Advertising Budget

By : RAHUL CHOPRA.

Advertising Budget

The Nature and Types of Advertising

Advertising Paid non personal communication about an organization and its products transmitted to a target audience through mass media Promotes goods, services, ideas, images, issues, people, and anything else that advertisers want to publicize or foster

Advertising Budget

Advertising Objectives

Specific Communication Tasks Accomplished with a Specific Target Audience During a Specific Period of Time INFORMATIVE ADVERTISING builds PRIMARY Demand PERSUASIVE ADVERTISING builds SELECTIVE Demand COMPARISON ADVERTISING compares one brand to another REMINDER ADVERTISING keeps consumers thinking about product.
Advertising Budget

Advertising

It's probably the toughest part of any business. How much to spend, where to place the ads, how often, what message to send, and to who?

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The Five Ms
MISSION sales goals, advertising objectives MONEY factors to consider: a) Stage of PLC, b) Market share and consumer base, c) Competition and clutter, d) Advertising frequency, and e) Product substitutability. MESSAGE message generation, message evaluation and selection, message execution, social-responsibility. (AIDA?) Know what this is? (Awareness, Interest, Desire, Action) MEDIA Reach, frequency, impact; Major media types, Specific Media vehicles, Media timing, Geographical media allocation. MEASUREMENT communication impact and sales impact.
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Major Decisions in Advertising

Objectives Setting Budget Decisions:

a) Message Decisions b) Media Decisions

Campaign Evaluations

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Advertising Budget Factors that MUST BE CONSIDERED

Market Share & Consumer Base Competition & Clutter Advertising Frequency Product Substitutability Stage in the PLC (Product Life Cycle)

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General Steps in Developing and Implementing an Advertising Campaign

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FIGURE 19.1

Save money by unadvertised testing

This is the store's way of testing the waters for a specific product or service. If the product tests well, the store can run future ads promoting the product.
Another advantage: Several products can be tested against each other and the winners are promoted later with a greater expectation of success. Service businesses can test additional services at a discount to customers when the primary service is purchased at full price.
Advertising Budget

How to budget for an individual ad

Advertising is like eating an elephant. It's done in small bites not one big one. You will run several ads over a period of time rather than one large aid. How much the ad will cost depends on the answers to the following questions.
All advertising must accomplish a specific definable goal. What will this ad do for your business? What is the short-term benefit to the company for running this ad? The long-term benefit?

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Cont.,

Is this ad financed by the percentage of sales method or a sales objective percentage method? What is the dollar amount allocated to this ad? Co-Op funds available? What is the expected revenue this ad will produce? Are comparable ads being run for competitive products? What size ads do they use? Can you run similar size ads? What is the specific time period for achieving the advertising goal? What form of evaluation will be used to assure that the ad is working or not working?
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Conclusion

Advertising doesn't have to be hard. But, it does require study, testing and planning. The most important lesson in advertising that almost everyone misses is, tracking customer response and income produced by advertising. Does it pay to advertise in the media you've chosen?

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