14.2 Major Decisions in Developing an Advertising Plan
5 min read•june 25, 2024
Crafting an effective advertising plan is crucial for marketing success. It involves a systematic approach, from analyzing the current situation to evaluating campaign effectiveness. Key steps include setting objectives, determining budgets, and developing strategies that resonate with the .
Advertisers must make critical decisions about objectives, budgets, and strategies. This includes choosing between informative, persuasive, or , selecting appropriate , and crafting compelling messages. Measuring effectiveness through , , and ongoing optimization ensures continuous improvement and maximizes .
Developing an Advertising Plan
Steps in advertising plan creation
Top images from around the web for Steps in advertising plan creation
Reading: Creating the Marketing Strategy | Principles of Marketing View original
Is this image relevant?
Putting It Together: Marketing Function | Principles of Marketing View original
Is this image relevant?
Reading: Implementing Positioning Strategy | Principles of Marketing View original
Is this image relevant?
Reading: Creating the Marketing Strategy | Principles of Marketing View original
Is this image relevant?
Putting It Together: Marketing Function | Principles of Marketing View original
Is this image relevant?
1 of 3
Top images from around the web for Steps in advertising plan creation
Reading: Creating the Marketing Strategy | Principles of Marketing View original
Is this image relevant?
Putting It Together: Marketing Function | Principles of Marketing View original
Is this image relevant?
Reading: Implementing Positioning Strategy | Principles of Marketing View original
Is this image relevant?
Reading: Creating the Marketing Strategy | Principles of Marketing View original
Is this image relevant?
Putting It Together: Marketing Function | Principles of Marketing View original
Is this image relevant?
1 of 3
Conduct a
Assess the current marketing situation including market trends, consumer preferences, and
Identify target audience based on , , and
Evaluate competitors' advertising strategies to identify gaps and opportunities for differentiation
Set
Determine the desired response from the target audience such as increased , improved , or higher
Align objectives with overall marketing goals to ensure a cohesive and integrated approach
Determine advertising budget
Consider the stage in the as products in the introduction stage may require higher advertising spend compared to mature products
Evaluate and consumer base to allocate resources effectively based on the brand's position and growth potential
Assess competitors' advertising spending to ensure the budget is competitive and sufficient to achieve the desired objectives
Develop a that aligns with overall financial goals and expected return on investment
Develop
Define the target audience precisely using demographic (age, gender, income), psychographic (lifestyle, values, personality), and behavioral (purchase behavior, brand loyalty)
Determine the advertising message by crafting a (USP) and deciding between (humor, nostalgia) and (product features, benefits)
Select appropriate media channels such as (TV, radio, print), (social media, , email marketing), and (billboards, transit ads)
Create a to guide the development of advertising content and ensure consistency with the overall strategy
Create advertising executions
Design and content that effectively communicate the advertising message and resonate with the target audience
Produce the advertisements ensuring high quality and consistency across all selected media channels
Implement the advertising campaign
Schedule ad placements based on the media plan and budget allocation
Monitor and adjust as needed based on real-time performance data and audience feedback
Evaluate
Measure results against objectives using (KPIs) such as , , and
Gather feedback from the target audience and make improvements to optimize the advertising campaign for better results
Key decisions for advertising strategy
Setting advertising objectives
aims to increase brand awareness and knowledge among the target audience (Coca-Cola's "Share a Coke" campaign)
focuses on encouraging brand preference and purchase by highlighting unique selling points and benefits (Apple's "Shot on iPhone" campaign)
Reminder advertising seeks to maintain customer relationships and loyalty by reinforcing the brand's presence and value (McDonald's "I'm lovin' it" campaign)
Determining advertising budgets
allocates funds based on available resources, which may limit the campaign's scope and effectiveness
budgets a fixed percentage of sales revenue, ensuring a consistent investment in advertising (10% of annual sales)
matches competitors' advertising spending to maintain a similar in the market
budgets based on specific objectives and tasks, allowing for a more targeted and efficient allocation of resources
Developing advertising strategies
Target audience selection
Demographic segmentation based on age (millennials), gender (women), income (high-income earners), etc.
