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7/27/2019 Advertising Planning and Strategy
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Advertising Planning and Strategy
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Learning Objectives
Learn about major components of theadvertising plan.
Understand the importance of settingobjectives.
Discuss the success factors of introductoryadvertising and the relationship between
advertising and sales.Discuss various budgeting methods used inadvertising.
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The Advertising Planning Cycle
1. Where are we? 2.Why are we there?
3.Where could we be?
4. How could we get there?5. Are we getting there?
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Advertising Planning and Decision Making
SituationAnalysis
Marketing
Program
Advertising
Plan
Implementation
The
Communication/
Persuasion
Process
Consumer/Market AnalysisCompetitive Analysis
Role of Advertising, Sales
Force, Price, Promotion, Public
Relations
Objectives/Segmentation/Positioning
Message Strategy and Tactics
Media Strategy and Tactics
Facilitating Agencies
Social and Legal Constraints
Figure 2-1 Framework for advertising planning and decision making
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The Advertising Plan
An Advertising Plan Matches the Right
Audience to the Right Message and Presents
It in the Right Medium to Reach ThatAudience & Has Three Elements.
Targeting the Audience: Whom are you trying to
reach?
Message Strategy: What do you say to them?
Media Strategy: When & where will you reach them?
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Understanding of Comm.
ProcessA typical communication process model
A model of persuasion process
Ad exposure
Different functions of advertising messages
Brand attitude
Purchase behavior
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Developing an Advertising
PlanAdvertising objectives and target marketselection
Creative plan: Message strategy and tactics
Media plan: media strategy and tacticsEvaluation (research)
==> IMC approach: identify roles of various
forms of IMC and repeat the process.
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Typical Advertising or Campaign
Plan Outline (Tab. 7.1)I. Introduction
Executive Summary or Overview is provided.
II. Situation Analysis Advertising Problems
Advertising Opportunities
III. Key Strategy Decisions
Advertising Objectives Target Audience
Competitive Product Advantage
Product Image and Personality
Product Position
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Typical Advertising or Campaign
Plan Outline (Tab. 7.1)IV. The Creative PlanV. The Media Plan
VI. The Communication Plan Sales promotion
Public relations
Direct marketing
Personal selling
Sponsorships, merchandising, packaging, etc.
VII. Implementation and Evaluation
VIII. Evaluation
IX. Budget
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Situation Analysis
Opportunity analysis: to spot andcapitalize on favorable demand trends
examples of such trends
Competitive analysis: to achieve andmaintain a competitive advantage
examples of competitive advantages
Target market selection
examples of target marketing
==> Marketing plan (4Ps)
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Creative Platform & Message Strategy
Creative platform is a document thatoutlines the message strategy decisions for
an individual ad.Creative platforms combine the basicadvertising decisions problems,objectives, and target markets with thecritical elements of the sales messagestrategy main idea and details about howthe idea will be executed.
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Product
Benefit
Promises
Reason Why
Unique SellingProposition
Support
Advertisements that focus on the productitself by looking at attributes.
Product is promoted on the basis of what itcan do for customers.
Promises that something will happen if youuse the advertised product.
Based on logic and reasoning and clearlystates a reason for the benefit gained.
A benefit statement that is both unique to theproduct and important to the user.
Lends credibility to the selling premise.
Selling Premises
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Defining Advertising Goals for Measured
Advertising Results (1962, 1995, S. Dutka)
The 6M approach
Merchandise: important benefits to sell
Markets: who to reachMotives: why people buy or fail to buy
Media: how to reach
Measurements: how to evaluate (time andchange)
Messages: key ideas to convey to move
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Setting Objectives
Why set objectives?:
-- Planning and decision making
-- Communication-- Measurement and evaluation
Sales vs. Communication objectives
-- Problems with sales objectives When sales objectives are appropriate
-- Challenges with communication objectives
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What is Good Objectives?
Good Objectives
Concrete and
Measurable
Specify a well-
defined audience
AttainableSpecify a time
periodEstablish bench-
Mark measures Realistic
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Setting Objectives Using the
Communications Effects Pyramid
Product: Backstage Shampoo
Time period: Six months
Objective 1: Create awareness among 90 percentof target audience. Using repetitive advertising innewspapers, magazines, TV and radio programs. Simple
message.
