The Advertising Plan

Advertising Plan Components

Situation Analysis Objectives Strategy Budgeting Execution Evaluation

Advertising Plan Components

Historical context

Situation Analysis

Industry analysis

Market analysis
Competitor Analysis

Advertising Plan Components

Product Analysis
Brief history of specific product/brand
Strengths, weaknesses, problems, opportunities

Past ad budgets, campaigns, successes and failures

Advertising Plan Components

Competitive/Industry Analysis Analyze two primary competitors Focus on industry developments and trends Discusses the most important aspects of an industry

Advertising Plan Components

Competitive/Industry Analysis
Evaluate your primary competitors just like you evaluate your own product/service.
How/Why are their offerings better, worse, similar, different, etc.? What are their advertising budgets, strategies, campaigns, etc.?

How well can they counter your strategies?

Advertising Plan Components

Market Analysis
Who is your primary target segment? What are the primary characteristics they share? Describe their demographics, psychographics, geographics, benefit segment, usage pattern, commitment level, etc.

Advertising Plan Components

Objectives
What do we want to accomplish and how should we accomplish it? Marketing Objectiveshow much sales or market share should be increased. Advertising or Communication Objectiveswhat should be said or communicated in the ad (awareness of new product or feature, etc.)

 To create or maintain brand awareness. To change consumer beliefs or attitudes. To influence purchase intent. To stimulate trial use. To convert one-time users into repeat purchasers. To encourage brand switching.

Advertising Plan Components

Brand name recognition?
Repetition and frequency Rhyming games

Strategy

Trial Use Stimulation?

Introductory offers Product guarantees

Brand Switching?
Value Propositions Product comparisons

What is the strategy in this ad?

Strategy & the Creative Mix

Enhanced KimLord grid

Advertising Plan Components

Budgeting Methods

BASIC Principles of Marginal Analysis

Increase Spending . . . IF:
The increased cost is less than the incremental (marginal) return.

Decrease Spending . . . IF:

The increased cost is more than the incremental (marginal) return.

Hold Spending Level. . . IF:

The increased cost is equal to the incremental (marginal) return.

Problems with Marginal Analysis

Assumption that sales are a direct measure of advertising and promotional efforts. Assumption that sales are determined solely by advertising and promotion.

Top-Down Budgeting

Top Management Sets the Spending Limit

The Promotion Budget Is Set to Stay Within the Spending Limit

Top-Down Budgeting Methods

Top Management

Competitive Parity

Affordable Method

Percentage
of Sales

Bottom-Up Budgeting
Total Budget Is Approved by
Top Management

Cost of Activities are Budgeted

Activities to Achieve Objectives Are Planned

Promotional Objectives Are Set

Advertising Plan Components

Copy strategy

Execution

Media plan Integrated brand promotion

Advertising Plan Components

Evaluation
Evaluate whether weve achieved the objectives we set for the advertising Pretestsevaluate ads before the ad campaign starts (or is exposed to the public through the media) Posttestsevaluate ads during or after the ad campaign starts