Determine the advertising budget for a new product. Advertising budget, examples. Formation of an advertising budget for a new product category

A new brand enters a market where this product category already exists. In this case, you can rely on existing experience (of the entire industry or individual competitors). However, this is only partial information. We cannot assume that competitors calculate their budgets correctly, although, of course, we can make the assumption that leading firms do it better than others.

Method of goals and objectives. This method is also a priority in the event of a new brand entering the market. But knowing the difficulties involved in estimating conversion rates, the accuracy of which largely determines the size of the budget, we recommend additionally using at least one competitor-oriented method and comparing the obtained values. For example, this could be the Peckham method discussed below, coupled with the principle of priority in entering the market. Advertising and product promotion. J. R. Rossiter, L. Percy. "Peter", St. Petersburg. 2000, p. 53.

Peckham's method of “principling the order of entry into the market.” This method of determining the size of the advertising budget for a new brand was proposed by J. O. Peckham, one of the most famous consultants in the field of advertising. It must be said that Peckham developed this method only for goods sold in pharmacies and supermarkets. (However, it is perfectly acceptable to use it as a complement to the goals and objectives method.)

There is only one limitation to the Peckham method: in the product category under study, there must be a clear correlation between “share of voice” (advertising costs for a given brand as a percentage of all advertising costs for all brands in this category) and “market share” (sales volume in volume). expressed as a percentage of total category sales). The existence of such interdependence can only be discussed if data is available on the advertising costs of individual brands and their market shares. Of course, it must be borne in mind that the correlation may turn out to be “unnatural”, since the budgets of other brands in the category may already be based on share of voice and thereby create a false interdependence. And yet, in the annual period we are considering, in many industries, be it consumer products or industrial products, there is a strong relationship between share of voice and market share.

So, if the above correlation can be established, Peckham recommends setting the new brand's share of voice at 1.5 X the market share the brand should achieve by the end of its second year. If we know the advertising volumes and sales volumes for the industry as a whole, we can easily translate the received share of voice into the size of the advertising budget. Converting the planned market share into sales volume in physical terms is also not difficult.

But how do you determine what market share a brand should have in two years? This is where the principle of ordering a brand’s entry into the market comes in handy.

To determine market share, determine the order of entry. In almost all product categories, whether consumer goods or industrial products, a brand's market share depends on the order in which it enters the market. In this case, we are talking about market share in units, not in monetary units. For some reason, the first brand, the “pioneer” of the market, wins the largest market share, the second the next largest, etc.

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The successful existence of any enterprise today is impossible without advertising. It is not only responsible for the company’s recognition, but also helps promote and attract new suppliers and clients. Often, investments in advertising represent a significant part of an enterprise’s budget, along with other expenses. In order for these costs to be justified, it is necessary to carefully monitor the results of ongoing campaigns, as well as monitor the strategy for forming the advertising budget.

Why is it necessary to form a company’s advertising budget?

The types and purposes of advertising may vary depending on the characteristics of the organization and the product it offers. Forming an advertising budget helps determine the audience of campaigns and ways to attract the attention of potential consumers. Since advertising costs can be classified as current expenses, the effectiveness of events is quite easy to track. However, the specifics of the market, depending, for example, on seasonality, may delay the receipt of feedback from the financial resources invested in promotion. Therefore, these costs can be classified as long-term capital investments. Like other major investments, advertising costs must have a significant financial impact so that the effect of the campaigns is comparable to the cost of investment.

The formation of an advertising budget is based on the principle of reasonable spending of financial resources. Large expenses may not always lead to the desired results if the effectiveness of the investment is not calculated. Therefore, the issue of forming an advertising budget must be approached from the point of view of the experience of past advertising campaigns and the specifics of the organization, taking into account the creative potential of the specialists responsible for advertising.

What factors influence the formation of an advertising budget?

The most significant factors to consider are:

Market coverage

The planned target audience can determine the size of the advertising budget. Market coverage can be carried out both nationally and regionally. As a rule, when introducing a new product to the market, large players can afford to act within a specific country or even continent. The advertising budget of such companies takes into account possible risks. However, smaller or inexperienced organizations prefer to reach the market gradually, conducting advertising campaigns in specific regions. In this case, the formation of an advertising budget is free of risks associated with the possible ineffectiveness of campaigns on a nationwide scale.

The choice of market segment to which advertising is targeted is largely determined by demographic characteristics. The smaller the audience, the more effective the campaign becomes through specific advertising media. If you need to reach a diverse market, you have to use more advertising methods to attract, which can significantly reduce cost efficiency. Reaching such an audience requires the use of television, national press, etc., and such means are very expensive, and the effectiveness of advertising may not be high enough.

