UNIT 3

Advertising Planning Process

The Advertising Planning Process is a structured approach that businesses follow to design,
execute, and evaluate their advertising campaigns. The purpose is to make sure that the
advertising message reaches the target audience effectively and achieves the desired results,
whether that’s increasing sales, enhancing brand awareness, or shifting consumer attitudes. The
process is divided into several distinct steps that help in creating focused and efficient
campaigns.
Steps in the Advertising Planning Process
1. Situation Analysis
o Definition: This is the first step of the advertising planning process where
businesses assess the current market environment. It involves understanding
internal and external factors that could affect the campaign, including evaluating
the company's position in the market, competitor strategies, consumer trends,
and overall economic or social conditions.
o Objective: To identify market opportunities, threats, strengths, and weaknesses.
o Example:
▪ A new mobile phone company, entering a competitive market, might
conduct a situation analysis to understand market dynamics, such as
consumer demand for specific features (battery life, camera quality,
price), and competitor performance (like Apple and Samsung
dominating the premium segment). This helps the brand identify gaps in
the market where they can position themselves effectively (e.g.,
focusing on affordability, performance, or camera quality).
2. Defining Advertising Objectives
o Definition: Clear and measurable goals must be set for the advertising
campaign. These objectives could vary depending on the stage of the product
life cycle, the business needs, and the nature of the campaign.
o Objectives can include:
▪ Building brand awareness
▪ Increasing sales or market share
▪ Changing customer attitudes
▪ Launching a new product
o Example:
▪ A fashion retailer might set an objective to increase the brand's online
sales by 20% over the next quarter through targeted social media
 advertising. Another objective could be increasing brand awareness by
30% within six months for a newly launched product line.
3. Target Audience Identification
o Definition: Identifying the specific group of people who are most likely to be
receptive to the advertising message. Segmentation can be done on the basis of
demographics, psychographics, behavior, and geographic factors.
o Objective: To tailor the message and media mix to effectively reach and
resonate with the selected audience.
o Example:
▪ A luxury watch brand like Rolex targets high-income professionals
aged 30-50, who value status and luxury. The messaging and media
strategy would focus on quality craftsmanship, prestige, and exclusivity.
Ads might run in premium publications like Vogue, or targeted social
media platforms like Instagram, appealing to aspirational values and
success.
4. Developing the Creative Strategy
o Definition: The creative strategy defines the key message and creative elements
that will be used in the advertisements. The goal is to ensure that the message
resonates with the target audience and highlights the product's unique selling
proposition (USP).
o Objective: To create compelling content that grabs attention, communicates the
value proposition, and builds an emotional connection with the audience.
o Example:
▪ Nike’s “Just Do It” campaign effectively uses emotional appeals by
encouraging individuals to push past their limits. The campaign focuses
on empowerment, resilience, and achievement, tapping into the
audience’s desires for personal growth and success. The ad's visuals and
messaging inspire action and motivate consumers to live an active
lifestyle.
5. Media Planning
o Definition: Media planning involves selecting the appropriate platforms (TV,
radio, social media, print, etc.) through which to deliver the advertising message
to the target audience. The media plan will also determine the timing, frequency,
and duration of the campaign.
o Objective: To ensure the advertising message reaches the target audience at the
right time and in the right context, while also optimizing the budget.
o Example:
 ▪ A luxury fashion brand like Gucci might choose to run ads in high-
end fashion magazines such as Elle or Harper’s Bazaar, and also
collaborate with fashion influencers on platforms like Instagram to
reach affluent, fashion-forward individuals. In this case, the media plan
is focused on platforms where their target demographic engages most
frequently.
6. Budgeting
o Definition: Setting a financial plan for the campaign, ensuring that the allocated
resources are in line with the advertising objectives and media strategy.
o Objective: To manage resources effectively, ensuring maximum reach and
effectiveness within the allocated budget.
o Example:
▪ Coca-Cola might allocate a large part of its budget for high-visibility
campaigns during the Super Bowl, where a premium TV slot can
command a significant ad spend. On the other hand, they might allocate
a smaller portion of their budget to digital advertising and social media
campaigns that focus on targeted consumer groups based on behavior.
7. Execution and Monitoring
o Definition: Once the campaign is live, execution involves implementing the
plan, tracking its progress, and making necessary adjustments based on
performance data. Monitoring helps identify issues early, ensuring that the
campaign stays on course.
o Objective: To ensure the campaign is running as planned and meets the defined
objectives, adjusting for any issues in real-time.
o Example:
▪ Amazon continuously monitors the effectiveness of its Google Ads
campaigns. Using real-time analytics, Amazon adjusts its ad bidding
strategy based on the performance data such as click-through rates
(CTR), conversion rates, and customer engagement. If a certain ad is
performing better on one platform than another, they might reallocate
budget accordingly to maximize ROI.
Real-World Example of the Advertising Planning Process:
Let’s consider a new restaurant opening in a metropolitan city. Here’s how they would follow
the advertising planning process:
1. Situation Analysis:
o The restaurant assesses the market to understand the dining preferences of
people in the area (e.g., demand for vegetarian food, trends in fine dining vs.
casual dining, local competition).
 o They also analyze competitors in the area, including pricing and marketing
strategies of nearby restaurants.
2. Defining Advertising Objectives:
o Increase foot traffic by 25% over the next quarter.
o Build awareness of the restaurant’s unique features (e.g., organic ingredients,
local sourcing).
3. Target Audience Identification:
o The target audience could be young professionals aged 25-40 who value health-
conscious eating, enjoy dining out, and are active on social media.
4. Developing the Creative Strategy:
o The ad campaign might emphasize the restaurant’s unique selling point:
“Organic meals with a modern twist.”
o The creative would include high-quality visuals of the dishes and testimonials
from food bloggers or influencers.
5. Media Planning:
o Ads will run on social media platforms like Instagram and Facebook, where the
target audience spends a lot of time.
o Additionally, a partnership with local food delivery apps like Swiggy or
Zomato will ensure the message reaches a broader audience.
6. Budgeting:
o A significant portion of the budget is allocated to social media ads (Instagram
and Facebook) as well as influencer partnerships.
o A smaller amount is allocated to local print media in lifestyle magazines and
outdoor hoardings near office areas where potential customers frequent.
7. Execution and Monitoring:
o The restaurant’s social media team monitors engagement and responds to
feedback promptly. They also track foot traffic through restaurant bookings and
delivery orders.
Adjustments are made if ads aren't generating the desired results, such as tweaking the ad
creative or increasing the ad spend in specific locations
Segmentation by Consumer Groups
Segmentation by consumer groups is the process of dividing a broad consumer market into
smaller sub-groups based on shared characteristics. This strategy allows companies to better
understand their audience, develop targeted marketing campaigns, and create products that
fulfill the specific needs of different groups. Below is a more detailed explanation of the various
types of segmentation with real-life examples.

