Advertising and Campaign planning

Advertising and Campaign
Planning
Module 2
- Dr. Anupama S. Kotur

Situation Analysis - 5 Cs Analysis
 Situation Analysis 5C is a comprehensive analysis of capturing all
relevant information and factors (internal and external) that affect the
present and future situation of the Organization. Using situation
analysis organization collects information about their strengths and
weaknesses, opportunities and threats.
 Situation analysis in practice: Situation analysis is done mostly for
strategic and marketing planning - the organization must first get to
know the reality that decisions on the future direction not only based
on impressions and suppositions. Its content is different, the most
commonly used structure 5C

1. Company: Analysis of the company allows for evaluation of the
company's objectives, strategies, and capabilities which indicate
the strength of the business model, if there are areas needing
improvement, and how an organization will fit with the external
environment. In addition to company goals and objectives, it
includes an analysis of the firm's position, performance, and
product line.
2. Competitors: The competitor analysis takes into consideration the
competitor's position within the industry and the potential threat
it may pose to other businesses. The main purpose of the
competitor analysis is for businesses to analyze both the current
and potential nature and capabilities of a competitor to be
prepared to compete against them.

Situation Analysis
3. Customers: Customer analysis can be vast and complicated.
Some companies conduct a PEST analysis which scans the
external macro-environment in which the company operates.
4. Collaborators: Collaborators are useful for businesses as they
allow for an increase in the creation of ideas, as well as an
increase in the likelihood of gaining more business opportunities.
5. Climate: To fully understand the business climate, there are
usually many different factors that can affect a business, and if
researched well it will create a company that can respond well to
change. An analysis on the climate is also known as the PEST
analysis.
 PESTLE Analysis is also used to include Legal and Ecological
Environments.

Situation Analysis - SWOT
In a business
context, the SWOT
analysis enables
organizations to
identify both
internal and
external
influences.
SWOT's primary
objective is to help
organizations
develop a full
awareness of all
the factors
involved in a
marketing
decision.

 SWOT analyses are often used during strategic marketing planning.
They can serve as a precursor to any sort of company action, such as
exploring new initiatives, making decisions about new policies,
identifying possible areas for change, or refining and redirecting
efforts mid-plan.
 The collective knowledge removes blind spots that, if left
undiscovered, could be detrimental to our business or our
relationship with our clients.
 When SWOT is used in conjunction with other analysis models,
these frameworks for strategic thinking, it can be an useful tool in
decision making.
 Additional analytic tools to consider include PEST(LE) (Political,
Economic, Social, Technological, Legal & Ecological), MOST
(Mission, Objective, Strategies and Tactics) and SCRS (Strategy,
Current state, Requirements and Solution) analyses.

Internal factors
The first two letters in the acronym, S (strengths) and W
(weaknesses), refer to internal factors, which means the resources and
experience readily available to you. Examples of areas typically
considered include:
a) Financial resources, such as funding, sources of income and
investment opportunities
b) Physical resources, such as your company's location, facilities and
equipment
c) Human resources, such as employees, volunteers and target
audiences
d) Access to natural resources, trademarks, patents and copyrights
e) Current processes, such as employee programs, department
hierarchies and software systems

External factors
External forces influence and affect every company, organization and
individual. Whether or not these factors are connected directly or
indirectly to an opportunity or threat, it is important to take note of
and document each one. External factors typically reference things
you or your company do not control, such as:
a) Market trends, like new products and technology or shifts in
audience needs
b) Economic trends, such as local, national and international
financial trends
c) Funding, such as donations, legislature and other sources
d) Demographics, such as a target audience's age, race, gender and
culture
e) Relationships with suppliers and partners
f) Political, environmental and economic regulations

Example of SWOT in Marketing
Analysis

Situation Analysis – Porter’s 5 Forces
Model

 Originally developed by Harvard Business School's Michael E.
Porter in 1979, the five forces model looks at five specific factors
that help determine whether or not a business can be profitable,
based on other businesses in the industry.
 Understanding the competitive forces, and their underlying
causes, reveals the roots of an industry's current profitability
while providing a framework for anticipating and influencing
competition (and profitability) over time.
 "If the forces are intense, as they are in such industries as
airlines, textiles, and hotels, almost no company earns attractive
returns on investment," Porter wrote. "If the forces are benign, as
they are in industries such as software, soft drinks, and
toiletries, many companies are profitable."
Model

1. Competitive rivalry: This force examines how intense the
competition currently is in the marketplace, which is determined
by the number of existing competitors and what each is capable of
doing. Rivalry competition is high when there are just a few
businesses equally selling a product or service, when the industry
is growing and when consumers can easily switch to a
competitors offering for little cost. When rivalry competition is
high, advertising and price wars can ensue, which can hurt a
business's bottom line. Rivalry is quantitatively measured by the
Concentration Ratio (CR), which is the percentage of market share
owned by the four largest firms in an industry.
Example : Domestic Airlines in India
Model

