AdvertisingObjectivesandBudgetingFocus&CoordinationPlans&DecisionsMeasurement&ControlHelpsDecision-makingFocus&Coordination–“SanityStructure”WhyHaveAdvertisingObjectives?ObjectivesAttainableMeasurableSpecificRealisticSpecificPromotionalGoalMeasurableGoal–“degreeofchangesought”Attainable/RealisticTargetAudienceTimeFrameCharacteristicsofObjectivesObjectivesSomeGenericAdObjectivesstimulatesalesgrabattentioncreateawarenessestablishbrandidentityestablish/cuebrandpositionand/orimagecreatementalassociationscueemotionalappealstimulateinterestprovideinformation/educatepromoteunderstandingoffeatures,benefits,advantagesdemonstratehowtouse/dosomethingcreatebrandlikingstimulatebrandrecognitionstimulatemessagerecallstimulatebrandpreferenceorintentiontobuycreateconvictionorinstillbeliefstimulatechangeofopinion,viewpointorattitudestimulatebehavior(buy,call,click,visit,donate,etc.)stimulaterepeatpurchasesbuildbrandloyaltyremindgeneratebuzzorwordofmouthadvertisingcreateadvocacyandreferralsincreasegeneralcategorysales/awareness***Salesvs.CommunicationAdvertisingObjectives20%Trial40%Liking90%Awareness5%Use70%Knowledge25%Preference90%Awareness70%Knowledge40%Liking25%Preference20%TrialPyramidofCommunicationsEffectsExecution:Whereareyourconsumers?TeasercampaignsAffectiveRealmofemotions.AdschangeattitudesandfeelingsCognitiveRealmofthoughts.Adsprovideinformationandfacts.ConativeRealmofbehaviors.Adsstimulateordirectdesires.“Image”copy“Transformationalads”Status,glamourappealsAnnouncementsDescriptive,LongCopyDemonstrationsComparativeadsArgumentativecopyPointofpurchaseadsDirectResponse,Deals“Last-chance”offersPriceappeals,SalesPromotionsPurchaseConvictionPreferenceLikingKnowledgeAwarenessStagesofAdvertising•PioneeringStage•CompetitiveStage•RetentiveStagePioneeringStage•Educateconsumersaboutnewproducts•Showpeopletheyhaveaneedandthattheadvertisedproductcanfulfillit•ShowthataproductnowexiststomeetaneedthathadbeenpreviouslyrecognizedbutunfulfilledEggBeaters:EggAlternativePurellBuiltaNeedforHandSanitizerCompetitiveStage•Thecompetitivestageistheadvertisingstageaproductreacheswhenitsgeneralusefulnessisrecognizedbutitssuperiorityoversimilarbrandshasyettobeestablished.CompetitiveHeadlines•“Allthesoundwithoutthewires.”–BoseWaveMusicSystem•“Thereisabetterwaytosootheyourskin.”–Nivea•“Hespentdecadesresearchingtherightwoodforhiswinebarrels.Youcantastetheresultsinjustasip.”-WoodbridgeWine•“Themostfuel-efficientmidsizedsedan.”–FordFusion+HybridRetentiveStage•Theretentivestageiswhenabrand’sgeneralusefulnessiswidelyknown,itsindividualqualitiesarethoroughlyappreciated,anditcanretainitspatronagemerelyonthestrengthofitspastreputationandbrandequity.BrandsintheRetentiveStage•McDonald’s•Nike•Jell-O•Pepsi-Cola•MountainDew•Budweiser•Disney•ESPN•Google•GilletteTheCreativeBriefCreativeBrief•Acreativebrief(strategyorworkplan)isashortstatementthatclearlydefinestheaudience,howconsumersthinkorfeelandbehave,whatthecommunicationshouldaccomplish,andthepromisethatwillcreateabondbetweentheconsumerandthebrand.CreativeBriefKeyobservationCommunicationobjectiveConsumerinsightPromiseandsupportAudienceMandatoriesSampleCreativeBriefBalancingObjectivesandBudgetsDollarsGoalsWhatwe’rewillingandabletospendWhatweneedtoachieveourobjectivesPrinciplesofMarginalAnalysisIncreaseSpendingDecreaseSpendingHoldSpendingIftheincreasedcostislessthantheincremental(marginal)returnIftheincreasedcostisequaltotheincremental(marginal)return.Iftheincreasedcostismorethantheincremental(marginal)returnAssumptionsforMarginalAnalysisSalesaretheprincipalobjectiveofadvertisingandpromotionSalesaretheresultofadvertisingandpromotion,andnothingelseMarginalAnalysisAdvertising/Promotionin$Salesin$PointAProfitSalesGrossMarginAd.ExpenditureAdvertisingSales/ResponseFunctionsIncrementalSalesAdvertisingExpendituresA.Concave-DownwardResponseCurveIncrementalSalesAdvertisingExpendituresRangeARangeBRangeCB.S-ShapedResponseFunctionHighSpendingLittleEffectInitialSpendingLittleEffectMiddleLevelHighEffectPeckham’sRuleofThumbAdexpendituresonnewlylaunchedproductsasa%ofsalesshouldtotaltwicethedesiredmarketshare.Example:Ifacompanywantsa30%marketshareforitsnewcomputer,what%ofsalesshoulditspendonadvertising?ThePromotionBudgetAdherestotheSpendingLimitTopManagementSetstheSpendingLimitTopManagementSetstheSpendingLimitTop-DownBudgetingAffordableMethodAffordableMethodCompetitiveParityPercentageofSalesReturnonInvestmentArbitraryAllocationPercentageofSalesCompetitiveParityArbitraryAllocationTop-DownBudgetingMethodsTopManagementAdvertisingExpendituresasa%ofRevenue•Ranked30amongtheleadingnationaladvertisersintermsofadspend•Advertisingwas28.6%ofrevenues•Ranked40amongtheleadingnationaladvertisersintermsofadspend•Advertisingwas.5%ofrevenuesAdBudgetIsApprovedbyTopManagementCostofActivitiesareBudgetedActivitiestoAchieveObjectivesArePlannedPromotionalObjectivesAreSetCostandContributionofActivitiesareBudgetedActivitiestoAchieveObjectivesAreIdentifiedPromotionalObjectivesAreSetBottom-UpBudgetingEstimateCostsAssociatedwithTasks