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PERSONAL PLANNING
Guidebook #54:
Creating a Winning Promotional Plan .......... 4
What is a Promotion Plan? ........................................ 5
The Three Basic Components of a Promotion Plan.......................5
Advertising ....................................................................................5
Personal Selling ............................................................................5
Sales Promotion ............................................................................6
Why Develop a Promotion Plan? ...................................................6
Creating the Right Promotional Mix ...............................................7
The Difference Between a Promotion Plan and a Marketing Plan ..8
The Importance of Advertising in a Promotion Plan .....................11
Specific Goals of an Advertising Plan ..........................................11
Preparing a Promotional Budget............................. 12
Budgeting for Advertising ............................................................12
Establishing Criteria for Evaluating & Selecting Advertising Media ...15
Additional Criteria for Evaluating Advertising Media .....................16
 Comparing Your Advertising Budget with Other Companies.........19
Budgeting for Personal Selling & Sales Promotion.......................19
Getting the Most Out of Your Promotion Plan ......... 21
Getting Help From an Ad Agency ........................... 24
Creating Your Own “In-house” Agency ................... 25
Preparing an Insertion Order .................................. 27
FIG. 1 – Preparing an Advertising Budget Form...........................28
FIG. 2 – Advertising & Promotion as a Percentage of Sales ........29
FIG. 3 – Preparing an Insertion Order..........................................30
 5 4 Creating a Winning Promotional Plan

Salesman Convention

“They say he’s the best door-to-door salesman in

the country . . . I hear he has a WOODEN LEG!”
Smallbusinesstown.com

3 Copyright © 2001 by Patsula Media ! The Entrepreneur’s Guidebook Series

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 5 4 Creating a Winning Promotional Plan

CREATING A WINNING PROMOTIONAL PLAN

ADVERTISING and promotion continues to be a mystery . . . to those
who create and sponsor it. Often, an ad that generates record-breaking
volume for a business one month is repeated the following month and
bombs. A campaign designed by the best New York ad agency may
elicit a mediocre response.
The same item sells like hotcakes after a 30-word classified ad, with
abominable grammar, appears on page 35 of an all-advertising shopper
tossed on the front steps of homes during a rainstorm! The mystery
eludes solution but demands attention.
This guidebook is devoted to the idea that your marketing results
can be improved through a better understanding of your customers. It
attempts to remove the mystery of marketing by outlining all the essen-
tials of a promotion, including the all-important promotional budget.

4 Copyright © 2001 by Patsula Media ! The Entrepreneur’s Guidebook Series

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 5 4 Creating a Winning Promotional Plan

WHAT IS A 1. advertising

PROMOTION PLAN? 2. personal selling

A PROMOTION PLAN covers all 3. sales promotion (publicity could

phases of communication between be a considered a fourth com-
Never skimp on
the seller and the potential custom- ponent)
the quality of
ers. It addresses advertising, sales your advertising
tactics and other promotional activi- Advertising
or promotional
ties. It might outline for example, material. Some- Includes newspaper, magazine,
how you plan to coordinate your times, as in the radio, television, billboard, subway,
billboard promotions to draw atten- case of a mail- DM, flyer advertising and the like.
tion to your new spring catalog. order business,
advertising is Personal Selling
The Three Basic For retail firms, personal selling
your only
Components of begins once a shopper enters the
salesman.
a Promotion Plan store. However, for service, manu-
SUPERTIP
Although proportions vary depend- factuirng and wholesale firms, cus-
ing on the nature of your business, there tomers have to be found. Propsecting out-
are three basic components of a promotion side your company in necessary.
plan:

5 Copyright © 2001 by Patsula Media ! The Entrepreneur’s Guidebook Series

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 5 4 Creating a Winning Promotional Plan

