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Communication Planning
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The Planning Cycle Results Feedback Are we there? If not, why not?
Situation Analysis Let’s get there Implementation Market Consumers Where are we? How do we get there? Plan Where do We want to go? Where could we be? Objectives and Strategy Co. Potential
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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
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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
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Strategic Role of the Brand Manager
Marketing Head Despatch Agency Sales MR Brand Manager New Product Planning/R&D Finance Production Materials
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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, non-users 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
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Is it an investment or revenue expense ?
Conservative accounting principles does not recognise the future positive effects of current advertising expenditure
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Is advertising an expense or an investment?
How to treat it in the books? Risk Benefits obtained from the expenditure
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Is advertising related to sales?
Yes and No.
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Factors influencing sales
Govt. policy Taxes Promotions Economic climate Seasonalities And so on Advertising Price Distribution Packaging Product features Competition Consumer tastes
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Impact of Advertising New customers Advertising Immediate sales
Future Sales Change attitude Improve image
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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
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“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
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“Half my advertising is wasted, but the problem is I don’t know which half” - John Wanamaker
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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
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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%
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Advertising Objectives
Communication and coordination device Criterion for decision making Evaluating results
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Customer Dynamics Consumers using Consumers not using different brands
product category Consumers using different brands Consumers using brand
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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 ?
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Increasing Turnover Increasing customers Increasing usage per customer
Reduce time between purchases
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Situation Analysis Cost structure of industry Skills of the firm
In – house skills vs those of competitors Financial resources of the firm Nature of demand Extent of demand Nature of competition Environmental climate Stage of PLC
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Advertising Budgeting
Historical Competitive Parity All-you-can-afford Objective and Task
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