The advertising plan

Marketing Plan Mission statement Situation analysis Objectives Strategies Tactics (action plan) Evaluation Budget The Marketing PLAN

Mission statement

Situation analysis

Objectives

Strategies

Tactics (action plan)

Evaluation

Budget

Mission Statement A short description of the organization’s purpose and philosophy The Marketing PLAN

A short description of the organization’s purpose and philosophy

Situation Analysis Brand history Market share Growth history and potential Profitability Competitive analysis The Marketing PLAN

Brand history

Market share

Growth history and potential

Profitability

Competitive analysis

SWOT Analysis Strengths Weaknesses Opportunities Threats The Marketing PLAN

Marketing Objectives Sales objectives -sales volume, profitability goals Communication objectives- what can be achieved through marketing communications The Marketing PLAN

Sales objectives -sales volume, profitability goals

Communication objectives- what can be achieved through marketing communications

DAGMAR Defining Advertising Goals for Measured Advertising Results The Marketing PLAN Attention Comprehension Conviction Desire Action

Defining Advertising Goals for Measured Advertising Results

Attention

Comprehension

Conviction

Desire

Action

AIDA(S) A Attention (Awareness) attract the attention I Interest raise customer interest by demonstrating features, advantages, and benefits D Desire convince customers that they want and desire the product or service and that it will satisfy their needs A Action lead customers towards taking action and/or purchasing S Satisfaction satisfy the customer so they become a repeat customer and give referrals to a product (CRM) The Marketing PLAN

A Attention (Awareness) attract the attention

I Interest raise customer interest by demonstrating features, advantages, and benefits

D Desire convince customers that they want and desire the product or service and that it will satisfy their needs

A Action lead customers towards taking action and/or purchasing

S Satisfaction satisfy the customer so they become a repeat customer and give referrals to a product (CRM)

Marketing Strategy What is the target market? What is the position? Define each component of the marketing mix ( 4 P’s) The Marketing PLAN

What is the target market?

What is the position?

Define each component of the marketing mix ( 4 P’s)

Remember positioning? What is the current position? What is the desired position? What is the competitor’s position? The Marketing PLAN

What is the current position?

What is the desired position?

What is the competitor’s position?

Relationship Marketing Creating, maintaining and enhancing long term relationships with customers

Creating, maintaining and enhancing long term relationships with customers

LTCV Lifetime Consumer Value Revenue from lifetime customer Loss from revenue from losing customer Cost of acquiring new customers Value of loyal customers (90% of profit from repeat purchases)

Revenue from lifetime customer

Loss from revenue from losing customer

Cost of acquiring new customers

Value of loyal customers (90% of profit from repeat purchases)

IMC (Integrated Marketing Communications) Advertising—traditional Print Broadcast (TV/Radio) Outdoor Advertising--non traditional Internet Interactive Collateral Direct Other Promotion Public relations

Advertising—traditional

Print

Broadcast (TV/Radio)

Outdoor

Advertising--non traditional

Internet

Interactive

Collateral

Direct

Other

Promotion

Public relations

Individually, cumulatively Viral PR Print Direct Promotions Digital Electronic Mobile Campaign Theme

The Advertising Plan Executive Summary Situation Analysis Advertising Objectives Advertising Strategy/Tactics Budget Evaluation The Advertising PLAN

Executive Summary

Situation Analysis

Advertising Objectives

Advertising Strategy/Tactics

Budget

Evaluation

Executive Summary ONE PAGE if possible Summary of situation Summary of objectives Summary of strategies Budget summary The Advertising PLAN

ONE PAGE if possible

Summary of situation

Summary of objectives

Summary of strategies

Budget summary

Situation Analysis Describe company, product, market Describe distribution, pricing Describe competition, barriers to success Identify problem(s) and offer solution(s) The Advertising PLAN

Describe company, product, market

Describe distribution, pricing

Describe competition, barriers to success

Identify problem(s) and offer solution(s)

Advertising Objectives Measurable goals in terms of response Time frame Short and long term The Advertising PLAN

Measurable goals in terms of response

Time frame

Short and long term

Advertising Strategy WHAT DO YOU WANT TO ACHIEVE? Positioning strategy—change/reinforce Target audience—change/reinforce Primary, secondary, tertiary audiences The Advertising PLAN

WHAT DO YOU WANT TO ACHIEVE?

