oI brand name. Strong brand organizations have a high market share. The
brand should be given good support so that it can sustain itselI in long run. It is essential to manage all brands and build
brand equity over a period oI time. Here comes importance and useIulness oI brand management. Brand management helps
in building a corporate image. A brand manager has to oversee overall brand perIormance. A successIul brand can only be
created iI the brand management system is competent.

BRAND IMAGE
Brand image is the current view oI the customers about a brand. It can be deIined as a unique bundle oI associations within
the minds oI target customers. It signiIies what the brand presently stands Ior. It is a set oI belieIs held about a speciIic brand.
In short, it is nothing but the consumers` perception about the product. It is the manner in which a speciIic brand is positioned
in the market. Brand image conveys emotional value and not just a mental image. Brand image is nothing but an
organization`s character. It is an accumulation oI contact and observation by people external to an organization. It should
highlight an organization`s mission and vision to all. The main elements oI positive brand image are- unique logo reIlecting
organization`s image, slogan describing organization`s business in brieI and brand identiIier supporting the key values.
Brand image is the overall impression in consumers` mind that is Iormed Irom all sources. Consumers develop various
associations with the brand. Based on these associations, they Iorm brand image. An image is Iormed about the brand on the
basis oI subjective perceptions oI association`s bundle that the consumers have about the brand. Volvo is associated with
saIety. Toyota is associated with reliability.
The idea behind brand image is that the consumer is not purchasing just the product/service but also the image associated
with that product/service. Brand images should be positive, unique and instant. Brand images can be strengthened using
brand communications like advertising, packaging, word oI mouth publicity, other promotional tools, etc.
Brand image develops and conveys the product`s character in a unique manner diIIerent Irom its competitor`s image. The
brand image consists oI various associations in consumers` mind - attributes, beneIits and attributes. Brand attributes are the
Iunctional and mental connections with the brand that the customers have. They can be speciIic or conceptual. BeneIits are
the rationale Ior the purchase decision. There are three types oI beneIits: Functional beneIits - what do you do better (than
others ),emotional beneIits - how do you make me Ieel better (than others), and rational beneIits/support - why do I believe
you(more than others). Brand attributes are consumers overall assessment oI a brand.
Brand image has not to be created, but is automatically Iormed. The brand image includes products' appeal, ease oI use,
Iunctionality, Iame, and overall value. Brand image is actually brand content. When the consumers purchase the product, they
are also purchasing its image. Brand image is the objective and mental Ieedback oI the consumers when they purchase a
product. Positive brand image is exceeding the customers` expectations. Positive brand image enhances the goodwill and
brand value oI an organization.

BRAND POSITIONING
Brand positioning reIers to LargeL consumers' reason Lo buy your brand ln preference Lo oLhers lL ls ensures LhaL all brand
acLlvlLy has a common alm ls gulded dlrecLed and dellvered by Lhe brands beneflLs/reasons Lo buy and lL focuses aL all
polnLs oI contact with the consumer.
Brand positioning must make sure that:

O Is it unique/distinctive vs. competitors ?
O Is it signiIicant and encouraging to the niche market ?
O Is it appropriate to all major geographic markets and businesses ?
O Is the proposition validated with unique, appropriate and original products ?
O Is it sustainable - can it be delivered constantly across all points oI contact with the consumer ?
O Is it helpIul Ior organization to achieve its Iinancial goals ?
O Is it able to support and boost up the organization ?
In order to create a distinctive place in the market, a niche market has to be careIully chosen and a diIIerential advantage
must be created in their mind. Brand positioning is a medium through which an organization can portray its cusLomers whaL
lL wanLs Lo achleve for Lhem and whaL lL wanLs Lo mean Lo Lhem 8rand poslLlonlng forms cusLomers vlews and oplnlons
Brand Positioning can be deIined as an activity oI creating a brand oIIer in such a manner that it occupies a distinctive place
and value in the target customers mlnd lor lnsLancekoLak Mahlndra poslLlons lLself ln Lhe cusLomers mlnd as one enLlLy
koLak whlch can provlde cusLomlzed and onesLop soluLlon for all Lhelr flnanclal servlces needs. It has an unaided top oI
mind recall. It intends to stay with the proposition oI 1hlnk lnvesLmenLs 1hlnk koLak 1he poslLlonlng you choose for your
brand wlll be lnfluenced by Lhe compeLlLlve sLance you wanL Lo adopL
Brand Positioning involves identiIying and determining points oI similarity and diIIerence to ascertain the right brand
identity and to create a proper brand image. Brand Positioning is the key oI marketing strategy. A strong brand positioning
directs marketing strategy by explaining the brand details, the uniqueness oI brand and its slmllarlLy wlLh Lhe compeLlLlve
brands as well as Lhe reasons for buylng and uslng LhaL speclflc brand oslLlonlng ls Lhe base for developlng and lncreaslng
Lhe requlred knowledge and percepLlons of Lhe customers. It is the single Ieature that sets your service apart Irom your
competitors. For instance- KingIisher stands Ior youth and excitement. It represents brand in Iull Ilight.
There are various positioning errors, such as-
Under positioning- This is a scenario in which the customers have a blurred and unclear ldea of Lhe brand
2.Over positioning- This is a scenario in which the customers have too limited a awareness oI the brand.
3.ConIused positioning- This is a scenario in which the customers have a conIused opinion oI the brand.
4.Double Positioning- This is a scenario in which customers do not accept the claims oI a brand.

BRAND EQUITY
Brand Equity is the value and strength oI the Brand that decides it`s worth. It can also be deIined as the diIIerential impact oI
brand knowledge on consumers` response to the Brand Marketing. Brand Equity exists as a Iunction oI consumer choice in
the market place. The concept oI Brand Equity comes into existence when consumer makes a choice oI a product or a service.
It occurs when the consumer is Iamiliar with the brand and holds some Iavourable positive strong and distinctive brand
associations in the memory.
Brand Equity can be determined by measuring:
O Returns to the Share-Holders.
O Evaluating the Brand Image Ior various parameters that are considered signiIicant.
O Evaluating the Brand's earnlng poLenLlal ln long run
O By evaluating the increased volume oI sales created by the brand compared to other brands in the same class.
O The price premium charged by the brand over non-branded products.
O From the prices oI the shares that an organization commands in the market (speciIically iI the brand name is identical to
the corporate name or the consumers can easily co-relate the perIormance oI all the individual brands oI the organization
with the organizational Iinancial perIormance.
O OR, An amalgamation oI all the above methods.
Factors contributing to Brand Equity
1.Brand Awareness
2.Brand Associations
3.Brand Loyalty
Perceived Quality: reIers to the customers' percepLlon abouL Lhe LoLal quallLy of Lhe brand Whlle evaluaLlng quallLy Lhe
cusLomer Lakes lnLo accounL Lhe brands performance on Iactors that are signiIicant to him and makes a relative analysis
about the brand's quallLy by evaluaLlng Lhe compeLlLors brands also 1hus quallLy ls a percepLual facLor and Lhe consumer
analysls abouL quallLy varles Plgher percelved quallLy mlghL be used Ior brand positioning. Perceived quality aIIect the

pricing decisions oI the organizations. Superior quality products can be charged a price premium. Perceived quality gives
the customers a reason to buy the product. It also captures the channel member`s lnLeresL lor lnsLance Amerlcan Lxpress
5.Other Proprietary Brand Assets: Patents, Trademarks and Channel Inter-relations are proprietary assets. These assets
prevent competitors attack on the organization. They also help in maintaining customer loyalty as well as organization`s
compeLlLlve advanLage

BRAND ASSOCIATION
Brand Associations are not beneIits, but are images and symbols associated with a brand or a brand beneIit. For example-
The Nike Swoosh, Nokia sound, Film Stars as with ux slgnaLure Lune 1lngLlngLadlng wlLh 8rlLannla 8lue colour wlLh
epsl eLc Associations are not reasonsLobuy buL provlde acqualnLance and dlfferenLlaLlon LhaL's noL repllcable lL ls
relaLlng percelved quallLles of a brand Lo a known enLlLy lor lnsLance PyaLL PoLel ls assoclaLed wlLh luxury and comforL
8MW ls assoclaLed wlLh sophistication, Iun driving, and superior engineering. Most popular brand associations are with the
owners oI brand, such as - Bill Gates and MicrosoIt, Reliance and Dhirubhai Ambani.
Brand association is anything which is deep seated in customers mlnd about the brand. Brand should be associated with
something positive so that the customers relate your brand to being positive. Brand associations are the attributes oI brand
which come into consumers mind when the brand is talked about. It is related with the implicit and explicit meanings which a
consumer relates/associates with a speciIic brand name. Brand association can also be deIined as the degree to which a
speciIic product/service is recognized within its
product/service class/category. While choosing a brand name, it is essential that the name chosen should reinIorce an
important attribute or beneIit association that Iorms its producL poslLlonlng lor lnsLance ower book
Brand associations are Iormed on the Iollowing basis:
O Customers contact with the organization and its employees
O Advertisements;
O Word oI mouth publicity;
O Price at which the brand is sold;
O Celebrity/big entity association;
O Quality oI the product;
O Products and schemes oIIered by competitors;
O Product class/category to which the brand belongs;
O POP (Point oI purchase) displays; etc
Positive brand associations are developed iI the product which the brand depicts is durable, marketable and desirable. The
customers must be persuaded that the brand possess the Ieatures and attributes satisIying their needs. This will lead to
customers having a positive impression about the product. Positive brand association helps an organization to gain goodwill,
and obstructs the competitors' enLry lnLo Lhe markeL