1. Demographic Segmentation
• Definition: This segmentation divides the market based on demographic variables such
as age, gender, income, education, family size, marital status, and occupation.
• Why It’s Important: Demographics provide foundational information that is easy to
collect and highly relevant to product usage and purchasing decisions.
• Real-Life Example:
o Age: McDonald’s offers Happy Meals for children with toys, while also
marketing premium McCafé beverages to adults.
o Income: Luxury brands like Rolex target high-income groups, while brands like
Timex cater to middle-income consumers.
2. Psychographic Segmentation
• Definition: Focuses on understanding the lifestyles, values, attitudes, interests, and
personality traits of consumers.
• Why It’s Important: Psychographic insights go beyond demographics to explain why
consumers make certain choices, offering deeper emotional connections.
• Real-Life Example:
o Nike targets fitness enthusiasts who value an active lifestyle and self-
improvement through motivational campaigns like “Just Do It.”
o Eco-conscious brands like Patagonia focus on consumers who prioritize
sustainability and environmental ethics.
3. Geographic Segmentation
• Definition: This involves dividing the market based on location, such as country, state,
city, or even climate.
• Why It’s Important: Consumer preferences can vary significantly by geography,
influenced by cultural, economic, and environmental factors.
• Real-Life Example:
o Starbucks offers region-specific beverages like Cherry Blossom Frappuccino in
Japan and Pumpkin Spice Latte in North America.
 o Domino’s Pizza adapts its menu to local tastes, such as offering paneer-based
pizzas in India.
4. Behavioral Segmentation
• Definition: Focuses on consumer behaviors such as purchasing patterns, product usage,
brand loyalty, or benefits sought.
• Why It’s Important: Behavioral data helps in understanding the actions of consumers,
which are directly linked to sales.
• Real-Life Example:
o Amazon personalizes recommendations based on past purchases and browsing
history.
o Airlines offer loyalty programs for frequent flyers, segmenting them as high-
value customers.

