HSS012 ADVERTISING MEDIA SERVICES

UNIT 2-ADVERTISING PLANNING

PREPARED BY
Mr.T.Raj Pradeesh
ASSISTANT PROFESSOR
DEPARTMENT OF MECHANICAL ENGG
KARE
 The Planning Cycle
Results Feedback
Are we If not,
there? why not?
Situation
Let’s get Analysis
Implementation
there
Market Where are
How do we Plan Consumers we?
get there?

Where do
Where could
We want
we be?
to go?
Objectives Co. Potential
and Strategy
 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

Marketing
Despatch Head Agency

Sales MR
Brand
Manager
New Product
Finance Planning/R&D

Production
Materials
 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, non-
users 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 • 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
SET OBJECTIVES

SET YOUR
BUDJETS

IDENTIFY
COMPETITORS &
CUSTOMERS

REVIEW THE
NO’S

CHOOSE YOUR
STATERGY

ASK
PROFESSIONAL
FOR HELP
 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
• 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 Consumers not using

different brands 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 • Nature of demand
industry • Extent of demand
• Skills of the firm • Nature of competition
• In – house skills vs • Environmental climate
those of competitors • Stage of PLC
• Financial resources of
the firm
Decision Sequence for Developing the Promotion
Mix
 Developing an Integrated Marketing
Communications Plan
• Step 1: Define the audience(s) to be targeted
– Three broad ways to segment both consumer
and organizational markets:
• Who the customers are
• Where they are
• How they behave
 Developing an Integrated Marketing
Communications Plan
• Step 2: Set the promotional objectives.
– SMART (Specific, Measurable, Attainable,
Relevant, and Time-bound)
– Good objectives should include:
• A statement defining the target audience.
• A statement of how some specific aspect(s) of the
audience’s perceptions, attitudes, or behavior should
change.
• A statement of how quickly such a change is
expected to occur.
• A statement of the degree of change required.
 Developing an Integrated Marketing
Communications Plan
• Step 3: Set the promotion budget
– The percentage-of-sales method
– The competitive-parity method
– The objective-and-task method
 Developing an Integrated Marketing
Communications Plan
• Step 4: Design the promotion mix
– First, marketers decide which promotion
components to use.
– Second, they choose the specific activities
within each component.
– Third, within each activity they must decide
which specific vehicle to employ.
 Developing an Integrated Marketing
Communications Plan
• Step 5: Evaluate the results
– Involves finding out whether the objectives of
the promotional activity have been met—often
via marketing research.
– Research can also provide important insights
into whether the firm attained its distribution
objectives