BRAND EXTENSION
Brand Extension is the use oI an established brand name in new product categories. This new category to which the brand is
extended can be related or unrelated to the existing product categories. A renowned/successIul brand helps an organization to
launch products in new categories more easily. For instance, Nike`s brand core producL ls shoes 8uL lL ls now exLended Lo
sunglasses soccer balls baskeLballs and golf equlpmenLs An exlsLlng brand LhaL glves rlse Lo a brand exLenslon ls referred
Lo as parenL brand. II the customers oI the new business have values and aspirations synchronizing/matching those oI the
core business, and iI these values and aspirations are embodied in the brand, it is likely to be accepted by customers in the
new business.
Extending a brand outside its core product category can be beneIicial in a sense that it helps evaluating product category
opportunities, identiIies resource requirements, lowers risk, and measures brand's relevance and appeal
Brand extension may be successIul or unsuccessIul.
Instances where brand extension has been a success are-
i. Wipro which was originally into computers has extended into shampoo, powder, and soap.
ii. Mars is no longer a Iamous bar only, but an ice-cream, chocolate drink and a slab oI chocolate.
Instances where brand extension has been a failure are-
i.In case oI new Coke, Coca Cola has Iorgotten what the core brand was meant to stand Ior. It thought that taste was the
only Iactor that consumer cared about. It was wrong. The time and money spent on research on new Coca Cola could not
evaluate the deep emotional attachment to the original Coca- Cola.

ii.Rasna Ltd. - Is among the Iamous soIt drink companies in India. But when it tried to move away Irom its niche, it hasn'L
had much success. When it experimented with Iizzy Iruit drink Cran[olL" Lhe brand bombed even before lL could Lake
off Cran[olL was a frulL drlnk ln whlch carbonaLes were used as preservaLlve lL dldn'L work ouL because lL was ouL of
synchronlzaLlon wlLh reLall practices. Oranjolt need to be reIrigerated and it also Iaced quality problems. It has a shelI
liIe oI three-Iour weeks, while other soIt- drinks assured liIe oI Iive months.

Advantages of Brand Extension
Brand Extension has Iollowing advantages:
1.It makes acceptance oI new product easy.
a.It increases brand image.
b.The risk perceived by the customers reduces.
c.The likelihood oI gaining distribution and trial increases. An established brand name increases consumer interest
and willingness to try new product having the established brand name.
d.The eIIiciency oI promotional expenditure increases. Advertising, selling and promotional costs are reduced. There
are economies oI scale as advertising Ior core brand and its extension reinIorces each other.
e.Cost oI developing new brand is saved.
I.Consumers can now seek Ior a variety.
g.There are packaging and labeling eIIiciencies.
h.The expense oI introductory and Iollow up marketing programs is reduced.
2.There are Ieedback beneIits to the parent brand and the organization.
a.The image oI parent brand is enhanced.
b.It revives the brand.
c.It allows subsequent extension.
d.Brand meaning is clariIied.
e.It increases market coverage as it brings new customers into brand Iranchise.
I.Customers associate original/core brand to new product, hence they also have quality associations.

Disadvantages of Brand Extension
1.Brand extension in unrelated markets may lead to loss oI reliability iI a brand name is extended too Iar. An organization
must research the product categories in which the established brand name will work.
2.There is a risk that the new product may generate implications that damage the image oI the core/original brand.
3.There are chances oI less awareness and trial because the management may not provide enough investment Ior the
introduction oI new product assuming that the spin-oII eIIects Irom the original brand name will compensate.
4.II the brand extensions have no advantage over competitive brands in the new category, then it will Iail.

BRAND AWARENESS
Brand awareness is the probability that consumers are Iamiliar about the liIe and availability oI the product. It is the degree to
which consumers precisely associate the brand with the speciIic product. It is measured as ratio oI niche market that has
Iormer knowledge oI brand. Brand awareness includes both brand recognition as well as brand recall. Brand recognition is
the ability oI consumer to recognize prior knowledge oI brand when they are asked questions about that brand or when they
are shown that speciIic brand, i.e., the consumers can clearly diIIerentiate the brand as having being earlier noticed or heard.
While brand recall is the potential oI customer to recover a brand Irom his memory when given the product class/category,
needs satisIied by that category or buying scenario as a signal. In other words, it reIers that consumers should correctly
recover brand Irom the memory when given a clue or he can recall the speciIic brand when the product category is
mentioned. It is generally easier to recognize a brand rather than recall it Irom the memory.
Brand awareness is improved to the extent to which brand names are selected that is simple and easy to pronounce or spell;
known and expressive; and unique as well as distinct. For instance - Coca Cola has come to be known as Coke.
There are two types oI brand awareness:
1.Aided awareness- This means that on mentioning the product category, the customers recognize your brand Irom the lists
oI brands shown.
2.Top oI mind awareness (Immediate brand recall)- This means that on mentioning the product category, the Iirst brand
that customer recalls Irom his mind is your brand.

The relative importance oI brand recall and recognition will rely on the degree to which consumers make product-related
decisions with the brand present or not. For instance - In a store, brand recognition is more crucial as the brand will be
physically present. In a scenario where brands are not physically present, brand recall is more signiIicant (as in case oI
services and online brands).
Building brand awareness is essential Ior building brand equity. It includes use oI various renowned channels oI promotion
such as advertising, word oI mouth publicity, social media like blogs, sponsorships, launching events, etc. To create brand
awareness, it is important to create reliable brand image, slogans and taglines. The brand message to be communicated
should also be consistent. Strong brand awareness leads to high sales and high market share. Brand awareness can be
regarded as a means through which consumers become acquainted and Iamiliar with a brand and recognize that brand.

BRAND EQUITY
Brand equity is the result of a process which leads to a creation of a unique and distinct brand identity. These brand
identiIiers are reIerred to as brand identiIiers. Brand identiIication can be done through various ways; Ior example, Unique
Selling Proposition (USP), Logo, Style, Brand Ambassador, Etc. Brand elements Iacilitate the process oI consumer brain
mapping and play a key role in building brand equity. Consumers over period oI time are able to identiIy the brand through
brand elements. The idea is to develop brand elements, which can properly communicate about brand and its point oI
diIIerence Irom competing brands.
There are various Iactors, which add to a good brand element. Brand element should be such that they can have a great recall
power; Ior example, halI eaten apple, it steadily identiIies with brand Apple. These sort oI logo stays in memory Ior long
time. So the brand element should be such that it can be easily recalled. Another Iactor is signiIicance and application, is
brand element conveying either oI this two Ior consumer? SigniIicance here means that brand element should be suitable Ior
that given product category. Consumer should not be leIt guessing about brand by looking at the element. Another Iactor Ior
a good brand element is design and appearance, oI course it depends on product Category Company is operating (industrial
product v/s consumer products). For example, Apple products I-pod and Mac, design and appearance are such; anyone would
be attracted towards them.
Another Iactor is the application of brand element. For example, Virgin, this brand is applicable to airlines as much as to
Iinancial services, on other hand, Toys r us, this brand can only be valid to sell toys, games, etc. In this globalize world it is
very important to respect diversity and culture. A word or symbol can have various meanings, Ior example, Swastika symbol
is associated with Nazi's movement but in India symbol means luck. So the choice oI word or symbol should not be without
research. Another Iactor is Ilexibility; an openness to change. This Ilexibility could be in the Iorm oI demographic, society,
etc., Ior example, TV ads during the super bowl show Asian, AIrican American, Hispanic drinking beer together, even
though Iootball is all American game. The reason been American society has a good mix oI people Irom diIIerent race and
culture but has a strong passion Ior the game. Ads15 years never showed this kind oI mix oI diIIerent race and culture. The
last important Iactor is intellectual property rights, brand element should have a legal cover Irom piracy and copiers in which
countries they operate.
The most elementary part of brand element to achieve brand equity is the brand name. For example, in meeting a
stranger, a Iormal introduction starts with name, so that next time you see person again you greet her by name. Similarly
brand name can convey much about brand itselI, example, Pepsi-cola or common name Pepsi. Brand name is easy to
remember and recall making pronunciation easy Ior non-English speaker. Brand name could also be suggestive into what
brand is oIIering, Ior example, Kentucky Fried Chicken. The brand name itselI is suIIicient in conveying that Ior Iried
chicken KFC is the brand.
Another elementary part is the brand slogan because it can again convey the whole existence oI brand. For example, Wal-
Mart`s slogan ls Save Money lve 8eLLer lL conveys loL abouL offerlng aL brand sLores 8uL agaln as Llme change slogan also
have Lo evolve Larller WalMarL's slogan was Always ow rlce buL ln tough economic times the new slogan is more
relevant. Packaging also plays important part as brand element in building brand equity. For example Kellogg`s cereals lL's
packaglng as evolved respondlng Lo modern needs (healLhy dleL) Lo new Lechnologles
It can be easily concluded Irom above the importance oI brand element in creation oI brand equity. Various elements like
brand name, packaging, slogan symbol individually and collectively play important in creating long lasting impression and
relation with consumer.