Business-to-Business (B2B) Market Segmentation

B2B market segmentation involves dividing business customers into meaningful groups to
tailor offerings that address specific needs. B2B segmentation requires a deeper understanding
of the operational and strategic priorities of the target businesses. Below is an expanded
explanation of B2B segmentation types with real-life examples.
1. Industry Segmentation
• Definition: Segmentation based on the industry vertical in which the businesses
operate, such as technology, healthcare, retail, or manufacturing.
• Why It’s Important: Each industry has unique requirements and operational
frameworks.
• Real-Life Example:
o SAP, a software company, tailors its ERP systems differently for retail
companies (inventory management) and manufacturers (supply chain
optimization).
o FedEx offers specialized logistics solutions for e-commerce retailers like fast
delivery options and return management systems.
2. Company Size Segmentation
• Definition: Divides businesses based on their size, which can be measured by revenue,
number of employees, or operational scale.
• Why It’s Important: Larger companies often have more complex needs, while smaller
companies may prioritize cost-effective solutions.
• Real-Life Example:
 o HubSpot offers free CRM tools for small businesses, while its enterprise-level
solutions cater to large corporations with advanced analytics and custom
integrations.
o Deloitte provides different consulting services to startups and multinational
corporations, based on their operational complexity.
3. Geographic Segmentation
• Definition: Similar to consumer segmentation, this categorizes businesses by location,
addressing regional regulations, supply chain needs, and market conditions.
• Why It’s Important: Local laws, infrastructure, and cultural differences can
significantly influence business operations.
• Real-Life Example:
o DHL tailors its logistics solutions for urban versus rural areas, offering express
delivery for metropolitan regions and cost-effective bulk shipping for remote
areas.
o Regional advertising agencies specialize in campaigns adapted to cultural
preferences in specific areas, such as Asia-Pacific-focused branding strategies.
4. Decision-Making Process Segmentation
• Definition: Groups businesses based on how they make purchase decisions, such as
centralized or decentralized decision-making and length of the purchase cycle.
• Why It’s Important: Understanding decision-making hierarchies helps businesses
address key stakeholders effectively.
• Real-Life Example:
o IBM customizes its sales approach for large corporations with centralized
decision-making by engaging directly with the C-suite, while for decentralized
firms, they target individual department heads.
o Software vendors like Oracle offer tailored demos to technical teams when
targeting IT departments, while focusing on ROI for the finance team.

