The Advertising Budget

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The Advertising Budget
1. Setting the Budget
- Percentage of Sales
- Payout Plan
- Competitive Budgeting
- The Task or Objective Method
- Arbitrary
2. Administering and Protecting the Budget

Media - The vehicles that carry the ads to the target market.

Media Planning - The process of directing the advertising message to the target audience at the
appropriate time and place, using the appropriate channel.

Organization of the Media Function
Media planner
Media buyer
Media researcher

Media Objectives
Starting point of the media plan.
Outline what the media plan is expected to accomplish.
Deal only with what is to be done.
How is reserved for strategy.

Media selection is “how.”
NEVER recommend media choices in the objectives!

Basic Media Objectives
Target Audience
Geographic Coverage
Scheduling (Seasonality / Timing)
Reach / Frequency
Creative Implications
Budget
Flexibility
Promotion Support

Factors Influencing Media:Planning Decisions
Target Market Profile
Looking at Brand/Product Dynamics
The Creative Execution
Budget Considerations and Media Deals
The Competitive Situation
Availability and Timing Considerations
Cost Efficiency

Media Selection

two types of selectivity:
-Class Selectivity is the ability of a medium to reach the target market without waste.
-Geographic Selectivity is the ability of a medium to cover a particular geographic area without
spillover.

Media Schedule =
Reach (% of target audience with opportunity for exposure)
+
Frequency (average number of times target is likely to be exposed)
+
Continuity (how long the campaign runs)
+
Dominance/Impact
(the attention-getting ability of the media vehicle(s) selected to run the ad)
/100

Rating point: the % of a given population group that uses a specified media vehicle.

Share: Households/persons using television (HUT, PUT): % of homes or people watching TV at a given
time.

Gross rating point (GRP): total number of ratings for different media vehicles.

Gross impression: translation of GRPs into people; number of audience exposures x number of times
they
will see or hear vehicles.

Cost per rating point (CPP): cost of buying one rating point in a given media vehicle or type.

Audience: number or % of homes or persons using a media vehicle.

Coverage: Same as reach – the % of homes or persons receiving broadcast signal within specified area,
or receiving specific magazine or newspaper.

Circulation: Total number of copies of a publication sold through various forms of distribution.

Readers per copy: average number of people who read each issue of publication.

Types of Media Plans:-Geographic
Local, spot, key market
Regional
National
International
-Selective
-Combination

Media strategy - used in the advertising or content delivery (online broadcasting) industries and is
concerned with how messages will be delivered to consumers or niche markets.

Media Concentration approach

the number of categories of media is less
The money is spent on concentrating on only few media types
used for those companies who are not very confident and have to share the place with the other
competitors

media dispersion approach

there are more number of categories of media used to advertise
practiced by only those people who know that a single or two types of media will not reach their
target.

Media Plan
GREATER REACH
GREATER FREQUENCY

Media Planning :

It is an integral part of the total

marketing and advertising plan

Marketing objectives

Advertising theme

Design and execution of advertising material

Choice of media

CPM = (Cost/Audience) x 100

GRPs: Gross Rating Points (the weight of the media schedule)
GRP = REACH x FREQUENCY

CPRP – Cost per rating point

Print Media
Circulation: the # of copies of an average issue that will be distributed
Readership: the # of people who actually see a copy

Types of Print Advertising
Newspaper advertising
Magazine advertising
Directories
Calendar or Community magazines
Business Cards
Banners
Signs
Letterhead and Stationery

Outdoor advertising

Bill board advertising
Transit advertising (subway, train,bus)
DOOH (stand-alone screens, kiosks, and interactive media)

Bus advertising
Lamppost banner advertising
Mobile billboard

Advantages of newspaper advertising

Market penetration
Geographic selectivity
Responsive timing
Creative flexibility

Audience interest

Limitation of newspaper advertising
Reproduction constraints
Limited targeting capabilities
Short life span
Clutter

Direct Marketing

Push towards that can reach narrowly

Defined Target audience
Not the target audience-but individual

Without intermediaries
..retailers/wholesales

Types of Consumer Promotion


Coupons



Price Promotions



Price Packs



Money –Back offers



Contests and Sweepstakes



Premiums



Frequency programs &



Point –of- Purchase displays

Types of Trade Promotions


Trade deals



Trade Contests and incentives



Trade show



Sales support



Cooperative

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