2. Bargaining power of suppliers: This force analyses how much
power a business's supplier has and how much control it has over
the potential to raise its prices, which, in turn, would lower a
business's profitability. In addition, it looks at the number of
suppliers available: The fewer there are, the more power they
have. Businesses are in a better position when there are a
multitude of suppliers. Sources of supplier power also include the
switching costs of firms in the industry, the presence of available
substitutes, and the supply purchase cost relative to substitutes.
Example: Petroleum Industry in India
Model

3. Bargaining power of customers: This force looks at the power of
the consumer to affect pricing and quality. Consumers have
power when there aren't many of them, but lots of sellers, as well
as when it is easy to switch from one business's products or
services to another. Buying power is low when consumers
purchase products in small amounts and the seller's product is
very different from any of its competitors.
Example: Diamond / Gems & Jewellery
4. Threat of new entrants: This force examines how easy or
difficult it is for competitors to join the marketplace in the
industry being examined. The easier it is for a competitor to join
the marketplace, the greater the risk of a business's market share
being depleted. Barriers to entry include absolute cost
advantages, access to inputs, economies of scale and well-
recognized brands.
Example: Retail Industry in India
Model

5. Threat of substitute products or services: This force studies how
easy it is for consumers to switch from a business's product or
service to that of a competitor. It looks at how many competitors
there are, how their prices and quality compare to the business
being examined and how much of a profit those competitors are
earning, which would determine if they have the ability to lower
their costs even more. The threat of substitutes are informed by
switching costs, both immediate and long-term, as well as a
buyer's inclination to change.
Example: FMCGs – Easy Switch
Bank Loans – Switching Cost is higher
Model

Advertising Campaign Planning
Process

Three Elements summarize the heart of advertising plan:
Advertising Planning Process - Explained
Targeting the Audience
•Whom are you trying to reach?
Message Strategy
•What do you say to them?
Media Strategy
•When and where will you reach them?

A. Situation Analysis
i. 5 Cs Analysis
ii. SWOT Analysis
iii. Porter’s 5 Forces Analysis
B. Advertising Objectives
i. AIDA Model
ii. DAGMAR Model
iii. Hierarchy of Effects Model
C. Targeting the Audience
D. Product Features and Competitive Advantage
E. Brand Personality
F. Positioning Strategy
G. Implementation
H. Evaluation
I. Advertising Budget
J. The Creative and Media Strategy
K. Selecting other Communication Tools
Advertising Planning Process - Explained

AIDA Model
The golden rule of AIDA where:
Attract Attention – to bring and sustain product awareness
Generate Interest – by demonstrating product benefits
Create Desire – by convincing customer to buy the product
And Inspire Action – by driving them inside to take the
action

DAGMAR Model
 DAGMAR is a marketing approach used to measure the results
of an advertising campaign. DAGMAR is an acronym that
stands for Defining Advertising Goals
for Measured Advertising Results. DAGMAR seeks to guide
consumers through five phases of regarding the product –
Unaware, Aware, Comprehension, Conviction and Action –
while also setting specific, measurable objectives to determine
the overall success of the campaign.
 The DAGMAR method understands that potential customers are
all initially unaware of the product's existence and focuses on
leading consumers smoothly through the audience's cycle. The
ultimate goal is that the customer purchases the product. The
company must identify the target market for the product to
make this method effective.

DAGMAR Model
Involvement
High Low
Awareness
HIGH
Sustain current levels
of awareness
Refine awareness
LOW
Build awareness
quickly.
Create association of
awareness of product
with product class
need

DAGMAR Model
A. Awareness: Awareness of the existence of a product or
organization is necessary before the purchase behaviour can be
expected. Once the awareness has been created in the target
audience, it should not be neglected. If there is neglect, the
audience may become distracted by competing messages and the
level of awareness of focus product or organization will decline.
B. Comprehension: Awareness on its own may not be sufficient to
stimulate a purchase. Knowledge about the product or the
organization is necessary. This can be achieved by providing
specific information about key brand attribute
C. Conviction: The next step is to establish a sense of conviction. By
creating interest and preference, buyers are moved to a position
where they are convinced that a particular product in the class
should be tried at the next opportunity.
D. Action: Communication must finally encourage buyers to engage
in purchase activity. Advertising can be directive and guide the
buyers into certain behavioural outcomes,

DAGMAR Model
Target Market Identification
The target market is the group of potential customers that has the highest
likelihood of purchasing the product. Considerations can include
identifying the target market's gender, age and geographic location.
Additional thought may be given to the ideal consumer's profession,
economic class or technological preference. It is possible to drill down
further or leave the target market broad based on the company's goals for
the product.
Purchase Cycle
After identifying the target market, the company can develop a strategy
for marketing the product using each step in the cycle as a guideline to
define specific objectives at each point. The awareness step requires the
company to make the product known to the target consumers, while
comprehension focuses on ensuring that the consumers understand how
the product could function within their lives. Conviction requires
consumers to become convinced of their need for the product. The final
goal of action involves motivating the consumer into actually completing
the purchase.