Psychographic segmentation based on lifestyle (health-conscious), values (environmentally friendly), personality (adventurous), etc.
based on purchase behavior (frequent buyers), brand loyalty (loyal customers), etc.
Advertising message decisions
Unique selling proposition (USP) that differentiates the brand from competitors (Domino's Pizza's "30 minutes or it's free" guarantee)
Emotional appeals vs. rational appeals depending on the product category and target audience (emotional appeal for perfumes, rational appeal for cleaning products)
using various techniques such as humor (Old Spice's "The Man Your Man Could Smell Like"), fear (anti-smoking campaigns), or testimonials (celebrity endorsements)
Develop a that aligns with the and resonates with the target audience
Traditional media such as TV (Super Bowl commercials), radio (Spotify ads), and print (magazine ads)
Digital media including social media (Instagram influencer partnerships), search engine marketing (Google Ads), and email marketing (promotional newsletters)
Out-of-home media like billboards (Times Square billboards), transit ads (bus wraps), and (in-store promotions)
Implement to optimize reach and frequency across chosen channels
Methods of advertising effectiveness measurement
Measuring advertising effectiveness
Pre-testing evaluates ad concepts before full implementation
and surveys to gauge audience reactions and gather qualitative feedback on ad concepts and creative executions
Physiological measures such as (heat maps) and brain activity (EEG) to assess attention and emotional response to ads
Post-testing assesses the impact of the advertising campaign after it has been launched
Recall and to measure the target audience's ability to remember and identify the ad and its key messages
Attitude and preference changes to evaluate the impact of the ad on the target audience's perceptions and feelings towards the brand
Sales and market share analysis to quantify the ad's effectiveness in driving business results and achieving marketing objectives
Improving advertising effectiveness
compares the performance of different ad variations (ad copy, visuals, call-to-action) to identify the most effective elements and optimize future campaigns
measures the number of desired actions taken by the audience (purchases, sign-ups, downloads) as a result of the ad exposure
Return on advertising spend (ROAS) evaluates the revenue generated per dollar spent on advertising to assess the campaign's profitability and efficiency
ROAS=(Revenuefromadvertising)/(Advertisingspend)
Example: If a company spends 10,000onadvertisingandgenerates50,000 in revenue, the ROAS is 5:1 or 500%
Ongoing optimization involves continuously monitoring, analyzing, and adjusting the advertising campaign based on performance data and insights to improve results over time
Key Terms to Review (56)
A/B Testing: A/B testing, also known as split testing, is an experimental methodology used to compare two or more versions of a marketing or product element to determine which one performs better. It involves randomly showing different variations to users and measuring the impact on a desired outcome, such as conversion rates, click-through rates, or user engagement.
Ad Layouts: Ad layouts refer to the visual arrangement and design of elements within an advertisement. It encompasses the strategic placement and organization of text, images, graphics, and other components to create a visually appealing and effective advertisement that captures the audience's attention and conveys the intended message.
Advertising Effectiveness: Advertising effectiveness refers to the ability of an advertisement to achieve its intended objectives, whether it's increasing brand awareness, driving sales, or influencing consumer behavior. It is a critical measure of the success of an advertising campaign within the context of developing an effective advertising plan.
Advertising Objectives: Advertising objectives are the specific goals and desired outcomes that a company or organization aims to achieve through its advertising efforts. These objectives serve as the foundation for the development and implementation of an effective advertising plan.
Advertising Strategy: Advertising strategy refers to the overarching plan and approach used to guide the creation, placement, and execution of advertising campaigns. It involves making strategic decisions to effectively communicate a brand's message, reach the target audience, and achieve specific marketing objectives.
Affordable Method: The affordable method refers to a cost-effective approach to developing and implementing an advertising plan. It involves selecting advertising tactics and strategies that fit within a predetermined budget, ensuring the advertising campaign is financially viable and accessible for the business or organization.
