1. Advertising Planning and Strategy
Chapter 7
Advertising Planning and Strategy

2. Learning Objectives
Learn about major components of the advertising plan.
Understand the importance of setting objectives.
Discuss the success factors of introductory advertising and the relationship between advertising and sales.
Discuss various budgeting methods used in advertising.

3. The Advertising Planning Cycle
1. Where are we?
2.Why are we there?
3.Where could we be?
5. Are we getting there?
4. How could we get there?

4. Advertising Planning and Decision Making
Situation
Analysis
Consumer/Market Analysis
Competitive Analysis
Role of Advertising, Sales Force, Price, Promotion, Public Relations
Marketing
Program
The
Communication/
Persuasion
Process
Objectives/Segmentation/Positioning
Message Strategy and Tactics
Media Strategy and Tactics
Advertising
Plan
“Facilitating” Agencies
Social and Legal Constraints
Implementation
Figure 2-1 Framework for advertising planning and decision making

5. The Advertising Plan
An Advertising Plan Matches the Right Audience to the Right Message and Presents It in the Right Medium to Reach That Audience & 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?

6. Understanding of Comm. Process
A typical communication process model
A model of persuasion process
Ad exposure
Different functions of advertising messages
Brand attitude
Purchase behavior

7. Developing an Advertising Plan
Advertising objectives and target market selection
Creative plan: Message strategy and tactics
Media plan: media strategy and tactics
Evaluation (research)
==> IMC approach: identify roles of various forms of IMC and repeat the process.

8. Typical Advertising or Campaign Plan Outline (Tab. 7.1)
Introduction
Executive Summary or Overview is provided.
Situation Analysis
Advertising Problems
Advertising Opportunities
Key Strategy Decisions
Advertising Objectives
Target Audience
Competitive Product Advantage
Product Image and Personality
Product Position

9. Typical Advertising or Campaign Plan Outline (Tab. 7.1)
The Creative Plan
The Media Plan
The Communication Plan
Sales promotion
Public relations
Direct marketing
Personal selling
Sponsorships, merchandising, packaging, etc.
Implementation and Evaluation
Evaluation
Budget

10. Situation Analysis
Opportunity analysis: to spot and capitalize on favorable demand trends
examples of such trends
Competitive analysis: to achieve and maintain a “competitive advantage”
examples of competitive advantages
Target market selection
examples of target marketing
==> Marketing plan (4Ps)

11. Creative Platform & Message Strategy
Creative platform is a document that outlines the message strategy decisions for an individual ad.
Creative platforms combine the basic advertising decisions – problems, objectives, and target markets – with the critical elements of the sales message strategy – main idea and details about how the idea will be executed.

12. Selling Premises Product Benefit Promises Reason Why Unique Selling
Advertisements that focus on the product itself by looking at attributes.
Benefit
Product is promoted on the basis of what it can do for customers.
Promises
Promises that something will happen if you use the advertised product.
Reason Why
Based on logic and reasoning and clearly states a reason for the benefit gained.
Unique Selling
Proposition
A benefit statement that is both unique to the product and important to the user.
Support
Lends credibility to the selling premise.

13. Defining Advertising Goals for Measured Advertising Results (1962, 1995, S. Dutka)
The 6M approach
Merchandise: important benefits to sell
Markets: who to reach
Motives: why people buy or fail to buy
Media: how to reach
Measurements: how to evaluate (time and change)
Messages: key ideas to convey to move

14. 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

15. What is Good Objectives?
Specify a well-
defined audience
Concrete and
Measurable
Good Objectives
Attainable
Specify a time
period
Establish bench-
Mark measures
Realistic

16. Setting Objectives Using the Communications Effects Pyramid
Product: Backstage Shampoo
Time period: Six months
Objective 1: Create awareness among 90 percent of target audience. Using repetitive advertising in newspapers, magazines, TV and radio programs. Simple message.
Objective 2: Create interest in the brand among 70 percent of target audience. Communicate information about the features and benefits of the brand-I.e., that it contains no soap and improves the texture of the hair

17. 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 favorable attitudes by conveying information, promotions, sampling, etc.
Objective 4: Obtain trial among 20 percent of the target audience. Use sampling and cents-off coupons along with advertising and promotions
Objective 5: Develop and maintain regular use of Backstage Shampoo among 5 percent of the target audience. Use continued reinforcement advertising, fewer coupons and promotions

18. Factors Related to Success of Advertising for New Products
1.Communicating that something is different about the product. Successful introductory commercials communicated some point of difference for the new product
2.Positioning the brand difference in relation to the product category. Successful commercials positioned their brand’s difference within a specific product category. For example, a new breakfast product was positioned as the “Crispiest cereal”or a new beverage as the “smoothest soft drink.”

19. Factors Related to Success of Advertising for New Products
3.Communicating that the product difference is beneficial to consumers. Nearly all of the successful commercials linked a benefit directly to the new product’s difference.
4.Supporting the idea that something about the product is different and/or beneficial to consumers. All the successful commercials communicated support for the product’s difference claim or its relevance to consumers. Support took the form of demonstrations of performance, information supporting a uniqueness claim, endorsements, or testimonials.

20. 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

21. McDonald’s Advertising Response Function
Sales
Advertising

22. Relationship of Adv. to Sales & Profits
In consumer goods marketing, increases in market share are closely related to increases in the marketing budget.
There are minimum levels below which advertising expenditures 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 a consistent investment is important.
Culture and competition impose saturation limits above which no amount or advertising can increase sales.

23. Advertising Budgeting Methods
Objectives-and-tasks method
Percentage-of-sales method
Competitive parity method
All-you-can-afford
Arbitrary allocation
Quantitative or experimental model

24. The Advertising Budgeting Methods
Historical Method
Common budgeting method.
May be based on last year’s with a percentage increase.
Nothing to do with advertising objectives.
Task-Objective Method:
Bottom-Up
Most common method.
Looks at objectives set for each activity, and determines the cost of accomplishing each objective.
Percentage-of-Sales
Method
Compares total sales with the total advertising (or marketing communication) budget during a previous time period to compute a percentage.

25. The Advertising Budgeting Methods
Competitive Methods
Relates the amount invested in advertising to the product’s share of market.
Must understand share-of-mind.
All You Can Afford
Method
Allocates whatever is left over to advertising.
Companies who use this don’t value advertising very much.

26. Top-10 Beer Brands’ SOMs and SOVs (1997)

27. Review Learn about major components of the advertising plan.
Understand the importance of setting objectives.
Discuss the success factors of introductory advertising and the relationship between advertising and sales.
Discuss various budgeting methods used in advertising.