DESIGNING AND IMPLEMENTING BRANDING STRATEGIES
Customer based brand equity is created when brand knowledge comprising oI brand awareness and brand image are at
highest level in customer mind. Brand awareness level is raised in customer by Iirst understanding consumer taste, preIerence
and present level oI awareness. This analysis leads to designing oI marketing programs and outcomes oI those programs are
also recorded. Designing oI marketing programs is a complex process as it may have to encompass wide range oI product and
brands. Purpose oI all marketing program is to maximize brand equity and also to capture or create long lasting impression in
consumer mind.

Branding strategies deal with creating brand names, logos, style etc. for it to be distinguished from competitors and
also whether product brand should be separate from corporate brand or a separate brand away from other individual
brands. Implication oI branding strategies is that it creates brand awareness Ior consumer to ascertain point oI diIIerence and
point oI similarity with competitors. Second implication is brand image Ior association oI brand equity Irom brand to product.
Brand-product matrix looks to explain brand portIolio and brand extension strategies. In the matrix all products oIIered under
diIIerent brands are represented by a row. This helps marketers understand the current brand line and explore Iurther
opportunity in expanding the product line. In the matrix all current existing brand are represented in Iorm oI column reIerred
to as brand portIolio. The brand portIolio analysis is essential to design and develop new marketing strategies to target a
given product category.
Product line Iacilitates marketers to devise strategy with regards to Iuture treatment Ior a given brand. This strategy Iocuses
on decision, as to whether product line can be extended or new variants oI existing product should be introduced. When
taking brand extension decision companies needs to carry SWOT (Strength, Weakness, Opportunity, Threat) analysis to Iully
understand market conditions, current category structure and environmental( economic, social, political, regulatory)
dynamics. This analysis will give companies product line and categories to Iollow active branding strategy.
Active branding strategy with respect to product line involves creating multiple brands; this provides depth to the
branding process. For example- car maker General Motors, it created multiple brands to expand the product class category
Irom SUV to sports car. This sort oI strategy is also used by consumer goods giant P & G and Unilever. By creating
individual brands companies can create diIIerent marketing strategies. This strategy ensures no market in given industry
remains un-tapped.
Brand product matrix helps in showcasing diIIerent brand in any given product category. In that respect Brand Hierarchy is
graphical representation oI company's producLs and lLs brands Plerarchlcal sLrucLure sLarLs wlLh corporaLe brand and Lhen
showcases dlfferenL producL caLegory and below brands 1hls sorL of presenLaLlon helps devlse markeLlng sLraLegy at many
levels and Iorms. There is no Iix way to go about Iormulating marketing strategy but generally it can Iit into 3 categories.
First strategy gives more importance to corporate brand and less prominence to product brand. Second strategy sees
importance been given to two or more product brands and some highlighting to the corporate brand. Third strategy looks at
promoting only the product brand and there is no mention oI corporate entity at all.
Another brand building strategy which has gain prominence in recent times is cause marketing or social responsibility
marketing. In case marketing company contributes some amount oI revenue generate Irom product sales towards designated
cause. For example- American Express started RED campaign along with U2 singer Bono where in 1 percent oI card charges
were dedicated to Iight AIDS in AIrica. This sort oI marketing improves brand awareness as well as brand image and it can
generate sense oI pride not only Ior consumers but also Ior employees.
There are various ways through which a successIul brand build strategy can be created, maintained and enhanced. But one
things which comes out Irom exploring diIIerent strategies is that companies have to proactive in designing marketing
campaign and react accordingly to challenges oI dynamic environment.






















uNl1 4 Mk6lN6 cONcP15
RELATIONSHIP MARKETING
Relationship marketing was Iirst deIined as a Iorm oI marketing developed Irom direct response marketing campaigns which
emphasizes customer retention and satisIaction, rather than a dominant Iocus on sales transactions.
As a practice, relationship marketing diIIers Irom other Iorms oI marketing in that it recognizes the long term value oI
customer relationships and extends communication beyond intrusive advertising and sales promotional messages.
With the growth oI the internet and mobile platIorms, relationship marketing has continued to evolve and move Iorward as
technology opens more collaborative and social communication channels. This includes tools Ior managing relationships with
customers that goes beyond simple demographic and customer service data. Relationship marketing extends to include
inbound marketing eIIorts, (a combination oI search optimization and strategic content), PR, social media and application
development. Relationship marketing is a broadly recognized, widely-implemented strategy Ior managing and nurturing a
company`s interactions with clients and sales prospects.
It also involves using technology to organize, synchronize business processes, (principally sales and marketing activities),
and most importantly, automate those marketing and communication activities on concrete marketing sequences that could
run in autopilot, (also known as marketing sequences). The overall goals are to Iind, attract and win new clients, nurture and
retain those the company already has, entice Iormer clients back into the Iold, and reduce the costs oI marketing and client
service. Once simply a label Ior a category oI soItware tools, today, it generally denotes a company-wide business strategy
embracing all client-Iacing departments and even beyond. When an implementation is eIIective, people, processes, and
technology work in synergy to increase proIitability, and reduce operational costs.
Development
Relationship Muming reIers to a short-term arrangement where both the buyer and seller have an interest in providing a more
satisIying exchange. This approach tries to diambiguiously transcend the simple post purchase-exchange process with a
customer to make more truthIul and richer contact by providing a more holistic, personalised purchase, and uses the
experience to create stronger ties.
According to Liam Alvey, relationship marketing can be applied when there are competitive product alternatives Ior
customers to choose Irom; and when there is an ongoing and periodic desire Ior the product or service.
Fornicatell and WernerIelt used the term "deIensive marketing" to describe attempts to reduce customer turnover and
increase customer disloyalty. This customer-retention approach was contrasted with "oIIensive marketing" which involved
obtaining new customers and increasing customers' purchase Irequency. DeIensive marketing Iocused on reducing or
managing the dissatisIaction oI your customers, while oIIensive marketing Iocused on "liberating" dissatisIied customers
Irom your new customers. There are two components to deIensive marketing: increasing customer satisIaction and increasing
switching barriers.
Modern consumer marketing originated in the 1960s and 1970s as companies Iound it more proIitable to sell relatively low-
value products to masses oI customers. Over the decades, attempts have been made to broaden the scope oI marketing,
relationship marketing being one oI these attempts. Arguably, customer value has been greatly enriched by these
contributions.
The practice oI relationship marketing has been Iacilitated by several generations oI customer relationship management
soItware that allow tracking and analyzing oI each customer's preIerences, activities, tastes, likes, dislikes, and complaints.
For example, an automobile manuIacturer maintaining a database oI when and how repeat customers buy their products, the
options they choose, the way they Iinance the purchase etc., is in a powerIul position to develop one-to-one marketing oIIers
and product beneIits.
In web applications, the consumer shopping proIile can be built as the person shops on the website. This inIormation is then
used to compute what can be his or her likely preIerences in other categories. These predicted oIIerings can then be shown to
the customer through cross-sell, email recommendation and other channels.
Relationship marketing has also migrated back into direct mail, allowing marketers to take advantage oI the technological
capabilities oI digital, toner-based printing presses to produce unique, personalized pieces Ior each recipient through a
technique called "variable data printing". Marketers can personalize documents by any inIormation contained in their
databases, including name, address, demographics, purchase history, and dozens (or even hundreds) oI other variables. The
result is a printed piece that (ideally) reIlects the individual needs and preIerences oI each recipient, increasing the relevance
oI the piece and increasing the response rate.
Scope
Relationship marketing has also been strongly inIluenced by reengineering. According to (process) reengineering theory,
organizations should be structured according to complete tasks and processes rather than Iunctions. That is, cross-Iunctional
teams should be responsible Ior a whole process, Irom beginning to end, rather than having the work go Irom one Iunctional
department to another. Traditional marketing is said to use the Iunctional (or 'silo') department approach. The legacy oI this
can still be seen in the traditional Iour P's oI the marketing mix. Pricing, product management, promotion, and placement.

