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71 Cards in this Set
- Front
- Back
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I. Executive summary |
abstract of the entire plan "tell them what you are going to tell them" |
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II. Situational analysis |
helps justify all the things you are going to recommend |
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III. marketing goals |
the co. 4p's the only part the agency has nothing to do with EXCEPT promotion |
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IV. Budget |
proposed expenditures -- how much we are going to spend and on what |
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V. Creative recommendation |
What is it? a. Advertising objective = what we hope to achieve with our advertising b. Creative Strategy & Execution = what are by ads going to look like, what are they going to say? |
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VI. Media Recommendations |
where am I placing them and why? |
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VII. Other promotion mix recommendations |
may have some of these in the mix -sales promo. -PR -Direct/personal selling |
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VIII. Evaluation |
How the plans goal/objectives can be measured and assessed for effectiveness |
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IX. Summary & Conclusion |
Final synopsis of entire plan Also an opportunity to "pitch" -- why should you heir us? -look at some of our past work |
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Situational Analysis |
-company product/history : past campaigns/budgets -Product eval. : live,breath, eat, sleep the product -Consumer eval: who are they? -Competitor eval: who are they and what kind of advertising are they doing?? -Other: laws? |
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5 Critera for a good Promotional/Advertising Objective |
-Benchmark (starting point/current status) # -Goal/objective (ending point) # -Target Market defined (use segregation bases) -Time pd: when do you hope to achieve goal (date) -Measurement technique: how will the benchmark/goal be measured (some way to quantify it) |
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The OBJECTIVE guides other aspects of the plan (3) |
1. The Budget 2. Creative 3. Media objective provides standards from which results can be measured "Ifyou don’t set a promotional objective any creative execution would appear to bepotentially effective" |
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1. The Budget |
The more change you want to see the more $ it will take 4--> 5 vs 4--> 15 |
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2. Creative |
What is it going to look like?/what are we going to emphasize If we want to convince ppl the store is a fun place to shop = make ad look fun If we want ppl to better recognize brand name = make name HUGE |
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3. Media |
Where the ad will be placed? look at TARGET Demographic, psychographic and behavioral (AIO's) |
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Hierarchy effects/"Communications effects pyramid" |
Theoretical model of consumer information/processing Communications Objectives -awareness -knowledge beliefs perceptions -Liking/attitudes -Preference -trial/conviction/behavioral intentions Sales objective - Repurchase/regular use/sales |
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Awareness |
first order of business expressed as a % are you aware of the brand (yes or no) |
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Knowledge/beliefs/perceptions |
attributes you can associate with the brand expressed as a number What is the likelihood that brand x is (fill in characteristic)? unlikely 1 2 3 4 5 6 7 likely |
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Liking/attitudes |
expressed as a # what is your attitude towards brand x? how do you feel about brand x? bad 1 2 3 4 5 6 7 good unfavorable 1 2 3 4 5 6 7 favorable |
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Preference |
expressed as a % what brand of (name product class) do you prefer? of all brands do you prefer ours? (yes/no) |
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Conviction/behavioral intentions /trial |
expressed as a # what is the likelihood you will buy brand x? next time you buy (from product class)? unlikely 1 2 3 4 5 6 7 likely |
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Sales/repurchase/action/behavior |
expressed as a # or % |
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Preference vs. attitudes |
preferences has competition (you should PREFER coke over pepsi) |
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sales objective |
Company wants this -sales = $$$ -you dont make $ with communications objectives |
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Communications objective |
Ad agency wants this -this is what you can change in customers -they can not control price, product or place (things that contribute to sales) |
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When are sales an appropriate objective |
-Direct market/advertising: ex 1-800 - Local sales advertising (retail) - in a mature market (product, price place = stable) Ifyou advertise when you are in a very stable market then you see a blip in yoursales you can attribute that to advertising/marketing |
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budget items (where does the $ go?) |
-creative/production (someone has to make it) -media - paying for time slots -Research - Miscellaneous - wining and dining (ex. mad men) |
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Budgeting methods/techniques (how the money is allocated |
- % of sales - All you can afford (affordability( - Arbitrary allocation - Competitive parity - Objective and task |
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Percent of sales |
budget is set as a % of current or anticipated sales |
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All you can afford |
Rev. - Expenses = possibility for ad budget |
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Arbitrary allocation |
sometimes based on the persons mood - more likely to spend $$ when things seem good |
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Competitive parity |
when you match percentage added to budget by competitors ex. McDonalds increases (sales/avg. budget)%by 5% then Burger king will increase by 5% as well ** high competitive parityif we match them |
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objective and task |
THE BEST OPTION 1. set promotional objective (ex. increase brand awareness) 2. determine the tasks to meet objective (ex. what kind of medial buys/creative decisions) 3. what is the cost 4. set budget accordingly |
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Investment vs. expense |
expense = cost of doing business
investment = attempting to achieve objective |
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Viewing as an expense |
-Percent of sales & all you can afford - when co. is doing well they spend lots of $ when they are doing poorly they spend less -Arbitrary allocation - really no objective -Competitive parity - doing it because we have to |
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Viewing as an investment |
