Lecture 15 Developing An Advertising Plan Dr. Hatem Elaydi ECOM 5368 Engineering Management (Entrepreneurship & ework) Islamic University of Gaza Oct 17, 2016

Conditions conducive to advertising Consumers want to purchase Marketing and production expertise is well established No consumer interest = no sales ECOM 5368, Dr. H Elaydi, Fall2016

The advertising plan Advertising objectives Timing (when to advertise) Strategy (media and creative) Budget development and control Schedule of activities ECOM 5368, Dr. H Elaydi, Fall2016

Writing advertising guidelines Be specific Be reasonable Be measureable Be time limited Be written ECOM 5368, Dr. H Elaydi, Fall2016

Advertising objectives To inform (educate) Tell a market about a product or a service Suggest new uses for a product Inform about a price change Explain how a product works Describe available services Correct false impressions Reduce consumer fears Build an image ECOM 5368, Dr. H Elaydi, Fall2016

Advertising objectives 2 To persuade Build brand preference Encourage switching to your product / service Change consumer’s perception of product preferences Persuade customers to purchase now Persuade customers to receive a sales call ECOM 5368, Dr. H Elaydi, Fall2016

Advertising objectives 3 To remind Reminding customers that the product may be needed in the near future Reminding customers where to buy your product/service Keeping your product / service in the customer’s mind during off seasons Maintaining top-of-mind awareness ECOM 5368, Dr. H Elaydi, Fall2016

Exercise Individual work Select five advertisements for five different products and analyze the objectives of the advertisement and determine the which of the three objectives they used and their sub- objective. ECOM 5368, Dr. H Elaydi, Fall2016

Media selection strategy Define marketing goals of the business Identify the target market Determine buying behavior of target market Define the advertising message Establish the advertising budget Analyze the competition’s advertising plan Determine your selling position Select the best media Share advertising plan with all employees ECOM 5368, Dr. H Elaydi, Fall2016

Media plan goals Deliver message effectively Maximize reach and frequency Minimize cost Be effective and efficient ECOM 5368, Dr. H Elaydi, Fall2016

Media effectiveness method CPM = cost per thousand = cost of media unit × 1000/ audience delivered Example Cost of a quarter page in a newspaper $220 and audience delivered 25000 CPM= 220 × 1000/25000 = $8.80 ECOM 5368, Dr. H Elaydi, Fall2016

Frequency Frequency is the average number of times the same audience will be exposed to the same message. The audience must receive the message a number of times before it sinks in. “one ad – one time – one medium does not work overall media strategy.” A frequency of 3-5 times per a week is recommended If the frequency is high, change the message slightly so it sounds/looks just a little different but convey the same message Continuity is the pattern a particular advertising campaign follows and the length of time it takes to complete. ECOM 5368, Dr. H Elaydi, Fall2016

Types of media Newspaper Television Radio Magazine Direct mail Trade shows Internet Social media Bill boards ECOM 5368, Dr. H Elaydi, Fall2016

Methods of developing a budget Percentage of sales Spend what you can afford Match the competition Allocate budget per unit Objective and task method Cinderella plan ECOM 5368, Dr. H Elaydi, Fall2016

Budget control work sheet ECOM 5368, Dr. H Elaydi, Fall2016

Calendar planning sheet Schedule of promotional activities for the month of …. ECOM 5368, Dr. H Elaydi, Fall2016

Calendar planning sheet Schedule of promotional activities for the year of …. ECOM 5368, Dr. H Elaydi, Fall2016

Thirteen buying motivators Amusement Appetizing Comfort Good health & long life Earning money Saving labor Protecting one’s family Recognition & superiority Saving money Saving time Security Approval from opposite sex Something for nothing ECOM 5368, Dr. H Elaydi, Fall2016

Creative ideas system Combine old ideas in new ways Develop source book of ideas Look for relationships between ideas Allow ideas to rest in subconscious Allow ideas to flow from subconscious Critique idea with experienced person Use idea ECOM 5368, Dr. H Elaydi, Fall2016

Image People trust by feelings Image identity manual (letterheads, business cards, invoices, purchase orders, logo, a copy of every thing that carries the name of the business to customers. Use a jingle for at least two years Creative production Stationery (letterheads, business cards, envelopes) Small print advertisement brochure ECOM 5368, Dr. H Elaydi, Fall2016