Key Differences Between Consumer and B2B Segmentation

• Scale: Consumer segmentation targets millions of individuals, while B2B focuses on
fewer, high-value clients.
• Focus: Consumer segmentation emphasizes emotional connections and mass appeal,
while B2B is more transactional, focusing on ROI and operational efficiency.
• Complexity: B2B segmentation often involves multiple decision-makers and extended
sales cycles, whereas consumer segmentation is generally straightforward.
Communications Research Market
Communications Research explores how to convey messages effectively to the target
audience. It combines psychology, sociology, and technology to refine communication
strategies.
Types of Communications Research with Detailed Explanations:
1. Audience Analysis:
• What It Is: Studying audience characteristics to determine how best to communicate.
• Methods: Surveys, ethnographic studies, and customer personas.
• Example: Spotify analyzes listener habits to create hyper-personalized playlists and
ads like “Spotify Wrapped.”
2. Media Analysis:
• What It Is: Identifying which media channels are most effective for delivering
messages.
• Tools: Social media analytics (Hootsuite), TV ratings (Nielsen), and digital ad
performance metrics (Google Analytics).
• Example: Burger King identified Twitter as a platform for its witty campaigns, like the
"Moldy Whopper," which highlighted the absence of preservatives.
3. Message Testing:
• What It Is: Pre-testing messages to assess their appeal and potential effectiveness.
• Techniques: A/B testing, focus groups, and message recall studies.
• Example: Procter & Gamble tested multiple versions of its "Thank You, Mom"
campaign for the Olympics to ensure it resonated emotionally across global audiences.
4. Competitive Analysis:
• What It Is: Analyzing competitors’ messaging, branding, and customer engagement
strategies.
• Example: Pepsi’s response to Coca-Cola’s polar bear ads during the holidays involved
leveraging younger, trendier icons, appealing to a different demographic.
5. Effectiveness Measurement:
• What It Is: Measuring whether the communication achieved its intended outcomes.
• Key Metrics: Engagement rates, brand recall, sales conversions, and customer
sentiment analysis.
• Example: Airbnb measures the success of its campaigns by tracking booking spikes,
user reviews, and word-of-mouth recommendations.
Additional Applications and Real-Life Examples:
• Public Health Campaigns:
o The CDC (Centers for Disease Control and Prevention) uses communications
research to design anti-smoking ads targeting teenagers, often employing
emotional storytelling.
• Political Campaigns:
o Political parties leverage voter sentiment analysis and targeted ads on platforms
like Facebook to connect with constituents.
• E-Commerce:
o Amazon uses communication research to optimize its product descriptions and
customer reviews, leading to higher sales conversions.
Product Positioning
Definition:
Product positioning refers to the strategy of creating a unique, distinctive image of a product
in the minds of the target audience compared to competitors. It ensures customers perceive the
product in a way that aligns with their needs, preferences, and values.
Key Elements of Product Positioning:
• Target Audience Understanding: Identifying customer demographics and
psychographics.
• Competitive Differentiation: Highlighting unique features or benefits.
• Positioning Statement: Crafting a clear, concise statement defining what the brand
stands for.
Types of Product Positioning Strategies:
• Based on Features/Benefits: Highlighting specific attributes or benefits (e.g., Colgate
Total toothpaste promotes “complete oral care”).
• Price-Based Positioning: Focused on affordability or premium pricing (e.g., Rolex
positioned as a luxury watch brand).
• Use/Application: Highlighting a specific use case (e.g., NyQuil for nighttime cold and
flu relief).
• Target User: Positioning for a specific demographic (e.g., Pampers for new parents).
• Competitive Comparison: Positioning against competitors (e.g., Pepsi’s “The Choice
of a New Generation” campaign aimed at Coke).
Real-Life Example:
Apple positions the iPhone as a premium, innovative device emphasizing cutting-edge
technology, superior design, and seamless integration with its ecosystem, differentiating it
from competitors like Samsung.
Marketing Communications Objectives
Definition:
Marketing communications objectives define what a company wants to achieve through its
promotional activities, such as raising awareness, generating interest, or driving sales.
Key Types of Objectives:
1. Informational Objectives:
Aim to educate the audience about the product/service or market presence.
Example: Tesla's communication about electric vehicles to promote environmental
sustainability.
2. Persuasive Objectives:
Focus on convincing the audience to buy or prefer a product/service.
Example: Nike's "Just Do It" campaign inspires action and positions the brand as
empowering.
3. Reminder Objectives:
Ensure existing customers remain engaged and remember the brand.
Example: Coca-Cola’s festive campaigns remind customers of its presence during
holidays.
4. Behavioral Objectives:
Designed to encourage specific customer actions, such as trying a product or visiting a
store.
Example: Amazon Prime Day promotions encourage users to subscribe and shop.
Real-Life Example:
Dove’s “Real Beauty” campaign effectively used persuasive and informational objectives to
challenge traditional beauty standards, driving both brand loyalty and social impact.

Types of Marketing Budgets

Marketing budgets determine how much financial resources are allocated to various
marketing activities such as advertising, promotions, events, or digital marketing. The
method chosen for budgeting can significantly impact the effectiveness and efficiency of a
company’s marketing efforts.