Sales Promotion "#capitalize on the seasonal nature of a

Sales promotion is a composite of activi- product
ties that round out the advertising and per-
"#change or establish a company image
sonal selling components of
your company’s promotion "#emphasize quality of
When your advertising asks
mix. The primary aim of products and services
for the order right out front,
sales promotion is to assist with a price and a place to buy "#increase store traffic
wholesalers and retailers in and with “NOW” included in
moving products. Sales pro- the copy, that’s hard-sell ad- "#inform customers of
motions aides include cata- special services available,
vertising, and it should in-
logs, reprints of advertise- such as delivery service,
variably be tried before any
ments, special displays and alterations or credit plans
other kind . . . Advertising is
display fixtures, banners and usually most beautiful when "#introduce new employees
signs, tradeshows, etc. it’s least measurable and least to the public
productive. "#keep the business name
Why Develop a
LEWIS KRONFELD and location before the
Promotion Plan?
public
A promotion plan is needed to:
"#offer get-acquainted incentives
"#acquaint customers with new products
"#promote consumer awareness of the

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 5 4 Creating a Winning Promotional Plan

business and its products Four Possible Promotion-mix Blends

or services A Wholesaler of A Catering
"#promote special events, Pet Supplies Service
such as a clearance sale,
25% advertising 75% advertising
a new location or the
opening of a new 50% personal selling
business
"#stimulate sales
25% sales promotion 20% personal selling
"#tie in with a suppliers’
5% sales promotion
national promotions
A Sock A Single Outlet
Creating the Right Manufacturer Sports Shop
Promotional Mix 33% advertising 15% advertising
When putting together a
promotion, you should think
in terms of blending the 33% personal selling 45%personal selling
three basic ingredients of
advertising, personal selling 33% sales promotion 35% sales promotion
and sales promotion, much

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 5 4 Creating a Winning Promotional Plan

like mixing a cocktail. Refer to page 7 for sell a highly specialized product or ser-
chart on "Possible Promotion-mix Blends." vice, or provide a product/service
package that includes a large amount
The Difference Between of skilled or personal ser-
a Promotion Plan and a Marketing programs vice.
Marketing Plan should be developed
around the following two 2) Promotion Plan – Covers
A marketing plan consists of
all phases of communica-
the synthesis of three individ- concepts: a) all company
policies and activities tion between the seller and
ual plans:
should be aimed at identi- potential customer. Ad-
"#merchandising/sales plan dresses advertising, sales
fying, satisfying, and fol-
"#advertising/promotion plan lowing up on customer’s tactics and other promo-
needs; and b) profitable tional activities.
"#distribution plan
sales volume is a better 3) Distribution Plan – Out-
1) Merchandising Plan – company goal than maxi- lines how you plan to get
Outlines what products & mum sales volume. your products and services
services you plan to sell to SUPERTIP to your customers. Might
target customers. Might describe for example how
describe for example how you plan to your popcorn stand will be located in a
concentrate on a narrow product line, high traffic area with high visibility or

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 5 4 Creating a Winning Promotional Plan

how your plumbing supply house will nesses, it is more pratical to refer to
get supply contracts with retailers. a marketing budget as a promotional
budget)
However, in addition to outlining your
merchandising, promotion and
distribution needs, a marketing
The 5 P’s of Marketing
plan also:
a) summarizes your market- WHEN DEVELOPING your marketing and promotinal
ing approach plan it may be useful to consider the “5 P’s” of mar-
b) pinpoints target market keting as outlined below:
c) positions your business
Product – The item or service you have to sell.
competitively
d) puts fiscal restraints on Price – The amount of money you ask your customer
your marketing efforts by to pay for your product or service.
incorporating marketing,
Place – Where a product is now and how it is trans-
promotion and advertising
budgets (if most of your ported or distributed to your customer.
marketing expenses stem
Promotion – The advertising and publicity needed to
from advertising and
promotions, as is the create sales.
case for most small busi- Persuasion – Your personal selling of your business.