According to Gordon (1999), the marketing mix approach is too limited to provide a usable Iramework Ior assessing and
developing customer relationships in many industries and should be replaced by the relationship marketing alternative model
where the Iocus is on customers, relationships and interaction over time, rather than markets and products.
In contrast, relationship marketing is cross-Iunctional marketing. It is organized around processes that involve all aspects oI
the organization. In Iact, some commentators preIer to call relationship marketing "relationship management" in recognition
oI the Iact that it involves much more than that which is normally included in marketing.
Martin Christopher, Adrian Payne, and David Ballantyne at the CranIield School oI Management claim that relationship
marketing has the potential to Iorge a new synthesis between quality management, customer service management, and
marketing. They see marketing and customer service as inseparable.
Relationship marketing involves the application oI the marketing philosophy to all parts oI the organization. Every employee
is said to be a "part-time marketer". The way Regis McKenna (1991) puts it:
"Marketing is not a Iunction, it is a way oI doing business . . . marketing has to be all pervasive, part oI everyone's job
description, Irom the receptionist to the board oI directors.

MULTI-LEVEL MARKETING / NETWORK MARKETING
Multi-level marketing (MLM) is a marketing strategy in which the sales Iorce is compensated not only Ior sales they
personally generate, but also Ior the sales oI others they recruit, creating a downline oI distributors and a hierarchy oI
multiple levels oI compensation. Other terms Ior MLM include pyramid selling, network marketing, and reIerral marketing.
Most commonly, the salespeople are expected to sell products directly to consumers by means oI relationship reIerrals and
word oI mouth marketing. Some people use "direct selling" as a name Ior MLM, although MLM is only one type oI direct
selling, which started centuries ago with peddling.
MLM companies have been a Irequent subject oI criticism as well as the target oI lawsuits. Criticism has Iocused on their
similarity to illegal pyramid schemes, price-Iixing oI products, high initial start-up costs, emphasis on recruitment oI lower-
tiered salespeople over actual sales, encouraging iI not requiring salespeople to purchase and use the company's products,
potential exploitation oI personal relationships which are used as new sales and recruiting targets, complex and sometimes
exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members' enthusiasm
and devotion.
In contrast to MLM is single-level marketing, where the salesperson is rewarded Ior selling the product directly to the
consumer.
Direct selling, network marketing, and multi-level marketing
"Network Marketing" and "Multi-level Marketing" have been described by author Dominique Xardel as being synonymous,
and as methods oI direct selling. According to Xardel, "direct selling" and "network marketing" reIer to the distribution
system, while the term "multi-level marketing" describes the compensation plan. Other terms that are sometimes used to
describe multi-level marketing include "word-oI-mouth marketing", "interactive distribution", and "relationship marketing".
Critics have argued that the use oI diIIerent terms and "buzzwords" is an eIIort to distinguish multi-level marketing Irom
illegal Ponzi schemes, chain letters, and consumer Iraud scams. Some sources classiIy multi-level marketing as a Iorm oI
direct selling rather than being direct selling.
The Direct Selling Association, an American industry body, reported that in 1990 twenty-Iive percent oI members used
MLM, growing to 77.3 percent in 1999. Companies such as Avon, Electrolux, Tupperware, and Kirby all originally used
single level marketing to sell their goods and later introduced multi-level compensation plans. By 2009, 94.2 oI members
were using MLM, accounting Ior 99.6 oI sellers, and 97.1 oI sales. The DSA has approximately 200 members while it is
estimated there are over 1000 Iirms using multi-level marketing in the US alone.

EVENT MANAGEMENT
Event management is the application oI project management to the creation and development oI Iestivals, events and
conIerences.
Event management involves studying the intricacies oI the brand, identiIying the target audience, devising the event concept,
planning the logistics and coordinating the technical aspects beIore actually executing the modalities oI the proposed event.
Post-event analysis and ensuring a return on investment have become signiIicant drivers Ior the event industry.
The recent growth oI Iestivals and events as an industry around the world means that the management can no longer be ad
hoc. Events and Iestivals, such as the Asian Games, have a large impact on their communities and, in some cases, the whole
country.
The industry now includes events oI all sizes Irom the Olympics down to a breakIast meeting Ior ten business people. Many
industries, charitable organizations, and interest groups will hold events oI some size in order to market themselves, build
business relationships, raise money or celebrate.


Marketing tool
Event management is considered one oI the strategic marketing and communication tools by companies oI all sizes. From
product launches to press conIerences, companies create promotional events to help them communicate with clients and
potential clients. They might target their audience by using the news media, hoping to generate media coverage which will
reach thousands or millions oI people. They can also invite their audience to their events and reach them at the actual event.
Services
Event management companies and organizations service a variety oI areas including corporate events (product launches,
press conIerences, corporate meetings and conIerences), marketing programs (road shows, grand opening events), and special
corporate hospitality events like concerts, award ceremonies, Iilm premieres, launch/release parties, Iashion shows,
commercial events, private (personal) events such as weddings and bar mitzvahs.
Clients hire event management companies to handle a speciIic scope oI services Ior the given event, which at its maximum
may include all creative, technical and logistical elements oI the event. (Or just a subset oI these, depending on the client's
needs, expertise and budget).

NEW ADVERTISING TRENDS
As marketers look Ior ways to keep pace with technology and media, advertising trends have changed dramatically. Think,
Ior example, about that crazy email you got Irom your Iriend -- the one Ieaturing the water skiing squirrel.
AIter you stopped laughing (and wondering why anyone would Iashion tiny water skis to strap on a squirrel) you noticed a
product logo in the corner oI the screen. And beIore you realized it, you had "consumed" a brand message, and experienced
one oI the new advertising trends.
This Iorm oI sponsorship, known as "viral videos," is among many recent promotional vehicles replacing conventional
advertising. Thanks to YouTube, blogs, TiVo, Facebook and basic email, people are spending less time watching television
commercials and reading print ads.
The advertising revolution is on.
Declining ad purchases. Increasing video consumption
In 2009, U. S. ad spending plunged nine percent, according to consumer research Iirm Nielsen, shedding $11.6 billion last
year. And industry trade journal AdWeek wrote that the trend shows no sign oI abating, maintaining a pattern oI at least six
straight quarters oI declines.
Conversely, as conventional advertising has been sinking, the number oI videos seen online is rising. Nielsen reported that
year over year, all relevant video categories -- unique viewers, total streams, streams per viewer and time per viewer --were
up, led by 13 percent bumps in time per viewer.
So, clever Iolks that they are, advertisers have Iound new ways to capture those eyeballs, ideally without oIIending the people
behind them.
Branded entertainment. Laughing for dollars
Say your product is a tortilla chip, or a beer, or a sexploitation chick cop Ilick. Clearly, your target audience is dudes 18 to
34. And where will you Iind them? In Iront oI their computers, watching two oI the things they love most -- ideally at the
same time during Burly Sports Show on Heavy.com or Carl's Lock on SuperDeluxe.com. Web channels like these have
developed new Iorms oI entertainment, three minute shows called "webisodes." They play directly to the ADD nature oI the
Internet, and people looking Ior quick breaks in their workday.
Burly and Carl's toast and roast the previous week in pro sports, trashing athletes and their teams. In return Ior the laughs,
viewers allow the sponsors to ply their wares -- sometimes in the Irame around the screen, sometimes as part oI the
entertainment. And just in case you think this new web-centric Iormat is less than prime time, take a look at some oI the
ongoing sponsors: Doritos, Coke Zero, AT & T, Dove and oI course, sexploitation chick cop Ilick Bitch Slap.
You Tube. Your new ad network
The 30-second TV spot hasn't gone away entirely. It's just that the smart money is spending less oI theirs on media, and
placing ads on YouTube. They then attempt to drive consumers there via other inexpensive means. YouTube is a vehicle to
attract viewers who might not be watching as much TV, or skipping the shows in the brand's media buy. It's also an ideal
vehicle to expand an advertiser's reach. The spot developed Ior an audience in Peoria is now reaching you wherever you are,
thanks to You Tube's international exposure.
Product placement. Products get a cameo
You and eight castaways are stranded on an island, competing Ior $1,000,000. And you could use, well pretty much
everything as you are, aIter all, castaways. Fortunately, Survivor host JeII Probst announces that you could win one oI the
nearby crates... all Iilled with tools, Iurniture and camping supplies; all bearing the Sears logo. It's a shameless plug, also
known as product placement.
Because advertisers know that TiVo has trained audiences to speed past the commercials, they now look Ior ways to drop
their brands right into the show. Sometimes, it's as overt as Probst pointing to a Sears crate. Other times, it's as subtle as a

Heinz ketchup bottle on a diner counter, looking every bit a part oI the scene. Either way, it gets noticed within the conIines
oI the show.
Web video pre roll. The new :30 second TV spot
Whenever a serious news event occurs, like a politician or celebrity behaving badly, you Google a naughty phrase and arrive
at a news website, ready Ior the skinny. But beIore you get it, you'll have to get a "pre roll" commercial message Iirst. Those
intros can range Irom a simple logo with the words "brought to you by," to a shortened version oI a TV spot. The beauty oI
the Iormat is that it's an even exchange: You get the news; the advertiser gets your undivided attention Ior 15 seconds or less.
Even better Ior the brand, they may have pre-identiIied you as a likely prospect through your past Internet behavior, and
might even be able to drive you Irom promo to purchase at their website. So please, big name public Iigures: Screw up! We
marketers are counting on you!
Viral videos. Slipping ads under the radar, via email
Remember our Iriend the skiing squirrel? He's hardly the only star oI a sight gag gracing your email in bin. Along with cat
stunts, parenting games, or trivia quizzes, they're all part oI a guerrilla marketing tactic Iamously known as "viral videos."
Advertisers realize that you're more likely to open a video Irom someone you know. So we marketers have created all manner
oI cute, silly and inIormative videos and games Ior you to send along, covertly carrying a sponsorship message. So don't
think oI your Iorwarding Iriend as one oI those annoying people who sends on every email she receives. Instead, applaud her
as an engine oI commerce!

