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The Advertising

Plan

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All rights reserved.

Advertising Plan in Context


Marketing Plan

Ad Plan
Specifies thinking and tasks needed to conceive
and implement an effective advertising effort

Copyright 2006 Thomson Business and Economics. All rights reserved.

82

Advertising Plan Components


Introduction
Situation Analysis
Objectives
Budgeting
Strategy
Execution
Evaluation
Copyright 2006 Thomson Business and Economics. All rights reserved.

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Advertising Plan Components

Introduction

Executive summary
Overview

Historical context

Situation
Analysis

Industry analysis
Market analysis
Competitor Analysis

Copyright 2006 Thomson Business and Economics. All rights reserved.

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Historical context is an important consideration in


developing an advertising plan for a brand.

Copyright 2006 Thomson Business and Economics. All rights reserved.

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Copyright 2006 Thomson Business and Economics. All rights reserved.

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Advertising Plan: Objectives

To create or maintain brand awareness.


To change consumer beliefs or attitudes.
To influence purchase intent.
To stimulate trial use.
To convert one-time users into repeat
purchasers..
To encourage brand switching.

Copyright 2006 Thomson Business and Economics. All rights reserved.

87

Sales vs. Communication


Objectives
Advertising = Sales?
Advertising = Communication?
Effective Communication = Sales?
Focusing on communications objectives allows
advertisers to consider a broad range of strategies.
Building brand loyalty can take years.

Copyright 2006 Thomson Business and Economics. All rights reserved.

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Advertising Plan Components


Characteristics of Workable
Objectives
Quantitative benchmarks
Measurement methods
Criteria for success
Time frame

Copyright 2006 Thomson Business and Economics. All rights reserved.

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Advertising Plan Components


(contd)
Budgeting Methods
Percentage of sales
Share of market/voice
Response models
Objective and Task

Copyright 2006 Thomson Business and Economics. All rights reserved.

810

Implementing Objective and


Task Budgeting
Determine cost based
on build-up analysis

Compare costs against


industry and corporate
benchmarks

Production costs
Ancillary costs
Other promotion
Reach

Reconcile and
modify budget

Frequency
Time frame
Media

Copyright 2006 Thomson Business and Economics. All rights reserved.

Determine time
frame for payout

811

Advertising Plan Components


Strategy

Brand name recognition?


Repetition and frequency
Rhyming games

Trial Use Stimulation?


Introductory offers
Product guarantees

Brand Switching?
Value Propositions
Product comparisons
Copyright 2006 Thomson Business and Economics. All rights reserved.

812

Advertising Plan Components

Execution

Copy strategy
Media plan
Integrated brand promotion

Evaluation

Criteria
Methods
Consequences

Copyright 2006 Thomson Business and Economics. All rights reserved.

813

The Role of the Advertising Agency


in Advertising Planning
Advertiser
Brings to the table an assessment of the brands
value, the external environment, and opportunities
and threats.

The Advertising Agencys Role


To define the current marketing and market status of
the brand into advertising objectives and strategies
and ultimately into advertisements and IBP materials.

Copyright 2006 Thomson Business and Economics. All rights reserved.

814

Order, attract/etc., sufficient conditions

Trial Solution Leveraging Leading National Brand Beer To


Sell Store Brand Chips At Regular Shelf Prices During
Super Bowl Week

Volume Creating a Low Price Image Via a Free Standing


Self-Shipper Display (Which Is Actually Priced At Higher
Than Normal Shelf Prices)

Volume 24 Rolls At Only a 4%


Price Reduction

Trial Integrating Store Brand Cooking Oil With the


National Brand Ingredients and a Recipe For TimePressured Consumers to Whip Up Some Cookies

Smart! Building Ones Store Brand


Equity Via Non-Price Advertising

Not So Smart! Heavy Price


Promotion On A Store Brand
Premium Product

Smart! Building Ones Store Brand Equity


Through Non-Price-Based Print Ad
Advertising

Building Equity For The Store by


Creating A Differentiated Image Via
Targeted Print Ads

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