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 5 4 Creating a Winning Promotional Plan

A marketing plan can thus be summa- -promotionplan

rized as follows: -distribution plan
-budgeting plan
"#Market Description
"#Marketing Approach
"#Competition Analysis
"#Selling Strategies
-merchandising plan

Utilizing the 5 P’s of Marketing

Product Price Place Promotion Persuasion
Acceptance Strategy Transportation Advertising Personal selling
Basic need Comparisons Storage Publicity Direct mail
Convenience Deals Retail Store Signs
Telemarketing
Fad Coupons Wholesale Point-of Purchase
Endorsements
Luxury Credit Repair Parts Special events
Door to door
Packaging Image Layaway Service Words-of mouth
Value Delivery Distribution Repeat sales Party plan

Selection Installation
Amount (size) Warranty

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 5 4 Creating a Winning Promotional Plan

The Importance of Advertising in well as additional activities discussed in

a Promotion Plan more detail in Guidebook #56.
Advertising is any form of paid non-
personal promotion that attempts to com- Specific Goals of an
municate a sales message to a large num- Advertising Plan
ber of potential customers. Its purpose is to To develop an effective advertising
inform, persuade and remind customers component of your promotional plan, every
about a company’s products or ser- advertising activity should have a
A company’s specific goal. Examples of such
vices.
advertising plan goals include to:
A company’s advertising plan is is often the cen-
often the center of its promotion ter of its promo- "#bring in sales orders
plan. Advertising plans concentrate tion plan. "#establish yourself before start-up
on determining what kinds of and get potential customer
advertising
tising activities
activities
at theat
lowest
the lowest
cost possible, feedback
can help bring in the business These ac-
"#inform customers of new product
tivities usually center around newspaper
and magazine advertising, radio and TV "#promote special events, such as
advertising and yellow page advertising as clearance sales, or business openings

!
11 Copyright © 2001 by Patsula Media ! The Entrepreneur’s Guidebook Series
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 5 4 Creating a Winning Promotional Plan

PREPARING A master budget broken down into several

separate budgets. In this way it is easier to
PROMOTIONAL closely monitor actual costs and results.
BUDGET NOTE Sales goals in dollars, units or both
A PROMOTIONAL budget, like are usually the basis for promo-
any budget, attempts to an- tional budgets.
Depending on the type
swer:
of business you run,
Budgeting for Advertising
"#How much should I spend? between ten to thirty
The major portion of a firm’s pro-
percent of all your
"#When should I spend it? motional budget is advertising.
revenues should be
"#Where should I spend it? Budgeting money for advertising
pumped back into your
encourages a consistent promo-
"#What should I spend it on? business in the form of tional effort and prevents cash
advertising.
It includes, in addition to the SUPERTIP flow problems caused by sporadic
costs of advertising, the costs and unexpected advertising en-
of in-store displays, samples, specialty ad- deavors. Certain dependable ad-
vertising, giveaways and other non- vertising channels usually included in the
traditional media efforts. Because promo- budgeting process are the Yellow Pages,
tional costs can originate from several direct mail and flyers, newspaper and the
sources, it is a good idea to prepare one radio ads and business cards. The owner

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 5 4 Creating a Winning Promotional Plan

may also have to budget personal time for "#Are funds available from suppliers for
the advertising process as well. prepared ads or commercials? Find out
if there are any co-operative advertising
NOTE Each product or service may need
options.
its own advertising strategy as part of your
total marketing plan. Advertising budgets "#How large is the community? Merchants
are usually broken into monthly or quar- operating in large communities must
terly installments (see form on page usually spend more for
28). Advertising advertising than merchants in
budgets are small communities.
How much should you spend? usually broken
In general, new business should be into monthly or "#Is the store in a good location? If
prepared to spend about 5 percent a store is in a poor location,
quarterly in-
of projected gross revenue on ad- advertising be required to attract
stallments.
vertising. An established business people to go out of their way to
should budget 2 to 3 percent of gross shop there.
revenue. "#Is the compeition aggressive? In order
Other issues and factors that determine for a business to keep its share of the
how much a company should budget in- market, its expenditures need to bear
clude: some relationship to what competitors
are spending. Aggressive competition

