ADVERTISING PLAN PROJECT

Elements of an Advertising Plan

1) Advertising Plan Objectives 15 pts 2) Target Market / Product & Institution Advertising 20 pts 3) Media Selection Justification 20 pts 4) Budget Restraints & Detailed Calculations 20 pts 5) Detailed Scheduling of Advertisements 20 pts 6) Advertisement Examples 20 pts 7) Overall Aesthetic Appeal 10 pts 8) Professionalism during project 25pts

Total Points = 150 pts

Forms of Advertising Available For Your Advertising Project:

1) Print = Types: (Billboard, Newspaper, Direct Mail) 2) Broadcast = Types: (TV, Radio) 3) Specialty = Types: (Key Chains, Stickers/Bumper Stickers, T-Shirts) 4) Online = Types: (Banner Ads, Social Networking)

You will need to use at least 3 forms of advertising (Print, Broadcast, Specialty, & Online) but need to use at least 4 types of advertising (see list above).

First Steps:

1) Select a Local Business (must be approved by Mr. Mikos)

2) Complete the Advertising Plan Guide Sheet

3) Turn in completed Advertising Plan Guide Sheet to receive your budget. Objective Examples:

Increase Monday – Thursday sales by 15%

Increase Lunch Crowd (11 am – 2 pm) sales on Weekends by 10%

Attract new customers from outside local area

You can only select 1 of the examples listed above to use as one of your objectives. 4) All work must be typed (with the exception of the Advertisement Examples Section #6)

a. List your Ad Plan’s three Objectives b. Describe your target markets and your Product and Institutional Advertising c. Justify the reasoning for selecting the types of advertising for your plan d. Show that the plan is under budget by less than 0.50% of the total budget –

detailed format showing how much is spent for each month and for each different type of advertisement. Must show calculations of how final cost is achieved.

e. Schedule ads on a consecutive 6-month calendar f. Show examples of at least 3 advertisements from your advertising plan

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Detailed Elements of the plan must include:

1) SET OBJECTIVES

What do you want to accomplish with your advertising plan? The objectives must be measurable during a specific time (e.g. increase sales by 20% in 6 months). You must establish at least 3 objectives. You simply have to list out your objectives (like the example from the first sheet). This section will be about 1/5 of a page at most.

2) TARGET MARKETS AND PRODUCT & INSTITUTION ADVERTISING

You will type out your TWO target markets including both demographics AND psychographics in paragraph form. You will also explain how you will use both product advertising and institutional advertising. Most companies use a mix to not only promote specific products, but also promote their business in general by simply advertising their company as a whole. Depending on your objectives you need to simply explain why you will use one type of advertising (product or institution) more than the other. This section will be approximately ¾ of a page typed double-spaced.

3) MEDIA SELECTION JUSTIFICATION

What type of advertising will you use? Explain for each type of media why it was chosen. I suggest breaking this up into different sections based on the forms of advertising (Print, Broadcast, Specialty, Online) and then explaining why you chose a particular radio station or why you chose to use key chains or bumper stickers. Your explanation needs show how your advertising plan will reach your target market. This section will be approximately ¾ of a page double-spaced.

4) CONSECUTIVE 6-MONTH CALENDAR

Using a consecutive 6-month calendar, show all the media used. Reference the actual ad with its proper code (the codes are already created for you starting on page 11), and of course the day and time of day it will run. This needs to be typed. You can download a calendar from the class webpage: http://ahs-mikos.weebly.com/marketing-1.html

5) BUDGET CALCULATIONS

Your 6-month budget will be determined by Mr. Mikos based on your Ad Plan Guide Sheet. You will need to use the advertising rates provided to calculate a 6-month advertising plan showing the cost of each different form of advertising with a detailed breakdown. You must use as much of the budget as possible. If your budget is $65,000, you need to get as close to $65,000 as possible. You need to be under budget by less than 0.50% of your total budget. You cannot go over budget, not even by $1.00.