Behavioral Characteristics: Behavioral characteristics refer to the observable patterns of actions, reactions, and mannerisms that individuals exhibit in various situations. These characteristics are influenced by a complex interplay of psychological, social, and environmental factors, and they play a crucial role in understanding consumer behavior and developing effective advertising strategies.
Behavioral Segmentation: Behavioral segmentation is the process of dividing a market into groups based on specific behaviors, attitudes, and usage patterns of consumers. It focuses on understanding how and why customers make purchasing decisions, rather than solely on their demographic characteristics.
Brand Awareness: Brand awareness refers to the extent to which a consumer can recognize or recall a particular brand and associate it with a specific product, service, or company. It is a fundamental aspect of branding that measures how well a brand is known and how easily it comes to mind for consumers when they are considering a purchase or making a decision in a particular product category.
Brand Identity: Brand identity refers to the unique set of characteristics, associations, and visual elements that define and distinguish a brand in the minds of consumers. It encompasses the tangible and intangible aspects that shape the brand's perception and help establish a distinct and recognizable presence in the marketplace.
Brand Perception: Brand perception refers to the overall impression, beliefs, and feelings that consumers have about a particular brand. It encompasses how a brand is viewed, understood, and valued by its target audience, which can significantly impact consumer behavior and brand loyalty.
Brand Positioning: Brand positioning refers to the process of establishing a distinct and desirable place for a brand in the minds of target consumers relative to competing brands. It involves strategically aligning a brand's unique attributes, benefits, and associations to create a distinctive and compelling brand image that resonates with the intended audience.
Campaign Budget: The campaign budget refers to the total amount of financial resources allocated for a specific advertising or marketing campaign. It is a critical component in the development of an advertising plan, as it determines the scope, duration, and execution of the campaign.
Competitive Parity Method: The competitive parity method is an approach to setting advertising budgets that aims to match the spending levels of competitors in the market. The goal is to maintain a similar level of advertising presence and visibility as rival brands, ensuring a competitive position within the industry.
Conversion Rates: Conversion rate refers to the percentage of website visitors or potential customers who take a desired action, such as making a purchase, filling out a form, or signing up for a service. It is a critical metric used to measure the effectiveness of marketing and advertising efforts across various digital platforms and channels.
Conversion Tracking: Conversion tracking is the process of monitoring and analyzing the actions taken by users on a website or in a digital marketing campaign that lead to a desired outcome, such as a sale, sign-up, or other conversion event. It is a critical component in understanding the effectiveness of marketing efforts and optimizing future strategies.
Creative Brief: A creative brief is a document that outlines the key elements and objectives for an advertising or marketing campaign. It serves as a guiding framework for the creative team to develop effective and aligned content and messaging.
Creative Execution: Creative execution refers to the process of transforming an advertising concept or strategy into a tangible, visually appealing, and impactful advertisement. It involves the creative design, production, and implementation of the advertising message to effectively engage the target audience and achieve the desired marketing objectives.
Demographic: Demographic refers to the statistical characteristics of a population, such as age, gender, income, education, and other socioeconomic factors. It is a crucial consideration in developing an effective advertising plan, as it helps businesses understand their target audience and tailor their marketing strategies accordingly.
Digital Media: Digital media refers to the various forms of electronic media that are digitized and can be transmitted over the internet or computer networks. It encompasses a wide range of content, including text, images, audio, and video, that is created, stored, and distributed in a digital format.
Emotional Appeals: Emotional appeals are persuasive marketing techniques that aim to evoke specific feelings or emotions in the audience in order to influence their attitudes, beliefs, and behaviors. These appeals are commonly used in advertising and other forms of marketing communication to create a connection between the product/brand and the consumer's emotions.
Engagement: Engagement refers to the level of involvement, interaction, and connection that consumers have with a brand, product, or advertising campaign. It encompasses the emotional, cognitive, and behavioral responses that individuals exhibit towards marketing efforts.
Eye Tracking: Eye tracking is a technology that measures the movement and focus of a person's eyes, providing insights into their visual attention, cognitive processes, and decision-making behaviors. This technique is particularly useful in the context of developing an advertising plan, as it can help marketers understand how consumers interact with and respond to various advertising stimuli.