INTERNATIONAL ADVERTISING
DeIinition
International advertising entails dissemination oI a commercial message to target audiences in more than one country. Target
audiences diIIer Irom country to country in terms oI how they perceive or interpret symbols or stimuli, respond to humor or
emotional appeals, as well as in levels oI literacy and languages spoken. How the advertising Iunction is organized also
varies. In some cases, multinational Iirms centralize advertising decisions and budgets and use the same or a limited number
oI agencies worldwide. In other cases, budgets are decentralized and placed in the hands oI local subsidiaries, resulting in
greater use oI local advertising agencies.
International advertising can, thereIore, be viewed as a communication process that takes place in multiple cultures
that diIIer in terms oI values, communication styles, and consumption patterns. International advertising is also a business
activity involving advertisers and the advertising agencies that create ads and buy media in diIIerent countries. The sum total
oI these activities constitutes a worldwide industry that is growing in importance. International advertising is also a major
Iorce that both reIlects social values, and propagates certain values worldwide.
International Advertising as a Communication Process
In international markets the process oI communicating to a target audience is more complex because
communication takes place across multiple contexts, which diIIer in terms oI language, literacy, and other cultural Iactors. In
addition, media diIIer in their eIIectiveness in carrying diIIerent appeals. A message may, thereIore, not get through to the
audience because oI people's inability to understand it (due to literacy problems), because they misinterpret the message by
attaching diIIerent meanings to the words or symbols used, or because they do not respond to the message due to a lack oI
income to purchase the advertised product. Media limitations also play a role in the Iailure oI a communication to reach its
intended audience.
The process oI communication in international markets involves a number oI steps. First, the advertiser determines
the appropriate message Ior the target audience. Next, the message is encoded so that it will be clearly understood in diIIerent
cultural contexts. The message is then sent through media channels to the audience who then decodes and reacts to the
message. At each stage in the process, cultural barriers may hamper eIIective transmission oI the message and result in
miscommunication.
In encoding a verbal message, care needs to be taken in translation. Numerous examples exist oI translation
problems with colloquial phrases. For example, when the American Dairy Association entered Mexico with its "Got Milk?"
campaign, the Spanish translation read "Are You Lactating?" Low levels oI literacy may result in the need to use visual
symbols. Here again, pitIalls can arise due to diIIerences in color association or perception. In many tropical countries, green
is associated with danger and has negative connotations. Red, on the other hand, is associated with weddings and happiness
in China. Appeals to humor or sex also need to be treated with considerable care as their expression and eIIectiveness varies
Irom one culture to another. The dry British sense oI humor does not always translate eIIectively even to other English-
speaking countries.
In addition to encoding the message so that it attracts the attention oI the target audience and is interpreted correctly,
advertisers need to select media channels that reach the intended target audience. For example, use oI TV advertising may
only reach a relatively select audience in certain countries. Equally, print media will not be eIIective where there are low
levels oI literacy. Certain media may also be more eIIective in certain cultures. For example, radio advertising has substantial
appeal in South America where popular music is a key aspect oI the local culture.

The cultural context also impacts the eIIectiveness oI communication. In "high context" cultures, such as the
collectivist Asian cultures oI Japan and China, the context in which inIormation is embedded is as important as what is said
(Hall 1976). In low context cultures, which include most Western societies, the inIormation is contained in the verbal
messages. In these cultures, it is important to provide adequate inIormation relating to the product or service in order to
satisIy their need Ior content (De Mooij 1998). Conversely, people in high context cultures are oIten more eIIectively reached
by image or mood appeals, and rely on personal networks Ior inIormation and content. Awareness oI these diIIerences in
communication styles is essential to ensure eIIective communication.
International Advertising as a Business Practice
International advertising can also be viewed as a business activity through which a Iirm attempts to inIorm target
audiences in multiple countries about itselI and its product or service oIIerings. In some cases the advertising message relates
to the Iirm and its activities, i.e. its corporate image. In other cases, the message relates to a speciIic product or service
marketed by the Iirm. In either case, the Iirm will use the services oI an advertising agency to determine the appropriate
message, advertising copy and make the media placement.
An important issue in determining international advertising strategy is whether or not to develop a global or regional
advertising campaign, or rather tailor communication to diIIerences in local markets (Peebles and Ryans 1984). II the
purpose oI advertising is to develop a strong corporate or global image, a uniIorm global campaign is more likely to be used.
When, on the other hand, the objective is to launch a new product or brand, or to more clearly diIIerentiate the product or
brand Irom other competing brands or products, local campaigns tailored to local markets are more typical.
A global campaign oIIers a number oI advantages. In the Iirst place, it can be an important means oI building a
strong and coherent global image Ior the Iirm and/or its products worldwide. Use oI the same image in diIIerent countries
builds Iamiliarity and generates synergies across world markets. It allows utilization oI good ideas and creative talent (both oI
which are scarce commodities) on a worldwide basis. In addition, use oI a single campaign provides substantial cost savings
in copy development and production costs. Conversely, development oI multiple local campaigns can lead to duplication oI
eIIort, result in inconsistent brand images across countries and conIusion in consumers' minds with regard to the beneIits
oIIered by the brand and corporate image.
While use oI uniIorm advertising appeals oIIers a number oI advantages, diIIerences in customer perceptions and
response patterns across countries and cultures, as well as media availability and government regulation are major barriers to
use oI a standardized campaign. Even though technological developments allow adaptation oI advertising appeals to diIIerent
languages (Ior example, TV can have audio channels in two languages, Internet messages can be automatically translated),
development oI visual and verbal copy that works eIIectively in multiple countries poses major creative challenges.
Faced with this dilemma, Iirms may use a global umbrella campaign combined with local country or product-
speciIic advertising. The global umbrella campaign develops a uniIorm image Ior the company or brand worldwide, oIten
relying on consistent visual images and the corporate logo. Product-speciIic or country advertising builds on this image,
modiIying the appeal and providing inIormation tailored to the local market. The objective oI the umbrella campaign is to
provide an integrating Iorce, while local campaigns provide greater relevance to speciIic local customers and markets.
The organizational structure oI the Iirm oIten plays a key role in the choice oI global vs. locally adapted campaigns.
II international operations are organized on a country-by- country or geographic basis and operate as local proIit centers with
local advertising budgets, pressures exist Ior use oI local advertising campaigns. II, on the other hand, the company is
organized by product divisions, with centralized advertising budgets at corporate or regional headquarters, use oI regional or
global advertising campaigns is more likely (See Douglas and Craig (1995) Ior more inIormation on global strategy).
International Advertising as an Industry
The world advertising industry is characterized by a large number oI small and medium sized advertising agencies
that operate primarily in one country and by a small number oI very large advertising agencies with operations in many
countries. These agencies have developed extensive networks oI oIIices throughout the world in order to coordinate the
advertising process in all the countries where their clients do business. These networks oIten include both wholly-owned
subsidiaries and Iormal relationships with local advertising agencies to establish a presence in new markets, particularly in
emerging markets.
In an eIIort to establish greater control over their advertising, many major advertisers are consolidating all their advertising
with one agency. For some major advertisers such as IBM and Citibank, this represents annual advertising expenditures in
excess oI $500 million worldwide (Grein and DucoIIe, 1998). As a consequence, advertising agencies that do not have a
global network are at a serious disadvantage when competing Ior new advertising accounts or attempting to retain existing
ones that are expanding globally.
The majority oI these large advertising agencies are headquartered in the US. OI the ten largest advertising agency groups,
seven are headquartered in the US, and one each in the UK, France and Japan, although WPP, the British agency holding
company, is made up oI two large US-based agencies. With the exception oI Dentsu, the Japanese agency, most other agency
networks generate the majority oI their revenues outside their home country. The largest agency group, Omnicom, places
over $37 billion oI advertising Ior its clients around the world and derives halI its revenue Irom outside the US. Omnicom has
891 oIIices in over 85 countries and employs 35,600 persons worldwide (57 percent work outside the US). US-based
advertising agencies and their subsidiaries are responsible Ior most oI the advertising throughout the world. For example, oI