6) ADVERTISEMENT EXAMPLES

Make actual examples of each advertisement (3 minimum). If you use Radio, type out the actual dialogue that is said in the commercial. For bumper stickers simply design a correctly sized bumper sticker. With newspaper ads, they need to be the exact size of the ads that would run in the paper. For billboards, a scaled down version is needed, but in a professional manner. Each type of advertising has specific details about examples on pages 4-10.

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Advertising Budget Figures

ADVERTISING FORM: BROADCAST TYPE = Television Commercials a. Major Networks – NBC, CBS, ABC, FOX

i. Morning Time = 6 am – 10:59 am 1. 30 seconds – cost = $800 each time ad is run 2. 15 seconds – cost = $650

ii. Day Time = 11 am – 4:59 pm 1. 30 seconds – cost = $850 each time ad is run 2. 15 seconds – cost = $600

iii. News Time 5 pm – 7:29 pm 1. 30 seconds – cost = $950 each time ad is run 2. 15 seconds – cost = $750

iv. Prime Time = 7:30 pm to 11 pm 1. 30 seconds – cost = $1200 each time ad is run 2. 15 seconds – cost = $950

v. After Hours = 11:01 – 5:59 am 1. 30 seconds – cost = $550 each time ad is run 2. 15 seconds – cost = $400

b. Cable Networks

i. 30 seconds – cost = subtract $200 from Major Network Cost ii. 15 seconds – cost = subtract $125

ADVERTISING FORM: BROADCAST TYPE = Radio Commercials c. FM Stations

i. Morning Drive Time = 6 am to 10 am 1. 30 seconds – cost = $65 each time ad is aired 2. 15 seconds – cost = $50

ii. Day Time Drive = 10:01 am – 3 pm 1. 30 seconds – cost = $50 each time ad is aired 2. 15 seconds – cost = $35

iii. Evening Drive Time = 3:01 pm to 7 pm 1. 30 seconds – cost = $60 each time ad is aired 2. 15 seconds – cost = $45

iv. After Hours Time = 7:01 pm to 5:59 am 1. 30 seconds – cost = $35 each time ad is aired 2. 15 seconds – cost = $25

d. AM Stations i. 30 seconds – cost = subtract $12 from FM Station Cost

ii. 15 seconds – cost = subtract $8

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ADVERTISING FORM: PRINT TYPE = Newspaper Ads

With newspapers everything is calculated by column inches. A standard paper is 6 columns wide (2 inches per column so 12 inches in total) and 20 inches in length. For example a full-page ad would be described as a 6 x 20, which is 6 column inches by 20 inches in length. If you figure out the area (yes, math) you would have 6 x 20 = 120 column inches.

For this assignment all newspaper ads will be $20 per column inch.

o Using the example from above:

6 x 20 = 120 column inches 120 column inches multiplied by $20 = $2400 to run 1 full page ad 6 x 20 = 120 120 x $20 = $2400

Below is the price breakdown for every sized ad you can run in a newspaper

If you want another color in addition to black you must add $200 per color to the final cost of your advertisement. If you choose to use a newspaper ad as one of your examples it needs to be the exact size of what the actual ad would be. Remember: A column inch is actually 2 inches.

Newspaper Price Calculation Chart

Column Inches

1 2 3 4 5 6

Length

of

Advert

isem

ent

1 20 40 60 80 100 120

2 40 80 120 160 200 240

3 60 120 180 240 300 360

4 80 160 240 320 400 480

5 100 200 300 400 500 600

6 120 240 360 480 600 720

7 140 280 420 560 700 840

8 160 320 480 640 800 960

9 180 360 540 720 900 1080

10 200 400 600 800 1000 1200

11 220 440 660 880 1100 1320

12 240 480 720 960 1200 1440

13 260 520 780 1040 1300 1560

14 280 560 840 1120 1400 1680

15 300 600 900 1200 1500 1800

16 320 640 960 1280 1600 1920

17 340 680 1020 1360 1700 2040

18 360 720 1080 1440 1800 2160

19 380 760 1140 1520 1900 2280

20 400 800 1200 1600 2000 2400

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ADVERTISING FORM: PRINT TYPE = Billboards

With billboards the cost is done using a per month price, but billboard companies will require that you purchase a minimum of 3 consecutive months at the cost of $700 - $2000 per month. For this assignment the monthly rate for a billboard will be $800 and you must purchase a minimum of 3 consecutive months. EXAMPLE: If you choose to run a billboard for March, April and May it would cost you $2400. If you wanted to run a billboard for 4 months it would simply be $3200 total. Regardless of how many billboards you run per month it will still cost you $800 per billboard per month. If you choose to use a billboard as one of your examples you will simply need to draw it out on a piece of paper in a professional manner. Billboards are NOT drawn on lined paper with pencil.

