Objective Setting &

Budgeting
Module 3 (as per the course outline)
Fundamentals of an Ad
campaign
Advertising Campaign
 An Ad campaign is a series of ads of a brand
that are related because all have the same
central idea and run during the same period
 Fundamentals of an Ad campaign

Ad 1
Ad 2

Creativ
e
Strateg
Ad
campai
gn

y
Big Idea

Ad 4
Ad 3

Advertising
Strategy

Advertising
Research
Advertising Campaign

 Before an agency begins formulating

advertising, they have to collect raw material
for it by digging for facts, data, information
and research
 Indepth research can unearth important

nuggets about the target audience, spot new

trends, uncover new product uses, discover
competitors weaknesses.
Advertising Strategy
 Once an agency has collected available
information and knowledge on a product – it
begins to plan an advertising strategy. – it is
the “message” that the advertiser gives to
solve a communication related problem.
◦ It outlines “what” the advertiser proposes to say or
do or solve the communication related problem.
◦ Problem could be lack of product awareness,
insufficient sales, poor brand equity etc
◦ Emphases on “WHAT” not “How”
Big Idea
 The big idea is the idea that advertisers select
for communicating the strategic message in a
creative way
 It is the “CONCEPT” to executive the strategy

and serves as an umbrella a central theme for

a series of ad campaigns
 While strategy is long term, the big idea can

be for an advertising campaign

Creative Execution
 Deals with the physical form of an
advertisement – story, script, copy, art, music
etc
 It is during the process of execution tat the

advertiser makes the ad

 Advertising tactics are short term decisions

about specific tangible tasks related to ad,

media etc
Flipkart Ad Story
Original ad
 https://youtu.be/Xrf6z4UWLyM

New ads
/https://youtu.be/rLnJJ0CNBok
https://youtu.be/KI2PniCUcr8
https://youtu.be/o9HZ6rHe3EA
https://youtu.be/3aFlFwvn9vA

Newer ads
https://www.youtube.com/watch?v=OCBeBlpVZBY
https://www.youtube.com/watch?v=8Fl-9_v66Uk
https://www.youtube.com/watch?v=ekR5Lx63ZUk
Dhara
Old ad:
https://youtu.be/hIDWHiTrjZ8

Mid ages
 https://www.youtube.com/watch?v=EA6mF8W
_aLc

Latest Ad:
https://youtu.be/CMAwdp64eeA
 Brand Strategy Big Idea Execution
Elements
Dhara Healthy Demonstrate Kids area prod Creative
Sunflower Oil – that dhara of fathers who elements,
Mid ages keeps heart are healthy& strongline
and health strongdue to
strong dhara
Demonstrate Zara Sa Badlav Creative
themselves as a – Changing tagline, right
new age brand society, regular characters
family
Fevicol Reinforce Show the Creative tag
fevicols bonding power line, wit and
leadership as of a brand in a humour
https://www.youtube.com/watch?v=jNaWSQeDttE
the ultimate metamorphic
https://www.youtube.com/watch?v=-O3EIUwoTgk
adhesive way
Research process for
Advertising
Research Process
1) Define the problem and research objectives
2) Check Secondary Sources
3) Carry out Primary Research
4) Interpret Results
Research process
 First step – agree on the problem to be solved
– does it want to know who is its consumer,
what they expect or how their consumer is
different from others
◦ The problem should not be defined too widely or
too narrow
 “researching about the needs and satisfaction levels of
a hotel guest”
 “finding out of SEC AB categories are interested in
poaying 20% premium
 Sketch a profile of consumers who stay in luxury hotels
and outline the types of service they expect
Check secondary sources
 Review information already available. Cheaper
than primary research
◦ Client Records
◦ Trade publications
◦ Government Publications
◦ Commercial Sources
◦ Agency research
Carry out Primary Research

Research Contact Sampling Plan Research

Approaches Methods Instruments
First hand Mail Sampling Unit Questionairre
experience
Observation Telephone Sample Size Psychological
tools
Survey Personal Sampling Mechanical
Interview procedure devices
Experiment Computer
Research Approaches
 Firsthand approaches
◦ Obervers must refrain from generalising his/her
experiences as that of the masses
◦ Researchers are always coloured by their product
and communication related problem and may be
critical
◦ Also they may not be part of the target market
◦ This should be a starter – not a substitute for
consumer opinion
Research Approaches
 Observation
◦ Can be used for obtaining information that people
are unwilling to provide and for observing
behaviour or actions that can not be narratted
◦ Actual purchases reflect true behaviour and are
often more dependable than statements they make
to researchers
◦ However limitations as feelings, attitudes, thinking
processes, tastes and preferences are beyond
observation
Research Approaches
 Survey
◦ Can be conducted with a questionaire – quick, less
costly, more flexible and more structured
Setting objectives and
budgeting for the
promotional program
Value of objectives
◦ Communications – problems can be avoided if all parties
have written, approved objectives to guide their actions and
serve as a common base for discussing issues related to
the promotional program.