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 5 4 Creating a Winning Promotional Plan

usually requires aggressive advertising. 2. A flat percentage of every anticipated

revenue dollar will go toward advertis-
"#Is the store new? The newer the store,
ing – For example three percent of an
the more advertising is required to
estimated $100,000 in annual sales will
make it known.
result in an advertising budget of
Two Ways of Figuring out How $3,000.
Much You Should Spend – You can fool all
Although fewer than 50 percent
Since the cost of adverting must be the people all of
of the items are carried by most
paid from sales revenue, it should the time if the
stores are never advertised, their
always be expressed as a function advertising is
sale is the direct result of customer
of expected sales dollars. The two right and the
traffic created by the advertised
most popular approaches are: budget is big
items and, therefore, all merchan-
enough.
1. The number of dollars consid- dise sold should contribute to the
JOSEPH E.
ered necessary to successfully overall cost of advertising. Thus
LEVINE
promote the sale of a given item most companies use the second
at a given price – For example, $10 of approach because it allocates ad-
the $300 selling price for each refrig- vertising costs for all product lines.
erator will go to advertising so that
NOTE Most businesses setaside anywhere
$3,000 in advertising should sell 300
between 10 to 25 percent of their operating
units and produce $90,000 in sales.

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 5 4 Creating a Winning Promotional Plan

budget on promotion and advertising (this three strategies:

amount is equivalent to 2 to 5 percent of
STRATEGY 1 – Stick to your advertis-
their projected sales revenues). Estab-
ing budget. Concerns you may need to
lished word of mouth service businesses
clarify, include:
spend the least, while
mail order companies, When your advertising asks for the "#How much are you willing
direct-marketing com- order right out front, with a price to invest in advertising in
panies, beverage com- and a place to buy and with “NOW” the first year?
panies (like Pepsi™ included in the copy, that’s hard- "#How will your budget
and Coca Cola™), per- sell advertising, and it should in-
restrictions limit the media
fume companies and variably be tried before any other you can use?
record companies kind . . . Advertising is usually most
spend the most. "#How can you spread your
beautiful when it’s least measurable
budget over a year to give
and least productive.
Establishing a repetitive, continuous
LEWIS KRONFELD
Criteria for message?
Evaluating & STRATEGY 2 – Choose a
Selecting Advertising Media variety of media rather than concen-
To help select the right advertising and trate on one specific source. Find out
promotional media, consider the following which media your target market is most of-

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 5 4 Creating a Winning Promotional Plan

ten exposed to. Use common sense, prac- that the consumers of today are far more
tical experience and market research. sophisticated and harder to reach than
ever before. They seem to have built in
STRATEGY 3 – Collect as much data
advertising radar and can quickly tune out
as you can on each medium. Research
bad advertising quicker than you can lick a
the following variables:
stamp. You are thus faced with the unen-
"#cost of each medium viable task of becoming increasingly
bold without becoming intrusive or
"#circulation or number of people Consumers of
today are far irritating or worst of all, boring. Es-
exposed to the medium
more sophisti- sentially, this means you must be-
"#resulting cost per thousand come more informative, more inno-
cated and
expressed as cost per M
harder to reach vative, more subtle, more respon-
"#error rating for the cost per M than ever before sive to consumers needs and de-
either low, medium, or high sires – and at the same time – in-
geniously imaginative.
"#market penetration for each medium
either poor, average, good, or excellent
Additional Criteria for
In addition, when selecting which adver- Evaluating Advertising Media
tising media might best meet your market- To further determine what types of ad-
ing needs, you should also keep in mind vertising is appropriate and within company

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 5 4 Creating a Winning Promotional Plan

budget projections, carefully review your It is also a good idea to evaluate and
customer profile and write a clear state- examine advertising media from the stand-
ment of your advertising goals. Next, an- point of three basic ingredients:
swer the following crucial question about
"#audience (coverage) each enjoys
your advertising:
"#acceptance (impact) of the
"#What should be said about the
medium on the audience
business and how should it be When business
stated? is good, it pays "#ability to expand its initial impact
to advertise; by being available more than
"#What media should be used?
when business once or twice in a particular time
"#How much can be spent on is bad you’ve frame frequency (exposure)
advertising? got to advertise.
Audience – You need to know that
ADVERTISING
"#How can the advertising program an audience does indeed exist as
MAXIM
be implemented? well as their size, location and other
"#How can its effectiveness be important characteristics.
measured? Acceptance – The advertising medium
must be accepted in the marketplace not
only by the target audience of the adver-

