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::: The ADVERTISING investment plan
strategies by Jurg Burger
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This company communication
technique is one way to present
products, acquire new shares of the
market, and consolidate relations
with customers. The advertising
investment plan is formulated every
year, and when prepared with care,
ensures ample returns ...
Companies that succeed in upholding
their investments in advertising during
periods of market contraction are the
ones in best position when the market starts
growing again. Advertising is a fixed annual
investment in an amount proportional to the
company's turnover. Like every investment,
it pays off only if the actions are chosen and
planned carefully and sudden, impulsive decisions
are avoided. The drafting of an advertising
plan is also an effective way to define company
communication strategy and to schedule
related activities during the year. A good advertising
plan provides tangible answers to the
following three questions. What do we want to
communicate? Which target group do we want
to reach? What results do we want to obtain?
Let’s start with the final question.
::: The results desired from advertising
activities
In deeper detail, advertising serves various
purposes:
1. Informing others, making a name for
yourself.
Before making their purchase, customers want to see the store, the brands on sale, and the
products. This awareness influences decisionmaking
criteria. Innovative products require a
solid information base in order to gain initial
success.
2. Winning new clients.
In addition to making a name for himself, anyone
who opens a new store must also give
potential customers a good reason for visiting.
Compared to informative advertising, communication
conducted to win new clients must
exert a power of attraction. Winning new customers
can also be an objective for an already
established store.
3. Position yourself in the market and
build a positive image.
Positioning is a precise marketing choice in
which you define yourself in regard to your
competitors operating in the same territory.
Every company has to distinguish itself from
its competitors by offering products, qualities,
services, and/or expertise that it alone can offer.
If your biggest strength is the quality of
your products or service, your potential clients
had better know all about it. This type of communication
aims at creating a positive opinion
of the company among the members of the
target group.
4. The invitation to purchase.
Advertising that directly pursues a sales objective
is usually based on a product. The advertising
message shows the product, illustrates
its advantages, and contains an invitation to
purchase, which may be a promotional offer
or a seasonal sale. Product advertising is particularly
effective when it is programmed in
synergy with the advertising campaign of the
product’s distributor. Potential clients see or
hear the distributor’s advertising commercial
while at the same time receiving information
on where the product can be found in his or
her own town.
5. Consolidate important relations.
Development of activities in a multi-merchandise
store depends on the capacity to establish
and consolidate good relations with customers.
Cultivating and consolidating relations with
your designer(s) is a strategically important objective. Each one of the objectives above has
its own importance that must be scaled with
the company’s resources and priorities. The
annual advertising plan is the strategic tool that
sets the size of the investment, the objectives
to achieve, the target groups to reach, and the
communication content and channels to use.
It is important to re-formulate the plan each
year in order to optimize the investment and
prevent the fragmentation of the budget into
uncoordinated actions that are often improvised
at the last minute to exploit opportunities
that may appear interesting from the economic
point of view but have little to do with the company’s
overall strategy.
::: How can the advertising plan be structured?
We offer these guidelines for the considerations
and assessments to be made:
1. Define the objectives of store development:
• Which methods will we use to increase company
turnover?
• Do we need to win new types of customer?
• Which new products do we intend to propose
to our customers?
• Which new services or improvements in existing
services will best satisfy our customer’s
expectations?
2. Set the budget for advertising investments.
3. Define specific objectives for each target
group, such as:
• Restaurants: spread word about the store
(if recently opened), expand usership, and
spread word about new products or new services,
etc.
4. Decide the content of your messages.
Company advertising introduces your company,
positions it in regard to your competitors,
and contains the promise you make to your clients.
Informative advertising and promotional
advertising deal instead with your products and
services.
5. Choose the most appropriate advertising
channels for the achievement of your
communication objectives for each target
group.
The main advertising channels to be considered
are:
• Billboards and handbills
These are suited to increasing the visibility
of your store and communicating offers and
promotions.
They have low costs and can be restricted to
specific areas.
• Newspapers and magazines
The printed press is an excellent company
advertising channel. Local newspapers can
be used to reinforce the product advertising
performed by the distributor in the national
press.
• Internet
Internet is another useful channel for winning
customer loyalty.
Website newsletters and e-mail communication
can be very helpful in providing professionals
with technical information and updates.
CRM (Customer relationship management)
software has been developed with the express
purpose of personalizing communication with
loyal customers to great degree.
• Local trade fairs
Participation in trade fairs is a good way to
make a name for yourself and present your
best products and most innovative services to
a wide segment of the public.
The dialogue with potential clients is direct,
and offers the chance to explain all your product’s
advantages, answer questions, remove
doubts, and showcase your expertise.
6. Plan your advertising activities around
the year.
Good planning does not preclude significant
unplanned investments throughout the year.
One quarter of your budget may be set aside
for special events and opportunities that arise
during the year, provided that they are coherent
with the communication strategy already
formulated.
7. Establish criteria for the checking of
advertising activity efficacy.
Checking results is the fundamental requisite
for the improvement of your communication
and your choice of the next means to adopt.
Result data will be useful in optimizing next
year’s investment.
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