-Competitive parity: because I want to match the competition (dont want to fall behind) -Objective and task: why am i spending $$, have a specific objective in mind |
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Considerations when setting a promotional budget |
-Companies policies and procedures = amount spend and method ("this is they way we have always done it") -Ad budget = how much you spend = not the only factor influencing sales (weather, branding, packaging, price, distribution, brand awareness, purchase intentions |
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Sales response function curve |
relationshipbetween sales $ and ad budget $ Only one decision you can make - ONLY the x-axis (howmuch am I going to spend) = ad budget |
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Sales response function curve Scenario when a competitor goes out of business |
moves up (over time) |
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Sales response function curve Scenario when a competitor doubles its ad budget |
moves down |
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Budgeting "effects" |
-Nonlinear effect -Threshold effect -Carry over effect -Decay effect -Competitor effect -Quality effect |
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Nonlinear effect |
higher promotional expenditures do not necessarily lead to higher sales Stop spending when curve flattens out |
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Threshold effect |
ad budget may not have an effect until you spend a certain amount |
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Carry over effect |
impact of promotional expenditures tends to take place over TIME (spend $ now have long term effect) -lasting effect = good thing **you can not demonstrate on the curve (because the sales responsefunction does not have a time function) |
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2 reasons Carry over effect WORKS |
1. Delayed response - ppl dont respond immediately 2. Hold-over - consumers are able to retain information in memory; do not have to see the ad again before buying it |
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Decay effect |
in t he absence of further promotiona the effects of your promotional $ will diminish (BAD THING) -good will, brand name/awareness, sales all decrease THIS IS THE #1 REASON WHY ADVERTISERS OVERSPEND = fear of decay effect |
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Competitor effect |
you competitors promotional programs (the amount if $ they spend) will influence how effective your campaign will be |
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Quality effect |
the effectiveness of your ad program depends upon the unique content, presentation and placement of the promotion (not just $ spent) |
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Major“regulatory” bodies |
-government -self-regulatory -media, -consumers / customer advocacy groups |
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Government (national, state & local) |
-State = attorney general -Local = city ordinances -National = FTC (federal trade commission) |
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FTC 3 criteria to determine "Deception" (must have all 3) |
1. misleading
2. reasonable consumer 3. Materiality |
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Misleadingness |
-are the beliefs/perceptions that consumers hold as a result of seeing the ad different from reality? -did the co. misrepresent something -are omissions fair? |
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Reasonable consumer |
-are individuals who had these "false" beliefs acting reasonably - a normal reaction to the ad (by ppl from the target market (a noticeable $ of individuals) |
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Materiality |
-do the deceptive claims made in the ad affect/influence buyer behavior to the consumers detriment -is one of the reasons consumers considered buying the product due to their exposure to & beliefs about "deceptive" claims |
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FTC "Remedies" |
-Prevention (stop something before it happens) -Restitution (back to status quo) -Punishment |
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Prevention |
-Trade Regulatory rules (TRR) -Ad substantiation -Orders |
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TRR |
industry wide regulations Ex.Telemarketers calling and saying things that are not true -- FTC establishessome sort of standards that ALL telemarketers have to be held to this TRR |
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Ad Substantiation |
requiring co. to substantiate all claims they make in their advertisements = prove it/evidence
Prove the claim before you make the claim! |
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Orders (2) |
1. Consent order: agree with accusation but dont admit guilt 2. Cease-and-desist order: co. is going to challenge complaint not, going to agree, wants a hearing but stops running the ad |
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Restitution |
back to the status quo (this is NOT PUNISHMENT) - trying to get people back to where they were How were people feeling/doing before -Affirmative disclosure -Corrective advertising (is a kind of affirmative disclosure) -Cooling off pd -Refunds |
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Affirmative disclosure |
giving you more info Ex. Surgeon generals warning on cigs |
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Corrective advertising |
makes reference to PAST advertising then tries to correct the wrong -Must run in similar media at similar "time" -And spend a certain % on corrective advertising |
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Cooling off pf. |
(typically door-to-door)
-allows consumer to "get out" of contract within 72 hrs -Allows you to sleep on it - doesn’t need to be any deception |
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Refund |
give $'s back |
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Punishment |
-Fine = need to pay damage
-prison - UNOFFICIAL = negative publicity |
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What is the source of FTCcomplaints? |
- Consumers - Competitors (number 1 group) - FTC looks (ex. Weight loss ads) - NARB |
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Media (regulation) |
where the ads are placed, all different media have regulations on whichads can be placed on their medium |
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Consumers & consumer advocacy groups |
regulate media |
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Self Regulatory Bodies |
NARC = national advertising review council -NAD : national advertising division (investigative body) -NARB (appeals body) |
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NAD |
National advertising division = investigative body ...... someone complains they look into it Outcomes -continue -discontinue -ask for modification (add disclaimer) |
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NARB |
appeals body ----- whenNAD ruling is challenged or ignored then NARB comes into play (doesn’t go anyfurther than this) 5 people are selected from a pool of people - 2 come from ad agencies - 2 that represent advertisers - 1 consumer |