ADVERTISING FORM: PRINT TYPE = Direct Mail When using direct mailing it is hit or miss due to people not liking junk mail, but it can be a good way to inform the people who live in the area around your business that you exist. It is also a fairly inexpensive method of advertising. Including coupons on direct mail is a good way to persuade your audience to visit your business as well. Format B&W B&W B&W B&W Color Color Color Color (Quantity) 500 1000 2000 3000 500 1000 2000 3000 Standard Postcard $195 $390 $780 $1170 $245 $490 $980 $1470 4.25” x 5.5”

Large Postcard $345 $690 $1380 $2070 $395 $790 $1580 $2370 5.5” x 8.5”

Sumo Postcard $475 $950 $1900 $2850 $550 $1100 $2200 $3300 6” x 11”

If you choose to use direct mail as one of your advertisement examples you need to make sure that it is the exact size of what the actual postcard would be. You will only need to design one side as the other side will be reserved for the address.

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ADVERTISING FORM: SPECIALTY TYPE = Key Chains

Key chains are something that may not work for all local businesses but can be a good way to show customer loyalty. For example, if your business provides key chains and a customer shows their key chain at the time of purchase you could give them a 10% discount. A key chain can also be a portable business card, because your address and phone number are displayed and people see their keys all the time. This is a way to constantly remind your customers that your business is around to meet their needs and wants. Type (Quantity) 250 500 750 1000 1500 3000 5000 10000 Circle (diameter) 2” $250 $450 $615 $750 $1050 $1950 $2750 $4000 2.5 “ $262 $475 $660 $800 $1125 $2100 $3000 $5000 3 “ $275 $500 $705 $850 $1200 $2250 $3250 $6000 Rectangle (Quantity) 250 500 750 1000 1500 3000 5000 10000 1” x 2” $262 $450 $600 $700 $975 $1650 $2500 $4000 1.25” x 2” $275 $475 $637 $800 $1050 $1800 $2750 $4500 1.5” x 2.25” $287 $500 $712 $900 $1125 $1950 $3000 $5000 The key chains are available in any ONE color using the prices above. The color of your text can be any color you want, but it can only be one color for all of your text or logo. If you choose to use a key chain as your example it must be the exact size of the dimensions above and you must show both sides of your key chain. When giving away the key chains (which will be documented in the calendar portion) you must plan to give away all the key chains you purchase in your 6-month period. FOR EXAMPLE: If you purchased 750 key chains you could plan to give away 125 a month over a 6 month period. For the cost of 750 3” circle key chains it is $0.94 per key chain. Giving away 125 key chains would cost you $117.50 per month. You would simply document this on your budget breakdown. The distribution of your key chains does not have to be equal for each month, but you must get rid of all of them in your 6-month period. You are allowed to give away all your key chains in one month if desired.

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ADVERTISING FORM: SPECIALTY TYPE: Stickers/Bumper Stickers

People like to decorate their cars with stores they are loyal to. Think of how many Powered by Dutch Bros. stickers you have seen on cars. People also like free stuff, so this is another cheap way of getting your business name out into the community. Think of a time you were sitting in traffic and you saw a sticker in the person’s car in front of you. You start reading what is on the back the longer you have to wait. The person in the car is already a customer, but you may not be. This is basically a really cheap moving billboard and will stay on a car a lot longer than 3 months.

