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    Adv Appro

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    rejiarju
    The document discusses methods for establishing an advertising budget, including objective and task, payout planning, and quantitative models. It describes allocating the advertising budget across media, sales territories, total exposure, and products to be advertised. Key factors that affect the advertising budget are also outlined, such as market size, product life cycle stage, pricing, and competition. India's advertising sector is growing, with the top spenders including Hindustan Unilever, Reckitt Benckiser, ITC Ltd, and PepsiCo.

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    Adv Appro

    Uploaded by

    rejiarju
    20 views17 pages
    The document discusses methods for establishing an advertising budget, including objective and task, payout planning, and quantitative models. It describes allocating the advertising budget across media, sales territories, total exposure, and products to be advertised. Key factors that affect the advertising budget are also outlined, such as market size, product life cycle stage, pricing, and competition. India's advertising sector is growing, with the top spenders including Hindustan Unilever, Reckitt Benckiser, ITC Ltd, and PepsiCo.

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    adv appro

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    The document discusses methods for establishing an advertising budget, including objective and task, payout planning, and quantitative models. It describes allocating the advertising budget across media, sales territories, total exposure, and products to be advertised. Key factors that affect the advertising budget are also outlined, such as market size, product life cycle stage, pricing, and competition. India's advertising sector is growing, with the top spenders including Hindustan Unilever, Reckitt Benckiser, ITC Ltd, and PepsiCo.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    20 views17 pages

    Adv Appro

    Uploaded by

    rejiarju
    The document discusses methods for establishing an advertising budget, including objective and task, payout planning, and quantitative models. It describes allocating the advertising budget across media, sales territories, total exposure, and products to be advertised. Key factors that affect the advertising budget are also outlined, such as market size, product life cycle stage, pricing, and competition. India's advertising sector is growing, with the top spenders including Hindustan Unilever, Reckitt Benckiser, ITC Ltd, and PepsiCo.

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    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    ADVERTISING

    APPROPRIATION
    Build Up Approaches
    Budgeting strategy is established by designing
    the communication objectives and budget
    that is deemed necessary to attain these
    goals. This includes:
    1. Objective and Task Method.
    2. Payout Planning.
    3. Quantitative Models.
    Objective and Task Method
    • Scientific approach
    • Most common method.
    • Looks at objectives set for each activity, and
    determines the cost of accomplishing each
    objective
    • This process is easier if there is a past experience.
    • Consists of a build up approach consisting of
    several steps
    Establish Objectives

    Determine Specific
    Tasks

    Estimate Required
    expenditure

    Monitor

    Re evaluate objectives
    Payout Planning
    • Marketers often develop a payout plan that
    determines the investment value of the
    advertising and promotion appropriation.
    • Basic idea is to project the revenues the
    project will generate as well as the cost it will
    incur.
    • The advertising expense is highest in the first
    year and declines the next year.
    Quantitative Model
    • Employs statistical technique to determine the
    relative contribution of the advertising budget
    to sales.
    • Uses methods like regression analysis to
    determine the relative contribution of
    advertising budget to sales.
    Methods Of Advertising Appropriation

    • Budgeting Decisions
    Budgeting decisions involve determining how
    much money will be spent on advertising and
    promotion each year and how the money will
    be allocated
    Two major decisions
    •Establishing the size of the budget
    •Allocating the budget
    Allocation of Advertising Budget
    After determining the size of budget, it is
    then allocated according to a variety of
    parameters
    ADVERTISING BUDGET

    PRODUCTS
    SALES TOTAL
    MEDIA TO BE
    TERRITORIES EXPOSURE
    ADVERTISED
    Media
    • Largest part of the advertising budget.
    • Large amount allocated to buying space in the
    selected media.
    • Use of media depends on the needs of the
    strategy chosen, availability of media in the
    country and the extent of exposure of the target
    audience to the selected media.
    • Latest media includes product placements in
    movies and video games and advertising in social
    networking sites etc
    Sales Territories
    • Marketing-and-sales department and the
    advertising departments work together in
    allocating the total advertising expenditure by
    sales territories.
    • This distribution depends on
    – Number of dealer outlets
    – Population
    – Number of salesmen
    – Sales potential
    – Character of the media
    Total Exposure
    • Determined by the frequency, continuity and
    amount of advertising
    • Each advertiser, within the budget limitation,
    must develop the pattern of coverage,
    frequency, continuity and quantum of
    advertising in a way he deems best for
    achieving the advertising objectives
    Products To Be Advertised
    • Advertising budget should be broken down
    into products to be advertised and the
    amounts to be spent on each.
    • If the manufacturing schedules of the
    company is determined by the seasonal
    pattern of sales, then these factors must be
    considered in distributing the advertising
    appropriation for these products.
    Factors affecting advertising budget
    • Market size
    • Stages in product life cycle
    • Advertising strategy
    • Product differentiation
    • Price charged
    • Competitive spending
    • Nature of product
    • Approach to advertising
    • Prevailing economic condition
    • Financial resources
    • Market potential
    • Other factors
    – Frequency of purchase
    – Expected returns
    Advertising scene in India
    • Increase in advertising spending
    • Growth in media
    • Growth of ad agencies
    • Legal regulations on advertising
    • Professional bodies
    • Increase in market coverage
    • Increasing trend of branded products
    Top 10 Indian Spenders
    1. Hindustan Unilever
    2. Reckitt Benckiser (India) Ltd
    3. ITC Ltd
    4. PepsiCo
    5. Bharti Airtel Ltd
    6. Coca-Cola India Ltd
    7. Procter & Gamble
    8. Colgate Palmolive India Ltd
    9. Nokia Corporation
    10.Johnson & Johnson Ltd
    Thank You

    sowmya..

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