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BSBADV602B Develop A Advertising Compaign SLR

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Australian College of Vocational Studies

BSBADV602B Develop a Advertising Campaign

BSB60207 Advanced Diploma of Business

Student Handout BSBADV602B Develop a advertising campaign
Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies

The advertiser’s purpose and objectives from the advertising brief are clarified and used to set objectives for the advertising campaign We begin to find out client before planning an advertising campaign. Before undertaking an advertising campaign, an advertising agency should be able to answer two key questions:  Why are we advertising?

 What are we advertising?
On the face of it these seem like two fairly obvious questions. But they are significant in planning an advertising campaign and are set out in the advertising objectives. Advertising is a very expensive promotional tool. So careful consideration about “Why” and “What” can pay dividends. In order to develop an effective advertising campaign, you need to gather the right information. In this section, we will provide you with an overall overview of the types of information that you will require to create briefs and advertising strategies.

Advertise
The following may be good reasons why a business is advertising:  To create awareness, customer interest or desire in a brand or product  To raise sales
 To maintain or build brand loyalty
 To assist in the launch of a new product
 To change customer attitudes
 To build the company or brand image
 To reduce the effect of competition
Flick through your favourite magazine and look at a selection of the ads contained within. Think about the reasons why the ads were placed — look for the objective that the advertiser is hoping to achieve. Don’t forget that some adverts aim to achieve multiple objectives. By gathering information about why your client actually wants to advertise and what their overall objectives are, you are in a much better position to develop a campaign that actually addresses their needs.

An advertising objective is simply a specific communication task that the advertising hopes to be able to achieve. Put simply, these objectives fall into three main categories each of which may be used in a campaign — that is often an advertising campaign will aim to achieve multiple tasks.

Student Handout BSBADV602B Develop a advertising campaign
Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies

a) To inform: e.g. tell customers about a new product
b) To persuade: e.g. encourage customers to switch to a different brand c) To remind: e.g. remind buyers where to find a product
Let’s now look more at advertising objectives and what they may be aimed at achieving. Advertising goals are communication objectives aimed at accomplishing certain tasks within the overall marketing program. It is very difficult to assess the success of an advertising program unless specific and measurable advertising objectives have been set.

When you ask most companies what they hope their advertising will achieve they will give you an answer along the lines of “raise my sales” or “increase my market share”. But if you think about this you will realise these are not actually advertising objectives, they are marketing objectives. Advertising alone cannot raise sales or increase market share, advertising is simply a part of the overall marketing program which will work towards achieving these goals. So you need to examine exactly what effect it is that you want your advertising to have, within a given timeframe. So let’s look at an example of the difference between the two.

Let’s imagine that you have been asked to write advertising objectives for a laundry powder. An overall marketing objective may be to increase market share for the product from 10% to 15%. However 1 the advertising objective for a specific campaign may be to raise the number of woman aged 21-49 who identify the specific brand as being the one that makes whites whiter. You now have a specific communication task that the advertising agency can use to create their communication message and base their campaign around.

What to Advertise?
Factors that help answer the question “What are we advertising”? Focus on what the advertising message should be — and thus allow you to determine objectives based on the product itself. In general, there are really only two kinds of effective advertising message:  Firstly, does the business/product have a Unique Selling Proposition (“liSP”)?  A unique selling proposition is a customer benefit that no other product can claim. In reality these are rare, although that does not stop advertisers from making these bold statements for their product. However it is important to remember that they can give you a good objective to begin selling your product from.

When setting advertising objectives and communication tasks for a campaign you may like to think about how your brand can add value. This added value is critical in determining the type of advertising message that you may like to communicate as a part of your specific advertising objectives. Student Handout BSBADV602B Develop a advertising campaign

Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies
For example think back to our laundry powder; advertising for this type of product may focus on the type of whitening agents that are added into a product to increase optical brightness. Other messages may focus on examining the amount of washes that the box may provide. Whatever is advertised, the objectives set must ensure that any communication is:







Seen
Read
Believed
Remembered
Acted upon by target customers

Previous Advertising
Advertising does not act in isolation. Advertisers will have created previous campaigns and the competition will also be running advertising campaigns.
In order to create good objectives, you should analyse:
 What appeals has the advertiser used in the past?
 Are there any elements in the previous advertisements that could be reused to create consistency?
 Are there any other advertising campaigns for similar products?  What appeals do they use?
 How effective are they?
 What research has been done on previous advertising?
 What elements were most effective?
 What elements were not effective?
 What difficulties were there in creative execution?
 What benefits were found from the advertising?