Type (Quantity) 25 50 100 250 500 1000

Circle Stickers (diameter)

3.75” $50 $90 $170 $400 $750 $1300

4.25” $52 $95 $180 $425 $800 $1400

6” $75 $145 $280 $675 $1300 $2500

Bumper Stickers

3” W x 8” L $156 $310 $615 $1525 $3000 $5500

3” W x 10” L $162 $322 $640 $1587 $3125 $5750

If you choose to use a circle sticker or bumper sticker as your example it must be the exact size of the dimensions above. There is no limit to the amount of colors you can use. When giving away the stickers or bumper stickers (which will be documented in the budget breakdown portion) you must plan to give away all that you purchase in your 6-month period. FOR EXAMPLE: If you purchased 500 3” x 10” bumper stickers you could plan to give away 83 or 84 (does not divide evenly) a month over a 6-month period. For the cost of 500 3” x 10” bumper stickers it would be $6.25 per bumper sticker. Giving away 84 would cost you $525 for that month. You would simply document this in your budget breakdown section. You are allowed to give away all your sticker in one month if desired.

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ADVERTISING FORM: SPECIALTY TYPE = T-Shirts T-shirts is a good way to promote your business either by having a funny slogan on your shirt that makes people think about your business in a happy mood or as a tradition type promotion such as the In and Out Burger © T-Shirts. People from out of town tend to buy these when they are visiting. Some companies will use a t-shirt to show their support to the local high school or university by having their business name and logo on the back with the school’s logo on the front. Even though some companies sell their shirts, for the ease of this assignment you will not have to worry about this. All shirts will be short sleeve, again for the ease of completing this assignment. If you are ordering shirts you must order a minimum of 100. If you want to order more than 100 you must order in increments of 25 (125, 150, 175 etc.)

The price below is price per shirt. Front Only 1 Color 2 Colors 3 Colors 4 Colors 5 Colors White Shirt $3.43 $4.15 $4.85 $5.60 $6.28 Colored Shirt $4.50 $6.00 $7.50 $9.00 $10.50 Front & Back 1 Color 2 Colors 3 Color 4 Color 5 Colors White Shirt $4.10 $4.80 $5.50 $6.25 $6.95 Colored Shirt $8.35 $9.85 $10.35 $11.85 $12.80

If you choose to use a t-shirt as one of your advertisement examples I would suggest using www.customink.com to make the process of designing the shirt much easier. You do not have to use this website, you can simply draw out your shirt in a professional manner. If your shirt does have a front and back, then you will obviously need to show both sides. Budget Calculation Example: A black colored shirt with blue and white colored fonts and logos with both front and back having screen printing will cost you $9.85 per shirt. That is $985 for 100 shirts. You must plan to give away your shirts over the course of the 6-month advertising period. If you desire, you can give them all away in one month. You will need to budget how many shirts you plan to pass out per month. Passing out 20 of the above shirts will cost you $197 for that month alone ($9.85 a shirt multiplied by 20 = $197). You will document this in your monthly budget breakdown.

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ADVERTISING FORM: ONLINE TYPE = Banner Ads With the Internet as popular as it is, using banner ads on popular search engines can be an effective way of promotion. Think of each time you conduct a search on popular search engines such as Google, Bing, or Yahoo. Regardless of what you are looking for it never fails, there will be ads on the side or the top offering you a deal on whatever it is you are looking for.

When you purchase a banner ad you are buying a very large quantity of possible chances that a viewer will click on your ad. Companies such as Yahoo or Google sell these in packs of 100,000 at a minimum. Obviously the more you buy the cheaper it is per time your ad pops up when someone conducts a specific search using specific key words. As a company you need to decide what key words you want to focus on. The amount of key words you use will determine the cost of your banner ad price. For Example, if you are a local burger restaurant your key words may be: burger, lunch, dinner, cheap eats, family restaurant, bar & grill, pub, chicken burger, fun & exciting etc. Below is the breakdown to run banner ads for a per month basis. If you choose to do this you have to purchase it for the entire 6-month period.

