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.
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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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Advertising FunctionsAdvertising Functions
Informing
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InformingInforming
Quaker Oats
TargetTarget
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Advertising FunctionsAdvertising Functions
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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Advertising FunctionsAdvertising Functions
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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Advertising FunctionsAdvertising Functions
Adding Value
• Three basic ways by which companies can add value: »
• Advertising adds value to brands by:
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Advertising FunctionsAdvertising Functions
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