ADVERTISEMENT AND SALES PROMOTION

CH 2- Campaign Planning

Introduction to Advertising Campaign and Process

An advertising campaign is a series of coordinated and strategic promotional efforts aimed

at promoting a product, service, or brand over a specific period of time. These campaigns use
multiple channels (like TV, print, online, social media, etc.) to create awareness, influence
consumer behavior, and drive action.

An advertising campaign typically revolves around a key message or theme that aligns with
the brand’s goals, values, and target audience.

Advertising Campaign Process

The process of creating and executing an advertising campaign can be broken down into
several key steps:

1. Set Campaign Objectives

The first step in an advertising campaign is to define what you want to achieve. Campaign
objectives should be specific, measurable, achievable, relevant, and time-bound (SMART
goals).

Common campaign objectives include:

 Brand Awareness: Making more people aware of your product.

 Lead Generation: Attracting potential customers.
 Sales Conversion: Encouraging purchases or sign-ups.
 Brand Loyalty: Building trust and long-term relationships with customers.

2. Define Target Audience

Understanding who your campaign is for is crucial. Your target audience should be clearly
defined by factors like:

 Demographics: Age, gender, income, education, etc.

 Psychographics: Interests, attitudes, values, lifestyle, etc.
 Behavioral Factors: Buying habits, online activity, brand loyalty.

3. Develop Creative Concept

At this stage, the creative team comes up with the big idea—the central theme or message of
the campaign. The creative concept should:

 Reflect the brand identity

  Connect emotionally with the target audience
 Be memorable and engaging

4. Choose Advertising Channels

Once you have your message, decide on the best platforms to reach your audience. Popular
advertising channels include:

 Traditional Media: TV, radio, newspapers, billboards

 Digital Media: Social media, search engine ads, display ads, influencer marketing
 Direct Marketing: Emails, SMS campaigns, newsletters
 Events & Sponsorships: Live events or sports sponsorships

5. Budgeting and Resource Allocation

Determine the budget for your campaign and allocate it across channels. Consider:

 Media costs (ad placements, production)

 Creative costs (design, copywriting)
 Personnel costs (agency fees, influencer fees)

6. Develop & Execute the Campaign

The creative concept is now turned into actual ads (TV commercials, social media posts,
radio spots, etc.) and executed across selected platforms. This step involves:

 Writing copy and designing visuals

 Producing the ads (shooting, editing, etc.)
 Coordinating with media outlets for ad placement

7. Monitor & Optimize

Once the campaign is live, it’s important to track performance and make any necessary
adjustments. Key performance indicators (KPIs) to monitor include:

 Click-through rates (CTR)

 Impressions/reach
 Conversions (sales, sign-ups, etc.)
 Engagement (likes, shares, comments)

Use analytics tools (Google Analytics, social media insights, etc.) to track the success of
each platform and adjust the campaign for better results if needed.

8. Evaluate and Report Results

After the campaign ends, evaluate its overall success against the objectives set in the
beginning. Was the goal achieved? What worked well, and what didn’t?

Reporting should include:

  Return on Investment (ROI): Did you get more than you spent?
 Lessons learned: Insights that can be applied to future campaigns.

SETTING OBJECTIVES

Setting objectives for campaign planning is one of the most critical steps in ensuring that your
advertising campaign is focused, measurable, and effective. Clear objectives provide direction, help
align the team, and serve as a benchmark for evaluating success.

Here’s a step-by-step guide on how to set SMART objectives for your campaign:

1. Understand the Overall Goal of the Campaign

Before setting specific objectives, align them with the broader business goals. What does the brand
or business aim to achieve? This could be:

 Increasing sales
 Boosting brand awareness
 Engaging existing customers
 Introducing a new product to the market
 Expanding into a new market

2. Use the SMART Framework

SMART is an acronym for Specific, Measurable, Achievable, Relevant, and Time-bound. This
method ensures that objectives are clear and feasible.

Specific

The objective must be clear and well-defined. Avoid vague goals and focus on what exactly needs to
be accomplished.

 Example: “Increase brand awareness” → Specific: “Increase awareness of our new skincare
line among women aged 25-40.”

Measurable

You need to quantify your goal to track progress and evaluate success.

 Example: "Increase sales by 15% in the next quarter" or "Get 5000 new social media
followers."

Achievable

The goal should be realistic and within reach, based on resources and capabilities. Setting an
objective that’s too ambitious can lead to frustration.
  Example: If your current conversion rate is 2%, aiming for a 50% increase in conversions
might be too high. A 10-15% increase might be more achievable in a short time.

Relevant

The objective should align with business priorities and resonate with the target audience.

