2.10 Advertising Campaign Financial Planning
Advertising and Sales Promotion
Marketing
Lesson Plan
Performance Objective
Students will identify budgeting methods and evaluate financial statements for effecting advertising campaign financial
planning.
Specific Objective
• Identify sources of financial assistance
• Evaluate and understand the need for and use of balance sheets, income statements, and budgets
•
Correlate the relationships of perishability to profit and loss
Terms
• Balance sheet – a financial statement that summarizes a company’s assets, liabilities, and owner’s
equity at a specific point in time.
• Income statement – a financial statement summarizing the revenues, expenses and profitability of an
organization over a period of time
• Percentage of sales budget method – advertising budget determined based on a percentage of a
company’s past sales or a forecast of future sales
• Competitive parity budget method – advertising budget based on what the competition is estimated to
be spending
• Objective and task budget method – budget set based on the overall company objective for the
advertising campaign
• Market response budget method – budget determined by evaluating the number of sales generated as
a result of the amount spent on advertising
Time
When taught as written, this lesson should take approximately two days to teach.
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result
in the elimination of any or all of the TEKS listed.
130.342. (c) Knowledge and Skills
(1) The student knows that financial planning is necessary for the market’s success and solvency
(a) identify sources of financial assistance
(b) explain the purpose of financial records such as budget, balance sheet, and income
statement
(c) discover the relationships of perishability to profit and loss
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1
Interdisciplinary Correlations:
English-English I
• 110.31(b)(1). Reading/Vocabulary Development. Students understand new vocabulary and use it
when reading and writing.
• 110.3(b)(11). Reading/Comprehension of informational text/procedural texts. Students understand
how to glean and use information in procedural texts and documents.
Math-Algebra I
• 111.32(b)(1)(C). Interpret and make decisions, predictions, and critical judgments from functional
relationships.
Social Studies-World Geography
113.34(c)(20)(A) Describe the impact of new technologies, new markets, and revised perceptions of
resources.
Occupational Correlation (O*Net – www.onetonline.org/):
Job Title: Advertising and Promotions Manager
O*Net Number: 11-2011.00
Reported Job Titles: Advertising Manager, Promotions Director, Advertising Director
Tasks:
•
Prepare budgets and submit estimates for program costs as part of campaign plan development.
•
Prepare and negotiate advertising and sales contracts.
•
Plan and execute advertising policies and strategies for organizations.
•
Assist with annual budget development.
Soft Skills: Reading Comprehension, Active Listening, Critical Thinking, Complex Problem Solving
Accommodations for Learning Differences
It is important that lessons accommodate the needs of every learner. These lessons may be modified to
accommodate your students with learning differences by referring to the files found on the Special
Populations page of this website (cte.unt.edu).
Preparation
• Review and familiarize yourself with the terminology,
• Have materials ready prior to the start of the lesson.
References:
Online
Onetonline.org
Instructional Aids
•
•
•
•
Textbook
Lesson Presentation
Instructor Computer/Projection Unit
Online Websites
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2
Introduction
The main purposes of this lesson is to help students understand
•
•
•
how to determine an advertising campaign budget
the correlation of balance sheets, income statements and budgets in developing a cost analysis for the
advertising campaign
the potential perishability associated with profit and loss
Ask students if they know the purpose and importance of a budget for an advertising campaign.
Ask students if they know why it is important to develop a workable budget for an advertising
campaign.
MI
Outline
I.
Terms
a. Balance sheet
b. Income statement
c. Percentage of sales budget method
d. Competitive parity budget method
e. Objective and task budget method
f. Market response budget method
II.
Identify the best method
a.
The pros and cons of each budget
method.
III.
Review Financial Statements
a. Balance sheet
b. Income statement
IV.
Select the best method
a. Choosing one over another
b. Who uses each method
V.
Independent Practice
a. Assign company to research
b. Locate current advertising methods
c. Evaluate public financial statements
d. Suggest the most effective method of
budgeting for this company
Notes
Use presentation as visual aide
Have students write vocabulary
terms and meanings
Discuss the pros and cons of each
budget method with the class.
Allow students to make their own
evaluation of possible pros and
cons of each
Show the sample financial
statements and identify the
sections in accordance with the
equation.
Discuss why a company would
choose one method over another
and allow students to identify
what method popular companies
currently used based on new
knowledge.
Allow students to work in groups
of 2-3 to complete this
assignment using computers or
the library.
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Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
Visual/Spatial
Application
Guided Practice
Students will work in pairs to research and identify the pros and cons of each type of budget method. They will include
at least two pros and cons for each method. They will create a flyer depicting these findings and share with the class.
Independent Practice
Advertising Campaign Budgeting Project
Students should research and produce a presentation that gives an overview of the information located about
the company assigned including:
1. Locate current advertising methods
2. Evaluate public financial statements
3. Suggest the most effective method of budgeting for this company
Students will present the information to the class in a formal presentation and should be evaluated using the
assigned rubric.
Summary
Review
1.
2.
3.
4.
Why is budgeting important in the development of an advertising campaign?
What are the types of budgeting methods?
What does a balance sheet include?
What does an income statement include?
Evaluation
Informal Assessment
•
Student participation throughout the discussion process and contribution to the guided practice activity.
Teacher will observe students by walking the classroom during each activity.
Formal Assessment
Students will be evaluated on their Advertising Campaign Budgeting Project using the Assigned Rubric.
Copyright © Texas Education Agency, 2013. All rights reserved.
4
Enrichment
Extension
Integrate math skills: Have students calculate a company’s profit/loss and assets using the equations
presented in the lesson.
Copyright © Texas Education Agency, 2013. All rights reserved.
5
2.10 Advertising Campaign Financial Planning
Advertising and Sales Promotion
Marketing
Advertising Campaign Budgeting Project
Students should research and produce a presentation that gives an overview of the information located about
the company assigned including:
1. Locate current advertising methods
2. Evaluate public financial statements
3. Suggest the most effective method of budgeting for this company
Students will present the information to the class in a formal presentation and should be evaluated using the
assigned rubric.
Copyright © Texas Education Agency, 2013. All rights reserved.
6
2.10 Advertising Campaign Financial Planning
Advertising and Sales Promotion
Marketing
Rubric
Categories
Content
Preparedness
Enthusiasm
20
15
10
Student is
Student shares
Student is missing
knowledgeable and
information
one or two
includes all
required in
elements in
information plus
presentation
presentation
additional content in
presentation
Student is prepared
Student seems
Student is
and has rehearsed prepared but should
somewhat
extensively
rehearse more
prepared but is
lacking rehearsal
Facial expressions
Facial expressions
Facial expressions
and body language
and body language
and body
show interest and
sometime show
language are used
enthusiasm about
interest
to try to generate
the topic
enthusiasm
Speaking, eye
contact, and
posture
Speaks clearly,
stands straight and
makes eye contact
with audience 100%
of presentation
Speaks clearly,
stands straight and
makes eye contact
with audience 90%
of presentation
Visual
Attractive and well
designed visual with
all required
information
Organized Visual
with all required
information
Speaks clearly,
stands straight
and makes eye
contact with
audience 80% of
presentation
Visual with all
information but
lacks organization
Total Points: _____________
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7
5 or less
Student is missing
multiple elements
of content and is
lacking knowledge
Student is not
prepared
Very little used of
facial expressions
or body language.
Did not generate
much interest in
topic
Mumbles, slouches
and does not look
at the audience
throughout the
presentation
Visual with partial
information