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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