The role of advertising

It is no secret that sales volume directly depends on the effectiveness of the advertising campaign. If a manufacturer chooses to deliver its product to stores before releasing an advertisement, this will increase customer recognition of the product. This method is widely used by companies producing consumer goods. In this case, the formation of an advertising budget depends on the results of such a “launch”: the higher the level of sales, the lower the cost of advertising, and vice versa. At the same time, the budget also takes into account the costs of monitoring demand.

In the industrial goods market, a large role is given to personal sales, and advertising is of an auxiliary nature. Therefore, when selling these products, there is a reduction in the advertising budget, the formation of which depends on demand.

The formation of the advertising budget is also influenced by additional marketing funds that are used to create sales channels. Often, printed materials (brochures, coupons), mailing samples, discounts to retailers, etc. are used to stimulate demand.

Product life cycle

The launch of a new product requires a more intensive advertising campaign. However, the return on such advertising is often very low. This is due to the product's life cycle, in the first year of which demand is not yet high enough to justify the investment of advertising budget. The formation of product recognition depends on the cost of “entry” to the market, which includes the establishment and stimulation of sales channels, a period of trial sales, etc.

As soon as the demand for a new product has reached the predicted level and the profit margin has reached or exceeded the cost of investment, the manufacturing company can choose one of three options for further development:

stimulating further growth;
maintaining the achieved position;
obtaining maximum profit within the existing situation.

To stimulate further growth, it is necessary to significantly expand the advertising budget, the formation of which can lead to a drop in income for a short period of time. At the same time, the likelihood of more successfully entering the market and capturing a significant share of it increases. The strategy of maintaining the achieved level is widely used by companies that have a strong position in a fully formed market. At the same time, the advertising budget remains virtually unchanged, since no additional campaigns are required to stimulate demand. If the company seeks to “squeeze” the maximum profit from the achieved position, it reduces advertising costs in addition to the planned revenue growth.

Product properties

Unique products that have properties highly valued by consumers can significantly reduce the advertising budget spent on their promotion, the formation of which can even be canceled due to brand recognition and the lack of need for aggressive advertising. As a rule, in order to strengthen the position of a given product in the market, minimal advertising messages are sufficient. However, if a manufacturer seeks to maintain a leading position in the market in the long term, it is necessary to maintain the status of the product by conducting advertising campaigns to maintain consumer “loyalty” to the brand.

Profit to sales ratio

The ratio of profit and sales can have a very direct influence on the formation of the advertising budget. The unit cost of a product is the sum of these two indicators. If the profit is significant with a relatively small sales volume, the formation of the advertising budget does not have a strict financial framework. At the same time, the significant sales volume justifies the small amount of profit per unit of production.

Research by marketers has shown that well-known products that have significant advertising support can have a higher price than competitors who do not invest significant amounts in promotion. In this regard, the consumer may have the impression that he is overpaying for the brand, since a significant part of the advertising budget is included in the cost of a unit of goods. However, unjustified increase in product prices is inhibited by consumer demand. The buyer may break his “loyalty” to the brand if he discovers that a product offered by a competitor has similar properties at a lower price.

Competitors' expenses

The amount of advertising expenses may be determined by the size of the planned market share of your products. The percentage of consumers attracted by your campaign roughly corresponds to the portion of the market that your product occupies. The formation of an advertising budget should take into account the volume of sales, which determines the amount of financial resources allocated for advertising. The desire to increase the advertising budget in order to attract more consumer attention and gain a larger market share does not always guarantee the desired result, since the share ratio may be stable, and the campaign may not be effective enough. Therefore, monitoring the advertising costs of competitors does not always reflect their real position in the market. However, this indicator should be taken into account when analyzing consumer preferences.

Funding level

Formation of an advertising budget must necessarily take into account possible risks arising from the ineffectiveness of the campaign or the incorrectly chosen method of promotion. The likelihood of failure increases proportionally when it comes to entering a national market. A relatively small number of companies can afford to invest significant sums in creating an advertising budget. Firms with relatively low advertising budgets can start by gradually capturing the market, increasing advertising spending as sales volume increases. Inflating the advertising budget by reducing subsidies for other areas of organizational activity can ultimately lead to bankruptcy of the enterprise, since such a risk is not always justified in the long term.

Basic principles of creating an advertising budget

Top-down principle. With this method, targeted funds for advertising are allocated simultaneously with investments in other areas of organizational activity. The final distribution of the advertising budget is carried out by the responsible department. An undoubted advantage of this principle is the ability to consider advertising subsidies as part of a unified marketing strategy and adjust the selected promotion methods in accordance with current market needs. However, with such a wide coverage, the merits of some advertising media may be overlooked due to insufficient awareness of the employees responsible for the distribution of budget funds.
Bottom-up principle. In this case, the formation of an advertising budget is based on specific tasks at the immediate moment. That is, the allocation of funds for advertising is based on estimates for planned campaigns. The undoubted advantage of this method is close attention to current promotion tasks, while the probability of exceeding the advertising budget is quite high.

