Advertising Planning

The Planning Cycle

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
Strategic Role of the Brand
Manager
Role of advertising within the
communications mix
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?
Is Advertising
related to sales?
Factors influencing sales
• Govt. policy • Advertising
• Taxes • Price
• Promotions • Distribution
• Economic climate • Packaging
• Seasonalities • Product features
• And so on • Competition
• Consumer tastes
Impact of Advertising

New customers

Advertising Immediate sales Future Sales

Change attitude
Improve image
 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 year’s 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 don’t 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
 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
Targetting
Increasing Turnover
• Increasing customers
• Increasing usage per customer
• Reduce time between purchases
Situation Analysis
• Cost structure of • Nature of demand
industry • Extent of demand
• Skills of the firm • Nature of
• In – house skills vs competition
those of competitors • Environmental
• Financial resources of climate
the firm • Stage of PLC
Advertising Budgeting