Student Handout BSBADV602B Develop a advertising campaign
Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies

Assess and specify research resource requirements for the advertising campaign
The Advertising Budget
In this manual, we are concentrating on the strategic aspects of advertising planning. From the first section, you will understand how advertising campaigns need to be designed to achieve a specific aim or objective. This may include launching a new product, increasing brand awareness or trying to eliminate the effect of a competing brand’s advertising. A critical decision that all advertising managers have to make is to determine how much money to spend on a given campaign in order to accomplish the objectives that have been set.

Think about this question. How do you know whether you are spending enough on advertising or are you spending too much? One of the largest promotional budgets in any large organisation is its advertising budget, so getting it right is crucial. Despite all the technology that exists within a typical advertising department, the judgment on budget is often made by management. Advertising budget decisions are typically made by one of the following:  Marketing Managers

 Advertising Managers
 Brand Managers
 Advertising Agencies
While budgets are generally approved by:
 CEO
 COO
 Financial Controllers
Advertising budgets are generally drawn up using one of four approaches, each of which we will be discussing here.
Percentage of Sales
Companies using this method simply base their advertising budget decisions on a percentage of their overall sales. It is not the most common method, but does provide a quick method for calculating advertising spend. In the main, companies adopting this approach may decide to use anticipated (or budgeted) sales, while others will used a mean of the budgeted sales and the previous year’s actual sales. In either of these methods, a change in sales will result in a change in the amount of money allocated to advertising spend.

A company that decides to adopt the percentage of sales method of determining the advertising budget will not spend anything that is beyond their means because the advertising spends will only be increased Student Handout BSBADV602B Develop a advertising campaign

Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies
when their sales have increased. This can result in advertising spend that is able to be afforded by the company in question. However, if sales decrease, so will advertising. If the pressure of competition gets to be too much, however, the company may have to maintain its budget, or even increase it, in order to maintain its market share — even if profit will be decreased by doing so. Payout Plan

The payout plan method of advertising budgeting is substantially more complex than the first method. In using this method, the advertising spend is set at a level that is acceptable at a future date. The payout plan method of advertising is generally adopted when you are introducing a new product into the market place — which in turn requires extremely high levels of advertising expenditure (relative at least to the low level of initial sales that will be expected).

Whatever the specific method of payout being used, the principle that underlies this method is that the current advertising budget should be based on future sales levels. Of course, the advertiser who overestimates future sales runs the risk of significant future debt. In the tables below, we have provided an example:

Year 1 ($000)
Year 2 ($000)
Year 3 ($000)
Sales

$85

$218

$356

Material Cost
Labour
Overhead
Operating expenses
Gross profit
Advertising
Investment
Profit

39%
22%
21%
82%
18%

$33
$18
$18
$69
$16
$16
$10
$(10)

39%
20%
19%
78%
22%

$85
$44
$41
$170
$48
$48
($10)

39%
20%
18%
77%
25%

$139
$71
$64
$274
$82
$47
$35 (less
deficit)

Let’s look through how this works in detail. Let’s assume that this was the payout plan for a small family owned business. In the first year, the company spent its entire gross profit on advertising ($16,000) as well as investing a further $10,000 into renovating its store. This gave it a deficit of $10,000 that it carried through into year two. In the second year, the company decided to again invest its entire gross profit into advertising and carried over the deficit into year three.

By this time, sales had risen significantly and advertising spend was only accounting for 13% of sales overall — so the company in fact made its first real profit and had covered its deficit making an actual net profit of around $25,000.

Student Handout BSBADV602B Develop a advertising campaign
Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies
Think of the situation where the company had taken its initial 13% future for advertising and applied it to year one, they would have made a profit before investment but advertising spend would have been reduced, meaning it may not have had the resources to continue this through into other years, as sales may not have increased as much as they would have hoped.

Budgeting Based on the Competition
Another approach to budgeting is to base it on the competitive spending environment. In competitive budgeting, the level of spending relates to the percentage of sales and other factors; whether the advertiser is on the offensive or defensive; media strategies chosen, or answers to questions such as is it a new brand or an existing one? The problem with this method is that the competition dictates the spending allocation (even if they have very different marketing objectives). Task Method

Under this method of advertising budgeting, the company sets a specific sales target for a given time to attain a given goal. Then it decides to spend whatever is necessary to meet that quota. The task method might be called the “spend what we can afford’ approach, especially when it is used to launch a new product. Many businesses around today used this approach, but so did many who are no longer around.