Focus Groups: Focus groups are a qualitative research method where a small, carefully selected group of people are brought together to discuss and share their opinions, attitudes, and reactions to a specific product, service, or concept. They provide valuable insights into consumer behavior, preferences, and decision-making processes.
Informative Advertising: Informative advertising is a type of advertising that focuses on educating the target audience about a product or service, its features, benefits, and how it can address the consumer's needs. It aims to provide factual information to help potential customers make informed purchasing decisions.
Key Performance Indicators: Key Performance Indicators (KPIs) are quantifiable metrics used to evaluate the success or progress of an organization, department, or specific goal. They provide a way to measure and track the performance of critical business activities and objectives.
Lifestyle Segmentation: Lifestyle segmentation is a marketing strategy that divides consumers into groups based on their attitudes, interests, opinions, and activities, rather than just demographic factors. It helps companies better understand and target their products or services to specific consumer segments with shared lifestyles and values.
Market Share: Market share refers to the percentage of a company's sales or units in relation to the total sales or units in a given market. It is a key metric that indicates a company's competitive position and performance within its industry or market.
Media Channel Selection: Media channel selection is the process of choosing the most appropriate and effective communication platforms to deliver advertising messages to the target audience. It involves evaluating and selecting from various media options, such as television, radio, print, digital, and out-of-home, based on factors like audience reach, cost-effectiveness, and alignment with the advertising campaign's objectives.
Media Channels: Media channels refer to the various platforms and methods used to deliver promotional messages and advertising content to target audiences. These channels serve as the vehicles through which marketers communicate with consumers and facilitate the exchange of information, ideas, and brand interactions.
Media Planning: Media planning is the process of strategically selecting and allocating advertising and promotional media channels to effectively reach a target audience and achieve marketing objectives. It involves analyzing consumer behavior, competitor activities, and media characteristics to create an integrated and efficient media mix.
Message Strategy: Message strategy refers to the overarching plan for the content and execution of a brand's advertising and marketing communications. It involves determining the key message, tone, and creative approach that will resonate most effectively with the target audience and support the broader marketing objectives.
Objective and Task Method: The objective and task method is a strategic approach used in advertising planning to establish clear objectives and define the specific tasks required to achieve those objectives. It provides a structured framework for developing an effective advertising plan by aligning the desired outcomes with the necessary actions to be taken.
Out-of-Home Media: Out-of-home media refers to advertising and marketing messages that are displayed in public spaces, outside of the home environment. This type of media includes various formats such as billboards, transit ads, and place-based advertising that aim to reach consumers while they are on the go or in specific locations.
Percentage of Sales Method: The percentage of sales method is a common approach used in developing an advertising plan, where the advertising budget is determined as a percentage of the company's projected or historical sales revenue. This method allows businesses to align their advertising expenditures with their overall sales performance and financial resources.
Persuasive Advertising: Persuasive advertising is a strategic approach in marketing communication that aims to influence the audience's attitudes, beliefs, and behaviors towards a product, service, or idea. It goes beyond simply informing the audience and actively seeks to convince them to take a desired action.
Point-of-Purchase Displays: Point-of-purchase displays are promotional tools used at the location where a consumer makes a purchasing decision, such as in a retail store. These displays are designed to capture the attention of shoppers and encourage impulse purchases or increase sales of specific products.
Post-Testing: Post-testing is a crucial step in the process of developing an advertising plan, where the effectiveness of the implemented advertising campaign is evaluated. It involves measuring and analyzing the outcomes of the advertising efforts to determine their impact and inform future decision-making.
Pre-testing: Pre-testing is the process of evaluating and refining an advertisement or marketing campaign before its final implementation. It involves testing the effectiveness and impact of the advertisement with a sample audience to identify any potential issues or areas for improvement.
Product Life Cycle: The product life cycle is a model that describes the stages a product goes through from its introduction to the market until its eventual decline. This concept is central to understanding how products evolve and how marketers should adapt their strategies to effectively manage a product throughout its life cycle.
