The Advertising Plan

Advertising Plan Components

Introduction

Situation Analysis

Objectives

Budgeting

Strategy

Execution

Evaluation
Advertising Plan Components

Introduction • Executive summary

• Overview

• Historical context
Situation • Industry analysis
Analysis • Market analysis
• Competitor Analysis
Advertising Plan Components
Situation Analysis
Conduct a Situation Analysis to specify
goals and discover what problems and
opportunities exist in the marketplace.
Conducting a Situation Analysis
enables the advertiser to select a target
segment and position based on facts.
Annual “reality check.”
Advertising Plan Components
Situation Analysis

•Start by considering your goals.

•Marketing Objectives—how much
sales or market share should be
increased
•Advertising or Communication
Objectives—what should be said or
communicated in the ad (awareness of
new product or feature, etc.)
Advertising Plan Components
Situation Analysis

•Client/Product Analysis
•Competitive/Industry Analysis
•Market Analysis
Advertising Plan Components
Client/Product Analysis

• How the client arrived at the current situation

• Brief history of specific product/brand
• Strengths, weaknesses, problems, opportunities
• Past ad budgets, campaigns, successes and
failures
Advertising Plan Components
Competitive/Industry Analysis

•Analyze two primary competitors

•Focus on industry developments
and trends
•Discusses the most important
aspects of an industry
Advertising Plan Components
Competitive/Industry Analysis
• Evaluate your primary competitors just like
you evaluate your own product/service.
• How/Why are their offerings better, worse,
similar, different, etc.?
• What are their advertising budgets,
strategies, campaigns, etc.?
• How well can they counter your strategies?
Advertising Plan Components
Market Analysis
•Who is your primary target
segment?
•What are the primary
characteristics they share?
•Describe their demographics,
psychographics, geographics,
benefit segment, usage pattern,
commitment level, etc.
Advertising Plan Components
Objectives
• Start by considering your goals
• What do we want to accomplish and how
should we accomplish it?
• Marketing Objectives—how much sales or
market share should be increased.
• Advertising or Communication Objectives—
what should be said or communicated in the
ad (awareness of new product or feature, etc.)
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.
Advertising Plan Components

• Quantitative benchmarks
Objectives
• Measurement methods
• Criteria for success
• Time frame
Workable Objectives
1. Establish a quantitative benchmark
• Current market share
• Awareness
• Attitude
1. Specify success measurements and criteria
2. Specify a time frame
• Direct response: short
• Brand awareness: long
Advertising Plan Components

• Percentage of sales
Budgeting
• Share of market/voice
Methods
• Response models
• Objective and Task
Implementing Objective and Task
Budgeting

Determine cost based Compare costs against industry and

on build-up analysis corporate benchmarks

• Production costs
• Ancillary costs
• Other promotion
Reconcile and
modify budget
• Reach
• Frequency
• Time frame
• Media Determine time
Frame for payout
Advertising Plan Components

• Brand name recognition?

Strategy • Repetition and frequency
• Rhyming games
• Trial Use Stimulation?
• Introductory offers
• Product guarantees
• Brand Switching?
• Value Propositions
• Product comparisons
Advertising Plan Components

• Copy strategy
Execution • Media plan
• Integrated brand promotion

• Criteria
Evaluation • Methods
• Consequences
Advertising Plan Components
Evaluation

Evaluate whether we’ve achieved the objectives

we set for the advertising
•Pretests—evaluate ads before the ad
campaign starts (or is exposed to the public
through the media)
•Posttests—evaluate ads during or after the ad
campaign starts
Advertising Plan Components
Types of Consumer Reactions
to evaluate using Pretests & Posttests

Cognitive or thinking reactions

Affective or emotional reactions
Conative or behavioral reactions
Advertising Plan Components
Campaign Evaluation

• Cognitive—what do you want targeted consumers

to learn or think after seeing your ad?
Advertising Plan Components
Campaign Evaluation