It is impossible to single out one of these principles as the only correct one. The realities of the Russian market dictate their own rules. The advertising budget must be flexible and responsive to changes in political or economic situations. In order to choose the optimal way to form an advertising budget, it is necessary to rely on specific experience and practice of conducting similar campaigns in the past.

The most common methods of forming an advertising budget

The concept of “advertising budget” refers to new categories of the modern market. However, even before the advent of current methods of promotion, the allocation of funds for advertising a product or service by companies of those years was widely practiced. Therefore, methods of forming an advertising budget can be divided into modern and traditional. New methods are mostly based on mathematical calculations that require processing a large amount of information in a short time, and therefore without the involvement of computers and the corresponding software can't get by here. However Russian market quite unstable and subject to the influence of political and economic macro changes. Therefore, it seems unreasonable to completely reject time-tested methods of forming an advertising budget.

Traditional methods include:

Method 1. Cash calculation method

Many companies create an advertising budget based on the amount of funds available. This method does not take into account the influence of promotion methods on sales volume. In this regard, the advertising budget has an indefinite size, within which it is almost impossible to build a competent marketing strategy.

Method 2. Calculation method “as a percentage of sales”

The formation of an advertising budget in this case depends on the projected level of sales or the final price of the product. A certain percentage of sales volume is allocated for promotion costs, the amount of which depends on the cost of advertising costs for the same period last year and the projected sales volume.

This method allows the use of simple mathematical calculations that do not require specialized software or expensive computer equipment. The final size of the advertising budget may vary depending on additional factors. The disadvantage of this method is its retrograde nature: the calculation takes into account data for the past period, which may not reflect the current state of affairs and market changes. If there is a need to promote a completely new product, this method does not allow you to correctly calculate how much of the advertising budget will need to be spent. In addition, parameters such as sales territory and existing advertiser capabilities are not taken into account.

Method 3. Historical method

The formation of the advertising budget in this case is based on similar data for the past period, taking into account the circumstances that have arisen. As a rule, the main parameter for changing the size of subsidies is the level of inflation. With this method, there is a fairly high probability of making an error in the calculations if it was missed during the formation of the advertising budget for the same period and transferred to the new promotion cost planning system.

Method 4. Competitive parity method

This method is based on an analysis of the advertising costs of competitors, who are assumed to have sufficient experience to form an adequate cost planning system. Such expectations of “wisdom” and maintaining a competitive balance can provoke miscalculations in terms of promotional costs. The formation of an advertising budget largely depends on the subjective assessments of the employees responsible for it, and no one is immune from mistakes. Therefore, you should not rely on the common sense of competitors and their methods of calculating advertising costs.

Method 5. Calculation method "based on goals and objectives"

To form an advertising budget using this method, you must first determine the objectives of the product promotion campaign, as well as identify the amount of financial resources required to complete them. To do this, the advertising budget must meet the following parameters:

specification of goals;
identifying tasks to achieve goals;
analysis of planned expenses;
identifying the size and properties of the audience selected for advertising;
formation of advertising campaign parameters;
identifying the purpose of a specific promotion;
monitoring ways to attract audience attention to the advertised product;
analysis of the amount of financial resources required to achieve the planned result.

This method, despite its labor intensity, turns out to be quite effective, since the process of forming an advertising budget is as transparent as possible from the moment of determining the goals of the campaign and the means to achieve them to forecasting the amount of financial resources required. An undoubted advantage of such advertising budget planning is the ability to avoid both unjustified expenses on promotion and insufficient funding.

Method 6. Equity method

The use of this method of forming an advertising budget is relevant in cases where competing companies that have a certain percentage position in the market for similar products, the allocation of funds for promotion depends on this “place in the ranking.” For example, if a company owns 15% of the market, it sets the same amount of promotion subsidies. It is recommended to slightly increase this percentage so that the effectiveness of the campaign justifies the investment.

However, such a strategy is fraught with risks associated with the likelihood of a simultaneous increase in the advertising budget by all participants in this market sector. This can lead to an increase in the total cost of promotion, which will affect the end consumer, who is forced to overpay for advertising the product he needs.

Method 7. Empirical method

The formation of an advertising budget can be carried out based on the analysis of data from a practical experiment. To do this, it is necessary to monitor feedback after a series of tests showing the effectiveness of various advertising methods using advertising budgets of different sizes. However, the result of such an experiment is not always sufficiently informative due to the very high probability of distortion of the final results under the influence of indirect parameters.

This method is good because when it is used to form an advertising budget, data from specific estimates drawn up for certain ways promotion. This helps avoid overspending or underfunding.

In this case, the formation of the advertising budget occurs on a residual basis, that is, the funds remaining after the main payments are allocated for promotion. With this method, advertising costs are equal in importance to all other expenses for organizational needs. Therefore, their value may have different expressions depending on the amount of profit for a specific period of time.

