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How to Develop a Successful Advertising Plan






Taylor J. How to Develop a Successful Advertising Plan. – NTC Business Books, 1993. – 248 р.








Chapter 1 The Advertising Business Is in Turmoil

A Quick Look at the Players


Advertising Agencies

An Important Digression–How Advertising Agencies Grow

A Strategy Goes Wrong

More about Advertising Agencies

Variations on Paying Your Advertising Agency

One Thing Not to Do

Some of "'Life's Little Lessons" from a Real Professional

Other Ways to Get the Job Done

And Finally


Chapter 2 Marketing Planning-How to Get Started

Marketing Planning

What to Do Next

Environmental Analysis



Chapter 3 Marketing Planning-Understanding Your Strengths, Weaknesses, and Competitors

Understanding Your Strengths and Weaknesses

Understanding Your Competitors

Analyzing Your Strengths and Weaknesses

What to Do at the Review Meeting

Analyzing Your Competitors

Planning at Procter & Gamble

Building on Your Strengths–An Example from Australia

More Building on Your Strengths–An Example from Wyoming



Chapter 4 Finding Your Customers

Market Segmentation

How to Get to Know Your Customers

The Ultimate Level of Sophistication

What to 10 Do Next?

Always Remember That Customers Are Changing and That Your Advertising Must Be Changing


Chapter 5 What to Say to Your Customers-Developing a Creative Strategy

Differentiating Your Product or Service

Advertising Is Different from Personal Selling

A Creative Strategy

A Creative Strategy Statement

What to Do Next?

How to Get the Most out of Your Advertising Agency


Chapter 6 Advertising for Retail Stores

Defining Your Trading Area

Estimating the Sales Potential in Your Trading Area

Identifying Your Competitors

Measuring Your Trading Area Position

Defining the Demographics of Your Customers

Differentiating Your Store from Competitors

Finding Affordable, Effective, Efficient Media

A Final Thought about Retailing


Chapter 7 Understanding Media

Media Planning

The Media Planning Problem

Characteristics of the Media

SWISSAIR Tries Television

A Few Hints

How Advertising Dollars Are Spent


Chapter 8 The New Media

Cable TV


Database Marketing

Frequency Marketing


Chapter 9 Advertising Budgeting and Measuring Results

Basic Cost Concepts

The Break-Even Point


Advertising Budgeting

Payout Plans

Budgets: A Potential Source of Conflict

A Cautionary Tale about Budgeting

Measuring Results

A Story about Confused Concepts

What Can Happen When Concepts Get Unconfused

What Your Creative Strategy Does for You Now

How Do You Know If Your Advertising Works

Another of Life's Link Lessons

One Final Tale

Appendix A What an advertising plan might look like

Market Review

Marketing Strategy

Advertising Strategy

Appendix В Selecting an advertising agency

Nonnegotiable Problems

Starting an Agency Search

Sources for the Long List

Advertising Agency Questionnaire

The Short List of Advertising Agencies

The Second Informal Meeting

The Formal Presentation

Evaluating Financial Performance

Making the Final Decision

The Second-Choice Agency





More than 100 years ago, John Wanamaker, the "inventor" of the department store, is alleged to have said, "Half of the money I spend on advertising is wasted. I just don't know which half," Today, we spend over $100 billion on advertising and John Wanamaker's insight is as valid now as it was then. That means that we waste about $50 billion on useless advertising in the United States. An outrageous condition!

We will probably never be able to eliminate all of the waste from advertising, but we can certainly do better than 50 percent, and that is what this book is all about. The more you can plan and control your advertising expenditures, the more you can eliminate waste. Each wasted dollar you recover is another dollar you can spend to compete.

This gives you a double advantage over your competitors. Every dollar you do spend works harder for you and you have more effective dollars to spend. Anyone who has ever had to compete with Procter & Gamble Company will understand the idea immediately. Because Procter & Gamble buys so much media and does it so efficiently, they have a huge advantage over their competitors before the race even starts.