◦ Planning and decision-making – specific promotional

objectives guide the development of the integrated
marketing communications plan. Objectives also guide
decisions regarding strategic and tactical issues, such as
creative options, media selection, and budget allocation.

◦ Measurement and control – objectives provide a benchmark

against which the success or failure of the promotional
campaign can be measured.
Characteristics of objectives
Marketing vs communication
objectives
Sales oriented objectives
Issues with using them for promotion
 Sales cant determine the accuracy of promotions

because of other elements in the Marketing Mix

 Carryover effect

When are sales objectives appropriate

 Certain promotional efforts are direct in nature and

result in a direct incresae in sales

 Direct response advertising
 Retail advertising
 When advertising plays a dominant role and other

factor are relatively stable. For example FMCG

Communications Pyramid
How do you fix operational
objectives..
Identify ●
Need segmentation data
the TA Need to id end users of the product
●

Desired ●
What is the ultimate behavior within that segment that
advt is attempting to precipitate, reinforce, change or
behavioral influence? Eg trial,loyalty,usage etc
change Long term value of change- LTV
●

Process reqd to
change behavior and ●
Need to change awareness,brand
role of advt in the knowledge,feelings and attitudes
same
Behavioral dynamics
 Increase in sales ( ANSOFFS MODEL )
 Market penetration strategies
A. Convert nonusers to users in current market
B. Convert competitors users or Increasing share of requirement/SOW-
(Usually brand switchers who use multiple brands in a single product
category)
C. Increase quantity used per occasion
D. Increase frequency of usage
E. Increase variety of uses

 Expanding the market or market development strategies

 New Geographic
 New Demographic Segments
 New Need Segments
 New customers from other categories e.g. tea to soft drinks

EACH OF THE SALES TASK CREATES A DIFFERENT COMMUNICATION TASK

Problems with communication
objectives
 Difficult to determine –what really comprises
awareness, knowledge liking – no formula,
hence the communications officer has to
determine his own
DAGMAR
DAGMAR
 Defining Advertising Goals for Measured
Advertising Results
 Created a model for setting advertising

objectives and measuring the results of an ad

campaign
 Communication effects are logical basis for

advertising goals and objectives against

which success/failure should be measured.
Using the DAGMAR approach
Advertising goal involves a “Communication task” that
is specific and measurable
 A communication task as opposed to a marketing

task and can be directly attributed to advertising

rather than be affected by other marketing factors
 Communication task be based on a hierarchical

model of communication process

◦ Awareness – Aware of the brand
◦ Comprehension = understand the product and what it does
◦ Conviction = develop a mental disposition to buy the
product
◦ Action = getting the consumer to buy the product
Characteristics of Objectives
 Concrete measurable tasks
 Target Audience
 Benchmark and degree of change sought
 Specified time period
 Assessment of dagmar
Criticisms of DAGMAR
 Problems with response hierarchy
 Scales objectives
 Practicality and cost
 Inhibition of creativity
Establishing and allocating
the promotional budget
DECIDING ON ADVERTISING BUDGET
Explain how
these factors
affect
budgets
FACTORS
1. STAGE IN PRODUCT LIFECYCLE
2. MARKET SHARE AND CONSUMER BASE
3. COMPETITION AND CLUTTER
4. ADVERTISING FREQUENCY REQUIRED
5. PRODUCT SUBSTITUTABILITY-less differentiated or commodity like
products
Top-Down vs. Bottom-Up Budgeting
Top-Down Budgeting Methods

Affordable
Affordable
Method
Method

Return
Return on
on Arbitrary
Arbitrary
Top
Top
Investment
Investment Allocation
Allocation
Management
Management

Competitive
Competitive Percentage
Percentage
Parity
Parity of
of Sales
Sales
 Affordable method
◦ After determining the amount of resources for production and
operation ,left over is allocated to promotional activities.

 Arbitrary allocation
◦ No systematic allocation of budget ,for non profit organizations
or small firms .

 Percentage of sales
◦ Total sales 100,000
◦ 10% of sales 10,000
◦ Advertising budget 10,000

 Percentage of unit cost

◦ Cost /unit 12
◦ Allocation for adv. 3
◦ Forecasted sales 10,000 units
◦ Budget 10,000 x 3 30000
 Competitive parity
◦ Must have a collective wisdom of the industry
◦ If competitor don’t take an aggressive approach you
don’t
◦ Useful when you are not a market leader and don’t
have the resources to be that.

 Return on investment
◦ Advertising and promotion are considered as an
investment like plant etc.
◦ Very difficult to access the return of advertising.
Object and Task Method

Isolate
Isolate objectives
objectives

Determine
Determine tasks
tasks required
required

Estimate
Estimate required
required
expenditures
expenditures
Monitor
Monitor

Reevaluate
Reevaluate objectives
objectives