 Example: If you’re focusing on customer retention, your objective might be: “Increase email
open rates by 20% by offering personalized promotions.”

Time-bound

Specify a clear timeline for achieving the goal. This creates urgency and keeps the campaign on track.

 Example: “Increase web traffic by 25% over the next three months.”

3. Types of Objectives for Advertising Campaigns

Once you understand the SMART framework, here are some common types of objectives that you
can set for a campaign:

Brand Awareness Objectives

 Goal: Make your target audience aware of your product, service, or brand.
 Example Objective: “Increase brand awareness by 30% among women aged 25-40 in
California within 6 weeks.”

Lead Generation Objectives

 Goal: Attract potential customers or leads for your sales funnel.

 Example Objective: “Generate 1,000 leads from the ad campaign in the next 3 months
through website sign-ups.”

Sales/Conversion Objectives

 Goal: Drive a specific number of sales or conversions.

 Example Objective: “Achieve 500 product sales through the online store within 30 days of
launching the ad campaign.”

Engagement Objectives

 Goal: Increase engagement (likes, shares, comments) on social media or with other forms of
content.
 Example Objective: “Increase social media engagement by 20% within the next month
through interactive content and contests.”
Customer Retention Objectives

 Goal: Keep existing customers engaged and loyal.

 Example Objective: “Boost customer retention by 15% by offering exclusive discounts and
personalized experiences over the next quarter.”

Market Penetration Objectives

 Goal: Enter new markets or attract new demographics.

 Example Objective: “Expand brand presence in New York by reaching 500,000 new people in
the region through targeted online ads over the next 2 months.”

4. Break Objectives into Smaller Milestones

To make the objectives even more actionable, break them down into smaller milestones or key
performance indicators (KPIs). This helps track progress on the way to the final goal.

 Example: For increasing social media followers, smaller milestones could be:
o Week 1: Gain 1,000 followers
o Week 2: Post 3 engaging videos
o Week 3: Run a targeted ad for lead generation

5. Evaluate & Adjust Objectives if Necessary

Sometimes, the results of a campaign won’t align exactly with the objectives, and that’s okay. Be
prepared to evaluate performance regularly and adjust the objectives as needed. Monitoring allows
you to refine strategies in real-time and increase the chances of meeting your goals.

Example of Setting Objectives for a Campaign:

Campaign Objective:

"Increase website traffic for a new online fashion store."

SMART Objective:

 Specific: Drive more traffic to our online store to promote the new spring collection.
 Measurable: Increase website visitors by 25%.
 Achievable: Based on previous campaigns, a 25% increase in traffic is realistic with a solid
marketing strategy.
 Relevant: Website traffic is key to driving sales, which is the main business objective.
 Time-bound: Achieve the 25% increase within the next 60 days.
Milestones:

 Week 1: Run a social media ad campaign targeting women aged 18-30.

 Week 2: Collaborate with influencers to promote the store.
 Week 3: Launch an email marketing campaign offering 10% off for first-time visitors.
 Week 4-6: Optimize ads and website for better user experience and conversions.

Product Market Analysis:

Product market analysis is the process of evaluating the market environment for a specific product
or service. It helps businesses understand their position in the market, identify competitors, assess
consumer needs, and discover opportunities for growth or improvement. This analysis is crucial for
developing effective marketing strategies, launching new products, and maintaining competitive
advantages.

Key Steps in Conducting Product Market Analysis:

1. Understand the Product and Its Features

The first step is to define the product clearly:

 What are its core features, specifications, and benefits?

 How does the product solve customer problems or fulfill needs?

Questions to Ask:

 What makes this product unique or different from others in the market?
 Is it a new product or an established product with mature demand?

2. Identify the Target Market

Understanding your target market is critical. This involves identifying:

 Demographics: Age, gender, income, education, occupation, etc.

 Psychographics: Interests, lifestyle, values, attitudes, etc.
 Geographics: Location, climate, population density, etc.
 Behavioral Segments: Purchasing habits, brand loyalty, product usage frequency.

Tools to Use:

 Segmentation: Divide the market into smaller, more defined groups.

 Personas: Create fictional profiles that represent different segments of your target market.
3. Analyze Market Demand

Market demand refers to how much potential customers are willing to buy the product at a certain
price. The analysis of demand involves:

 Market Size: How big is the market for your product?

 Trends: Are there emerging trends or changing consumer preferences that could impact
demand?
 Growth Potential: Is the demand growing, stable, or declining?

Data to Gather:

 Surveys and focus groups to assess consumer interest.

 Existing sales data to identify demand patterns.

