1 Objectives, Budgeting, and Advertising Management Chapters Six and Nine.

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Objectives, Budgeting, Objectives, Budgeting, and Advertising and Advertising

ManagementManagement

Chapters Six and Nine

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Review: Chapter 1Review: Chapter 1

All marketing communications should be:

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Setting Marcom ObjectivesSetting Marcom Objectives

• Expression of management consensus

• Guides the budgeting, message, and media aspects of advertising strategy

• Provide standards against which results can be measured

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Budgeting ConsiderationsBudgeting Considerations in Practice in Practice

• What is the Ad objective?

• How much are competitors spending?

• How much money is available?

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Budgeting MethodsBudgeting Methods

• Percent-of-Sales Budgeting

• Objective-and-Task Method

• Competitive Parity Method

(match competitors method)

• Affordability Method

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Percentage-of-Sales BudgetingPercentage-of-Sales Budgeting

• A company sets a brand’s advertising budget by simply establishing the budget as a fixed percentage of past or anticipated sales volume

• Criticized as being illogical

Why?

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Objective-and-Task MethodObjective-and-Task Method

• The most sensible and defensible advertising budgeting method

• Specify:

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The Competitive Parity MethodThe Competitive Parity Method

• Sets the ad budget by basically following what competitors are doing

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Affordability MethodAffordability Method

• Only the funds that remain after budgeting for everything else are spent on advertising

• Who does this?

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Advertising FunctionsAdvertising Functions

Informing

Influencing

Reminding

Adding Value

Assisting Other Company Efforts10

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Informing

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InformingInforming

Quaker Oats

TargetTarget

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Influencing

• Influences customers to try advertised products and services

• Primary demandPrimary demand-

• Secondary demandSecondary demand-

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InfluencingInfluencing

Gillette MACH3

Target:

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Reminding

• Keeps a company’s brand fresh in the consumer’s memory

• Influences brand switching by:

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Advertising ObjectivesAdvertising Objectives

Kellogg’s Special K

TargetTarget

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Adding Value

• Three basic ways by which companies can add value: »

• Advertising adds value to brands by:

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Assisting Other Company Efforts

• Advertising is just one member of the marketing communications team

• Sometimes, an assister that facilitates other company efforts in the marketing communications process

• Examples?

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The Advertising Management ProcessThe Advertising Management Process

Advertising Strategy

• Setting Objectives•Formulating Budgets

•Creating Ad messages•Selecting Ad Media and Vehicles

Strategy Implementation

Assessing Ad Effectiveness 19

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Research Workshop:February 17Research Workshop:February 17

Conducting Consumer Research

» Secondary research: Plenty of resources online» Library Resources Link on website: Dr.Song, BEL

» Primary research: Planning ahead• Focus groups, surveys, observations• Plan your questions ahead in detail• Select sample(s) carefully (target audience)• Sensitivity, confidentiality, ethics

1 Objectives, Budgeting, and Advertising Management Chapters Six and Nine.

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Transcript of 1 Objectives, Budgeting, and Advertising Management Chapters Six and Nine.