Advertising Planning

The Planning Cycle

Are we
there?
If not,
why not?
Where are
we?
Where could
we be?
Market
Consumers
esults !eedback
"ituation
Analysis
Co# Potential
Where do
We want
to go?
$b%ectives
and "trategy
&ow do we
get there?
'et(s get
there
Plan
Im)lementation

Whose %ob is it?
*
+ormally the brand manager#
*
In some cases it could be the advertising
manager, the marketing manager, the
)roduct manager and similar designations

ole of the ,rand Manager
*
C-$ of the brand
*
Accountable for the sales, )rofits,
contribution and fortunes of the brand
*
+eeds to interact with all functionaries,
internally and e.ternally and do whatever it
takes to ensure the )rogress of his brand

"trategic ole of the ,rand Manager
,rand
Manager
M
!inance
"ales
/es)atch
Marketing
&ead Agency
+ew Product
Planning01/
Production
Materials

ole of advertising within the
communications mi.
*
To increase awareness of the brand and its characteristics
*
To encourage non-users to sam)le the )roduct
*
To develop the belief among both users and ideally, non2
users that a brand is technically su)erior to com)etitors for
reasons A, ,, C, etc#
*
To inform consumers es)ecially lapsed consumers that
the )roduct has been im)roved or reformulated
*
To encourage retail trade to stock and display the
)roduct

Is it an investment or revenue
e.)ense ?
Conservative accounting )rinci)les
does not recognise the future )ositive
effects of current advertising
e.)enditure

Is advertising an e.)ense or an
investment?
*
&ow to treat it in the books?
*
isk
*
,enefits obtained from the e.)enditure

Is advertising related to sales?
3es and +o#

!actors influencing sales
*
4ovt# )olicy
*
Ta.es
*
Promotions
*
-conomic climate
*
"easonalities
*
And so on
*
Advertising
*
Price
*
/istribution
*
Packaging
*
Product features
*
Com)etition
*
Consumer tastes

Im)act of Advertising
Advertising
+ew customers
Immediate sales
Change attitude
Im)rove image
!uture "ales

3ou can attain tem)orary share of
the market with anew )roduct or a
smart )romotion, but to en%oy a
really healthy share of market 5in
three year(s time6 you have to start
now, to build a share of mind7 'eo ,urnett

8I am astonished to find how many
manufacturers, on both sides of the
Atlantic, still believe that women
can be )ersuaded by logic and
argument to buy one brand in
)reference to another# The greater
the similarity between )roducts, the
less )art reason )lays in brand
selection9 7 /avid $gilvy

8&alf my advertising is wasted,
but the )roblem is I don(t know
which half9
2 :ohn Wanamaker

/emand stimulated by advertising not
only increases sales but the value of the
brand in the minds of the consumer
"uccessful advertising hel)ed
increase )rices by ;;< than not so
successful advertising

The average < increase in sales
to be e.)ected from = <
reduction in )rice is =#><
The average < increase in sales to be
e.)ected by = < increase in ads)end
is ?#;<

Advertising $b%ectives
*
Communication and coordination device
*
Criterion for decision making
*
-valuating results

Advertising 4oal 2 /A4MA
A specific communication task to be
accom)lished among a defined target
audience to a given degree in a given
period of time

Customer /ynamics
Consumers not using
)roduct category
Consumers using brand
Consumers using
different brands

Targetting
*
Who is the target segment?
*
What is the behaviour within that segment
that advertising is attem)ting?
*
What is the )rocess that would lead to
desired behaviour?
*
Is it necessary to create awareness, build
attitudes0 brand e@uity0associated
feelings0ty)e of user )ersonality ?

Increasing Turnover
*
Increasing customers
*
Increasing usage )er customer
*
educe time between )urchases

"ituation Analysis
*
Cost structure of
industry
*
"kills of the firm
*
In 7 house skills vs
those of com)etitors
*
!inancial resources of
the firm
*
+ature of demand
*
-.tent of demand
*
+ature of com)etition
*
-nvironmental climate
*
"tage of P'C