Formation of an advertising campaign budget for new and established brands

Formation of an advertising budget for an established brand

When an organization decides to conduct an advertising campaign for an established brand, creating an advertising budget is a relatively simple task, since existing experience helps to choose the best and proven methods of promotion. For monitoring, traditional methods of analyzing marketing effectiveness are used, which include:

Test advertising. Such a promotion experiment on a real market helps to identify the effectiveness of the influence of the chosen advertising strategy of an established brand on sales volume. For the sake of objectivity, markets that are similar to each other are used, but have different amounts of funds allocated for promotion. The amount of finance in each specific case is determined by the size of the test budget. The experiment shows what sales indicators are achieved in each of these markets. The optimal ratio of invested funds and the highest profit margins becomes the basis for the formation of the project’s advertising budget.
Statistical forecasting. Analysis of statistical indicators of past advertising campaigns and sales volumes, as well as the formation of models of future product promotion activities based on these data, is a less expensive method compared to the experimental method described in the previous paragraph. If flexible coefficients are added to these parameters (inflation, economic or legislative changes compared to the same past period), this option for forming an advertising budget can provide data that maximally reflects the amount of required expenses.
Schroer's method. The basis of this method is the assumption that for an established brand, the only way to increase profits is to expand market share. To develop the required market segment, it is necessary to concentrate on attracting the attention of small markets with a fairly narrow specialization. The formation of an advertising budget in this case should take into account the mobilization of specific promotional means that are quite effective in this particular market segment.

Formation of an advertising budget for a new brand

When a company plans to introduce a new product to the market, it is necessary to analyze the performance of competitors. Their successful experience of launching a new brand can become a guide when forming an advertising budget. However, you should not absolutely rely on the methods of competitors, since no one is immune from mistakes. To improve the efficiency of a new brand's entry into the market, many proven technologies can be used, many of which have already been described in this article. The most accurate results are shown by the method of goals and objectives, however, when forming an advertising budget for a new product, it is necessary to use another technique that helps make the calculation of the funds required for promotion more accurate, namely the Peckham method.

Peckham method only works if you can see a clear relationship between the share of your brand's advertising spend as a share of total spend in a given product category (called "share of voice") and the share of new product sales of total sales (called "share of market" ). Such indicators can only be discovered by constantly monitoring the advertising budgets of competitors and the market shares of their products obtained as a result of promotion. It must be borne in mind that the “share of voice” previously acquired by other companies influences this interdependence, so the final results may be distorted.

Having discovered such a correlation, Peckham suggested that when forming an advertising budget, it is necessary to take as a basis the following mathematical calculation formula:

This formula helps to accurately calculate the amount of expenses planned for advertising a new brand. However, it is not always possible to predict the size of the “market share” for a new brand in 2 years. This is where the principle of ordering a brand’s entry into the market comes to the rescue.

It is no secret that the new brand that appears first on the market gains the greatest popularity, and therefore the largest market share. The second-ranked product captures a market volume that is smaller in size than the first, and so on. Knowing what position your brand occupies in a given queue, you can accurately calculate in percentage terms the market share that it has captured. Such a forecast can be built several years in advance, which means that it will not be difficult to find out the “market share” by the end of the second year of the new brand’s existence.

Formation of an advertising budget for a new product category

Launching a new product category on the market is one of the most difficult situations in terms of forecasting advertising costs. Due to the fact that this product has no analogues, the formation of an advertising budget can be difficult due to the lack of information about the effectiveness of using certain promotion methods in this case. In addition, it is almost impossible to calculate the predicted time frame from the moment a product enters the market until it gains a confident share of this market and consumer popularity. Therefore, when launching a new category, it is necessary to rely on your own experience and subjective assessment parameters.

The most relevant would be to use the method of goals and objectives in conjunction with the method of independent average forecast (IAP).

Constructing theoretical forecasts using the method of goals and objectives will be the best option in creating an advertising budget for a new product category. Lack of information can lead to abstract guessing, but if this process is led by experienced professionals with the necessary qualifications, this will reduce the likelihood of errors. Consistent formation of tasks, methods and final assessments that interact with each other will increase the reliability of the result.

When the forecast of promotion costs has been compiled, it is necessary to conduct an experimental assessment of the final parameters using test sales and test advertising. This will help you adjust your advertising budget based on practical results. However, it is not always possible to conduct such tests. This is where the method of independent averaged forecast - NUP - comes to the rescue. Its essence is as follows.

Experts with the necessary knowledge and experience in the field of marketing are invited to build a forecast. The optimal number of experts is 5. As the practice of using a similar method for forming an advertising budget has shown, an increase in the number of “experts” does not contribute to improving the quality of the assessment. It is best to involve experts from different departments of the organization so that the final result is more independent. Each expert makes his own forecast for the formation of the advertising budget, on the basis of which an average estimate is built. Further joint discussion of the results by experts does not make sense, as this may distort the reliability of the final parameters.