This approach can be very complex. It involves several important considerations: brand loyalty, geographic factors, product penetration, and many others. Advertisers who use this method need to ensure that they have accurate, reliable research, experience and models for setting goals and measuring results.

The task method is essentially only used in a market where there are extremely high levels of competition. Budgets are under constant scrutiny in relation to sales and are usually reviewed every quarter. Moreover they are subject to cancellation at any time because sales have not met the budget or if management wants to hold back money to make a better showing on its next financial report. Essentially there is no one budgeting method that works every time. How to Use the Budget

Now that you have determined how much you intend to spend overall on an advertising campaign, you must decide how this money will be allocated to the various aspects of the campaign. In the initial stages, it is important to think about whether the advertising will be institutional in nature (that is used to build brand image) or whether it will be aimed squarely at promoting individual products. The institutional advertising budget most likely will not need to be allocated further as it is aimed at promoting the organisation as a whole. However, once this amount is deducted from the budget, you need to think about how you will utilise the money that is left, and where it will be used. You may break down your advertising spend by: department, media spend, sales areas or calendar periods. Student Handout BSBADV602B Develop a advertising campaign

Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies
Departmental Budgets
As we mentioned above, the easiest way of determining advertising budgets is by percentage of sales. A department or product category with a large number of sales is likely to be awarded the greatest advertising budget.

By doing this — breaking down the budget by departments or products, you can ensure that those goods that require more promotion or advertising to stimulate sales can receive a greater proportion of the advertising budget in order to stimulate sales. The overall campaign budget can then be divided as appropriate.

Calendar Periods
Advertising is generally budgeted on a month-by-month process. This is particularly true of advertising campaigns which may last just a month. However, most budgets are created for an annual basis and thus do not align with the advertising budgets. Better control is attained by taking the overall budget and reducing it down to match your advertising planning period.

The percentage-of-sales method is also useful here to determine how much money to allocate by time periods. Overall, you should consider the need to match sales with advertising dollars. So, if July accounts for 5% of your sales, you might give it 5% of your budget — and if December accounts for 42%, then it should get an equivalent amount in the campaign budget.

Having said that, there may be a need to adjust advertising allocations downward in some of your heavier sales months, so you can boost the budget for some of your poor periods. However, this should only be considered an option if you have a good reason — for example if the competition sales trends change — so that there is è real need for you to change your media spend. Media

When attempting to determine the amount of advertising that you place in each of your major advertising mediums, it is important that you consider the past experiences you have had with each medium, industry practice and any advice that you can get from media planners and buyers. For the most part, a wise decision is to use the same sort of media that your competition use — as that is where you are likely to get the most value for your money.

Sales Areas
When breaking up your campaign budget, it is important to look at the geographic location of your current and potential customers. It is possible for you to spend your advertising dollars where your customers already come from, or you can use them to try to stimulate new customers. As we mentioned previously with regard to campaign timing and budgeting it is an important consideration to decide whether to spend the bulk of your budget in an area that you are very familiar with, or whether you should spend it in a new area to gain greater results. As always, it is a matter of weighing up the risk with the potential return.

Student Handout BSBADV602B Develop a advertising campaign
Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies
A Flexible Advertising Budget
We have covered a lot of material in this section, and in closing we will discuss how to put this into action with regard to campaign planning. One or any of these methods can be used when creating an advertising campaign. You may decide that it is important to form your budget and allocate it strictly by product line or by geographic area or you may use both factors in your allocation. However, it is critical to consider that the methods that you adopt must work with your advertising objectives. The achievement of your advertising objectives is how your campaign will ultimately be assessed. The budget that you set must be flexible and capable of being adjusted to the changing needs of the marketplace.

Aspects of your Budget
Media
The media is an overwhelmingly large proportion of any good advertising campaign. Therefore, it is crucial that you have a handle on controlling this money. Generally speaking, the cost of media advertising has been growing faster than the rate of increase in a given audience, so using your budget in the most effective manner has become increasingly important. Production

In producing an advertising campaign, it is often easy to lose sight of just how much producing your advertising may cost. Let’s look at just some of the costs associated with creating a television commercial:  Preproduction

 Production
 Animation
 Artwork
 Colour correction
 Recording studio
 Musicians
 Talent
 Music clearance
 Editors
 Casting
 Weather contingency
It is easy to see how an advertising campaign production cost can easily reach $100,000 for the television commercial alone — then you have to factor in production costs for radio and print advertising as well. Monitoring these costs is critical to ensuring you remain within budget.