The Hierarchy of Effects Model
The Hierarchy of Effects
Model was created in 1961
by Robert J Lavidge and
Gary A Steiner. This
marketing communication
model, suggests that there
are six steps from viewing a
product advertisement
(advert) to product
purchase. The job of the
advertiser is to encourage
the customer to go through
the six steps and purchase
the product.

 Awareness: The customer becomes aware of the product through
advertising. This is a challenging step, there is no guarantee that the
customer will be aware of the product brand after they view the advert.
Customers see many adverts each day but will only remember the
brand of a tiny fraction of products.
 Knowledge: The customer begins to gain knowledge about the product
for example through the internet, retail advisors and product
packaging. In today's digital world this step has become more
important as consumers expect to gather product knowledge at the
click of a button. Consumers will quickly move to competitor brands if
they do not get the information they want. The advertiser's job is to
ensure product information is easily available.
 Liking: As the title states, this step is about ensuring that the customer
likes your product. As an advertiser what features can you promote to
encourage the customer to like your product?

 Preference: Consumers may like more than one product brand and
could end up buying any one of them. At this stage advertisers will
want the consumer to disconnect from rival products and focus on
their particular product. Advertisers will want to highlight their
brand's benefits and unique selling points so that the consumer can
differentiate it from competitor brands.
 Conviction: This stage is about creating the customer's desire to
purchase the product. Advertisers may encourage conviction by
allowing consumers to test or sample the product. Examples of this are
inviting consumers to take a car for a test drive or offering consumers a
free sample of a food product. This reassures consumers that the
purchase will be a safe one.
 Purchase: Having proceeded through the above stages, the advertiser
wants the customer to purchase their product. This stage needs to be
simple and easy, otherwise the customer will get fed up and walk
away without a purchase. For example a variety of payment options
encourages purchase whilst a complicated and slow website
discourages purchases.

 When developing an advertising campaign, be it organization-wide
or product-specific, a critical input is identifying the target market.
Creating generic advertising campaigns for the entire population is
usually not strategic, both in terms of focus and capital. Advertisers
should instead narrow down the population to an ideal segment,
based upon various factors. This is called segmentation.

Segmenting
 The first step is identifying the broader market in which the
organization operates. For example, a company that sells beer
operates in a market of alcohol drinkers over a certain age located
within specific regions of production and distribution.
 Next, the organization must identify, select, and apply parameters
that will be used to create the segments. Common examples include
demographic data, psychographic data, behavioural metrics, and
geographic information. However, there are essentially infinite
ways to segment a market, depending on what is best for the
organization.
 Finally, the organization should refine and commit to certain
segmentation profiles. These profiles will act as potential strategic
options in the targeting and positioning in the next segments.

Targeting
 Now that each segment has been identified, the organization should
evaluate the attractiveness of each profile. Ranking these in some
way for potential profitability is a critical component.
 Once a proper system of prioritization amongst segments is
established, it's fairly easy to let the best segment(s) float to the top.
These segments represent the optimal strategic opportunity in
regards to target markets. At this point, the target market has been
identified.

Brand Personality
 Brand personality is the way a brand speaks and behaves.
 It means assigning human personality traits/characteristics to a
brand so as to achieve differentiation. These characteristics signify
brand behaviour through both individuals representing the brand
(i.e. it’s employees) as well as through advertising, packaging, etc.
 When brand image or brand identity is expressed in terms of
human traits, it is called brand personality. For instance - Allen
Solley brand speaks the personality and makes the individual who
wears it stand apart from the crowd. Infosys represents uniqueness,
value, and intellectualism.
 Brand personality is nothing but personification of brand. A brand
is expressed either as a personality who embodies these personality
traits

Brand Personality
 Brand personality must be differentiated from brand image, in
sense that, while brand image denote the tangible (physical and
functional) benefits and attributes of a brand, brand personality
indicates emotional associations of the brand.
 Brand personality and celebrity should supplement each other.
Trustworthy celebrity ensures immediate awareness, acceptability
and optimism towards the brand. This will influence consumers’
purchase decision and also create brand loyalty.

Brand Personality
Hutch had a very strong brand personality. The slogan “Wherever
you go our network follows’ was closely tied up with the Hutch –
Pug campaign. The Hutch network was personified as the adorable
pug dog following the owner.

