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Advertising Budget

By : RAHUL CHOPRA.

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The Nature and Types of

Advertising Advertising

Paid non personal communication about an

organization and its products transmitted to

a target audience through mass media

Promotes goods, services, ideas, images,

issues, people, and

anything else that

advertisers want to

publicize or foster

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Advertising

It's probably the toughest part of any

business. How much to spend, where toplace the ads, how often, what message

to send, and to who?

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The Five Ms

MISSION sales goals, advertising objectives

MONEY factors to consider: a) Stage of PLC, b)Market share and consumer base, c) Competitionand clutter, d) Advertising frequency, and e)Product substitutability.

MESSAGE message generation, messageevaluation and selection, message execution,social-responsibility. (AIDA?) Know what this is?(Awareness, Interest, Desire, Action)

MEDIA

Reach, frequency, impact; Major mediatypes, Specific Media vehicles, Media timing,Geographical media allocation.

MEASUREMENT communication impact andsales impact.

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Major Decisions in Advertising

Objectives Setting

Budget Decisions: a) Message Decisions

b) Media Decisions

Campaign Evaluations

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Advertising Budget Factors that

MUST BE CONSIDERED

Market Share & Consumer Base

Competition & Clutter Advertising Frequency

Product Substitutability

Stage in the PLC (Product Life Cycle)

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General Steps inDeveloping and

Implementing an

AdvertisingCampaign

FIGURE 19.1

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Save money by unadvertisedtesting This is the store's way of testing the waters for a

specific product or service. If the product testswell, the store can run future ads promoting the

product.

Another advantage: Several products can betested against each other and the winners arepromoted later with a greater expectation of

success. Service businesses can test additionalservices at a discount to customers when theprimary service is purchased at full price.

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Cont.,

Is this ad financed by the percentage of salesmethod or a sales objective percentage method?What is the dollar amount allocated to this ad?

Co-Op funds available? What is the expectedrevenue this ad will produce?

Are comparable ads being run for competitiveproducts? What size ads do they use? Can yourun similar size ads?

What is the specific time period for achieving theadvertising goal?

What form of evaluation will be used to assurethat the ad is working or not working?

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Conclusion

Advertising doesn't have to be hard. But, it does

require study, testing and planning. The most

important lesson in advertising that almosteveryone misses is, tracking customer response

and income produced by advertising. Does it pay

to advertise in the media you've chosen?

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