Formation of an advertising budget for specific articles

To assess the effectiveness of ongoing advertising campaigns, it is necessary to take a detailed approach to planning investments in promoting your product. Each expense item requires special attention and extreme accuracy of calculations, which will help avoid underfunding of the organization’s advertising budget. At the same time, advertising itself consists not only of the direct design project and placement in sources. Various secondary materials are additional cost items, without paying for which it is impossible to build an effective advertising strategy. The formation of an advertising budget must take into account all aspects of the product promotion plan. This will help create a competent scheme for investing in advertising, which will eliminate the need for additional expenses or an urgent revision of the entire budget plan due to suddenly changed circumstances. The communication program in this case will be most effective, since the feedback forecast will be based on real investment data.

Among the items of marketing costs, the main ones can be identified:

Article “Direct advertising” (investment in advertising in the main sources of attracting consumer attention: television, radio, print media, outdoor advertising).
Article “Production” (direct costs associated with the production of advertising materials - posters, videos, design layouts, etc.). For the most competent development of the advertising budget, the cost of this expense item should be no more than 10% of the total amount of financial resources allocated for promotion.
Article “Internet” (payment for the creation and promotion of a website or page in in social networks, hosting costs and Maintenance, as well as contextual advertising). In addition, this expense item includes wage SMM managers responsible for content content.
Article “Trade Marketing” (payment for indirect methods of attracting the attention of consumers: promotions, promotions for distributors, POS materials, retail equipment).
Article “Auxiliary materials” (payment for small consumables for marketing events: brochures, leaflets, catalogs for customers, catalogs for sales personnel, branded pens, envelopes).

Any advertising materials must be of high quality. Otherwise, they will not be able to attract sufficient attention from consumers, and the costs of their production will be in vain. High-quality printing of printed products is possible only in a printing house, whose qualified personnel will help not only create a layout, but also implement it on modern equipment using the latest materials. If you want to find such a printing house in Moscow, contact the SlovoDelo company. Our specialists carry out orders of any complexity in the shortest possible time and at affordable prices. In addition, they will help in developing a unique design for your printing products. Modern equipment meets all the highest requirements and allows us to produce cards and invitations of complex shapes and exquisite design.

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2. Description of the business, product or service

3. Description of the sales market

We will conduct a SWOT analysis of your project’s activities.

Project strengths	Weaknesses of the project
Timely provision of services; Possibility of providing expedited services; Availability of a website, social media platform. networks; Payment through various forms of payments; System of discounts for clients; Availability of truthful customer reviews; High-quality equipment; Wide range of services provided; Possibility of fulfilling orders for small quantities.	Failure to comply with the terms of the contract by the customer (late payment, etc.); Complex organization of the internal control system at the enterprise.
Project capabilities	Project threats
Possibility of attracting schools and universities to cooperation; Possibility of creating a network of printing houses; Potential to serve the largest organizations in your region.	Increase in the number of competitors in the market; Obsolescence of equipment.

4. Sales and marketing

5. Production plan

Let us outline the main stages of launching a printing house.

1. Registration with government agencies

Opening a printing house does not require special permits and licenses, so before opening it is enough to register yourself as individual entrepreneur with a simplified taxation system (6% of income), as well as open a current account.

2. Search for premises and repairs

As for the placement of the printing house, there are certain requirements for it:

Square area from 40 m2;
Exhaust / ventilation of the room;
Possibility of future expansion into storage space for finished products.

An area of 40 square meters or more is suitable for a small printing house. m. Too small areas will not be suitable due to the fact that they will not allow placing all the equipment (which is at least 5-6 cars). Plus, it is necessary to give space to operators and allocate storage space for storing materials and finished products. Finally, you need to allocate an area for visitors, place a soft sofa and chairs. Rental payments for an area of 40 sq. m., depending on the location, will be about 28 - 40 thousand rubles per month.

3. Purchase necessary equipment and inventory

To open a printing house you need the following equipment:

Digital printing machine with a raster processor for offset printing (a device that transfers an image from a plate to the surface of a material using a rubber sheet; used for printing leaflets, forms, business documents, brochures, posters, business cards, postcards, booklets, coupons, photographs, in general, the vast majority of printing house products);
Cutting plotter (this is a device for accurately cutting out any stencils or images from various materials);
Booklet maker (a device designed for binding documents (fastening sheets with a staple);
Laser MFP;
Multifunctional heat press (specialized modern equipment that allows high-quality transfer of all kinds of images to different surfaces, used for applying the desired images to caps, mugs, T-shirts);
Cutter (used to cut paper into even pieces and straighten the edges);
Laminator;
Computer;
Consumables: paper, thermal film, oracal, magnetic vinyl, paint.

Due to the high cost of new equipment, you can look for supported options, then the price will be approximately 2 times lower. This business plan contains equipment that has been in production for no more than three years.

