Chapter 8 The Advertising Plan

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Presentation transcript:

Chapter 8 The Advertising Plan Copyright © 2006 Thomson Business and Economics. All rights reserved.

Advertising Plan in Context Marketing Plan Specifies thinking and tasks needed to conceive and implement an effective advertising effort Ad Plan Copyright © 2006 Thomson Business and Economics. All rights reserved.

Advertising Plan Components Introduction Situation Analysis Objectives Budgeting Strategy Execution Evaluation Copyright © 2006 Thomson Business and Economics. All rights reserved.

Advertising Plan Components Introduction Executive summary Overview Historical context Industry analysis Market analysis Competitor Analysis Situation Analysis Copyright © 2006 Thomson Business and Economics. All rights reserved.

Historical context is an important consideration in developing an advertising plan for a brand. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Copyright © 2006 Thomson Business and Economics. All rights reserved.

Advertising Plan: Objectives To create or maintain brand awareness. To change consumer beliefs or attitudes. To influence purchase intent. To stimulate trial use. To convert one-time users into repeat purchasers.. To encourage brand switching. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Sales vs. Communication Objectives Advertising = Sales? Advertising = Communication? Effective Communication = Sales? Sales vs. Communication Objectives Focusing on communications objectives allows advertisers to consider a broad range of strategies. Building brand loyalty can take years. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Advertising Plan Components Characteristics of Workable Objectives Quantitative benchmarks Measurement methods Criteria for success Time frame Copyright © 2006 Thomson Business and Economics. All rights reserved.

Advertising Plan Components (cont’d) Budgeting Methods Advertising Plan Components (cont’d) Percentage of sales Share of market/voice Response models Objective and Task Copyright © 2006 Thomson Business and Economics. All rights reserved.

Implementing Objective and Task Budgeting Determine cost based on build-up analysis Compare costs against industry and corporate benchmarks Production costs Ancillary costs Other promotion Reconcile and modify budget Reach Frequency Time frame Media Determine time frame for payout Copyright © 2006 Thomson Business and Economics. All rights reserved.

Advertising Plan Components Strategy Brand name recognition? Repetition and frequency Rhyming games Trial Use Stimulation? Introductory offers Product guarantees Brand Switching? Value Propositions Product comparisons Copyright © 2006 Thomson Business and Economics. All rights reserved.

Advertising Plan Components Copy strategy Media plan Integrated brand promotion Advertising Plan Components Execution Criteria Methods Consequences Evaluation Copyright © 2006 Thomson Business and Economics. All rights reserved.

The Role of the Advertising Agency in Advertising Planning Advertiser Brings to the table an assessment of the brand’s value, the external environment, and opportunities and threats. The Advertising Agency’s Role To define the current marketing and market status of the brand into advertising objectives and strategies and ultimately into advertisements and IBP materials. Copyright © 2006 Thomson Business and Economics. All rights reserved.