Views 200,000 300,000 400,000 800,000 3 Key Words $1500 $2600 $3300 $4000 5 Key Words $1900 $3400 $4500 $6000 8 Key Words $2200 $4000 $5400 $7500 12 Key Words $2500 $4400 $6000 $8500

If you choose to use a banner ad as one of your advertising examples you will need to type out what your banner ad would look like if it was to appear on a website (take a look at some for an idea). You would also need to list the key words that would allow your ad to be found.

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ADVERTISING FORM: ONLINE TYPE = Social Media Marketing

Social Networking has grown at a rate that I don’t believe anyone could have imagined when the idea was created. With that said, this is the new frontier of advertising online. Nearly all companies have a Facebook © or Twitter © Account that they actively use on a constant basis. Although using social networking is free, it does take time for someone to manage the sites used by so many companies. Plus, if a company creates a Facebook or Twitter it doesn’t guarantee them they will instantly have many friends or many followers. This takes time and effort to build up a following to make managing a social networking site for a business worth it. If an employee or manager is posting Facebook updates or creating events for their business’s “friends” then they are not working directly at the business. Below is a breakdown of the monthly costs associated with having an employee run a Facebook, Twitter, or YouTube account.

Social Media Site Monthly Cost Facebook $250 Twitter $250 Instagram $250 YouTube $400 If you choose to use social networking as one of your methods for advertising for your local business you will need to use it for all 6 months of your advertising plan. You can use all three if you like. If you choose to use one of these as your example you will need to type out examples of what your posts would be for an entire month. Many times companies will use these sites to announce the release of a new product or to promote an upcoming sale or local event. The advertising examples for this are different for each type of social networking application. Facebook = 10 posts / month Twitter = 15 Tweets / month Instagram = 8 posts / month You will need to type out what each post / tweet would be on that particular day. Remember to think about your objectives and try and align your posts / tweets so they help support your other advertisements YouTube = 4 Videos / Ads per month You will need to describe each video posted in detail so that the person reading the advertising plan will understand what the video is about.

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Calendar Codes for Each Advertisement

Calendar Broadcast Code Helpful Budget Information Television TV Example: TV – Prime Time 3X – NBC (The 3X means you will run it 3 times in that time slot)

What if you have more than one kind of TV ad in a month? Simply give them a number. TV2, TV3 Radio R Example: R – Evening 4X – FM 94.7 What if you have more than one type of Radio Ad per month? Give it a number R2, R3, and so on

Calendar

Print Code Helpful Budget Information Newspaper NP Example: NP 4x4 – Sports Section What if you run a different sized ad in the same month? Give it a number NP2, NP3, and so on. Billboard BB Example: BB – 185th & TV Hwy What if you have more than one Billboard in a month? Give it a number BB2, BB3, and so on. Direct Mail DM Example: DM – Large Postcard – Color – Qty: 1000 (The 1000 at the end are the amount of post cards you will mail out)

What if you have more than one direct mailer in a month? Give it a number DM2, DM3, and so on.

Calendar Specialty Code Helpful Budget Information Key Chains KC Example: KC – 1” x 2” – Qty: 125 of 750

(The 125 of 750 signifies that you will give away 125 out of the 750 you purchased.)

What if you have more than one key chain color? Give it a number KC2, KC3, and so on.

Circle Stickers CS Example: CS – 4.25” – Qty: 50 of 250 (The 50 of 250 signifies that you will give away 50 out of the 250 circle stickers you purchased.)

What if you have more than one design of CS to give out? Give it a number CS2, CS3, and so on.

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Calendar Specialty Code Helpful Budget Information Bumper Stickers BS Example: BS – 3” x 10” – Qty: 20 of 100

(The 20 of 100 signifies that you will give away 20 out of your 100 bumper stickers you purchased.)

What if you have more than one type of BS to give out? Give it a number BS2, BS3, and so on. T-Shirts TS Example: TS – Colored FB – 2 Colors – Qty: 25 of 100

(The FB stands for Front Back, the colored stands for a shirt that is non-white, such as black, blue, grey, green, and the 2 colors tells me that you will have two colors of screen print on the shirt. The 25 of 100 signifies that you will give out 25 of the 100 shirts you purchased.)

What if you have more than one t-shirt design? Give it a number TS2, TS3, and so on.

