Develop An Advertising Plan

CHAPTER 4Develop An Advertising Plan... Purpose of an Advertising Plan:Advertising Plan: Describes the thinking and tasks needed to achieve a successful advertising campaign that fits in

CHAPTER 4

Develop An Advertising Plan

Purpose of an Advertising Plan:

Advertising Plan: Describes the thinking and tasks needed to achieve a successful advertising campaign that fits into the advertiser’s marketing strategy

 All decisions made during the creation of an

advertising campaign must fit into the advertising plan

Components of an Advertising Plan

Presents an executive summary and overview of the entire 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.

Situational Analysis

Describes the factors that influence the advertising plan

1 Reviews the company and product history.

2 Evaluates the product’s strengths and weaknesses.

3 Defines the target market.

4 Evaluates the competition.

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3 Promote replacement of outdated products with new products using new technology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 competitor’s product

7 Increase sales

An objective must be clearly stated and include criteria

to 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 brand

recognition from 50% to 55%

Identifies the amount of money that will be spent on advertising and the method used to calculate the amount

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 the

advertiser doesn’t know if it is spending too much or too little

Historical Method

The amount of the current budget is based on the

amount the advertiser was able to afford the previous year

Ex. (Last year’s budget) x (Inflation) =Current

Budget

Disadvantages :

 Generally not recommended because the budget

does not take into account changes made to the

business since last year (i.e competition)

 New businesses cannot use this method

Percentage of Sales Method

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

 Commonly used by large companies

 Higher % of budget is used on new products

 It costs more to build a consumer’s awareness of a new

product (10%-35%)

Disadvantages

 Could lead to overspending on budget or decrease in advertising due to low sales

Share-of-Voice Method

Based on the idea that if you spend more than your competition consumer’s will be more aware of your product than your competitor’s.

 Many companies use this method.

 Your competitor may have a different objective,

requiring a different budget.

Objective and Task

The only method that uses the relationship between what you want to accomplish and what you want to spend

 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 a different spending level

Identifies how the advertising plan objectives will be accomplished

Involves:

1 Identifying the target market

2 Selecting a positioning strategy

3 Choosing the type of advertisement

The process of making an advertiser’s product

different from other products in the consumer’s

mind

that users might believe is important.

product will fit into consumer’s lifestyle

differences between your product and other

similar products

Choose the Type of Advertising

Identifies where, when, and how the ad will be placed

in the appropriate media

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

the money you spend

Changing Behavior is Difficult

Hierarchy of Change

Awareness

and Recall

Change Attitude

Brand Preference

Believe Product Claims

Change Purchase Behavior

Evaluation Measurement Tools

 Awareness and Recall Testing

saw on T.V last night?”