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 5 4 Creating a Winning Promotional Plan

tiser but also by potential new customers Customer Type – What does your potential
or competitor’s customers. customer read or listen to? Where? How
often? What image of your product or ser-
Frequency of Exposure – Advertising
vice does the media you are considering
should reach potential buyers regularly,
suggest? Does it fit your customer?
some times even daily. A medium with a
once-a-year or even once-a month fre- Past performance – What is the track re-
quency might deserve nothing more cord of the advertising media you
than a very small part of a retailer’s Advertising are considering for your type of
advertising budget. should reach po- business? What do your competitors
tential buyers use? What does your trade associa-
Lastly, to help establish criteria regularly, some tion suggest?
for selecting and evaluating adver- times even
tising, you should address the fol- Trading Area – Do you plan to serve
daily.
lowing factors: or sell to an industrial market, a na-
tional market, a neighborhood or a
Continuity of message – How will the type specialized market? Describe your market
of product or service, customer profile and area.
seasonal buying patterns affect your
choice of media and the frequency with
which you advertise?

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 5 4 Creating a Winning Promotional Plan

Comparing Your Advertising establishments. Remember, these pub-

Budget with Other Companies lished numbers are average figures; your
After figuring out your advertising location, competition, reputation and mar-
budget, check it against industry advertis- ket area may dictate an adjusted percent-
ing ratios. Trade associations and other age of sales for advertising. If your firm is
organizations often gather data on new, you may want to double the
advertising expenses. This data is The chart on average percentage figure during
simplified into one operating ratio page 29 shows the first year just to establish your-
based on advertising expenses as a the average self.
percentage of sales. If your esti- percentage in-
mated cost for advertising is vested by 74 dif- Budgeting for Personal
substantially higher or lower than ferent industries Selling & Sales Promotion
the industry average, perhaps you including retail Personal selling and sales promo-
should rethink your budget. To and service es- tion activities should also be given
make a profit, no single expense tablishments. careful consideration when budget-
item should be allowed to get out of ing. Although, it is more difficult to
line. monitor these costs, as well as, research
ratios and percentages useful for project-
NOTE The chart on page 29 shows the
ing these costs, an attempt should be
average percentage invested by 74 differ-
made to break down costs in each of these
ent industries including retail and service

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 5 4 Creating a Winning Promotional Plan

areas and establish some kind of restric-

tions and goals.

Advertising is a paid mes-

sage, in a public medium,
designed to influence the
purchasing behavior or
thought pattern of an audi-
ence. In its noblest form, it
is a service – to help peo-
ple find products to meet
their needs.
POWERPOINT

20 Copyright © 2001 by Patsula Media ! The Entrepreneur’s Guidebook Series

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 5 4 Creating a Winning Promotional Plan

GETTING THE MOST fective in developing market awareness,

nor is it effective in cultivating a positive
OUT OF YOUR image of your business.
PROMOTION PLAN
Don’t be too cheap on your advertis-
THE FOLLOWING list of strate- ing. All businesses must regularly
gies is to help you get more out use some form of advertising to
A wise man once
of your marketing plan: make prospects aware of their
said, “The person
Avoid random advertising who saves money products and services. Even a fa-
that has no purpose. A major by not advertising mous company like Coca-Cola con-
weakness of many start-up op- is like the man who tinually spends money on advertis-
erations is the lack of planned stops the clock to ing to support recognition of its
advertising and promotion. In- save time.” products. In 1993, it spent more
stead of developing a clear pro- ADVERTISING than $150 million.
motional objective with a well de- MAXIM Never run an ad unless it has a
veloped plan of action, many “Unique Selling Proposition.”
owner-manager fall into the trap of spend- One of the greats in advertising, David
ing randomly on advertising to promote Ogilvy, liked to preach the following phi-
particular items. Random advertising may losophy to would be advertisers: “Never
increase short-term sales, but it is not ef- run an ad unless you have a Unique Sell-