1. Percentage of Sales
This method involves allocating a fixed percentage of past or anticipated sales revenue to
marketing. It is one of the simplest and most commonly used budgeting approaches.
• How It Works:
The company decides on a percentage (e.g., 5–10%) of its sales revenue to dedicate to
marketing activities. This percentage can be based on historical data or industry
standards.
 • Advantages:
o Easy to calculate and implement.
o Maintains consistency in marketing spend relative to business size.
o Scales marketing expenditure with business performance.
• Disadvantages:
o Ignores changes in market conditions or opportunities.
o Tied too closely to past performance, potentially limiting growth during
expansion phases.
o No direct link between marketing expenditure and marketing objectives.
• Real-Life Example:
A retail store with $1 million in annual sales may allocate 7% ($70,000) of its revenue
to marketing, covering seasonal advertising and promotional campaigns.

2. Competitive Parity
In this method, companies set their marketing budget to match or outspend their competitors,
assuming that similar spending levels will yield comparable results.
• How It Works:
Businesses analyze competitors' marketing budgets through industry reports or
estimations and allocate similar amounts.
• Advantages:
o Ensures competitive visibility in the market.
o Reduces the risk of underinvestment compared to competitors.
• Disadvantages:
o May lead to overspending or underspending if competitors' budgets are not
well-informed.
o Does not consider the unique goals, strategies, or circumstances of the
business.
• Real-Life Example:
A soft drink company may allocate $2 million for a campaign because its direct
competitor spends the same amount during peak summer months.

3. Objective-and-Task Budgeting
This method involves setting clear marketing objectives and determining the tasks required to
achieve them, with costs calculated for each task.
 • How It Works:
o Identify marketing objectives (e.g., increasing brand awareness by 20%).
o Outline specific activities to achieve these objectives (e.g., launching a social
media campaign, hosting events).
o Estimate costs for each activity and sum them up to form the total budget.
• Advantages:
o Highly strategic and goal-oriented.
o Aligns spending with desired outcomes.
o Flexible for both large and small campaigns.
• Disadvantages:
o Time-consuming and resource-intensive to plan.
o Requires detailed market research and accurate cost estimation.
• Real-Life Example:
A tech company launching a new smartphone might allocate $500,000 for social
media ads, $300,000 for influencer collaborations, and $200,000 for product launch
events, totaling a $1 million marketing budget.

4. All You Can Afford

This approach involves allocating whatever funds are left over after covering essential
business expenses. It is commonly used by small businesses or start-ups with limited
resources.
• How It Works:
Marketing spend is determined after accounting for operational costs like rent,
salaries, and inventory.
• Advantages:
o Limits financial risk by prioritizing essential business needs.
o Encourages creativity with limited resources.
• Disadvantages:
o Marketing effectiveness may suffer due to inconsistent or inadequate funding.
o Does not account for growth opportunities or strategic goals.
• Real-Life Example:
A start-up might allocate $5,000 to local advertising and social media promotions
after paying for operational expenses.
5. Zero-Based Budgeting (ZBB)
Zero-based budgeting starts from scratch, with all marketing expenses needing justification
based on current needs and objectives.
• How It Works:
o Every expense is reviewed and justified from the ground up.
o Budgets are not based on historical spending but on current opportunities and
goals.
• Advantages:
o Ensures efficient use of resources by eliminating unnecessary spending.
o Adapts to current market trends and priorities.
• Disadvantages:
o Time-intensive and complex to implement.
o Requires extensive research and planning.
• Real-Life Example:
A retail company planning a holiday campaign might allocate $50,000 for influencer
marketing, $30,000 for email campaigns, and $20,000 for digital ads, each justified
based on expected ROI.

Real-Life Example: Unilever

Unilever employs the Objective-and-Task approach for its "Sustainable Living Brands"
initiative, like its Lifebuoy handwashing education program. For example:
• Objective: Increase hygiene awareness in underserved communities.
• Tasks: Develop educational materials, launch digital campaigns, and partner with
schools.
• Budget: Allocated based on estimated costs for each activity, ensuring resources are
focused on measurable goals like reaching 1 million children with hygiene education.