Download Advertising and Promotion 1 Lecture 7 ADVERTISING BUDGET

Advertising and Promotion 1
Lecture 7
ADVERTISING BUDGET AND REACH
4 Methods to determine
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AFFORDABLE RATE.
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PERCENTAGE OF SALES METHOD.
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COMPETITIVE PARITY METHOD.
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OBJECTIVE & TASK METHOD.
ADVERTISING BUDGET
Two Approaches to Decide Budgets
Top - Down Approach
Management decides
Activity based &
how much to spend
objective oriented
Affordability approach
approach by managers
Ignores market reality
Bottom – Up Approach
ADVERTISING - IMPLEMENTATION & EVALUATION
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Deals with campaign’s specific tactics.
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Specifies about activities to be undertaken.
Advertising and Promotion 1
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People responsible for these.
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Time schedules.
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Budget availability.
Advertising manager to find answers…
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WHAT IS TO BE DONE?
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WHO WILL DO IT?
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WHEN WILL IT BE DONE?
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HOW WILL IT BE DONE?
REMEMBER:
“Success is in details”
ADVERTISING RESEARCH
3 Critical Decisions!
1.
SETTING OBJECTIVES.
1.
SELECTING THE METHOD.
1.
CHOOSING APPROPRIATE MEDIA.
4 CHOICES to be made.
1.
WHAT PROGRAMME?
1.
WHAT DAYS OF THE WEEK?
1.
WHAT TIME OF THE DAY?
1.
HOW MANY TIMES?
AT LEAST 5
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2
Helps in appropriate positioning decision for the brand.
Advertising and Promotion 1
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Helps in selecting target markets.
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Find acceptability of creative ideas.
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Pre -- testing of ads.
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Post – testing of ads.
ADVERTISING RESEARCH OBJECTIVES
Advertiser should find out:
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Who are the customers?
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Who are the customers?
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What are the likes & dislikes of customers?
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How is company’s brand perceived?
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How to improve customer’s perception?
ADVERTISING RESEARCH PROCESS
STEPS to collect relevant information:
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PROBLEM DEFINITION.
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EXPLORATORY or INFORMAL RESEARCH.
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DETERMINING RESEARCH OBJECTIVES.
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RESEARCH DESIGN:
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Sampling methods & size.
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Scaling.
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Data collection method.
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DATA COLLECTION.
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DATA TABULATION & ANALYSIS.
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INTERPRETATION CONCLUSION & REPORTING.
Advertising and Promotion 1
ADVERTISING RESEARCH COMPONENTS
Advertising Research
STRATEGIC
EVALUATE
ADVERTISING RESEARCH COMPONENTS
STRATEGIC
Strategy
Data collection
Organization
Document
Research
Secondary
(Creative brief)
Primary
Marketing
From
Published
studies
Data obtained
to be compiled
conducted
as quantitative
objectives
source
Product
Government
Internet
Trade Assoc.
4
by agency
on specific
issue.
& qualitative
Target audience
Information
Benefits
Brand
Advertising and Promotion 1
ADVERTISING REACH
ADVERTISING STRATEGY RESEARCH
Components:
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TARGET MARKET.
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POSITIONING.
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COMMUNICATION MEDIA.
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CREATIVE CONCEPT.
CREATIVE CONCEPT RESEARCH
5
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Team develops several rough copy platforms.
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Conduct focus group interviews.
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Focus group interviews are combined with other quantitative techniques.
Advertising and Promotion 1
SPECIFIC COMMUNICATION OBJECTIVES
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Closing an immediate sale (Buy Now because of price)
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Building long range consumer franchise. (establish brand recognition & acceptance.
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Contribute towards increased sales. (convert non users of the type)
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Taking specific step leading to sale. (induce the prospects to sample product)
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Imparting information to close sale. (where to buy it)
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Building confidence in the company (past & present profitability)
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Building images. ( product quality & corporate citizenship)
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Creating near term sales to bring prospect closer to purchase. (combating
competitor’s claims)
BROAD COMMUNICATION OBJECTIVES
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INFORMING
1. Make consumers aware of new product.
2.
Announcing a new price.
3.
Explaining how a product works.
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REMINDING
1. Telling consumers where to buy.
2.
And when to buy.
ADVERTISING COPY METHODS
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What assumptions are made for the working of advertising?
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What are its objectives?
Advertising and Promotion 1
MEASURES
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If objective is to persuade then--
A measure of purchase intent will be used.
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If objective is attitude shift then --
A measure of sales will be used.
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If objective is message overtime then –
Controlled market experiments will be used.
PRE-TESTING ADVERTISEMENTS Methods
PRINT ADVERTISING
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Direct Questioning.
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Focus groups.
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Paired comparison tests.
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Order of merit test.
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Direct mail test.
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Depth interview.
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Story telling.
TV & RADIO ADVERTISING
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Central location test.
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Trailer test.
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Theatre test.
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Live telecast test.
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Sales experiment.
Advertising and Promotion 1
POST- CAMPAIGN TESTING Methods
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Inquiry test.
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Sales test.
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Recall test.
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Recognition test.
INQUIRY TESTS
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Same placed in different copies in different issues to same medium.
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Determining “pulling power” of different copy.
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Same offer placed in different ad copy appearing in different magazines & newspapers.
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Two pieces of copy reach different audiences.
SALES TEST
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Through point of purchase displays or direct mail.
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Through two matched groups Collecting data.
RECALL TESTS
AIDED –
Respondent shown picture of ad with name of sponsor or brand name blanked out.
UN AIDED –
Only the product or service is given.
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Advertising and Promotion 1
RECOGNITION TESTS –
Mail survey through questionnaires etc.
MEDIA RESEARCH:
QUESTIONS NEED ANSWERING
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What class of media should be used?
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Which media vehicle & option be used?
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What should be exposure level & how to schedule it?
MAJOR AREAS OF RESEARCH
Media selection & Media scheduling
MEDIA SELECTION
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What frequency of message exposure is desired to change behavior to affect sales
of their brand?
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Maximum number of market segment that can be reached with that frequency.
5 LEVELS TO BE ADDRESSED
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Vehicle Distribution.
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Vehicle Exposure.
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Ad Exposure.
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Advertising Perception.
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Advertising Communication.
Vehicle Distribution
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Individual’s medium’s circulation. The process by which, it becomes available.
Advertising and Promotion 1
Vehicle Exposure
• Exposure of audience to vehicle-reading a given magazine or watching a particular TV
program.
Ads Exposure
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Requires message physically comes within audience’s attention range.
Advertising Perception
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Audience has conscious awareness of the ad
Advertising Communication
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The audience receives the message in a desired context.
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Media scheduling.
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Market & sales analysis research.
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Market potential analysis.
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Sales forecasting.
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Sales analysis.
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Measuring advertising effectiveness.