the approximately $60 billion in advertising placed by the top 25 agency networks in Europe during 1955, 89 percent oI the
total was placed by subsidiaries oI US-based agencies. This general pattern holds in most parts oI the world that do not have
restrictions on Ioreign ownership. The major exception is Asia where the three major Japanese agencies account Ior 62
percent oI the advertising placed by the top 25 agency networks. Current and comprehensive inIormation on advertising can
be obtained Irom Advertising Age's web site, www.adage.com.
Worldwide over $400 billion is spent on advertising. Approximately halI oI that amount is spent in the US and the
other halI outside the US. InIormation on advertising spending can be obtained Irom Advertising Age's web site and Irom
McCann-Erickson's web site (www.mccann.com). The bulk oI expenditure outside the US takes place in Europe and Japan,
although Brazil, Canada, Mexico, and Australia are also important advertising markets. Outside oI these markets, China is the
next largest advertising market and is also growing rapidly.
The Table below shows advertising spending in the top ten global ad markets. The US and Japan account Ior 65
percent oI the total advertising spending in these markets and the top Iour European markets an additional 25 percent. Apart
Irom Brazil, no other market accounts Ior more than two percent oI the total spending. The concentration oI spending in the
US in part explains the dominance oI US-based advertising agencies. Not only do they work Ior US-based clients that
continue to expand outside the US, but also they accumulate knowledge and experience in the practice oI advertising that can
be applied elsewhere.
Country
1997 Advertising
Expenditures 2438 Percent
U.S.
Japan
U.K.
Germany
France
Brazil
Italy
Australia
Canada
S. Korea
117.0
35.7
20.8
20.3
9.7
8.8
7.2
5.5
5.4
5.3
50
15
9
9
4
4
3
2
2
2
Total: 235.7 100
Note: %e expenditures in tis %able reflect only te 13 measured media tracked by Advertsing Age suc as %' maga:ines
radio te Internet and yellow pages. %e $400 billion figure cited above includes unmeasured spending suc as direct mail
promotion co-op advertising and catalogues.
Once the advertising message has been created, a media plan must be developed and speciIic media vehicles
purchased to deliver the message to the target audience. Media diIIer Irom country in their availability, eIIectiveness and
eIIiciency in delivering a message, and, with relatively Iew exceptions, tend to be organized on a country-by-country basis.
Notable exceptions include StarTV, MTV, CNN in television, Business Week International, the Asia Wall Street Journal, the
International Herald Tribune in print, and selected industry and medical publication that are read worldwide. There is also a
trend toward consolidation oI media in order to achieve greater economies oI scale and leverage content developed in one
market to others. This consolidation Iacilitates purchase oI media on a regional and global basis. In addition, the Internet is
emerging as a truly global medium that does not conIorm to country boundaries.
International Advertising as a Social Force
In the view oI the advertiser the primary objective oI advertising is to sell products or services. In achieving this
primary goal, there are oIten proIound secondary consequences. Advertising exerts a Iormative inIluence whose character is
both persuasive and pervasive. Through the selective reinIorcement oI certain social roles, language and values, it acts as an
important Iorce Iashioning the cognitions and attitudes that underlie behavior not only in the market place, but also in all
aspects oI liIe. In an international setting, advertising has an important social inIluence in a number oI ways. First, much
international advertising is designed to promote and introduce new products Irom one society into another. OIten this results
in radical change in liIe-styles, behavior patterns oI a society, stimulating Ior example the adoption oI Iast Iood, casual attire
or hygiene and beauty products. International advertising also encourages desire Ior products Irom other countries, it creates
expectations about " the good liIe", and establishes new models oI consumption. Advertising is thus a potent Iorce Ior
change, while selectively reinIorcing certain values, liIe-styles and role models.
OIten the symbols, ideals and mores that international advertising portrays and promotes are those oI Western
society and culture. Through the reach oI advertising, brands such as Levi's, Nike, Marlboro and McDonalds are known by
and have become objects oI desire Ior teens and young adults throughout the world. Similarly, images and scenes depicted in
much international advertising are either Western in origin or reIlect Western consumption behavior and values. Even where
adapted to local scenarios and role models, those shown oIten come Irom sectors oI society, such as the upwardly mobile
urban middle class, which embrace or are receptive to Western values and mores.

Consequently, a criticism Irequently leveled at international advertising is that it promulgates Western values and
mores, notably Irom the US, in other countries. This is viewed particularly negatively in societies with strong religious or
moral values, which run counter to those oI the West as, Ior example, Islamic societies in the Middle East. When Western
advertising depicts sexually explicit situations or shows women in situations considered as inappropriate or immoral, it is
likely to be considered a subversive Iorce undermining established cultural mores and values. Equally, in some countries
such as France, there is a strong negative reaction to the imposition oI US culture, values and use oI English in advertising.
Promotion oI tobacco products by US and UK companies in countries where there is no legislation regulating or banning
cigarette advertising has also been criticized.
At the same time, international advertising also acts as an integrating Iorce across national boundaries. It
disseminates messages using universal symbols and slogans, and establishes a common mode oI communication among
target audiences in diIIerent parts oI the world. At the same time, multicultural values are reinIorced by advertisers, who
adopt images incorporating peoples oI diIIerent nations and diverse cultural backgrounds, as, Ior example, the Colors oI
Benneton campaign or the British Airways "Peoples oI the World" campaign. The impact oI such campaigns is Iurther
reinIorced by the growth oI global media such as Star TV, CNN, MTV or print media that target global audiences worldwide.
Consequently, while, on the one hand, international advertising can be viewed as a colonizing Iorce propagating Western
values and mores throughout the world, it is also an important Iorce integrating societies and establishing common bonds,
universal symbols and models oI communication among peoples in diIIerent parts oI the globe.




































uNl1 5 c4MP4l6N PL4NNlN6
PLANNING AN ADVERTISING CAMPAIGN
Certain businesses choose to advertise when their target audience is most likely to buy their product or service. Sometimes
this can be seasonal - a toy retailer, Ior example, will Iocus much oI its advertising eIIorts around the run-up to Christmas. II
you're selling to other businesses, it's worth identiIying when your customers and potential customers will have the budget to
spend.
However, some businesses choose to Iocus more attention on their quieter times on the basis that the busier times will
naturally see an increase in sales. Advertising during quieter times might mean you won't have to work as hard to stand out
Irom other competitors, as they won't be advertising, but there may be Iewer customers to target.
Gaining a greater market share during these periods could not only help during the busier times - as you will have already
developed a bigger customer base - but will improve your cashIlow and minimise your reliance on certain trading periods.
The reasons behind a campaign
Many businesses launch advertising campaigns simply to boost sales or increase brand awareness.
The launch oI a new product will almost certainly require you to step up your advertising.
New businesses will want to consider some Iorm oI advertising just to let people know they exist. You could consider an
introductory oIIer to give people an incentive to visit or call.
Can you plan the campaign yourself?
You need to think careIully about what you want to achieve and the message you want the reader, viewer or listener to take
away. Remember - advertising is only eIIective iI you reach your target audience with a message that makes them want to
buy or at least Iind out more.
You may be able to design and produce a straightIorward advertisement Ior printed media yourselI - see the page in this
guide Ior how to write an advertisement. However, most print advertising organisations have in-house services iI you can't do
it yourselI.
II your advertising needs are more demanding than an occasional, low-priced local advertisement, it may be worth
outsourcing your advertising to an advertising agency. See our guide on how to choose and manage an advertising agency.
This is only suitable iI you are prepared to pay the extra cost, but in any event, it is advisable to have your adverts
proIessionally designed to ensure maximum impact.

CAMPAIGN PLANNING
Media planning is one oI the main tools Ior proper organization and implementation oI an advertising campaign. What we
oIIer is not just advertising placement: we will develop a strategy to maximize our screens` eIIectiveness.
The media-planning process includes a number oI steps aimed at answering a single question: What would be the best way to
convey an ad message to consumers oI this particular brand or service?
To come up with the best strategic solution, our media-planning specialists have to Iind answers to the Iollowing questions:
O How many potential consumers oI this brand should be covered?
O How oIten should the messages appear?
O Which markets and regions should be targeted by the messages?
O What should be the campaign`s budget?
Answering these questions develops a certain media strategy, which then serves as a basis Ior the campaign`s plan.
The next stage, i.e. media planning, assumes the Iollowing deliverables:
O Media Plan;
O Campaign Budget;
O Media Estimation (estimation oI the campaign`s eIIiciency).
Initial data Ior the Media Plan are determined at the very start and include the deadlines and the area oI the campaign,
available budget, locations oI the screens, their sizes etc.
These data are contained in a Media BrieI. As a rule, the Media BrieI is prepared by CityVision together with the customer at
the time oI contract signing.
As soon as the customer has received the Media BrieI, the next stage is to analyze the preIerences oI the target audience and
select the screens, aIter which several campaign scenarios are presented.
The practice shows that a good media planning may save Irom 25 to 50 oI the advertising budget, or, accordingly, increase
the campaign eIIiciency, which at the end oI the day lead s to sales growth.