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 5 4 Creating a Winning Promotional Plan

ing Proposition (USP). He believed that if a possible. This repetition should center on
competitor’s logo could be substituted for something the buyer needs or wants.
yours in an ad you were running, and the However, although repetition is necessary,
ad still made sense, your ad was going to more and more entrepreneurs are finding
be much less effective than a similar ad that using the same small advertisement
with a USP. on a regular basis is producing di-
About 10% of minishing returns. Instead, they are
Two examples of a USP:
your total month relying on advertising that has a
"#“fashions for the woman who ad budget more massive impact, especially
thinks young” (women’s clothing should be held when they have a compelling offer.
store) in reserve for They launch well conceived finely
tuned promotional campaigns rather
"#“automatic three year trade in special promo-
tions. than small, boring repetitive ads.
plan” (car dealership)
SUPERTIP This means a continual search for
The purpose of a USP is to dis- special promotional goods or new
tinguish yourself in your advertising and service features to supplement your regu-
gain a more marketable reputation. lar stock assortment and services.

Repeat your advertising promotions Time your promotion to coincide with

– with a powerful twist. To be effective, when the customer is ready to buy.
advertising should be repeated as often as Selling when the consumer wants to buy is

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 5 4 Creating a Winning Promotional Plan

a fundamental factor in the marketing con- !

cept. Promotional efforts whether in-store
or though mass media advertising, should
be timed to coincide with maximum sea-
sonal or cyclical demand. Do not waste
advertising dollars by pouring money into a
lagging season and failing to take
advantage of a good season. Ad- This is an industry of
vertising expenses should be in ideas and imagina-
proportion to projected sales fig- tion, and what we
ures. are selling is hope.
Use an annual promotion STEVE MAYHAM
calendar. A well-developed an- Fragrance Executive
nual promotion calendar helps
multiply the impact of dollars spent on
promotion and advertising. By comparing
past promotional calendars with their cor-
responding sources of funds statements,
the effectiveness of past advertising cam-
paigns can be ascertained.

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 5 4 Creating a Winning Promotional Plan

GETTING HELP
FROM AN AD AGENCY
FOR HELP in planning, produc-
ing and measuring the effec- Don’t think for a minute
tiveness of advertising consider that to grab someone
using an ad agency. Often the and put him or her in a
services of an agency can be headlock while you
obtained at low cost. After spew out information,
charging you the cost of prepar- is effective advertising.
ing an ad, most agencies earn This form of advertis-
the bulk of their profits from ing, widely practiced by
commissions paid by the media second rate compa-
being used (15 percent of the nies, is more akin to
media cost). propaganda.
POWERPOINT
!

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 5 4 Creating a Winning Promotional Plan

Other advantages include:

CREATING YOUR OWN
“IN-HOUSE” AGENCY "#close control over the output of the in-
house agency
AN “IN-HOUSE” agency is an advertising
agency that you create within your "#the agency is at the company’s
own company to handle all your ad- The main beck and call and is always
vertising needs. It may have a dif- advantage of an available
ferent name or even a different ad- in-house agency "#no confidential information about
dress, but its overhead is defrayed is that advertis- the company’s business is likely
by the all commissions earned from ing placed in lo-
to leak out
the various media in which your cal and national
company advertises in. "#all forms of advertising, sales
media immedi-
promotion, and public relations
PROS – The main advantage of an ately earns 15 can be handled by the in-house
in-house agency is that advertising percent com-
group without paying extra fees
placed in local and national media mission.
to outside firms for non-
immediately earns 15 percent com- commissionable services (this is
mission. Some of this rebate goes to pay especially advantageous if the company
for the in-house advertising staff and over- does extensive co-operative advertising
head, which generally costs less than the with retail customers)
15 percent. The rest is profit.

