Advertising Budget &

Message
Prof. Joydeep Mukherjee
5M'S OF
ADVERTISING
 Advertising Budget

Factors That
Who Prepares the Methods of
Determine the
Budget? Budgeting
Budget

Lornes Realty | 2020

 1. Product life cycle stage: New products typically receive large budgets to build awareness and to gain
consumer trial.

2. Market share and consumer base: High-market-share brands usually require less advertising
expenditure as a percentage of sales to maintain their share.
Factors That
3.Competition and clutter: In a market with a large number of competitors and high advertising
Determine the spending, a brand must advertise more heavily to be heard.

Budget
4. Advertising frequency: The number of repetitions needed to put across the brand’s message to
consumers has an important impact on the advertising budget.

5. Product substitutability: Brands in a commodity class (cigarettes, beer, soft drinks, airlines) require
heavy advertising to establish a differential image.
Methods of Budgeting
AFFORDABLE METHOD
Some companies set the communication budget at
what they think the company can afford.
PERCENTAGE OF SALES METHOD
Some companies set communication expenditures at
a specified percentage of current or anticipated sales
or of the sales price. It is common to spend between 2
and 12 percent of sales on advertising.
COMPETITIVE-PARITY METHOD
Some companies set their communication budget to
achieve share-of-voice parity with competitors. A firm
monitors, the amount spent by various significant
competitors in advertising and allocates an amount
propportionally equal the amount of money spent by
competitors.
RESPONSE MODEL

An advertising response function is a mathematical

relationship that associates money spent on advertising
and sales generated. Using marginal analysis , an
advertiser would continue spending on advertising as
long as its marginal spending was exceeded by marginal
sales. This method lead to a a point where an optimal
advertising expenditure results in an optimal sales level.
OBJECTIVE AND TASK METHOD
The objective-and-task method calls upon marketers to develop communication
budgets by defining specific objectives, determining the tasks that must be
performed to achieve these objectives, and estimating the costs of performing
them. The advertising objective may be to reach 80% of the potential users with
the advertisement. Further, to induce 25% aware prospects to try the product.
No matter how big the budget, advertising can succeed only if it engages
consumers and communicates well. Good advertising messages and
content are especially important in today’s costly and cluttered advertising
environment. Unless ads provide content that is engaging, useful, or
entertaining, many consumers will simply ignore or skip them.

Advertising Message

Distinctive advertising appeals: ge sets its café refrigerator
apart as one that gives users an in-the-door filtered hot
water dispenser and keurig k-cup single-serve brewing
system. it’s “brewing up the next big thing in refrigeration.”
MESSAGE AND CONTENT STRATEGY
The first step in creating effective advertising content is to plan
a message strategy—the general message that will be
communicated to consumers. developing an effective message
strategy begins with identifying customer benefits that can be
used as advertising appeals. Ideally, the message strategy will
follow directly from the company’s broader positioning and
customer value-creation strategies.
The advertiser must next develop a compelling creative
concept—or big idea—that will bring the message strategy to
life in a distinctive and memorable way. At this stage, simple
message ideas become great ad campaigns.
The creative concept will guide the choice of
specific appeals to be used in an advertising
campaign. Advertising appeals should have
three characteristics.
DESIRABILITY
First, they should be meaningful, pointing out benefits that make
the product more desirable or interesting to consumers.

BELIVEABILITY
Second, appeals must be believable. Consumers must believe that
the product or service will deliver the promised benefits.

DISTINCTIVENESS
Appeals should also be distinctive. They should tell how the
product is better than competing brands.
 The advertiser now must turn the big idea into an actual ad execution
that will capture the target market’s attention and interest. The creative

Message team must find the best approach, style, tone, words, and format for
executing the message. The message can be presented in various

Execution execution styles.

SLICE OF LIFE

LIFESTYLE
EXECUTION STYLE
THE APPROACH, STYLE, TONE, FANTASY
WORDS, AND FORMAT USED FOR
PRESENTING AN ADVERTISING MOOD OR IMAGE
MESSAGE.
PERSONALITY SYMBOL

TESTIMONIAL EVIDENCE

TECHNICAL EXPERTISE
 TONE, WORD &
FORMAT
The advertiser also must choose a tone for the ad.
For example, P&G always uses a positive tone: Its
ads say something very positive about its products.

The advertiser must use memorable and

attention-getting words in the ad. For example,
rather than just saying that its prescription
sunglass lenses protect your eyes and look good
at the same time, a Lens Crafters ad announces,
“Sunblock Never Looked So Good.”

Finally, format elements make a difference in an

ad’s impact as well as in its cost. A small change in
an ad’s design can make a big difference in its
effect.
Social Responsibility Review

Advertisers and their agencies must be sure

their “creative” advertising does not overstep
social and legal norms or offend the general
public, ethnic groups, racial minorities, or
special-interest groups.

FABINDIA AD
CONTROVERSY