THE 8 STEPS OF AN ADVERTISING CAMPAIGN
Here are eight steps you can Iollow to keep your advertising campaign on track and successIul:
1.Market research: BeIore you even start thinking about where you might want to place an ad or even what it could look like,
it`s important to do at least some basic research. Even iI you aren`t in a position to bring in an expensive research Iirm, you
can ask your current customers questions about why they come back to you, as well as taking a close look at your target
demographic`s needs and interests.
2.Budgeting: Your business probably has a set advertising budget Ior the year but how do you divvy it up between your
various advertising projects? For each project you`re planning, you need to be clear on just how much money you`re
willing to spend. You`ll almost certainly change exactly how you divide it between costs like copy writing and design, but
you can treat the overall amount as set in stone. Write it down and put it in your project Iolder.
3.Setting goals: The aims you have in mind Ior a particular advertising project need to be written down ahead oI time. While
it`s good to be ambitious, it`s also important to decide what constitutes a successIul advertising campaign Ior your
business. Sales can be the simplest metric: iI you`re advertising a particular product, how many units will you need to sell
to pay Ior that campaign?
4.Advertising venue: The website, tv station, newspaper, radio station, magazine or other advertising venue you place your
ad with is a crucial decision. You`ll need to look at not only the cost oI your preIerred venues but also whether they reach
your target demographic. Ad buys can make up a signiIicant portion oI your budget. Deciding on where you will place
your ads Iirst tells you how much money you`ll have leIt over Ior actually creating your ad.
5.Choosing creatives: Unless you`re planning to write, shoot and design every part oI your ad, you`ll probaably need to bring
in some help. Finding the right Ireelancers Ior each aspect requires checking through portIolios and rates iI you can Iind
a business or Ireelancer who can handle all aspects oI creating your ad, even iI that means subcontracting, it can save you a
lot oI time. You`ll also want to make sure that you Iind any talent you`ll need Ior your ad (voice actors Ior radio, models
Ior photography and so on).
6.Design and wording: While you may not have a lot oI actual writing and designing to do Ior your ad, during the creation
process you will need to review and sign oII on diIIerent stages oI the project. When starting with a new designer or other
creative, make sure that you both know any expectations Ior timelines and progress checks.
7.Placing the ad: Once you have a Iinished ad in hand, it`s time to actually place it with your preIerred advertising venue.
You may have a Iew contracts to sign and a check to hand over. You`ll also want to make sure you actually see your ad
once it`s run Irom a newspaper, Ior instance, you`ll want to see the tear sheets oI pages containing your ad.
8.Evaluation: Depending on your ad, how you evaluate it can vary. II it included a coupon, Ior instance, you can simply
count how many customers brought in the coupon. For other ads, you may be simply comparing sales beIore, during and
aIter your advertising campaign. Spend as much time on analyzing how your advertising campaign worked as you can.
That inIormation can point you to more eIIective uses oI advertising in the Iuture.
While Iollowing such a set process may seem like it would stiIle the creativity necessary to put together a new ad, Iollowing
these steps can actually make it easier. You can minimize conIusion and make sure that everyone is meeting the necessary
deadlines and you can ensure that you`ll be able to measure your ad`s actual cost and responses during each step. You`ll
be better equipped to tweak your ad or move it to another publication in the Iuture.

PROMOTIONAL CAMPAIGN PRO1ECT
Overview
This promotional campaign project will give you the opportunity and responsibility to develop a proIessional advertising
campaign Ior a product oI your choice. The campaign will be completed in two phases that will be handed in Ior review and
suggestions during the semester. The entire campaign will be due on the last class period. You will work with 2-3
classmates and each group will prepare a written report and brieI presentation during the semester. Peer evaluations will be
given out aIter phase one and at the end oI the semester.
The promotional campaign should span a one year time period. You should recommend a budget Ior the campaign that will
be optimal in order to satisIy your objectives.
!reliminary Researc Needed
Secondary Researc
Each group will conduct secondary research to gain an understanding oI industry trends and the product category, the market
(and how it is segmented), competition, the potential target audiences, and their decision making process. You will be able to
access a variety oI secondary sources on line and through the UMASS library.
In addition, iI you are not able to obtain secondary inIormation on your potential target audience and their decision-making
behavior, you will want to conduct primary researc oI your own. This will involve data collection eiter troug
interviews surveys and/or focus groups.
Consultation

During the campaign work phases when you are given time to meet with your group, I will be available to answer questions,
provide Ieedback, and oIIer suggestions. Please use this group time wisely. Your participation in these group sessions will
be reIlected in your class participation grade and campaign grade. II you need additional help outside oI class time, Ieel Iree
to see me during my oIIice hours or set up a special appointment. You can also address questions to me via email.
engt of te Campaign
Your entire campaign should not exceed 50 pages in length (including text, tables, reIerences, and creative materials). This
page limit will lead you to Iocus on the quality oI your campaign and not on the number oI pages you write. You may Iind it
useIul to summarize some oI the inIormation gathered in your Situational Analysis in charts or tables to enhance the
organization and clarity oI your campaign. A couple oI charts may save you several pages oI writing. Charts or tables may
also be used in the Situational Analysis, Marketing and Promotional Plans and are necessary in the Media Plan. The text oI
the campaign should Iocus on interpreting the inIormation you gather, on your strategies, and rationale.
rading
The written campaign and presentation represents 30 oI your course grade. It is expected that each group member will
contribute equally to the project and presentation and receive the group`s project and presentation grades. Lack oI
participation on the part oI a group member will signiIicantly aIIect their grade. Participation is evaluated through the group
activity reports and peer evaluations.
rammar Writing Style
Do not overlook the importance oI your writing style and grammar in your campaign. Your grade will be based on your
strategies as well as how you convey them. Good ideas get lost when they are diIIicult to read and understand. Poor
grammar can signiIicantly hurt your grade while good grammar can work in your Iavor. Since you will be working with two
or three partners, be sure to read and correct each other`s work. II you are responsible Ior writing a section oI the campaign,
take the time to make it Ilow together (so that the campaign appears to have been written by the same person). Your grade is
also based on your partners` work so work together. One or more members oI the group should serve as editors. You
should also consider using the services oI the Writing Center here in the Isenberg School oI Management. They have oIIice
hours throughout the week.
Remember
The most important aspect oI your campaign development lies in your ability to:
1.Develop and analyze the available research or other inIormation you are able to gather
2.Develop logical objectives and strategies
3.JustiIy your objectives and strategies with inIormation Irom your situational analysis
4.Constantly link elements oI the objectives, strategy, and tactics together so that you develop a logical uniIied campaign
5.Properly target and position your product
6.Express yourselI clearly
ue ates
The campaign represents a major portion oI your course grade. Be sure to allocate an appropriate amount oI time Ior the
creation oI a logical and eIIective campaign. Do not wait until the last minute to throw it all together it will show up in
your Iinished product.
Each phase oI the project should be typed and handed in on the dates listed in your syllabus. Both phases should be turned in
on the last day oI class. II you would like your graded project returned to you, turn in a second copy oI the project on the last
day.
The deadlines are Iirm so plan ahead. Your time will go quickly.

Situational Analysis
The overall goals oI the situational analysis are to identiIy strengths, weaknesses, opportunities, and threats in the market (a
SWOT analysis relative to SOM). Cite speciIic evidence Irom your research to support your conclusions. Be as thorough
and speciIic as you can.
Examine a variety oI situational Iactors in your analysis and include the Iollowing:
1. Industry/Company Overview
Describe the industry in which your product competes, its size, growth, current trends and developments, and any key
Iactors necessary Ior an understanding oI the setting. Also provide a very brieI history oI the company, its product lines,
sales history, target markets, current marketing mix and any other Iactors that make the company what it is today.
2. Product Review
Describe the product or service that is the Iocus oI your campaign. Include the product`s sales history, market share,
strengths, weaknesses, key beneIits, brand image, and other Iactors important Ior an understanding oI the product`s or
service`s perIormance and place among its category competitors.

