Develop an Advertising Plan

7/29/2019 Develop an Advertising Plan

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C H A P T E R 4

Develop An Advertising Plan


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Purpose of an Advertising Plan:

Advertising Plan: Describes the thinking and tasksneeded to achieve a successful advertising campaignthat fits into the advertisers marketing strategy.

All decisions made during the creation of anadvertising campaign must fit into the advertisingplan.


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Components of an Advertising Plan

1. Introduction

2. Situational Analysis

3. Objectives

4. Budget5. Strategy

6. Execution Methods

7. Evaluation


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Introduction

Presents an executivesummary and overview of theentire plan.

Executive Summary: Summarizes the most

important parts of the advertising plan. Similar to a summary of an entire book.

Can be two paragraphs to two pages in length.

Overview: Summarizes important information in

each section of the document. Similar to a summary of each chapter in a book.


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Situational Analysis

Describes the factors that influence the advertisingplan.

1. Reviews the company and product history.

2. Evaluates the products strengths and weaknesses.

3. Defines the target market.

4. Evaluates the competition.


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Objectives

Describes the goals that the advertising should accomplish.

Sample goals/objectives:

1. Increase consumer awareness of brand.2. Change consumer attitudes about the product.

3. Promote replacement of outdated products with newproducts using new technology.

4. Persuade consumer to try a sample of product.5. Convert occasional user of product to regular user.

6. Persuade consumers to switch from a competitorsproduct.

7. Increase sales.


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Objectives

An objective must be clearly stated and include criteriato measure the success of the campaign.

Example: Based on surveys completed at the

conclusion of the three week advertising campaign,McKnight Advertising Agency will increase brandrecognition from 50% to 55%.


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Budget

Identifies the amount of money that will be spent onadvertising and the method used to calculate theamount.

Budget methods:1. Affordable Method

2. Historical Method

3. Percent of Sales Method

4. Share-of-Voice Method

5. Objective and Task Method


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Affordable Method

The advertiser spends what it thinks it can afford.

Commonly used by small, inexperienced businesses.

Disadvantages:

Poor method of setting a budget because theadvertiser doesnt know if it is spending too much ortoo little.


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Historical Method

The amount of the current budget is based on theamount the advertiser was able to afford the previous

year.

Ex.(Last years budget) x (Inflation) =CurrentBudget

Disadvantages:

Generally not recommended because the budget

does not take into account changes made to thebusiness since last year (i.e. competition).

New businesses cannot use this method


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Percentage of Sales Method

Amount of current budget is based on % of last yearssales or anticipated sales.

Commonly used by large companies.

Higher % of budget is used on new products It costs more to build a consumers awareness of a new

product. (10%-35%)

Disadvantages

Could lead to overspending on budget or decrease inadvertising due to low sales.


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Share-of-Voice Method

Based on the idea that if you spend more than yourcompetition consumers will be more aware of yourproduct than your competitors.

Many companies use this method.

Disadvantages:

Your competitors spending information may beimpossible to obtain.

The same amount of money will not automaticallycreate a campaign of the same quality.

Your competitor may have a different objective,requiring a different budget.


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Objective and Task

The only method that uses the relationship betweenwhat you want to accomplish and what you want tospend.

Objectives must be specific and clear. Costs are based on the level of the objective (or task)

you want to accomplish.

Disadvantages:

Obtaining each level of your objectives will require adifferent spending level.


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Strategy

Identifies how the advertising plan objectives will beaccomplished.

Involves:

1. Identifying the target market2. Selecting a positioning strategy

3. Choosing the type of advertisement


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Positioning

The process of making an advertisers productdifferent from other products in the consumersmind.

Benefit positioning: Selects a single benefitthat users might believe is important.

User positioning: Demonstrates how theproduct will fit into consumers lifestyle.

Competitive positioning: Focuses on thedifferences between your product and othersimilar products


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Choose the Type of Advertising

Brand Advertising

Informative Advertising

Comparative Advertising

Defensive Advertising Persuasive Advertising


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Execution

Identifies where, when, and how the ad will be placedin the appropriate media.


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Evaluation

Describes the tests and criteria that will determine thesuccess or failure of the advertising campaign.

Return on Investment: The amount you earn fromthe money you spend.


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Changing Behavior is Difficult


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Hierarchy of Change

Awarenessand Recall

ChangeAttitude

BrandPreference

BelieveProductClaims

ChangePurchaseBehavior


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Evaluation Measurement Tools

Awareness and Recall Testing

Unaided recall: Do you remember any commercials yousaw on T.V. last night?

Aided recall: Tell me what you think of when you hear thework Nike.

Mall Intercept Method

Mail Questionnaires

Telephone Surveys

Consumer Panels

Tracking Studies

Documents

Develop an Advertising Plan