Name	Quantity	Price for 1 piece.	Total amount
Offset printing machine	1	680 000	680 000
Cutting plotter	1	110 000	110 000
Bookmaker	1	47 000	47 000
Laser MFP	1	37 000	37 000
Multifunctional heat press	1	39 000	39 000
Cutter	2	4 150	8 300
Laminator	1	7 500	7 500
Computer	2	27 000	54 000
Cutting table	1	6 000	6 000
Wardrobe	1	7 100	7 100
Table	1	3 900	3 900
Chair	6	800	4 800
Microwave	1	3 000	3 000
Electric kettle	1	2 000	2 000
Sofa	1	12 000	12 000
Total:			1 021 600

*Consumable inventory includes: paper, anti-set material for offset printing machines, printer cartridge, cardboard, metal/plastic springs, calendar loops, magnetic vinyl, oracal.

4. Personnel search

The most difficult thing will be to find professional printers, since for quality work experience and specialized education will be required. It is better to search for such specialists on the hh.ru portal; access to a resume will cost 15,000 rubles. You will also need an experienced sales manager and administrative managers who will be responsible for meeting clients, calculating costs and transferring finished products. It is also more advisable to look for them on the above site or search through friends or social networks.

5. Marketing policy

6. Organizational structure

The main employee of your printing house is the printer, who prepares materials and the printing machine for production, adjusts and prints all types of printed products, preventive maintenance and repair of the printing machine, and monitors compliance with speed limits and printing schedules. The printer’s work schedule is 2/2 to 12 hours a day, the salary is the highest in the enterprise (45,000 rubles), since candidates with work experience and specialized education. It is ideal that these employees are general specialists and can work with a plotter, booklet maker, and heat press. But even in this case, it is necessary to hire assistants who will carry out the work under the supervision of printers. In the first months, when the customer base has not yet been developed and there are few orders, two printers are enough, then without assistants with a salary of 45,000 rubles. not enough.

The next employee who needs to be involved is a sales manager who makes calls to potential clients and offers printing services. The manager can work remotely, payment for his work depends on the number of services sold (15%). The candidate must also have experience in sales, develop sales scripts for conversations, and submit monthly reports to the director on the number of contacts processed and conversions.

It is also necessary to hire a designer on staff who develops layouts of leaflets, booklets, business cards, postcards, calendars, and also prepares files for printing. The designer's salary is 30,000 rubles, working hours are 5/2.

Clients are received and consulted by a manager. He also calculates the cost of orders, receives incoming calls, answers customer messages, etc. Since the printing house works daily, there is a need to hire two managers who work in shifts, their salary is 25,000 rubles/month.

Fixed expenses	Salary	The number of employees	Sum	Average salary per month per employee
Supervisor	30 000	1	30 000	48 173
Manager	25 000	2	50 000	25 000
Sales Manager	20 000	1	20 000	38 173
Printer	45 000	2	90 000	45 000
Designer	30 000	1	30 000	30 000
Insurance premiums			30 000
Total payroll			250 000

The full calculation of the payroll for 24 months, taking into account the bonus part and insurance contributions, is presented in the financial model.

To ensure the development of an advertising campaign and its successful implementation, it is important to determine the possible allocations of the advertiser for these purposes. It is important for any advertiser to get the most bang for their buck.

In the process of implementing an advertising campaign, the main costs fall on advertising in the media (purchase of space or time). At the same time, significant costs are associated with the development and production of advertising products. The ratio of production and advertising costs depends on the specifics of the advertised product, as well as the chosen means of advertising distribution.

Planning in advertising management has several stages: determining the goals (objectives) of advertising; definition of market segment; choosing the main topic of advertising; choice of means (channel) of placement; development of advertising budget.

Stage 1. Defining goals. This work provides a brief description of the process of determining the objectives of an advertisement that a production firm intends to develop. This process can be divided into two stages. In the first stage, the company's management responsible for advertising activities determines what advertising should do for the organization. For example, by analyzing marketing indicators, the company's management comes to the conclusion that its product and its positive qualities are not properly valued in the market. Thus, the need to strengthen the advertising of this product is realized.

The second stage in the process of determining an advertising objective is to consider what kind of advertising should be given, i.e. what changes need to be made to the company’s advertising campaign so that the consumer can more correctly evaluate its product in favor of the company. In other words, what advertising methods and actions can fulfill the company’s marketing task - to achieve an increase in product sales. The main goal of the advertisement or the entire advertising campaign is determined. In this case, this goal can be characterized in terms of image advertising as the goal of attracting the attention of consumers to the product, making them believe its content (message about the excellent qualities of the product), thereby changing their initial opinion about this product that did not completely satisfy the company.

Stage 2. Determination of the market segment. When planning an advertising campaign, the contingent of potential buyers of the product that the company is counting on or that needs to be won must be clearly defined. Analysis of the purchasing audience can be carried out in two directions.

