This document outlines the key aspects of the advertising planning process. It discusses the major types of advertising including product and institutional advertising. The major decisions in planning advertising are then explained as setting objectives like informing, persuading or reminding consumers, setting the budget, creating the advertising message, selecting media like television or magazines, and evaluating the advertising through pre-testing and post-testing. Objectives can aim to build primary or selective demand depending on the product life cycle stage. Factors like competition and media timing must also be considered in the planning process.

1. AdvertisingAdvertising
Paid, non-personal communication through various media
by business firms, not-for-profit organizations, and
individuals who are identified in the advertising message
and who hope to inform or persuade members of a
particular audience

2. Types of AdvertisingTypes of Advertising
Product Advertising Institutional Advertising
◦ Nonpersonal selling
of a particular good
or service
◦ The type of
advertising the
average person
normally thinks of
when talking about
most promotional
activities
◦ Institutional
advertising
promotes a
concept, an idea, a
philosophy, or the
good-will of an
industry, company
organization,
person, geographic
location, or
government agency

3. Types of AdvertisingTypes of Advertising
Product Advertising Institutional Advertising

4. Elements of theElements of the
AdvertisingAdvertising
Planning ProcessPlanning Process

5. Major Decisions in AdvertisingMajor Decisions in Advertising
1. Setting objectives. Objectives should be based on
information about the target market, positioning, and
market mix. Advertising objectives can be classified by their
aim: to inform, persuade, or remind.

6. Informative advertising: used to introduce aInformative advertising: used to introduce a
new product category or when the objective isnew product category or when the objective is
to build primary demandto build primary demand

7. Persuasive advertising: used as competitionPersuasive advertising: used as competition
increases and a company's objective becomesincreases and a company's objective becomes
building selective demand.building selective demand.

8. Reminder advertising: used for matureReminder advertising: used for mature
products, because it keeps theproducts, because it keeps the
consumers thinking about the productconsumers thinking about the product

9. 2. Setting the advertising budget. Factors to consider in
setting a budget are the stage in the product life cycle.
market share, competition and clutter, advertising frequency,
and product differentiation.
3. Creating the advertising message. Advertising can only
succeed if its message gains attention and communicates
well.
a) Message generation. Marketing managers must help
the advertising agency create a message that will be
effective with their target markets.
b) Message evaluation and selection. Messages should be
meaningful, distinctive, and believable.
c) Message execution. The impact of the message
depends on what is said and how it is said.

10. 4. Selecting the advertising media
a) Deciding on reach, frequency, and impact.
b) Choosing among major media types. Choose among
newspapers, television, direct mail, radio, magazines, and
outdoor.
c) Selecting specific media vehicles. Costs should be
balanced against the media vehicles: audience quality,
ability to gain attention and editorial quality.
d) Deciding on media timing. The advertiser must decide
on how to schedule advertising over the course of a year
based on seasonal fluctuation in demand, lead time in
making reservations, and if they want to use continuity in
their scheduling or if they want to use a pulsing format.

11. 5. Advertising evaluation. There are three major methods of
advertising pre-testing and two popular methods of post-
testing ads.
a)Pretesting
Direct rating. The advertiser exposes a consumer panel to
alternative ads and asks them to rate the ads.
Portfolio tests. The interviewer asks the respondent to recall all
ads and their contests after letting them listen to a portfolio of
advertisements.
Laboratory tests. Use equipment to measure consumers'
physiological reactions to an ads.
b) Posttesting
Recall tests. The advertiser asks people who have been exposed
to magazines or television programs to recall everything that they
can about the advertisers and products that they saw.
Recognition tests. The researcher asks people exposed to media
to point out the advertisements that they have seen.
c) Measuring the sales effect. The sales effect can be measured by
comparing past sales with past advertising expenditures and
through experiments.

12. Anastasiia VialovaAnastasiia Vialova
FRGTBFRGTB
1year MSc1year MSc
9a group9a group