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Advertising Planning

The Planning Cycle


Results Are we there? Lets get there Implementation Market Consumers Feedback If not, why not?

Situation Analysis
Where are we?

How do we Plan get there?


Where do We want to go?

Where could we be?

Objectives and Strategy

Co. Potential

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


Despatch

Marketing Head

Agency

Sales
Brand Manager Finance

MR
New Product Planning/R&D

Materials

Production

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, nonusers 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 Taxes Promotions Economic climate Seasonalities And so on Advertising Price Distribution Packaging Product features Competition Consumer tastes

Impact of Advertising
New customers

Advertising

Immediate sales Change attitude Improve image

Future Sales

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 years 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 dont 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 different brands

Consumers not using 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 industry Skills of the firm In house skills vs those of competitors Financial resources of the firm Nature of demand Extent of demand Nature of competition Environmental climate Stage of PLC