Brand Personality
 ZooZoo ads by O&M, simply did the job of communicating the
various VAS in a fascinating way.
 The Vodafone’s services were personified as quirky and lively
personalities named ZooZoo. The comical way of communicating
the message brought in the good old connection what Hutch earlier
had with people.
 Vodafone India understood what Hutch stood for and tried to
connect to people in the same way. Vodafone could have forced its
global appeal to Indian market but, it didn’t, rather it created a
whole new persona for itself in the Indian telecom market.

Brand Positioning Strategy
 A positioning strategy is a deliberate branding plan or process that
operates on the symbolic levels of consumer consciousness, where
meanings and associations – even of individual words – really hold
weight.
 A market positioning strategy is built on business data and seeks to
compose the precise chain of words to balance concepts of
differentiation, distinction, and similarity in a unified brand-
narrative.
 It is a long-term effort to solidify the identity of a company, and its
products or services, in a unique space within the minds of the
target audience. It is an organized attempt for a brand to set itself
apart from the crowd and influence the way their target audience
perceives them.

Brand Positioning Strategy - Process
Market positioning follows seven basic steps listed below:
1. Draft a positioning statement — There are four simple questions
that will yield a set of basic facts about the identity you have
determined for your company. The positioning statement is the
result of plugging those facts into a basic, formulaic sentence
structure.
2. Compare and contrast to identify your own uniqueness —
Differences between your own messaging strategy and
communication channels, and those of your competitors reveal
openings in the market that your positioning message should
address.

3. Competitor analysis — Investigating and analyzing the
competition helps to determine the strengths and weaknesses of
your own business measured against the competition.
Understanding the differences between a business and its
competitors is central to finding gaps in the market that can be
filled.
4. Determine current position — Determining your existing market
position is every bit as vital as any competitor analysis. That’s
because you have to understand your own market position to be
able to properly compete for your share.
5. Competitor positioning analysis — An accessory to the
competitor analysis, competitor positioning analysis identifies the
conditions of the market that influence how much power
competitors are able to exercise.

6. Develop a unique positioning idea — With all the analytical data
in hand, you should have a better idea of who you are, who you
are not, and who your best audience is. It’s time to make a
statement about those facts.
7. Test the effectiveness of your brand positioning — Testing
methodology will consist of qualitative and quantitative data
gathering, mainly determined by the steps prior to this, but may
also include focus groups, surveys, in-depth interviews,
ethnography, polls, etc. The results of the testing should then be
rated against a set of criteria listed below.
Case: Nokia Vs Samsung (Positioning Strategy)
http://engage.synecoretech.com/marketing-technology-for-
growth/bid/137780/Market-Positioning-Case-Study-How-Nokia-
Fell-From-Number-1

Advertising – Useful Terms
 Media Cost: Media Cost is the price you pay to present your
advertisement. There are many different ways to price media
including points, impressions, clicks, leads, actions, days, weeks,
months, etc. However, it ultimately boils down to the amount
you pay to present your advertisement, which is Media Cost.
Media Cost excludes the cost to create the advertisement and
other costs.
 Media Market: Media Market or Market describes the set of
people that could potentially be exposed to your advertisement.
The media market is often described using Designated Market
Areas or DMAs, which are trademarked by Nielsen. However,
Media Market can be any market you define.

 Population: Population is the total number of people in your Media
Market.
 Rating: Rating is the percentage (0 to 100) of the Media Market that
will likely be exposed to your advertisement. Rating is an estimate
based on past performance often sourced from surveys.
 Reach: Reach is the number of people in the Media Market that will
likely be exposed to one advertisement. Reach is calculated by
multiplying the Population by Rating then dividing by 100.
 Frequency: Frequency is the number of times the advertisement will be
presented to the Reached Population.
 Gross Rating Points (GRPs): Gross Rating Point (GRP) is a measure of
the size of an advertising campaign by a specific medium or schedule.
GRP is calculated by multiplying Rating by Frequency.

 Impressions: Impressions are the total number of exposures to
your advertisement. One person can receive multiple exposures
over time. If one person was exposed to an advertisement five
times, this would count as five impressions. Impressions are
calculated by multiplying Reach by Frequency.
 Cost per Point (CPP): Cost per Point (CPP) is a measure of cost
efficiency which enables you to compare the cost of this
advertisement to other advertisements. CPP is calculated as
Media Cost divided by Gross Rating Points (GRPs)
 Cost per Thousand Impressions (CPM): Cost per Thousand
Impressions (CPM) is another measure of cost efficiency which
enables you to compare the cost of this ad to other
advertisements. CPM is calculated as the Media Cost divided by
Impressions divided by 1,000.

Advertising and Campaign planning

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Advertising and Campaign planning

Similar to Advertising and Campaign planning (20)

Recently uploaded

Recently uploaded (20)

Advertising and Campaign planning