Chapter 8

Chapter 8 Marketing and Advertising Planning McGraw-Hill/Irwin

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter Overview

Describes the process of marketing and advertising planning… top-down, bottom-up, and IMC 8-2

Chapter Objectives Explain the role & importance of a marketing plan

Give examples of communications & sales target objectives

Describe how marketing & advertising plans are related

Discuss the suitability of traditional and IMC planning

Explain the difference between objectives & strategies

Explain how advertising budgets are determined

Describe how share-of-market/share-ofvoice budgeting can be used 8-3

Content of a Marketing Plan State the organization’s mission Assess the current marketing situation Identify factors that hinder or help achievement of marketing objectives Describe strategies to achieve objectives State how the strategy will be implemented

Explain how marketing efforts will be evaluated Propose a marketing budget 8-4

Top-Down Marketing Plan

8-5

Situation Analysis Strengths SWOT Analysis =

Weaknesses Opportunities

Threats

8-6

Marketing Objectives Sales Target Objectives

Communication Objectives

Sales volume

Brand recognition

Gross profits

Benefit understanding

Distribution points

Positive attitudes

Market share

Buy intentions

8-7

Defining Advertising Goals Action

Conviction Comprehension Awareness DAGMAR Method 8-8

The Marketing Strategy Develop market mix for each target Determine the strategic position Define the target markets

8-9

Approaches to Positioning Attributes Price/Quality Use/Application Product Class Product User

Bic uses the infinity symbol to imply that their pens last a long time

Competition Cultural symbol 8-10

The Marketing Mix Distribution

Product Company controlled elements Price

Communications

8-11

Bottom-Up Marketing Plan

8-12

Relationship Marketing Focus on customers, not products

Market relationships, not transactions

Keys to Building Brand Equity

Deliver superior value

8-13

Relationship Marketing The Importance of Relationships

Cost of lost customers (LTCV)

Cost of acquiring new customers

Value of loyal customers

8-14

Levels of Relationships Partnership Proactive Accountable Reactive Transactional (Basic) 8-15

Levels of Relationships

Customers

Profit Margin High

Medium

Low

Many

Accountable

Reactive

Basic

Medium

Proactive

Accountable

Basic

Few

Partnership Accountable

Reactive

8-16

Using IMC to Make Relationships Work DeScenza: preserving brand value requires careful attention to consumer “touch points”

8-17

Using IMC to Make Relationships Work

Levels of Integration 8-18

Using IMC to Make Relationships Work Planned

Product

Service

Unplanned

Sources of Brand Messages 8-19

Using IMC to Make Relationships Work The Integration Triangle Say Planned messages

Confirm

Do

Unplanned messages

Product & service messages

8-20

Using IMC to Make Relationships Work

IMC Macro Model

8-21

Using IMC to Make Relationships Work

Wang-Schultz IMC Planning ModeI

8-22

The Advertising Plan: Review Mktg Plan Where is the company going?

How will it get there? What did the SWOT analysis uncover? What role does advertising play? What are the short- and long-term goals?

8-23

The Advertising Plan: Setting Objectives

Traditional Advertising Pyramid

8-24

The Advertising Plan: New Model

Feedback circle replaces the IMC pyramid 8-25

Strategy & the Creative Mix Target Audience

Advertising Message

Product Concept

Communications Media 8-26

Strategy & the Creative Mix Enhanced Kim-Lord Grid

8-27

Strategy & the Creative Mix

There are many ways to deliver a message without using traditional media: cement mixers 8-28

Sales/Profit Relationship

8-29

Business Environment Variables

Economic

Social

Political

Legal 8-30

Allocating Funds for Advertising Methods of Allocating Funds Sales Percentage

Market Share

Objective/ Task

Empirical Research

8-31

Advertising Fallacies

Advertising is a result of sales Advertising creates sales

8-32