4. Assess Market Competition

Knowing who your competitors are and how they perform is key to positioning your product
effectively in the market. Here’s how to assess the competition:

 Direct Competitors: Companies offering the same product or similar products in your target
market.
 Indirect Competitors: Products or services that are alternatives to your product.

Competitive Analysis Factors:

 Product features: What are the strengths and weaknesses of competitors' offerings?
 Pricing: How do competitors price their products?
 Market Share: How much of the market does each competitor control?
 Marketing and Branding: How do competitors promote their products?
 Customer Reviews and Reputation: What are customers saying about them?

5. Evaluate Market Conditions

Evaluate external factors that could impact your product’s success:

 Economic Conditions: Is there a recession or boom that will affect consumer spending?
 Legal and Regulatory Factors: Are there regulations that might impact how you produce or
sell your product?
 Technological Advancements: Is technology changing the way consumers interact with or
use your product?
 Social Trends: Are there cultural shifts or social trends that could affect demand?
6. SWOT Analysis

A SWOT Analysis helps you evaluate your Strengths, Weaknesses, Opportunities, and Threats in the
context of your product and the market.

SWOT Breakdown:

 Strengths: What advantages does your product have over competitors?

 Weaknesses: What aspects of the product or business could be improved?
 Opportunities: What market gaps, trends, or customer needs can you capitalize on?
 Threats: What external factors could hinder the success of your product (competition,
economic shifts, etc.)?

7. Customer Feedback and Insights

To gain a deep understanding of your product’s position in the market, it’s important to gather
feedback directly from customers:

 Surveys: Collect customer opinions about your product.

 Focus Groups: Conduct in-depth discussions with potential or existing customers.
 Product Reviews: Analyze online reviews to understand what customers like or dislike.
 Net Promoter Score (NPS): Measure customer satisfaction and likelihood of recommending
your product.

8. Define the Market Positioning

Market positioning defines how your product is perceived in the market relative to competitors. This
positioning is often communicated through your value proposition, which clearly states why
customers should choose your product over alternatives.

Key considerations:

 Unique Selling Proposition (USP): What makes your product stand out?
 Pricing Strategy: Are you positioning your product as a premium or budget-friendly option?
 Branding: How do you want customers to feel about your product (trustworthy, innovative,
fun, etc.)?

9. Forecast Market Trends

Using the data from your market analysis, you can predict future market trends. This could include:

 Changes in consumer preferences

 Shifts in technology that could impact the product
 Emerging competitors or new market opportunities

Trend Tools:
  Market Research Reports: Use industry reports to gain insights into upcoming market shifts.
 Customer Data: Analyze your customer’s evolving behavior and preferences.

DAGMAR Approach in Advertising

The DAGMAR (Defining Advertising Goals for Measured Advertising Results) approach is
a model that helps advertisers set clear, measurable objectives for their campaigns. It was
introduced by Russell Colley in 1961, and it focuses on establishing specific goals for
advertising and measuring their effectiveness.

The DAGMAR approach is designed to ensure that advertising goals are not only clear and
specific but also measurable and focused on the desired outcomes. This allows for more
effective evaluation of a campaign’s success.

DAGMAR Framework: Key Elements

DAGMAR is centered around four key stages of consumer awareness and understanding:

1. Awareness
2. Comprehension
3. Conviction
4. Action

The model suggests that advertising should move a consumer through these stages, from first
becoming aware of a product to ultimately taking action (making a purchase, for example).

1. Awareness:

 Goal: Make the target audience aware of the product or brand.

 At this stage, consumers become conscious of the existence of a product, brand, or
service. This can be achieved through advertising that introduces the product or
brand to the audience.

Example: A new toothpaste brand runs TV ads to ensure consumers know it exists.

2. Comprehension:

 Goal: Ensure the audience understands the features, benefits, and advantages of the
product.
 Once consumers are aware of a product, they need to comprehend its value. The
advertising message should clearly explain what the product does, how it works, and
why it’s beneficial.
 Example: The toothpaste brand now explains in its ads why it’s better at whitening
teeth compared to competitors.

3. Conviction:

 Goal: Create a desire in the consumer's mind to buy or use the product.
 At this stage, the focus is on building trust and preference. The consumer not only
understands the product but also becomes convinced that it offers value and should be
considered over competitors.

Example: The brand might show testimonials, demonstrate the toothpaste’s

effectiveness, or use expert endorsements to persuade consumers that it is a superior
choice.

4. Action:

 Goal: Encourage the consumer to take a specific action, such as purchasing the
product, signing up, or visiting the store.
 This is the final step in the DAGMAR model, where the goal is to push consumers
toward taking action, which usually involves making a purchase. Clear calls-to-action
(CTAs) like discounts, limited-time offers, or easy ways to buy are used here.