25 Copyright © 2001 by Patsula Media ! The Entrepreneur’s Guidebook Series

TM
 5 4 Creating a Winning Promotional Plan

CONS – The biggest drawback of an in- if the ad is paid before 30 days, select a
house agency is the fact that outside view- name for your advertising agency that is
points, ideas, creativity, and exposure are different than your normal business name.
lacking. It’s like running a company with If your business name is Andy’s Alpine Ac-
only family members. However, if this cessories, you can use a name such as
shortcoming is remedied and steps are Andy’s Advertising Agency. Make sure that
taken to assure creative light to en- the name you select for your agency
ter form the outside, then creating I know half the is not already being used by another
an in-house agency is definitely money I spend company. The name of your agency
worth investigating. on advertising is must be unique, original and non
wasted, but I controversial.
NOTE While many media frown
can never find
upon an in-house agency arrange-
out which half. !
ment, as do independent advertising
ANON
agencies, the creation of such
agencies goes on.

Starting Your Own In-house Agency –

To start your own in-house agency and re-
ceive a 15% discount on every ad you
place in a publication, plus a cash discount

26 Copyright © 2001 by Patsula Media ! The Entrepreneur’s Guidebook Series

TM
 5 4 Creating a Winning Promotional Plan

PREPARING AN NOTE If you wish to purchase the advertis-

ing yourself, contact the magazine directly
INSERTION ORDER and ask for an “Ad Kit” or “Media Pack-
Advertising agencies use insertion orders age.” They will send you a folder that in-
to submit a request to run, cancel or mod- cludes demographic information, a current
ify a particular ad in a specific newspaper rate card and a sample of the publication.
or magazine. When you request an
ad insertion in a magazine or news- I know half the !
paper, and you don't have an adver- money I spend
tising agency working for you, it is on advertising is
recommended that you also use an wasted, but I
insertion order form. can never find
out which half.
An insertion order includes in- ANON
formation as outlined in the sample
on page 30. Each order should be made in
triplicate. The advertiser and the advertis-
ing agency (sometimes one in the same),
each keep a copy. The 3rd copy is sent to
the publisher of the newspaper or maga-
zine.

27 Copyright © 2001 by Patsula Media ! The Entrepreneur’s Guidebook Series

TM
 Preparing an Advertising Budget
Plan Allocation
Year Total Sales Projected Ad Budget in Advertising Media 1 Media 2 Media 3 Media 4 Media 5 Reserve
in % per Sales in $ % of Total Budget in $ ____% of ____% of ____% of ____% of ____% of Fund
month per month Sales / month per month total total total total total (10%)

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

TOTAL 100%
 Advertising & Promotion as a Percentage of Sales
Business credit institutions .2 Personal credit institutions 1.4 Finance – services 3.2

Commercial printing .2 Services – nursing & personal care facilities 1.4 Photographic equipment and supplies 3.2

Services equipment rental & leasing .2 Silverware and plateware 1.4 Radio/TV receiving sets 3.4

Services – advertising agencies .3 Motorcycles, bicycles and parts 1.5 Radio/TV broadcasters 3.5

Security and commodity brokers .4 Bakery products 1.7 Pens, pencils and other office materials 3.6

Services – building cleaning & maintenance .4 Motor vehicles and car bodies 1.7 Real estate 3.6

Office computing & accounting machinery .5 Retail – apparel and accessory stores 1.8 Services – misc. amusement and recreation 3.6

Retail – auto dealers and gas stations .5 Hardware 1.9 Services – motion picture theaters 3.7

Savings and loan associations .5 Paints, varnishes and lacquers 1.9 Services – educational 4.1

Services engineering and architect .5 Services – automotive repair and service 1.9 Services – personal 4.3

Services – linen supply .5 Retail – lumber and other building materials 2.0 Jewelry-precious metals 4.4

Insurance agents and brokers .7 Hotel and motels 2.1 Retail – jewelry stores 4.5

Services – R& D laboratories .7 Cigars 2.2 Retail – household appliance stores 4.7

Services – computer and data process .9 Retail – shoe stores 2.2 Bottled and canned soft drinks 5.7