Psychographic: Psychographics refers to the study of consumers' attitudes, interests, opinions, values, and lifestyles. It goes beyond basic demographic information to understand the psychological and behavioral characteristics that influence consumer decision-making and purchasing behavior.
Purchase Intent: Purchase intent refers to the likelihood or probability that a consumer will buy a particular product or service. It is a crucial concept in the field of marketing, as it helps businesses understand consumer behavior and make informed decisions about their advertising and promotional strategies.
Rational Appeals: Rational appeals are a type of advertising strategy that focuses on presenting logical, fact-based information to persuade consumers. These appeals aim to highlight the practical, functional, or objective benefits of a product or service, appealing to the consumer's sense of reason and logic rather than emotion.
Reach: Reach refers to the breadth and scale of a marketing or advertising campaign's ability to connect with and influence its target audience. It is a fundamental metric used to measure the effectiveness and impact of various promotional strategies across different media channels.
Recall Tests: Recall tests are a type of assessment that measure a person's ability to retrieve and reproduce information from memory, without the aid of cues or prompts. They are a fundamental tool in evaluating learning and comprehension in various educational and professional contexts.
Recognition Tests: Recognition tests are a type of advertising effectiveness research that measure consumers' ability to recall and identify advertisements they have been previously exposed to. These tests are used to assess the impact and memorability of advertising campaigns within the context of developing an advertising plan.
Reminder Advertising: Reminder advertising is a type of advertising strategy that aims to maintain brand awareness and keep a product or service top-of-mind with consumers, even if they are not actively in the market for it. The goal is to reinforce the brand's presence and positioning, ensuring it remains a consideration when the consumer is ready to make a purchase.
Return on Advertising Spend: Return on Advertising Spend (ROAS) is a metric that measures the effectiveness of advertising campaigns by calculating the revenue generated for every dollar spent on advertising. It is a crucial metric in evaluating the performance and profitability of advertising efforts within the context of developing an advertising plan.
Search Engine Marketing: Search engine marketing (SEM) is a digital marketing strategy that involves promoting websites by increasing their visibility and ranking in search engine results pages (SERPs) through both paid and organic methods. It is a crucial component of an effective advertising plan, as it helps businesses reach and engage with their target audience when they are actively searching for relevant products or services.
Segmentation: Segmentation is the process of dividing a broad target market into more manageable, homogeneous subsets of consumers based on shared characteristics, needs, or behaviors. It is a fundamental marketing strategy that allows businesses to better understand and serve their customers by tailoring their offerings, messaging, and approach to the specific needs of each segment.
Share of Voice: Share of voice refers to a brand's or company's portion of the total advertising or marketing activity within a specific industry or market. It measures the relative prominence and visibility of a brand compared to its competitors through various advertising and promotional channels.
Situation Analysis: Situation analysis is a comprehensive examination of an organization's internal and external environment to identify key factors that may impact its performance and strategic decision-making. It serves as a crucial step in the marketing planning process, the integrated marketing communications (IMC) planning process, and the development of an advertising plan.
Target Audience: The target audience refers to the specific group of individuals or consumers that a company or organization aims to reach and engage with their products, services, or marketing efforts. It is a crucial concept in marketing that helps businesses tailor their strategies to effectively meet the needs and preferences of their intended customers.
Traditional Media: Traditional media refers to the established and long-standing forms of mass communication, such as television, radio, newspapers, and magazines. These platforms have been the primary channels for advertising and information dissemination for decades, predating the rise of digital and social media.
Unique Selling Proposition: A unique selling proposition (USP) is a factor that differentiates a product or service from its competitors, making it the most appealing and compelling choice for the target market. It is the specific benefit or feature that sets a company's offering apart and provides a compelling reason for customers to choose it over alternatives.
Value Segmentation: Value segmentation is a marketing strategy that divides customers into groups based on the perceived value they place on a product or service. This approach allows businesses to tailor their offerings, pricing, and marketing efforts to meet the specific needs and preferences of each customer segment.