Advertising Planning
The Planning Cycle
Let’s get
there
Results
Feedback
Are we
there?
If not,
why not?
Situation
Analysis
Implementation
How do we Plan
get there?
Where do
We want
to go?
Objectives
and Strategy
Where are
we?
Market
Consumers
Where could
we be?
Co. Potential
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
Despatch
Marketing
Head
Agency
MR
Sales
Brand
Manager
Finance
Materials
New Product
Planning/R&D
Production
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, nonusers 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
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Govt. policy
Taxes
Promotions
Economic climate
Seasonalities
And so on
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Advertising
Price
Distribution
Packaging
Product features
Competition
Consumer tastes
Impact of Advertising
New customers
Advertising
Immediate sales
Change attitude
Improve image
Future Sales
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
different brands
Consumers not using
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
industry
• Skills of the firm
• In – house skills vs
those of competitors
• Financial resources of
the firm
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Nature of demand
Extent of demand
Nature of competition
Environmental climate
Stage of PLC