ADVERTISING BUDGET:4 Methods to determine, ADVERTISING RESEARCH, ADVERTISING RESEARCH

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Advertising and Promotion (MKT621)

Lesson 11

ADVERTISING BUDGET

LECTURE OVERVIEW

This lecture will cover in detail the advertising budget; the approach required to work out a

practical and workable budget. The information regarding advertising with special reference to

implementation and evaluation will be discussed.

ADVERTISING BUDGET

4 Methods to determine

AFFORDABLE RATE.

PERCENTAGE OF SALES METHOD.

COMPETITIVE PARITY METHOD.

OBJECTIVE & TASK METHOD.

ADVERTISING BUDGET

Two Approaches to Decide Budgets

Top - Down Approach

Management decides

Activity based &

how much to spend

objective oriented

Affordability approach

approach by managers

Ignores market reality

Bottom Up Approach

ADVERTISING - IMPLEMENTATION & EVALUATION

Deals with campaign's specific tactics.

Specifies about activities to be undertaken.

People responsible for these.

Time schedules.

Budget availability.

Advertising and Promotion (MKT621)

Advertising manager to find answers...

· WHAT IS TO BE DONE?

· WHO WILL DO IT?

· WHEN WILL IT BE DONE?

· HOW WILL IT BE DONE?

REMEMBER:

"Success is in details"

ADVERTISING RESEARCH

3 Critical Decisions!

1. SETTING OBJECTIVES.

1. SELECTING THE METHOD.

1. CHOOSING APPROPRIATE MEDIA.

4 CHOICES to be made.

1. WHAT PROGRAMME?

1. WHAT DAYS OF THE WEEK?

1. WHAT TIME OF THE DAY?

1. HOW MANY TIMES?

AT LEAST

· Helps in appropriate positioning decision for the brand.

· Helps in selecting target markets.

· Find acceptability of creative ideas.

· Pre -- testing of ads.

· Post testing of ads.

ADVERTISING RESEARCH OBJECTIVES

Advertiser should find out:

· Who are the customers?

· What are the likes & dislikes of customers?

· How is company's brand perceived?

· How to improve customer's perception?

ADVERTISING RESEARCH PROCESS

STEPS to collect relevant information:

PROBLEM DEFINITION.

EXPLORATORY or INFORMAL RESEARCH.

DETERMINING RESEARCH OBJECTIVES.

RESEARCH DESIGN:

Sampling methods & size.

Scaling.

Data collection method.

Advertising and Promotion (MKT621)

· DATA COLLECTION.

· DATA TABULATION & ANALYSIS.

· INTERPRETATION CONCLUSION & REPORTING.

ADVERTISING RESEARCH COMPONENTS

Advertising Research

STRATEGIC

EVALUATE

ADVERTISING RESEARCH COMPONENTS

STRATEGIC

Strategy

Organization

Data collection

Document

Research

(Creative brief)

Secondary

Primary

·Marketing

·From

·Published

Data obtained

objectives

studies

to be compiled

·Product

source

conducted

as quantitative

·Government

·Target audience

by agency

& qualitative

·Internet

on specific

Information

·Benefits

issue.

·Trade Assoc.

·Brand

Advertising and Promotion (MKT621)

ADVERTISING RESEARCH COMPONENTS

EVALUATIVE

Mid- Campaign

Pre-Campaign

Post-Campaign

· Coincidental

· Check return

· Define theme

surveys

· Compare & measure

· Pre-test ad.

· (assess

· achievement of

· Media

effectiveness)

· objectives.

Schedule.

· Attitude tests.

· Tests In market

Actual behavior

· Brand tracking

· Direct response.

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