Student Handout BSBADV602B Develop a advertising campaign
Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies
Confirm the campaign length and timing from the advertising brief Identify service providers with the required expertise and negotiate their costs and availability In this section of this manual, we will examine two major aspects of scheduling for advertising media scheduling and production scheduling. Advertising campaigns may take weeks or even months to produce and ensuring that you are aware of what is going on and when is critical. Within a large advertising agency, there are often personnel whose job it is to monitor any such scheduling; it is known as the Traffic Department. Traffic is responsible for coordinating the production of advertising and ensuring that work is completed on schedule and within budget — but unfortunately many small agencies or internal departments have no one with such a responsibility. In these cases, it is important to know how scheduling works. Let’s look at how campaign scheduling should be undertaken. Media Scheduling

While media scheduling is often the last step in the process, it is often important to consider it first because if we do not know when the campaign is set to begin, it is very difficult to actually schedule the production. So let’s look at the major principles behind media scheduling. Having decided how to advertise (the media mix) and where to advertise (allocation across geography), media planners need to consider when to advertise. Given a fixed annual budget, should all months receive equal amounts of money or should some months receive more of the budget while other months receive less or nothing? Media planners can choose among three methods of scheduling: continuity, flight, and pulse.

If you’re advertising campaign is to be based on a continuity schedule then the media spend should be spread evenly across months. For example, with an annual budget of $7,200,000 a year, a campaign with a continuity schedule would allocate exactly $600,000 per month. By using this method, you can be sure that you have exposed your potential customers to a steady amount of advertising during each month — rather than advertising exposure rising and falling month by month. An advertising campaign that is based on a flight schedule may alternate advertising across months, with heavy advertising in certain months and no advertising at all in other months. Think of toy manufacturers as a good example. When they are developing campaigns, they will emphasise the Christmas period and possibly school holiday periods to maximise exposure during times when they know sales are likely to be high. For example, a board game maker like Hasbro might concentrate its advertising in the autumn when it knows that many people buy board games as gifts for the holidays.

Student Handout BSBADV602B Develop a advertising campaign
Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies
Let’s look at some specific examples of scheduling that can be implemented by advertisers:
A Seasonal Program: Some products have seasonal fluctuations — sales of cough medicine spike in winter, suntan lotion in summer and watches at Christmas time. For these products you are likely to schedule an advertising campaign to reflect these seasonal peaks and troughs in sales. For example you may begin increasing your advertising spends on toys in November when people are beginning to think about what to buy for Christmas.

A Steady Program: When the sales of a product are uniform throughout the year (as it is with laundry powder, soap or toothpaste) advertising can be steadily maintained throughout the year. There is no need to raise advertising levels at a given point of the year simply because sales are always steady. People need the products and so will buy them whenever they are needed. Even given this point, you may choose to concentrate your advertising at certain times of the year. Think for example about a company who wanted to spend $100,000 on advertising. If their campaign ran the entire year that would be less than $10,000 a month — which would not buy a lot of media. So even if advertising is steady, media may change to reflect seasonal changes. TV viewing drops in summer and increases in winter so any scheduling should be aimed at trying to reflect this.

So, now that we have a basic understanding of media scheduling, how does this apply to your overall approach to advertising scheduling. A TV ad may take weeks to create, the same goes for print media. So, in order to schedule production effectively you need to know exactly when the advertising is due to be run, so that you can be sure that the advertising itself has been created and produced in time for it to be shown. This can be quite complex when you are looking at flight or seasonal schedules, where different ads may need to be produced throughout the year — but by having a solid media schedule in place, production schedules can be adapted and arranged around the media schedule to ensure that everyone is aware of what is needed at different points throughout the media schedule. Production Scheduling

