Advertising

and Integrated
Brand Promotion 8th Edition
O’Guinn • Allen • Close Scheinbaum • Semenik

© 2019 Cengage. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly
accessible website, in whole or in part.
 Chapter 8
Planning Advertising and
Integrated Brand Promotion

© 2019 Cengage. All Rights Reserved.

Ch. 8 Framework

© 2019 Cengage. All Rights Reserved. 3

 Learning Objectives
1. Describe the basic components of an advertising
plan.
2. Compare and contrast two fundamental approaches
for setting advertising objectives.
3. Explain various methods for setting advertising
budgets.
4. Discuss the role of the agency in formulating an
advertising plan.

© 2019 Cengage. All Rights Reserved. 4

IBP In Action: KitKat

© 2019 Cengage. All Rights Reserved. 5

Role of the Agency in Planning Advertising and IBP

• To translate the current market and marketing status

of a firm and its advertising objectives into:
– Advertising strategy.
– Finished advertisements and IBP materials.

© 2019 Cengage. All Rights Reserved. 6

 Advertising Plan
• Specifies the thinking, tasks, and timetable to
implement an effective advertising effort.
• Should be a direct extension of a firm’s marketing
plan.
• Integrated brand promotion (IBP) component must be
built into the plan.

© 2019 Cengage. All Rights Reserved. 7

How Would you Do An Ad Plan for a
Pharmaceutical Drug Brand?

© 2019 Cengage. All Rights Reserved. 8

Advertising Plan Components
Introduction

Situation Analysis

Objectives

Budgeting

Strategy

Execution

Evaluation

© 2019 Cengage. All Rights Reserved. 9

The advertising plan

© 2019 Cengage. All Rights Reserved. 10

 Introduction
Executive summary:
• Offered to state the most important aspects of the
plan.
Overview:
• Sets out what is to be covered.
• Structures the context.

© 2019 Cengage. All Rights Reserved. 11

 Situation Analysis (1 of 3)

• Analyzes the factors that define the market and

consumer situation.
• Explains the importance of each factor.
• Cultural context:
– International advertising: Reaches across national and
cultural boundaries.
– Ethnocentrism: Tendency to view and value things
from the perspective of one’s own culture.

© 2019 Cengage. All Rights Reserved. 12

 Situation Analysis (2 of 3)

– Self-reference criterion (SRC): Unconscious

reference to one’s own cultural values, experiences,
and knowledge as a basis for decisions.
• Historical context.
• Industry analysis: Focuses on:
– Trends within an entire industry.
– Factors that make a difference in how an advertiser
proceeds with an advertising plan.

© 2019 Cengage. All Rights Reserved. 13

 Situation Analysis (3 of 3)

• Market analysis: Emphasizes on the demand side of

the equation.
• Competitor analysis: Determining who the brand’s
competitors.
– Discussing the competitors’ strengths, weaknesses,
tendencies, and the threats they pose.

© 2019 Cengage. All Rights Reserved. 14

 Objectives (1 of 5)

• Framework for the subsequent tasks in an advertising

plan.
– To increase consumer awareness of and curiosity about
its brand.
• Brand awareness: Indicator of consumer knowledge
about the existence of the brand.
• Top-of-the-mind awareness: Easy retrieval of a brand
from memory.
– To change consumers’ beliefs or attitudes about its
brand.

© 2019 Cengage. All Rights Reserved. 15

 Objectives (2 of 5)

– To influence the purchase intent of customers and

potential customers.
• Purchase intent: Determined by asking consumers
whether they intend to buy a product or service in the
near future.
– To stimulate trial use of the brand.
• Trial usage: Reflects actual behavior by encouraging
customers to try a product.

© 2019 Cengage. All Rights Reserved. 16

 Objectives (3 of 5)

– To convert one-time brand users into repeat

purchasers.
• Repeat purchase: Purchasing a product for a second
time.
– To switch consumers from a competing brand to its
brand.
• Brand switching: Long and expensive task in which
consumers are persuaded to switch brands.
– To increase sales.

© 2019 Cengage. All Rights Reserved. 17

 Objectives (4 of 5)

• Benefits to maintaining communications perspective

in setting advertising objectives.
– Marketers can consider a broader range of advertising
strategies.
– Marketers can gain a greater appreciation for the
complexity of the overall communications process.

© 2019 Cengage. All Rights Reserved. 18

 Objectives (5 of 5)

• Well-stated objectives is easier to be developed when

advertising planners want to:
– Establish a quantitative benchmark.
– Specify measurement methods and criteria for success.
– Specify a time frame.

© 2019 Cengage. All Rights Reserved. 19

Sales, Profit, and Ad Expenditures

© 2019 Cengage. All Rights Reserved. 20

 Budgeting Methods (1 of 3)

• Percentage-of-sales approach: Calculates the budget

based on a percentage of the prior year’s sales or the
projected year’s sales.
• Share of market/share of voice.
– Monitors the amount spent by significant competitors
on advertising.
– Allocates an amount equal to the amount of money
spent by competitors.
– Share of voice: Firm’s advertising presence in the
market.

© 2019 Cengage. All Rights Reserved. 21

 Budgeting Methods (2 of 3)

• Response models: Helps to maintain greater

objectivity.
– Provide useful information on a company’s advertising
response function.
• Advertising response function: Mathematical
relationship that associates money spent on advertising
and sales generated.

© 2019 Cengage. All Rights Reserved. 22

 Budgeting Methods (3 of 3)

• Objective-and-task approach: Begins with the

stated objectives for a campaign.
– Relevant goals are specified.
– Budget is formulated by identifying the specific tasks
required to achieve the goals.
– Build-up cost analysis: Building up the expenditure
levels for tasks.

© 2019 Cengage. All Rights Reserved. 23

Steps in Implementing the Objective-and-Task
Budgeting Approach

© 2019 Cengage. All Rights Reserved. 24

 Strategy and Execution
• Strategy:
– Represents the mechanism to do something.
• Execution:
• Execution is actual “doing” in the execution of an ad plan—the
making and placing of ads across all media.
• There are two elements to the execution of an advertising
plan: determining the copy strategy and devising a media plan.
– Copy strategy: Consists of copy objectives and methods.
– Media plan: Specifies where the ads will be placed and what
strategy is behind their placement.
– Integrated brand promotion.

© 2019 Cengage. All Rights Reserved. 25

 Evaluation
• Evaluation: Advertiser determines:
– How the agency will be graded.
– What criteria will be applied.
– How long the agency will have to achieve the agreed-
on objectives.
– Measurement and evaluation is crucial for IBP.

© 2019 Cengage. All Rights Reserved. 26

Evaluation With Digital Engagement

© 2019 Cengage. All Rights Reserved. 27

Role of Agency in Planning Ad & IBP
• Because many marketers rely heavily on the expertise of an
advertising agency.
• Understanding the role an agency plays in the advertising
planning process is important.
• The point is that the marketer is responsible for the marketing
planning inputs as a type of self-assessment that identifies the
firm’s basis for offering value to customers.

© 2019 Cengage. All Rights Reserved. 28

Questions?

© 2019 Cengage. All Rights Reserved. 29