Definition of Advertising
Advertising is any paid form of non personal presentation and promotion of ideas, goods, or services by identified sponsor.
Framework for advertising planning and decision making
PLANNING FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Major internal and external factors involved in advertising planning and decision making are shown in Figure 2-1. Internally, situation analysis, the marketing program, and the advertising plan are key considerations. As suggested in the diagram, the three legs of advertising planning concern: (1) objective setting and target market identification, (2) message strategy and tactics, and (3) media strategy and tactics. The advertising plan is best thought of as part of an overall marketing plan which should be developed following a situation analysis of the organization’s particular situation. Situational analysis implies research and research is vital to planning and decision making. Once developed, an advertising plan is implemented and becomes an advertising campaign, carried out in the context of social, legal, and global factors and with the aid of various types of facilitating agencies.
The balance of this chapter addresses each of these considerations. First, situation analysis is explained and discussed. Then a brief review of a marketing plan is presented. This is followed by sections on facilitating agencies and a discussion of the role of social, legal, and global factors.
MARKETING STRATEGY AND SITUATION ANALYSIS . . . . . . . . . . . . . . . . . . . . . . .
The planning and decision-making process begins with a thorough analysis of the situation the advertiser faces and the development of marketing strategy. Marketing strategy includes the long-run vision and objectives of the company as well as an articulation of the specific strategic position it will aim to occupy in the marketplace in the years ahead. The company’s strategic position might be either one in which it is the low-price leader, seeking growth through offering prices that are consistently lower than competitors. Or one in which it focuses on offering differentiated products that offer high quality and reliability.1 The development of marketing strategy thus should begin with situation analysis, and a comprehensive examination and analysis of all important external and internal factors operating in a particular situation. This includes assessing the strengths, weaknesses, threats, and opportunities, so-called “SWOT analysis,” of the company involved. In many cases, it means that new research studies will be undertaken as well as relying on company history and experience.
Consumer and Market Analysis
A situation analysis often begins by looking at the aggregate market for the product, service, or cause being advertised: the size of the market, its growth rate, seasonality, geographical distribution; the possible existence of different segments; and trends in all of these aggregate market characteristics.
Advertising planning and decision making are heavily affected by competition and the competitive situation the advertiser faces. Competition is such a pervasive factor that it will occur as a consideration in all phases of the advertising planning and decision-making process and the various topics treated in much of the balance of this book. A type of market structure analysis that involves the development of this book. A type of market structure analysis that involves the development of perceptual maps of a market, for example, attempts to locate the relative Perce perceptual maps of a...