PROCESS OF ADVERTISING, BUDGET

1. WELCOME

2. Advertising management
Meaning: Advertising management
though is a complex process of
employing various media to sell a
product or service
Definition: According to William,
“Advertising is any controlled from of
no personal presentation and
promotion of idea , goods and services
by an identified sponsor

3. Objectives of
advertising
• To create awareness
• Emphasize the
benefits
• Put the product front
of mind
• Create desire
• Differentiate the
product

4. Characteristics of advertising
• Paid form : Advertising requires the
advertiser to pay to create an
advertising message , to buy
advertising media, slot and to
monitor advertising efforts
• Tool for promotion: Advertising is an
element of the promotion mix of an
organisation

5. • One way communication
Advertising is a one way
communication where brand
communicate to the customers
through different mediums
• Personal or non personal:
Advertising can be non personal as
in the case of TV, radio, or
newspapers advertisements, or
highly personal as in the case of

7. Types of advertising
• Print advertising: Newspapers,
magazines and brochure advertisements
etc…
• Broadcast advertising: Television and
radio
• Outdoor advertising : Hoardings,
banners , wraps etc..
• Digital advertising: Advertisements
displayed over the internet and digital
devices.

8. Importance of
advertising
Advertising helps in providing
various information about the
advertising firm, its products,
qualities and place of availability of
its products and so in . It helps to
create a non personal link between
the advertiser and the remain of the
message

9. The importance of advertising are
• Information about the product
• Creation of permanent demand
• Service to existing customers
• Support to personal selling
• Minimization of middlemen

10. Functions of advertising
• It helps in the introduction of new
products in the market. A business firm
can introduce itself and its products to
the public through advertising.
• It helps to promote the sales of products
by informing and persuading the people
of purchase them
• Advertising helps in building up the
reputation and goodwill of a firm which
is essential to face competition in the
market

11. A budget is an expression in monetary terms
of the forward plan and the proposed activity.
Advertising plan includes sales targets,
product facts etc..The advertising budget is
the translation of an advertising plan into
monetary form.
Advertising budget

12. Types of advertising
budget

13. Percentage of sales
method
Due to its simplicity, percentage of sales
method is the most commonly used by small
business . When using this method an
advertiser takes a percentage of either part or
anticipated sales and allocates that percentage
of the overall budget to advertising
Objective and task
method
Because the importance of objectives in
business, the task and objective method in
considered by many to make the most sense
and is therefore used by most large business.

14. Competitive parity method
While keeping one’s own objectives
in mind, it is often useful for a
business to compare its advertising
spending with that of its
competitors.
Market share
method
Similar to competitive parity, the market
share method based its budgeting
strategy on extend market trends, with
this method a business equates its
market share with its advertising
expenditure.

15. UNIT SALES METHOD
This method takes the cost of
advertising an individual item and
multiplies it by the number of units the
business wishes to sell
All available funds
This aggressive method
involves the allocation of all
available profits to
advertising purposes

16. Advertising management
process

17. ADVERTISING PROCESS
• Briefing
• Knowing the objective
• Research
• Target audience
• Media selection
• Setting the budget
• Creating and designing the ad
• Perfection
• Execution
• Performance

18. Briefing: The advertiser needs to brief
about the product or the service which
has to be advertised and doing the SWOT
analysis of the company and the product
Knowing the objective: one should first
known the objective or the purpose of
advertising
Research: This step involves finding out
the market behavior, knowing the
competitors etc..

19. Target audience: The next step to
identify the target consumers most likely
to buy the product
Media selection: Now that the target
audience is identified, one should select
an appropriate media for advertising
Setting the budget: Then the advertising
budget has to be planned so that there is
no short of funds or excess of funds
during the process of advertising.

20. Designing and creating the ad : Then the
actual creation of ad is done with the help of
the directors and creative personnel of the
agency
Perfection: Then the created ad is re
examined and the ad is redefined to make it
perfect to enter the market
Place and time of ad: The next step is to
decide whose and when the ad will be shoon

21. Execution : Finally the advertiser
is released with the perfect
creation, perfect placement etc…
Performance: The last step is to
judge the performance of the ad
in the terms of the responses
from the customers.

22. Thank you