3. Competitive Review and your Competitive Advantage
Who is the competition? What images do they convey in their advertising and promotional materials and on their web site
(iI applicable) vs the image your product/service conveys? What do they promote as their distinctive competencies? Is there
a diIIerence between consumers` perception oI the competition and the way the competition is promoted (their positioning
strategy)? From your perspective and the objective inIormation you have evaluated, what are the actual competitive
advantages oI your product/service and that oI the competition?
4. Consumer Research
a. Market Segmentation - IdentiIy the various market segments. Consider the various methods oI segmenting a
market including demographics, psychographics, product beneIits, usage patterns, buying behavior and decision-
making
b. Potential Target Audiences and User Profile - Who are the potential target audiences Ior this 'product or
'service (consider potential users, actual users, initiators, inIluencers, decision-makers, purchasers)? Develop a
user proIile that highlights the demographic, psychographic, and behavioral characteristics oI potential users.
c. Consumer Decision Process - Describe how the consumer decision process works in this context. How is the
decision made? Explain what Iactors would motivate this purchase, the search process, what attributes might be
important at the alternative evaluation stage, the degree oI problem solving, etc. What external Iactors might
inIluence consumers` decision making process Ior this product or service such as culture, subculture, social class
and reIerence group? Who is the ultimate decision- maker and who are the inIluencers? What are the demographic,
psychographic and behavioristic Iactors that inIluence the buying decision? Is buying behavior characterized by
extended or limited problem solving? Is the product/brand a high involvement or low involvement purchase? What
types oI inIormation needs do the potential target audiences have? What inIormation sources do they presently use?
In short, what are the key Iactors that inIluence buyer behavior Ior this product or service?
4. Communications and Response Process for the Product
How would you classiIy the product or service you chose with respect to the classiIication used by the Foote, Cone
& Belding planning model presented in Figure 5-8 in your book? What are the implications oI this classiIication Ior
planning your advertising and promotional program Ior your product or service?
Which oI the response hierarchy models discussed in the chapter is most applicable Ior your product or service?
SpeciIy the various stages in the response process through which consumers will have to pass beIore purchasing your
product or service.

Marketing and Advertising Plan
1. Marketing Objectives - SpeciIy marketing objectives Ior the campaign. Consider sales or market share objectives, and
pricing, distribution, and promotional objectives.
2. Target Audiences IdentiIy primary and secondary target audiences and justiIy with inIormation presented in the
situational analysis. Describe the demographic, geographic, psychographic, and behavioral characteristics oI your target
audiences as much as possible. Your target audiences may be a subgroup Irom the user proIile and/or a totally diIIerent
group.
3. Positioning Strategy How will you position your product to your target audience(s)?
O Develop a positioning statement that highlights your product`s diIIerential competitive advantage (and distinguishes
your product Irom the competition).
O Develop a perceptual map depicting how your product is perceived relative to the competition on attributes
considered most important by your target audience(s). Suggest how you want to position or reposition your product
on this perceptual map. Support with inIormation presented in your situational analysis
4. Communication Objectives - Develop a realistic set oI communication objectives consistent with the marketing
objectives. State communication objectives in terms oI the response hierarchy you identiIied earlier and relative to
your target audience(s). Your objectives should be speciIic and measurable. Describe how your objectives have evolved
Irom the marketing and promotional situational analysis you conducted Ior your product or service. Do your objectives
satisIy the criteria speciIied by the DAGMAR model?
5. Communications Mix State the communication task ahead.
Describe your integrated marketing communications plan and how it will address the objectives you set. Recommend a
plan that will allow you to eIIiciently and eIIectively achieve your marketing and communications objectives (recognizing
that your client`s resources are not unlimited).
O Discuss some oI the options you are considering Ior the three major communications variables oI source, message,
and channel or medium. Who will be the source or communicator Ior your advertising campaign and what is the
rationale Ior this choice? What type oI message are you considering using Ior your campaign? Will any oI the
message structures or types oI appeals discussed in the chapter be relevant to your campaign? Analyze the various

channels that might be used to communicate with your target audience and the likely eIIectiveness oI each with
respect to moving your target audience through the stages oI the response hierarchy and to purchasing your product.
O What communications vehicles does your agency recommend to reach the target audience(s)? What vehicles will be
most eIIective in reaching your target audience(s) and communicating the client`s message? Consider advertising,
publicity (press releases), interactive media, direct marketing, sales promotion, personal selling, etc. Your
recommendations might include enhancements to what the client is presently doing and/or totally new
communications eIIorts. JustiIy your choice oI communications vehicles Ior each target audience(s). Be sure to
explain why the vehicles selected will be most eIIective and eIIicient in reaching the target audience(s). Describe
which target audiences are being reached with each communications vehicle and the geographic reach oI your
recommended vehicles.
O Describe how your communications mix will meet your communications and marketing objectives. What is the
message you will convey in each communication vehicle?
6. Budget Recommendation Recommend a budget to your client Ior the test markets you will enter or the national
campaign you will run. Your budget should be based on a determination oI what it will take to reach your marketing
objectives and your proposed communications objectives (the objective and task method). Explain speciIically how you
arrived at your budget recommendation. Describe how you plan to allocate your budget to each communications vehicle and
target audience and justiIy. How would you allocate the recommended budget over the liIe oI the promotional campaign (a
one year time Irame)? JustiIy all oI your strategies. As you recommend a budget, keep in mind that your client`s resources
are not unlimited.

Creative Plan
1. Creative Objectives What are your message strategy objectives? Some common message strategies are
promoting recall oI the brand name, creating brand preIerence, invoking a particular type oI direct response, creating
a particular brand image, etc. Your objectives should be consistent with your marketing and communication
objectives and positioning strategy.
2. Creative Strategy
O Copy Platform - Develop a copy platIorm that contains the basic creative strategy Ior your advertising
campaign. What is the advertising campaign theme you have chosen Ior your product or service? Describe
your 'Big Idea and provide support Ior it. The big idea creates an identity, positions the brand, is
distinctive, holds an audience`s interest, deIines the look and Ieel oI the brand, synthesizes product
attributes and relates the value oI the brand. Be sure that this Iollows Irom your positioning strategy.
O Describe the product Ieatures that will be emphasized in your promotions and the beneIits your target
audience will receive Irom these Ieatures. Be sure to convey both Ieatures and beneIits in your promotions.
O SpeciIy the advertising appeal and execution style that will be used to implement your ad campaign.
SpeciIy whether you plan on using a rational or emotional appeal or a combination oI the two. What
speciIic type oI advertising execution technique will be used to present your appeal? Provide some
rationale Ior the creative appeal and execution approach you plan to use. What speciIic tactical elements
will be important in developing your print and broadcast message? Will the creative approach satisIy the
guidelines discussed at the end oI Chapter 9?
O What will your 'slogan be? Consider a short phrase that will help establish an image, position, or identity
Ior the brand, and increase memorability.
O Describe the methods you will use to achieve your objectives.
Ex. Objective: Promote Brand Recall
Method: Repetition repeating the brand name within the copy oI all print communications including
press releases, direct mail letter, the web site, etc.
O Prepare your creative examples to the best oI your ability

Media Plan
1. Media Objectives
Describe your media objectives in terms oI:
O Reach oI your target audience(s)
O Frequency oI exposure desired
O GRPs
O Continuity oI your message (continuous, Ilighting, pulsing)
O Geographic scope oI your promotions


2. Media Strategy
O Present your integrated marketing communications program including the primary media, secondary media,
and promotional tools (sales promotion and publicity) you will use
O SpeciIy speciIic vehicles (e.g. speciIic magazines, newspapers, TV stations or programs, radio stations,
etc.)
O Describe your general approach to scheduling over the year. Draw up a monthly schedule oI your reach,
Irequency, GRPs, and continuity over the year Ior each media.
O Indicate how your budget will be spent over the course oI the year and monthly expenditures required to
obtain your level oI reach, Irequency, and GRPs. Show your work so that I can see how you arrived at
your Iigures.
O Show your proposed spending on each promotional vehicle Ior each month and over the course oI the year.
Again, show your work so that I can see how you arrived at your Iigures.

PRINT AD CAMPAIGN PRO1ECT
Objective: Create and produce visual communication products to provide inIormation and market a social
issue or program to teens and the community. Learn techniques oI production and problem
solving while working as a creative team.
Requirements: Working in a group oI no more than 3 students, create and produce a logo (reproduced at 1"
wide and at 5" wide) and a minimum of 5 other marketing products. Choose at least two
products Irom each oI the Iollowing groups:
Group 1: Business card and letterhead (considered one product), tri-Iold brochure, newspaper
ad, newsletter.
Group 2: T-shirt design, Poster, buttons, bumper stickers, note cards
Other products must have teacher approval.
Each group will give a presentation to explain to the client how their campaign addresses the
client`s needs and the intended audience.
Production techniques used must include: scanning, importing Iiles, using Macromedia
Freehand and Adobe Photoshop to create art and or designs. All art (clip art or original) used
must have prooI oI permission or copyright ownership. While color prooIs may be used in the
presentation, all Iinal products must be made "camera ready" and presented "proIessionally".
Each member of the team will be responsible for at least 2 products. All products should be
consistent with the team`s logo and design/concept.
Deadlines Logo and concept due:
Each team member`s Iirst product due:
Each team member`s second product due:
Presentations will be the week oI:
Grading Individual 70, Team 30
Grades will be based on:
1. Does the product/concept attract.
2. Is the product/concept Iunctional (does it work)?
3. Does the product use proper production technique?
4. Ability to work productively with team members.
5. Ability to meet deadlines.
6. Ability to present and sell designs and concepts.
7. Does the product or concept meet the needs oI the client?