Calendar

Online Code Helpful Budget Information Banner Ads BA Example: BA Google – 5 Key Words – Qty: 300K

(The 5 Key Words tells me you will use 5 key words for your search and the 300K informs me that you will have 300,000 views each month using Google as your search enging.)

What if I use another banner ad on another search engine? Give it a number BA2, BA3, and so on.

Facebook FB Example: FB1 – Status Update (The FB1 will be put on the day you plan to make a status update or post information for an upcoming event. You will need to make 10 status updates per month)

Instagram IG Example: IG1 – Picture (You will post 8 pictures per month)

YouTube YT Example: YT – Video (You will need 4 videos descriptions per month)

Twitter Tweet Example: Tweet1, Tweet2, Tweet3 and so on.

(You will need to have 15 Tweets per month)

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Calendar Information Example

◄ Apr 2014 ~ May 2014 ~ Jun 2014 ►

Sun Mon Tue Wed Thu Fri Sat

1 BB

BB 2

BS

2 TS

Tweet 1

Tweet 2

3 DM

4

5 Tweet 3

Tweet 4

NP

6 Tweet 5

NP

7 NP

8 NP

Tweet 6

9 NP

Tweet 7

Tweet 8

10 Tweet 9

11 Tweet 10

12 TV

Tweet 11

13 R

14 R

NP2

DM2

15 R

Tweet 12

16 R

NP2

17

18 TV

19 R2

20 R2

NP2

Tweet 13

21 R2

Tweet 14

22 NP2

23 Tweet 15

24

25

26

27

28

29

30

31

Billboard – BB – Hwy 26 (near Bethany Blvd Exit) = $800 BB2 – Hwy 217 (near Hall Blvd Exit) = $800 Bumper Sticker – BS – 3” x 8” – Qty: 20 of 100 = $6.15 per bumper sticker x 20 = $123 Twitter – Tweet1 - 15 - $250 (monthly fee) T-Shirt – TS – White FB – 3 Colors Qty: 50 of 200 = $5.50 per shirt x 50 = $275 Direct Mail – DM – Sumo Postcard – B&W – Qty: 2000 = $1900 DM2 – Standard Postcard – Color – Qty: 1000 = $490 Newspaper – NP – 3 x 6 (add 1 color) – Oregonian Metro Section - $360 + $200 = $560 x 5 days = $2800 NP2 – 4 x 8 – Oregonian Metro Section – $640 x 4 days = $2560 Television – TV – 30 seconds – Morning Time 2X – CNN = $1200 Radio - R – 15 seconds – Evening Drive Times 3X a slot for 4 days – FM 101.9 = $540 R2 – 15 seconds – Morning Drive Time 4X a slot for 3 days – FM 103.3 = $450

Total Monthly Budget Spent = $ 12,188

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Total Advertising Plan Budget = $68,400 Total Monthly Budget Breakdown February = $6,050 March = $9,450 April = $14,434 May = $12,188 June = $17,543 July = $8,559 Advertising Budget Expenditure = $ 68,224 (Under Budget by $176)

You must be under budget by no more than 0.50% of your total budget allotment.

This is calculated using the following formula: Amount of Money Under Budget = $176 = .0026 x 100 = .26% under budget Total Advertising Budget $68400

*** You will need to create a Total Monthly Budget Breakdown like the example above.

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What Am I turning in and how do I Put it all Together?

Below is how you will turn in your 6-Month Advertising Plan Title Page = Business Name, Student Name, and the 6-Months of your plan The following sections must be typed and have section titles separating one section from the next. Part 1 = Objectives Part 2 = Target Markets and Product & Institution Advertising Explanation Part 3 = Media Selection Justification Sections 4 and 5 need to be organized in the following order. 1st Month Calendar 1st Budget Breakdown for 1st Month 2nd Month Calendar 2nd Budget Breakdown for 2nd Month And So On…. Don’t Forget – Final 6-Month Breakdown with Percentage Calculation demonstrating that you are

under budget by less than 0.50% of your allotted budget. Page 14 has an example.

Section 6 3 – Advertising Examples