Ed Ojdana, whom you will meet in Chapter Nine, estimates that in 1980 in San Francisco, for example, Olympia Brewing Company was paying $138 per Gross Rating Point (GRP) while trying to compete with Budweiser which paid at $79 per GRP in the market. As you can see, that is a huge disadvantage. The way to offset that kind of competitive advantage in financial clout is to make your dollars work harder and work smarter.

But media is only half of the story. The other half is in what you say to your prospective customers. That involves developing a creative strategy that incorporates how you are going to differentiate your product or service from competition; identifying your most important customer benefit and explaining why this benefit is possible; and describing what you know about who your customers are and how they live.

You will find many, many examples in this book of how to develop ад advertising strategy that links your creative strategy and your media plan with your overall marketing plan. This is the best way I know to reduce the waste in your advertising budget. The marketing plan must drive the advertising. Never should it be the other way around.

Many good friends from all around the world made the contributions to this book. Some of them are listed here in alphabetical order: Ann Bailrv. Comcast Cabievisioe. Fullerton, CA; J. A. "Tony B" Buttacavoli, Fullciton Dodge. Fullerton, CA; Bill Cross, Crossolutions Pty. Ltd., Crows Nest, Amu a lia; DeDe Dalton, Dion Hughes, Marv Maroun, and Robert Pellizzi. Chiat / Day/Mojo Advertising, New York, NY; Karly Becker and Suzanne Douglas, Supermarket Communication Systems. Norwalk. CT; Dennis Duffy Frequencv Marketing. Milford. OH; Richard J. Findlay and Keisuke Morimoto, SmithKline Beecham Consumer Products. Tokyo, Japan…


CHAPTER 1. The Advertising Business Is in Turmoil


The 1980s have seen more turmoil and turbulence in the advertising business than any time in the last 100 years. There is no reason to expect this to slow down anytime in the 1990s because the underlying factors driving these changes show no signs of mitigating.

The fundamental event that is driving change in the advertising business is that advertisers are diverting their marketing dollars away from advertising and into sales and trade promotions. While it is always difficult to be precise about gross numbers, reasonable estimates are that advertisers spent about 60-65 percent of their promotional dollars on advertising and 35-40 percent on promotions at the end of the 1970s. Now that the way marketing people allocate their funds has become so important, we have much better estimates. The most recent estimates come from Donnelly Marketing, Stamford, Connecticut, which reports that in 1991, advertising accounted for 25.1 percent, trade promotion for 49.5 percent, and consumer promotion for about 25.4 percent.

It is the thesis of this book that many advertisers are pursuing a rational strategy of shifting dollars from marketing tools that do not produce sales and profits to marketing tools that do. But this raises a very important question. There is an enormous amount of evidence that advertising can make huge contributions to sales and profits in specific situations. So why the contradiction?

The answer is that many advertisers waste large amounts of their advertising budgets without getting results while a few advertisers minimize their wasted dollars and get important results almost every time. The purpose of this book is to make sure that you are in the minority of advertisers who waste very little of their advertising budgets and get big results almost every time.

The sources of waste will be examined throughout this book.


A Quick Look at the Players


There are three main players in the advertising business and a host supporting players. One of the main players is the advertiser – the company or the person who pays for the advertising messages and for the audiences exposed to these messages. Another main player is the media. The media include newspapers, TV stations, magazines, radio stations, outdoor signs. etc., that develop an audience to sell to the advertisers so they can deliver their advertising messages. The third main player is all of the advertising agencies who help advertisers prepare their advertising messages and who help them select target audiences to see and hear those messages.

The supporting players are a wide variety of companies and people that actually prepare the advertising, deliver the advertising to the media, measure the size of the various audiences, and measure whether the advertising was delivered. Typesetters, photographers, TV commercial directors, photoengravers, and printers are some of the people who produce the advertising messages. Air freighter companies, such as Emory and Airborne, deliver the physical advertising messages to the media. Organizations like the Audit Bureau of Circulation verify the claims of audience sizes and characteristics for magazines and newspapers. Companies like the Advertising Checking Bureau verify that the media actually delivered the contracted advertising messages.