Objective 2: Create interest in the brand among 70percent of target audience. Communicate informationabout the features and benefits of the brand-I.e., that it contains
no soap and improves the texture of the hair
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Setting objectives using the
communications effects pyramid
Objective 3: Create positive feelings about the
brand among 40 percent and preference among
25 percent of the target audience.Create favorableattitudes by conveying information, promotions, sampling, etc.
Objective 4: Obtain trial among 20 percent of the
target audience.Use sampling and cents-off coupons alongwith advertising and promotions
Objective 5: Develop and maintain regular use ofBackstage Shampoo among 5 percent of the
target audience.Use continued reinforcement advertising,fewer coupons and promotions
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Factors Related to Success of
Advertising for New Products
1.Communicating that something is differentabout the product. Successful introductorycommercials communicated some point of difference
for the new product
2.Positioning the brand difference in relationto the product category. Successfulcommercials positioned their brands difference within
a specific product category. For example, a newbreakfast product was positioned as the Crispiestcerealor a new beverage as the smoothest softdrink.
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Factors Related to Success of
Advertising for New Products
3.Communicating that the productdifference is beneficial to consumers.Nearly all of the successful commercials linked a
benefit directly to the new products difference.4.Supporting the idea that something about
the product is different and/or beneficial toconsumers.All the successful commercials
communicated support for the products differenceclaim or its relevance to consumers. Support took theform of demonstrations of performance, informationsupporting a uniqueness claim, endorsements, ortestimonials.
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Several Ways to Increase Sales
(what mktg.comm. can do to help?)New customers from other brands
New customers from other categories
Increasing share of requirements (SOR)
Increasing brand loyalty and reducing
attrition and price elasticity
Increasing usage
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McDonalds Advertising Response Function
Sales
Advertising
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Relationship of Adv. to Sales & Profits
In consumer goods marketing, increases in marketshare are closely related to increases in themarketing budget.
There are minimum levels below which advertisingexpenditures have no effect on sales.
Sales normally increase with additional advertising.At some point, however, the rate of return declines.
There will be some sales even with no advertising.
Sales response to advertising may build over time,but the durability of advertising is brief, so aconsistent investment is important.
Culture and competition impose saturation limitsabove which no amount or advertising can increase
sales.
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Advertising Budgeting
MethodsObjectives-and-tasks method
Percentage-of-sales method
Competitive parity method
All-you-can-afford
Arbitrary allocation
Quantitative or experimental model
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Historical Method
Task-Objective Method:
Bottom-Up
Percentage-of-Sales
Method
Common budgeting method.May be based on last years witha percentage increase.Nothing to do with advertisingobjectives.
Most common method.Looks at objectives set for eachactivity, and determines the costof accomplishing each objective.
Compares total sales with the totaladvertising (or marketingcommunication) budget during aprevious time period to compute apercentage.
The Advertising Budgeting
Methods
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Competitive Methods
All You Can Afford
Method
Relates the amount invested inadvertising to the products shareof market.
Must understand share-of-mind.
Allocates whatever is left over to
advertising.Companies who use this dontvalue advertising very much.
The Advertising Budgeting
Methods
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Top-10 Beer Brands SOMs and SOVs (1997)
Brand
Total Sales
($ Billions) SOM
Media
Expenditure
($ Millions) SOV1. Budweiser $ 35.6 29.2% $ 98.4 20.4%
2. Bud Light 22.8 18.7 55.7 11.5
3. Miller Lite 16.2 13.3 149.0 30.8
4. Coors Light 13.7 11.2 91.9 19.0
5. Busch 7.9 6.5 2.4 0.5
6. Natural Light 7.1 5.8 0.1 0.0
7. Miller Genuine Draft 5.5 4.5 21.5 4.4
8. Miller High Life 4.7 3.9 61.1 12.69. Busch Light 4.5 3.7 0.0 0.0
10. Milwaukees Best 3.9 3.2 3.1 0.6
TOTAL $ 121.9 100% $483.2 100%
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Review
Learn about major components of theadvertising plan.
Understand the importance of settingobjectives.
Discuss the success factors of introductoryadvertising and the relationship between
advertising and sales.Discuss various budgeting methods used inadvertising.
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