First, a market segment is identified, i.e. the most common categories of buyers of the company's goods. Quantitative indicators of the needs of this group of people for goods, including the goods of this company, are analyzed.

The second direction is a more detailed analysis of the purchasing power and needs of a selected consumer segment. This is an analysis already individual characteristics consumers within the segment. An important aspect of it is the consideration of the market segment from the standpoint of highlighting different groups: possible (potential) buyers, new, regular, etc. Finding out what needs of these groups can be satisfied when they purchase a company’s product is the key to developing effective advertising for this product.

Stage 3. Selecting the main topic of advertising. The effectiveness of advertising depends on how clearly and clearly it conveys to the consumer information about the high consumer properties of the advertised product. The topic of advertising, therefore, must be presented in two aspects: it must be attractive to the consumer and well understood by him. The first aspect is achieved through an effective title, slogan, etc. The second aspect is determined by the size of the advertisement: the advertisement as a whole should be short, but of such volume (or length) as to contain the main information about the product.

Stage 4. Selecting a means (channel) for advertising distribution. This stage is very important in planning an advertising campaign, since various media essentially require various types promotional materials. And before proceeding to the stage of organizing (developing) advertising, managers dealing with advertising issues at an enterprise or in an advertising agency need to determine in which media the manufacturer’s advertisements will be placed.

The approach to media selection should be based on an analysis by the advertising manager (team of managers) of those possible channels through which it is easiest and quickest for him to reach the attention of the target audience of consumers. The manager in this case works from the opposite - from the consumer: a regular, potential, new buyer of the company's product. It compares the consumer characteristics of the target audience with the possibilities of influencing them with the help of the chosen media(s). The choice of advertising medium also depends on the goals of the company’s advertising management and the content of advertising messages to the consumer.

the greatest coverage of the consumer audience;

conveying the message to senior officials of various organizations;

Chances to do right choice increase significantly if the advertiser once again carefully studies the data of the company's marketing indicators. Thus, information about the buyer segment, in terms of demographics, social status, lifestyle, cultural characteristics, allows you to select media that most fully meet the characteristics of the target market. These will be those means that are used to a greater extent than others by people belonging to the category of potential and actual buyers of the company's goods. Typically, these same funds have minimal distribution among persons who are not potential buyers. For example, magazines are seen as an advertising medium that reaches an important segment of the consumer audience.

The right approach is to advertise in media that the majority of potential buyers read or listen to. Thus, for firms operating in local, regional markets, it would be most appropriate to use local funds. Advertisers operating in a national market select national media accordingly that best reach geographical zones sales of their goods. Local print, radio, and television can be used as additional means of advertising distribution.

The purpose and topic of advertising messages also greatly influence the choice of advertising channel. Announcing the availability of a new product usually requires creating the effect of extreme importance and usefulness of this product and even the relevance of its purchase. This effect is achieved by advertising on television and in newspapers.

Television and radio, working on a temporary basis, gather audiences of different composition and size at different times of the day. The advertiser must take this factor into account. By choosing the time of transmission, for example, of his advertising message, he essentially chooses his target audience and in the quantity that is most beneficial to him.

There is another type of selection criterion effective remedy advertising distribution is a purely quantitative criterion, expressed in the cost of advertising per one or thousand consumers. Such a quantitative analysis is not particularly difficult for a specialist and is performed on the basis of data on the cost of advertising media and readership coverage. This quantitative analysis criterion can be supplemented by another one - calculating the required number of advertising repetitions to reach the required number of consumers.

Stage 5. Planning the advertising budget. This is one of the most difficult problems. The cost of advertising in the media can be quite significant. For example, in the early 90s, a one-time run of a typical television commercial cost American advertisers between $25,000 and $100,000. The cost of placing advertising materials is gradually increasing all over the world. Over the past 10 years it has increased significantly - two to three times.

At the same time, it should be said that in common system of the company's expenses for the production and sale of goods, advertising costs do not seem so significant. Moreover, high advertising costs are actually not that high when you consider how much profit effective advertising can generate and how many potential buyers it reaches. Thus, advertising on a television channel costs less than 1 cent per person or family.

On average, industrial enterprises spend no more than 1% of sales on advertising. Although large corporations, well aware of the benefits of effective advertising, spend more significant amounts on large and small advertising campaigns. The advertising budget of many of them reaches 5 - 10% of sales, and in the perfume industry it reaches 20 - 30%.

There are several methods for planning an advertising budget. They involve two approaches:

the budget is planned based on an analysis of the effectiveness of the company’s advertising activities;

The budget is planned without taking into account the analysis of the profitability of advertising campaigns.

