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Advertising Budget &Advertising Budget &
ResearchResearch
Compiled By : Group 6Ruchita, Tasneem, Pinal, Siddharth, Prasad& Murli
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IntroductionIntroduction
Advertising Budget & ResearchAdvertising Budget involves the allocation of
a portion of the total marketing resources tothe advertising function in a firm
Setting Advertising Budget is a timeconsuming activity which needs a fairamount of Managers time to analyze factorsinfluencing Advertising Budget.
Advertising budgeting should be based on acareful analysis of the opportunity foradvertising.
To make an efficient budget it is very
important to conduct research on relevant
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Factors affecting AdvertisingFactors affecting Advertising
BudgetBudget1. Stage in the product Life-cycle
2. Cost Structure of the Company
3. Method of Advertising Budget
4. Competition & Clutter5. Market Share
6. Environmental Climate
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Stage in Product Life-Cycle
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1.Stage in Product Life-1.Stage in Product Life-
CycleCycleAdvertising Budget is set considering in what
stage of life-cycle is product category.
Amount of Budget may vary depending onlevel of advertisement demanded by the
product at particular stage of life-cycle.The Advertising budget for a product vary in
their cost effectiveness at different stages ofthe product life cycle.
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Research on stages ofPLC
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Research on stages of PLCResearch on stages of PLC
In what stage of life-cycle is theproduct category?
What is the state of consumers
knowledge of product category?What market characteristics
support your stage of life-cycle
evaluation?Evaluation of PLC stage &
identify, do they represent
opportunities or problems?
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Cost Structure of the
Company
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2. Cost Structure of the2. Cost Structure of the
CompanyCompanyThe Advertising Budget is a part
& proportionate replica of theTotal Marketing Budget.
The total marketing budget isapportioned & a part thereof isAdvertising Budget, usually a
percentage share of totalmarketing budget is set aside asAdvertising Budget.
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Research on CostStructure
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Research on CostResearch on Cost
StructureStructureWhat is the amount and
composition of the marketingbudget & advertising budget?Do we have the funds to support an
effective marketing program?Where are the funds coming from,
and when will they be available?
Is the Advt. budget flexible enoughto take care of sudden changes.What is the proportion of marginal
fund & actual fund of the budget?
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Advertising BudgetMethod
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3. Method of determining3. Method of determining
Advertising BudgetAdvertising Budget
The decisions on the amount to be spent are made byadvertising managers in co-operation with advertisingagency. Many companies resort to more than onemethod of determining the size of their advertising
budgets.The method selected determines the size of the
budget & the size of the advertising budget can havean impact upon the composition of the advertisingmix, hence it is of prime importance to select aproper method for Advertising Budget.
Percentage of Sales method Sales objective method Profit Maximization method Objective & Task Approach
Competitors Parity Approach
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Research on selection ofmethod
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Competition & Clutter
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4. Competition & clutter4. Competition & clutter
In order to increase revenue, mediaoutlets often include a large number ofads within a certain time, space orlocation. For instance, television
programs may contain many adsinserted during the scheduled run-timeof a program. A large number ofadvertisements create an environmentof advertising clutter, which makes itdifficult for viewers to recognize andremember particular advertisements.
To break through the clutter advertisersit is important to differentiate from the
clutter at the same time maintain or
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Research on Competition
& Clutter
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Research on Competition &Research on Competition &
Clutter AdvertisingClutter AdvertisingWho are the competitors?What is the degree of
competition with them?
What are the current adcampaigns of competitors
Are competitors successful /
unsuccessful? Why?What can be done to differentiate
from the competition & clutter?
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Is there is opportunity for anothercompetitor? Why?
What are the anticipated
retaliatory moves of competitors?Can they neutralize different
marketing programs we might
develop?
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Market Share
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5.Market Share5.Market Share
One of the convenient andenticing advertising objective ismarket share.
It is very much important for acompany to maintain or increaseits market share.
Anything that induces new triersto buy the product & increasesmarket share of the company is
invaluable & is of vital
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Research on Market
Share
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Research on Market ShareResearch on Market Share
What is the size of market &what will be the future hold?What is the current market share
of the Company?How to analyze the market?
(Aggregate/Segmented) basis?Can the market be meaningfully
segmented or broken into severalhomogeneous groups with inrespect to what they want and
how they buy?
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Environmental Climate
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6.Environmental Climate6.Environmental Climate
Company should keep itselfupdated with the currentenvironmental climate, which
could bring an opportunity for theproduct to increase the marketshare due to favorability of the
environment.Keeping oneself abreast of the
environmental changes can alsohelp in communicating with thetar et audience effectivel .
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Research on
EnvironmentalClimate
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Research on EnvironmentalResearch on Environmental
ClimateClimateWhat are the relevant social
trends?What are the current political
trends?What are the latest technological
trends?What are the relevant economic
trends?How do you evaluate these
trends? Do they represent
opportunities or problem?
How to create Low budgetHow to create Low budget
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How to create Low budgetHow to create Low budget
Ads which are highlyAds which are highly
effectiveeffectiveIn order to be successful, youradvertising must provide aconsumer benefit or solve aproblem.
That benefit or solution must bewanted by the consumer. The product or service you are
offering must be related directly to
that benefit or solution. The benefit or solution must bedistinctly communicated throughmedial advertising. In other words,it should be clear, the messageshouldnt get lost in the ad.
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Examples of Low Budgetedads highly effective.
1. Apsara extra dark pencil
2. Celebrating 60 years ofIndependence
3. Amul Butter
4. Anti-smoking (publicinterest)
5. Red Bull
High budget Ad highlyHigh budget Ad highly
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High budget Ad , highlyHigh budget Ad , highly
effectiveeffective
Airtel digital TV
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Thank You, SirThank You, Sir
I would like to express my gratitude toMr. Nishant Bhatt. This presentation could
not have been possible without him, who not
only served as our faculty but alsoencouragedfor this challenging task in this academicprogram. He patiently guided me & my
group
through the presentation process, neveraccepting less than my best efforts. I thank
himon behalf of my group.
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