We will now move on to examine production scheduling for an advertising campaign. Since we already are aware of when the advertising campaign needs to be produced by (from the media schedule) we can then back track and look at how the schedule for producing the advertising can be created. To ensure that the creative and production work moves along with the precision required of it, a time schedule is produced early in the campaign planning process. You begin by examining the closing date — which is the time that the finished materials must arrive at the printer or media network in order to be aired or printed. Once this is known you are able to work backwards along the calendar to determine when work must begin in order to meet the closing date. In general terms modern printing processes mean that for newspapers the deadline is generally a day or two before publication date, while magazines may require up to 3 weeks before press date for the necessary materials to be delivered. TV stations generally accept work the day before, although vetting time may also be required. Student Handout BSBADV602B Develop a advertising campaign

Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies
Let’s look at a typical production schedule for both television and print advertising to get an idea of the steps involved:
Print
Briefing Meeting

When the client firsts meets with
the agency regarding a campaign
Layout and copy due
When the copywriter and art
director are required to submit
their work to the client for
approval
Layout and copy approved
Client gives the go ahead for
development
Estimates requested
Traffic may ask internal and
external agencies for bids for
creating
any
artwork
or
photography
Art due
Depending on the nature of the
campaign this may only take a
day or may take much longer. It
will depend on what is required
Art and final layout Meeting with the client to
approved
approve artwork and layout and
make any changes
Final proof approved
Materials
publication

due

‘As require’
Generally allow 2 weeks,
although this can be rushed
as required
Generally at the above
meeting
These may be due within a
week

Varies

Depending on the number
of changes needed this may
be immediate or may take
another week or two

Final meeting with client before
work is sent to printer
at

By the closing date

The above table shows the steps involved in the production process of print advertisement. The complexity of the artwork can vary significantly and may take just a day (in case of stock art) or weeks (if art work is commissioned from an artist). In the main, the creative process should take no more than two weeks, and production overall should be completed within 1-6 weeks depending on the complexity of what is being asked for.

Television
Now that we have examined the production schedule for print advertising, let’s look at how this compares to television production. In this case, we will provide actual dates for production. In most cases a major television commercial can take around 6 weeks to produce. Student Handout BSBADV602B Develop a advertising campaign

Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies
Script and storyboard May 20-June 1
development
Client approves ad
June 2
Bids and estimates

June 3-8

Client approves budget

June 9

Preproduction and casting

June 10-23

Shoot

June 24-25

Edit

June 26-28

Client approves rough cut

June 29

Sound mixing and music
Client approves final print

June 30-July 3
July 4

The art director and copywriter work on
developing the advertisement
The client approves the ad and production can
begin
The traffic department work with production
companies to finalise costs and bids for
production are submitted
The client looks at bids, selects production
company and approves the overall budget
Around 2 weeks is given to the production
company to work on preproduction, while
casting and location scouting occurs. During
this time and equipment is organised, props
made and costumes found
Most television commercials can be shot in a
day or two, but this obviously varies
depending on the complexity of what is
needed
Editing of an advertisement generally takes a~
further2 days
The first version of the ad is approved by the
client
The soundtrack is added
The ad is ready to ship

In this case, the television ad has taken around 6 weeks from inception to shipping. This can vary significantly depending on what it is that you need and it is the role of the producer to bring all the elements together so that the ad is produced on time and on budget. Radio Production

Radio production is relatively straight forward and so will not be covered in detail here. Generally speaking a radio ad can be produced in a matter of hours if needed and generally within a day or two of the script being approved by the client.

Master Schedule
Once you have created individual schedules for each element of the production of the advertising campaign, they can be brought together into a master schedule which outlines what needs to be produced and by when. It is a good idea to build milestones into your schedules so that individuals involved can keep track of the work ensuring everything is running according to plan. Student Handout BSBADV602B Develop a advertising campaign

Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

Australian College of Vocational Studies
Summary
Great advertising does not just happen. It is the result of a great deal of planning. The account planning department, research department, media planners and creative staff are all involved in creating an advertising campaign and a lot of this work is completed outside of the creative department. Traffic and account planning play a significant role in ensuring that the advertising campaign gets off the ground. This manual has examined the development of three major documents in the planning process:

 The Advertising objectives
 The Advertising budget
 The Schedule
While much of the information in these documents tends to be quite repetitive, there are elements of refinement that take place at each stage. On completion of these three documents, you will have a good idea of how to proceed with the campaign planning process.

Student Handout BSBADV602B Develop a advertising campaign
Implemented: December 2014 Review date: November 2015
Version: 1.1
Course: BSB60207 Advanced Diploma of Business
Responsibility & © Copyright: The Australian College of Vocational Studies

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