Positioning strategy—change/reinforce

Target audience—change/reinforce

Primary, secondary, tertiary audiences

HOW WILL YOU DO IT? TACTICS MUST SUPPORT THE STRATEGIES Creative - tone, message, look and feel of creative, call to action Campaign continuity Media strategy -traditional, new media Direct, mobile, Beyond media-promotion, guerrilla, WOM, viral Advertising Tactics Touch Points The Advertising PLAN

HOW WILL YOU DO IT? TACTICS MUST SUPPORT THE STRATEGIES

Creative - tone, message, look and feel of creative, call to action

Campaign continuity

Media strategy -traditional, new media

Direct, mobile,

Beyond media-promotion, guerrilla, WOM, viral

Reach Frequency Continuity (flighting/pulsing) Media Strategy The Advertising PLAN

Reach

Frequency

Continuity (flighting/pulsing)

Size of budget-method of determination Allocation of budget-how much for each component Advertising Budget The Advertising PLAN

Size of budget-method of determination

Allocation of budget-how much for each component

Approaches to Budgets Percentage of sales/unit Budget is based upon a percentage of the company’s/product’s sales or unit of sales Payout plan Advertising is an investment rather than an expenditure. Competitive budgeting Budget is based on the competitive spending environment. Task method Determine task or objective the advertising will fulfill over the budgetary period and then calls for a determination of how much money will be needed to complete the task.

Percentage of sales/unit

Budget is based upon a percentage of the company’s/product’s sales or unit of sales

Payout plan

Advertising is an investment rather than an expenditure.

Competitive budgeting

Budget is based on the competitive spending environment.

Task method

Determine task or objective the advertising will fulfill over the budgetary period and then calls for a determination of how much money will be needed to complete the task.

Budget size- percentage of sales Pros Easy to figure Some flexibility Valid if there is a direct relationship of advertising to sales

Pros

Easy to figure

Some flexibility

Valid if there is a direct relationship of advertising to sales

Percentage of Sales Cons Past performance or anticipated performance Not always a direct cause-effect relationship May not reflect competitive pressures May not reflect product life cycle “ Sales causes advertising”

Cons

Past performance or anticipated performance

Not always a direct cause-effect relationship

May not reflect competitive pressures

May not reflect product life cycle

“ Sales causes advertising”

Budget size- payout plan Advertising is an investment Sacrifice short turn ROI for long term growth and profitability Start ups, strong competition, new product intros, re-positioning Set realistic goals/timetable for acceptable ROI

Advertising is an investment

Sacrifice short turn ROI for long term growth and profitability

Start ups, strong competition, new product intros, re-positioning

Set realistic goals/timetable for acceptable ROI

Budget size- competitive On the offensive or defensive? Media strategy—domination? Product life cycle? Reactive not proactive.

On the offensive or defensive?

Media strategy—domination?

Product life cycle?

Reactive not proactive.

Budget size- task method Strategy driven- what do you want to accomplish? Target audience (who) Time frame (when) Products/brands (what)

Strategy driven- what do you want to accomplish?

Target audience (who)

Time frame (when)

Products/brands (what)

Budgeting-who does what? Anticipated sales Last year’s sales Anticipated sales + task Task Ave. of last year’s /anticipated sales “ Arbitrary” (based on general financial data) Source: Gallagher Report

Evaluation Criteria-what are you measuring Time frame Methodology Costs Implications Evaluation The Advertising PLAN