The first approach is very complex and can only be done by advertising specialists who have very high professional training and a staff of workers capable of conducting not only a thorough study of the performance of past advertising campaigns, but also making adequate forecasts for the future. Specific figures for advertising costs are planned based on the profitability that it can bring. This method requires the use of specially developed methods for determining profitability at different stages of an advertising campaign and makes it possible to further identify at what stage product advertising is most effective, and at what stages its costs can be reduced. Thus, one of the famous researchers of the advertising business K.S. Palda conducted a special analysis of the possibilities of developing an effective (necessary) advertising budget for a corporation engaged in the manufacture and sale of patented medicines. The study found that one dollar spent on advertising generates only 0.5 dollars of additional sales if the advertising campaign lasts a short time; however, the return on one dollar of ad spend in a long-term campaign is as high as $1.63. Thus, thanks to the research indicators of Palda and his employees, the company's management not only determined the allocations for advertising, but also without hesitation chose the strategy of a powerful advertising campaign. In most cases, however, an organization's advertising budget is calculated using methods that are not directly related to its profitability. The most famous of them are the following: the interest method; opportunity method; parity method; method of goals and objectives.

Percentage method. This is the most traditional and easiest way to plan your advertising budget. A certain percentage of sales for the previous year is allocated. In this case, allocations for advertising activities increase if product sales are high, and, conversely, decrease as sales decrease. IN Lately Many companies use this method, but not in relation to past sales, but to those expected for the next year.

Opportunity method. Its essence lies in the fact that the company limits its advertising budget to the amount that it can spend on advertising. In practice, such advertising budget planning is carried out according to a kind of residual principle: first, allocations are made for all production, management and other activities, and the remaining funds can be used in the company's advertising business. This approach does not guarantee the correct choice of the required amount of allocations for advertising. As a rule, this amount will be significantly lower than required, and in some cases (if the company is very rich) it will exceed it. Budget planning by this method is based on the assumption of its minimum sufficiency.

Parity method. This is a method of planning an advertising budget, which is carried out taking into account the activities of competitors. Many organizational leaders understand that in order to maintain a market niche, they must spend at least as much on advertising as their competitors do. The task of the marketing manager in this case is to find information about competitors’ costs for their branded goods. Such information is generally available, since prices for the main means of distributing advertising materials are known.

Method of goals and objectives. Firms using this method in developing an advertising budget begin by identifying the specific goals of the future advertising campaign. For example, the TexasGulf company, before the start of its advertising campaign, had a market share of about 5% and solid buyers (six organizations) of its product - phosphoric acid. The advertising goal was set - to increase the number of consumers who know about the company and its product by 10% in a short period of advertising. The advertising campaign was designed to promote phosphoric acid as a very “clean and green” product.

In accordance with this, a certain amount of money was allocated for promotional events. It turned out that the budget developers were not mistaken. The advertising fully covered the costs and brought significant profits, since the set goal was not only achieved, but its results were higher - a 20% increase in the number of potential and actual buyers.

Functions of organization and coordination. In advertising management, these two functions operate simultaneously, since the creation of an advertisement or an advertising campaign is a complex process in which several subjects and objects of management are involved at once: the advertiser, the advertising agency, advertising distribution media, as well as, in some cases, a significant contingent of dealers and intermediaries of the marketing system company - manufacturer of goods. Accordingly, at all stages of such a process, along with organizational actions and operations, there will also be elements of coordination or adjustment of the interaction of all its participants.

Two aspects can be distinguished in the organizational (including coordination) function in advertising management. The first, or narrow, aspect is the management of the creation of advertising materials. The second, broader aspect is the management of the organization and implementation of an advertising campaign, which, in addition to developed advertisements, includes issues of means of placement, coordination of various types of advertising in the overall system, their quantity, volume, as well as coordination of actions to achieve the main goal of the entire advertising process.

At the advertising planning stage, the company’s management determined its main goals and main topic. The objectives must be achieved and the message must reach the consumer if an effective advertisement is to be created. Thus, at the organization stage, two categories of employees are involved in advertising activities: managers and creative workers, who will develop the text and design of the advertisement. The main role, of course, belongs to the latter, although professional managers are needed to coordinate and manage their activities, and often as consultants on organizational and even creative issues.

The size of the advertisement is determined by the features of the advertising message, the need for its repetition, the amount of advertising allocations, prices for placement, etc. You should not reserve space for advertising without making sure that the advertisement will fit exactly into the available space. If you purchase too small an area for advertising, the ad may not “fit” into it. On the other hand, purchasing more space than required will lead to ineffective spending of the advertising budget. In addition, practice confirms the risk of one-time publication of one large-format advertisement in a magazine or newspaper, since a series of advertisements (even of a smaller format) will be more effective and possibly cheaper.

Evaluation of the merits of publications selected for use as part of the planned advertising campaign is mainly carried out by experts. To this we can add a formal comparison method, which turns out to be useful at the stage of preliminary planning of an advertising campaign - determining the cost of publishing one calculated line of advertising text in 1 million copies of the circulation (the so-called milline rate). But this indicator cannot always serve as a truly reliable and accurate guide, since the size of the pages in different publications is different and, in addition, their readership audiences may differ.