Office furniture 1.0 Musical instruments 2.3 Retail – mail-order houses 5.9

Retail-mobile home dealers 1.0 Retail – variety stores 2.3 Candy and other confectionery 6.1

Services – detective and protective 1.0 Footwear except rubber 2.4 Cigarettes 6.1

Services – hospitals 1.0 Household appliances 2.5 Toys and amusement sport goods 6.1

Ship/boat building and repairing 1.0 Services – management consulting & PR 2.6 Malt beverages 6.5

Retail – grocery stores 1.1 Watches, clocks and parts 2.6 Soap and other Detergents 6.5

Farm and garden machinery and equipment 1.2 Retail – women’s ready-to-wear 2.8 Drugs 7.8

General building contractors 1.2 Retail – department stores 2.9 Retail-furniture stores 7.8

Travel trailers and campers 1.2 Retail – eating places 2.9 Phonograph records 8.6

Retail – drug and proprietary stores 1.3 Retail – sewing and needlework stores 3.0 Perfumes, cosmetics and toiletries 8.8

Transportation services 1.3

(Source: Advertising Age, August 17, 1981)

 Preparing an Insertion Order

Write your ad Write name and

agency’s name, ANDY’S ADVERTISING AGENCY address of the
address, phone 2032 Oscar Dr. $ P.O. Box 657 $ Seattle, WA 98114 publication you
and fax #. Phone (206) 351-3456; Fax (206) 351-2345 want to advertise
in.

INSERTION ORDER
Write an Order # Order No.: 0156 Advertiser’s Name: Mike’s Memory Shop List classification
to help you keep name if any
track of ads Date: Mar. 6, 95 Product or Service: Computer Accessories (especially for
placed. classified ads).
PUBLICATION
Write date order Computer Shopper, One Park Avenue, New York NY 10016 List requested
submitted. date or dates of
Toll-Free Sales number: 1-800-999-SHOP publication.
Edition: July Position: top r.h. corner Classification:
Indicate how Page No.: 753 or 755 # of Times: 5 First Insertion Date: July
many times you Instructions: Place ad in “Showcase” section Check the box of
wish to
TYPE of Ad: the type of ad
run the ad.
Display % Display Classified & Classified % format you are
requesting.

List the size of Word Count: 30 Ad Size: 40 lines Ad Rate: $ 7 per line
the ad as it is to
Ad Cost: 40 x $7 = $280 + $40 (yellow) Cash Discount (4%) List the rate you
appear. Size is
ususally $12.80 are paying and
measured in Agency Discount (15%) $48 Total to be billed: discounts or
agate lines. An $1,296 commissions you
agate line is an Notes: are entitled to
advertising (these rates can
Terms: be obtained from
measurement
Space Contract % New Insertion & Other % a recent issue of
equaling one-
fourteenth of an Materials Enclosed: 8.5 x 11 Copy of ad SRDS).
inch. Thus, if an Instructions: Use yellow background
ad medium has a
column width of Ad Key: List key if any, as
1-7/8 inch, 4 well as
Ad Headline: “WE BUY MEMORY” instructions on
columns x 10
inches would Ad Copy: WE PAY THE MOST – WE CHECKED, WE KNOW!! how to update the
equal 560 lines. key.
NEW, USED, EVEN DEFECTIVE – WE BUY IT ALL!!
$1 Million – AVAILABLE FOR PURCHASE

List the type of CALL NOW FOR QUOTE – 1$ 800$ 42$ MIKES Write the ad
material you are headline and how
including such as: Prepared by: Mike Mathews Date: Mar. 3, 95 the copy of
artwork, prints, Approved by: Wilma Mathews Date: Mar. 6, 95 the ad should
negatives, read.
engravings, ad Any discrepancy should be resolved before inserting new ad. Send
copy, etc. invoice and information regarding this insertion order to Andy’s Ad-
vertising Agency; 2032 Oscar Dr., P.O. Box 657, Seattle WA 98114.
©1995 Wonderworks Publishing