• Affective—what do you want consumers to feel after

exposure to the ad?
Advertising Plan Components
Campaign Evaluation

• Conative—what do you want consumers to do after

exposure to your ad?
The Role of the Advertising Agency
in Advertising Planning

• The advertiser brings to the table an assessment of

the brand’s value, the external environment, and
opportunities and threats.
• The advertising agency’s role is to assess the
current marketing and market status of the brand,
develop advertising objectives and strategies, and
ultimately create advertisements and IBP materials.
The Planning Cycle
 The Planning Cycle
Results Feedback
Are we If not,
there? why not?
Situation
Let’s get Analysis
Implementation
there
Market Where are
How do we Plan Consumers we?
get there?

Where do
Where could
We want
we be?
to go?
Objectives Co. Potential
and Strategy
 Whose job is it?
• Normally the brand manager.
• In some cases it could be the
advertising manager, the marketing
manager, the product manager and
similar designations
 Role of the Brand Manager
• CEO of the brand
• Accountable for the sales, profits,
contribution and fortunes of the
brand
• Needs to interact with all
functionaries, internally and
externally and do whatever it takes
to ensure the progress of his brand
Strategic Role of the Brand
Manager
Marketing
Despatch Head Agency

Sales MR
Brand
Manager
New Product
Finance Planning/R&D

Production
Materials
 Role of advertising within the
communications mix
• To increase awareness of the brand and its
characteristics
• To encourage non-users to sample the product
• To develop the belief among both users and
ideally, non-users that a brand is technically
superior to competitors for reasons A, B, C, etc.
• To inform consumers especially lapsed
consumers that the product has been improved
or reformulated
• To encourage retail trade to stock and
display the product
 Is it an investment or
revenue expense ?
Conservative accounting
principles does not recognise
the future positive effects of
current advertising
expenditure
 Is advertising an expense or an
investment?
• How to treat it in the books?
• Risk
• Benefits obtained from the
expenditure
Is advertising related to
sales?

Yes and No.

 Factors influencing sales
• Govt. policy • Advertising
• Taxes • Price
• Promotions • Distribution
• Economic climate • Packaging
• Seasonalities • Product features
• And so on • Competition
• Consumer tastes
 Impact of Advertising

New customers

Advertising Immediate sales Future Sales

Change attitude
Improve image
 You can attain temporary
share of the market with
anew product or a smart
promotion, but to enjoy a
really healthy share of
market (in three year’s time)
you have to start now, to
build a share of mind– Leo Burnett
 “I am astonished to find how
many manufacturers, on both
sides of the Atlantic, still believe
that women can be persuaded
by logic and argument to buy
one brand in preference to
another. The greater the
similarity between products, the
less part reason plays in brand
selection” – David Ogilvy
 “Half my advertising is
wasted, but the problem is
I don’t know which half”
- John Wanamaker
Demand stimulated by advertising
not only increases sales but the
value of the brand in the minds of
the consumer

Successful advertising helped

increase prices by 22% than
not so successful advertising
The average % increase in
sales to be expected from
1 % reduction in price is
1.8%
The average % increase in
sales to be expected by 1 %
increase in adspend is 0.2%
 Advertising Objectives
• Communication and coordination
device
• Criterion for decision making
• Evaluating results
Advertising Goal - DAGMAR

A specific communication task

to be accomplished among a
defined target audience to a
given degree in a given
period of time
Customer Dynamics

Consumers using Consumers not using

different brands product category

Consumers using brand

 Targetting
• Who is the target segment?
• What is the behaviour within that segment
that advertising is attempting?
• What is the process that would lead to
desired behaviour?
• Is it necessary to create awareness, build
attitudes/ brand equity/associated
feelings/type of user personality ?
 Increasing Turnover
• Increasing customers
• Increasing usage per customer
• Reduce time between purchases
 Situation Analysis
• Cost structure of • Nature of demand
industry • Extent of demand
• Skills of the firm • Nature of
• In – house skills vs competition
those of • Environmental
competitors climate
• Financial resources • Stage of PLC
of the firm