The purpose of the advertising business is to deliver advertising messages to prospective and current customers of the advertisers and to do that job at a per customer cost that is less than it would cost to send actual salespeople to deliver sales messages. You can envision the advertising business like this:

Advertisers Advertising Agencies Media Prospective Customers Present Customers

All types or companies, organizations, groups, and individuals are advertisers. Some advertisers are companies with products you know very well. Procter & Gamble Company (which spends more money on advertising than any other company in the world) advertises Tide detergent, Folgers coffee, and Charmin toilet tissue directly to consumers. Procter & Gamble also advertises to retailers – the supermarket people who actually sell their products to the final users – tо inform them about trade deals, price promotions, and product improvements. When advertisers direct their messages towards retailers or wholesalers, the advertising usually is called trade advertising.

Some advertisers do not sell products at all; they sell services. Humana. Inc., sells the services of its hospitals; Citicorp, Inc., sells its banking services; Connecticut General sells its life insurance services: Jacoby & Meyers sells its legal services: and Dean Witter/Reynolds sells its financial advisory services.

Other advertisers don't advertise to consumers at all: they advertise to other businesses. For example, when the Carlisle Corporation wants to deliver advertising messages about the company's finely drawn, plated, and branded wire conductors to aircraft manufacturers and aerospace firms, it uses business – to – business advertising.

The businesses that spend more money on advertising than any other group of businesses do not manufacture products at all, they run retail stores. The second biggest advertising budget is the dollars spent by Sears Roebuck Co. Some advertisers are huge chains selling food products like Safeway or Kroger. Others are large drugstore chains like Hook Drugs, and some sell clothing, as does the successful Limited, Inc. Other retailers, however, are quite small. Today's Penny saver newspaper carried advertising messages from Accord's Food Market, Shampoo: Hair Designs for Men & Women, Drapery World, and Crown Valley Texaco (among dozens of other small retailers).

Governments also advertise. The U.S. Army has been directing highly successful advertising messages toward young men and women, urging them to "Be All That You Can Be," since the advent of the all-voluntary army at the end of the 1970s. The American Heart Association is an example of a non-profit organization that advertises to raise donations to support its research program. Southern Methodist University is an example of a different kind of nonprofit organization using advertising messages to induce contributions from its alumni.

Finally, individuals advertise. In the Los Angeles Times classified section, Franklin J. Slater, Atty., is offering to defend you against a drunk driving charge for a flat $399; somebody is offering a $500 reward for a male West Highland Terrier Scottie that was lost in Orange, California; a doctor's office is trying to hire a licensed massage therapist; and Warren Biggs is offering to sell a fully loaded 1980 Cadillac Seville for $6,995.

All of these companies, organizations, groups, and individuals face the same advertising problem: how to say the right thing in their advertising message(s), how to select the correct advertising medium (media), and how to accomplish the whole thing for the lowest cost. The purpose of this book is to help all of those people answer their questions in the best possible way.


Advertising Agencies


Many advertisers use the services of independent businesses called advertising agencies to develop their advertising messages, select the best media, and complete the numerous specialized tasks that are required to ensure that the right advertising messages are delivered to the right audiences at the right time.

There are three major functional areas in most advertising agencies and a number of supporting activities. One major functional area includes the account management people. Their responsibility is to understand the business problems and opportunities of the advertiser who has hired the agency and to translate those problems and opportunities into tasks for the agency to accomplish.

Another major function is the creative area. Here the creative directors, writers, artists, TV producers and others produce the real product of value from the advertising agency, the message to be communicated to prospective customers. The overwhelming reason to hire an advertising agency is to get these people working to build your business.

The third major area is media. The people who work in this area select the best media to deliver your message, negotiate the best prices, schedule the advertising, and make sure that it appears when and where it should.

Additional support comes from traffic departments that make sure things move on schedule, production departments that make sure things move on schedule, and financial departments that make get made the money flows in and out of the agency on schedule.

Some advertising agencies also have a research department to help the…"


The full text of the book can be found at bookstores, e-bookstores and libraries.


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See also:

The Essentials of Advertising

Measuring Advertising Effectiveness

The Effect of Advertising and Display

Books on Advertising

Books on PR

Books on Mass Media