Example: A limited-time discount on the toothpaste is offered, or the ad includes a

CTA to buy it online at a special price.

DAGMAR Criteria for Setting Advertising Objectives

For each stage of the DAGMAR model, objectives must meet the following criteria to be
effective:

1. Clear Definition: The objective should be specific and clearly state what is being
measured.
o Example: “Increase awareness of the brand among men aged 25-35 by 20% in
3 months.”
2. Measurable Results: Objectives must be quantifiable, so success can be tracked.
o Example: “Achieve a 15% increase in product comprehension, as measured by
consumer surveys.”
3. Target Audience: The objective should define who the campaign is aimed at.
o Example: “Reach 500,000 women aged 18-45 in urban areas with TV ads.”
4. Time Frame: There must be a specific timeframe for achieving the objective.
o Example: “Achieve 30% action rate (sales conversion) within 90 days.”
Benefits of the DAGMAR Approach:

1. Clear, Measurable Goals: The framework provides specific and measurable

objectives, making it easier to track campaign effectiveness.
2. Focus on Consumer Journey: It emphasizes understanding the consumer’s mindset
and moving them from awareness to action in a structured way.
3. Better ROI Measurement: By focusing on measurable outcomes, marketers can
evaluate the effectiveness of their advertising spend.
4. Alignment of Marketing and Advertising Goals: The DAGMAR approach helps
ensure that advertising goals are aligned with overall marketing objectives, leading to
more integrated campaigns.

Limitations of DAGMAR:

1. Narrow Focus: The model might be too narrow for campaigns aimed at building
long-term relationships or brand loyalty, as it focuses on short-term actions.
2. Limited Applicability: Some products or services may not fit neatly into the four
stages of the DAGMAR model.
3. Time-Consuming: It requires detailed tracking and measurement, which can be
difficult to implement and analyze in real time.

Example of Applying DAGMAR in an Advertising Campaign:

Let’s say you’re launching a new fitness app. Here’s how you could apply the DAGMAR
model:

1. Awareness:
o Objective: Increase awareness of the fitness app among people aged 18-34 in
urban areas by 30% within 6 months.
o Tactics: Run online ads and influencer campaigns to generate brand
recognition.
2. Comprehension:
o Objective: Ensure 50% of target users understand the key features of the app
(workout tracking, nutrition guide, etc.) within 3 months.
o Tactics: Educational videos, in-app tutorials, and website landing pages
explaining the app's features.
3. Conviction:
o Objective: Achieve 40% of users showing interest in subscribing to the
premium version within 3 months.
o Tactics: Share customer success stories, offer testimonials, and demonstrate
results via case studies.
4. Action:
o Objective: Generate 5,000 paid subscriptions to the app within 3 months.
o Tactics: Offer a limited-time discount on premium memberships, use strong
calls-to-action in ads.
Budgeting and Creative Strategy in Campaign Planning

Both budgeting and creative strategy play pivotal roles in ensuring the success of a marketing
campaign. Effective planning in both areas ensures that the campaign is cost-efficient, impactful,
and aligned with the brand’s objectives.

1. Budgeting in Campaign Planning:

Budgeting involves allocating the necessary resources for the campaign while balancing costs against
potential returns. It ensures that the campaign is executed within financial constraints and supports
the most effective activities.

Steps for Budgeting in Campaign Planning:

A. Setting Campaign Objectives First

Before establishing a budget, clearly define the campaign’s objectives (e.g., brand awareness, lead
generation, or sales conversions). The budget will depend on the scope and ambition of these goals.

 Small Goal: If the goal is modest (e.g., a localized event or digital campaign), the budget will
naturally be lower.
 Big Goal: Aiming for national reach or launching a new product will require a larger budget.

B. Types of Campaign Budgets:

There are several ways to approach budgeting for a campaign:

1. Percentage of Sales Method: Allocate a percentage of your past sales revenue to the
advertising budget. This is a common method, but it can be conservative and reactive.
o Example: If your business makes $1M in revenue, and you decide to spend 5% on
advertising, your budget would be $50,000.
2. Objective and Task Method: Set the budget based on what is needed to achieve the desired
objectives. This is a more flexible and strategic method, focusing on the actions necessary to
meet the campaign’s goals.
o Example: If the goal is to increase brand awareness by 20%, determine how much
money you need for digital ads, content creation, promotions, etc.
3. Competitive Parity Method: Set the budget based on what competitors are spending. This
approach can be useful when the competitive environment is intense, and you want to stay
on par with others.
o Example: If a competitor is spending $100,000 on a similar campaign, you might
decide to allocate a comparable budget to remain competitive.
4. All-You-Can-Afford Method: This method involves setting the budget based on what the
business can afford to spend after accounting for other operational costs. It’s often used by
businesses with tighter cash flow.
o Example: A small business might have $10,000 left after covering fixed costs, so that
becomes the budget for a digital campaign.
C. Components of a Campaign Budget:

The campaign budget should include the costs associated with the following areas:

1. Creative Development:
o Concept creation, ad design, video production, photography, copywriting.
2. Media Placement:
o Digital: Social media ads, Google ads, email campaigns, etc.
o Traditional: TV, radio, print, billboards.
3. Research & Testing:
o Market research, focus groups, A/B testing for ads.
4. Influencer/Partnerships:
o Fees for influencers, collaboration costs, sponsorships.
5. Technology & Tools:
o Marketing automation tools, analytics platforms, CRM software.
6. Miscellaneous Costs:
o Contingencies, promotions, event expenses, etc.

D. Monitoring & Adjusting the Budget:

Throughout the campaign, continuously monitor how funds are being spent and adjust the budget if
necessary. If some areas (e.g., paid search) are performing better than others, you may decide to
reallocate funds for optimal performance.

2. Creative Strategy in Campaign Planning:

The creative strategy is the foundation for developing the advertising message and guiding how the
campaign will engage the target audience. It involves deciding the core message, tone, visual
identity, and key content that will resonate with the audience.

A. Key Elements of Creative Strategy:

1. Target Audience:
o The creative strategy is driven by a deep understanding of the target audience’s
psychographics, demographics, and behaviors.
o Who are you talking to? What are their pain points, aspirations, and interests?
o Example: A campaign targeting millennials might use casual, humorous content,
while one targeting professionals might focus on efficiency and trust.
2. Brand Positioning:
o The creative strategy should reflect the brand's position in the market. How does
the brand want to be perceived in the minds of consumers relative to competitors?
o Example: A luxury brand might opt for a premium, elegant, and sophisticated tone,
whereas a budget brand might focus on value and affordability.
3. Campaign Message:
o What core message do you want to convey? This message should align with the
brand’s positioning and the campaign’s objectives (e.g., increasing sales, raising
awareness).
 o Example: For a fitness product, the message might be: “Achieve your personal best
with our state-of-the-art gear.”
4. Creative Concept:
o This refers to the big idea or theme that drives all the creative executions (ads,
visuals, copy, etc.).
o Example: Coca-Cola's "Share a Coke" campaign centered around personalizing
bottles with names. This concept generated emotional connections with consumers.
5. Tone and Style:
o Decide on the tone of the message (funny, serious, inspirational, etc.) and the style
(minimalist, vibrant, bold, etc.).
o Example: Old Spice's humorous and offbeat tone is part of its strategy to position
itself as a fun and quirky brand.
6. Content Formats:
o Identify the types of content that will be used to communicate the message (videos,
social media posts, blogs, interactive ads, etc.).
o Example: Short, punchy video ads for social media vs. longer, informative content
for email marketing.

B. Creative Process in Campaign Planning:

1. Brainstorming & Ideation:

o Gather ideas from different team members, including creatives, strategists, and
marketers. This stage involves generating ideas that align with the campaign
objectives.
2. Concept Testing:
o Test creative concepts with a small group of the target audience to understand
which ideas resonate most.
o Focus Groups or A/B Testing on social media can provide valuable insights.
3. Execution:
o Once the concept is finalized, create all campaign elements (ads, videos, graphics,
etc.).
o Ensure all content is aligned with the brand’s voice, style, and positioning.
4. Feedback & Iteration:
o During the campaign, continuously gather feedback and make adjustments based on
performance data (e.g., engagement rates, sales conversions).
o Adjust the creative approach if necessary (e.g., changing the ad’s tone or visual
elements based on feedback).

Combining Budgeting and Creative Strategy for Effective Campaigns:

A. Balance Creativity with Cost-Efficiency:

 Smart Budget Allocation: Allocate a larger portion of the budget to creative development if
the campaign is driven by a strong, attention-grabbing idea. For example, a viral video
campaign may require significant funds for production but can achieve massive reach.
 Cost-effective Creative: Use existing assets (e.g., customer-generated content) or leverage
partnerships (e.g., influencer collaborations) to create impactful ads on a smaller budget.
B. Optimize for ROI:

 Tracking: Measure the performance of both creative and media strategies regularly to
understand what’s working and what isn’t.
 Iteration: If one creative approach is performing better (e.g., a certain video format),
allocate more funds to boost that format.