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

Chapter 8

Marketing and Advertising

Planning

8-2

Chapter Overview

Describes the process of marketingand advertising planning…

top-down, bottom-up, and IMC

8-3

Chapter Objectives

Explain the role & importance of a marketing plan

Give examples of communications &

sales target objectives

Explain how advertising budgets are determined

Describe how marketing & advertising

plans are related

Explain the difference between objectives &

strategies

Discuss the suitability of traditional and IMC

planning

Describe how share-of-market/share-of-voice budgeting can be used

8-4

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

8-5

Top-Down Marketing Plan

8-6

Situation Analysis

Strengths

Weaknesses

Opportunities

Threats

SWOT Analysis =

8-7

Marketing Objectives

Brand recognition

Benefit understanding

Positive attitudes

Buy intentions

Sales volume

Gross profits

Distribution points

Market share

Sales Target Objectives

CommunicationObjectives

8-8

Defining Advertising Goals

Awareness

Comprehension

Conviction

Action

DAGMAR Method

8-9

The Marketing Strategy

Develop market mix for each target

Define the target markets

Determine the strategic position

8-10

Approaches to Positioning

Attributes

Price/Quality

Use/Application

Product Class

Product User

Competition

Bic uses the infinity symbol to imply that their

pens last a long time

Cultural symbol

8-11

The Marketing Mix

Product

Price Communi-cations

Distribution

Company controlled elements

8-12

Bottom-Up Marketing Plan

8-13

Relationship Marketing

Market relationships, not transactions

Focus on customers, not products

Deliver superior value

Keys to Building Brand Equity

8-14

Relationship Marketing

Value of loyal customers

Cost of acquiring new customers

Cost of lost customers

(LTCV)

The Importance of Relationships

8-15

Levels of Relationships

Reactive

Accountable

Proactive

Partnership

Transactional(Basic)

8-16

Levels of Relationships

Profit Margin

High Medium Low

Many Accountable Reactive Basic

Medium Proactive Accountable Basic

Few Partnership Accountable ReactiveCus

tom

ers

8-17

Using IMC to Make Relationships

WorkDeScenza: preserving

brand value requires careful

attention to consumer

“touch points”

8-18

Using IMC to Make Relationships

Work

Levels of Integration

8-19

Using IMC to Make Relationships

Work

Sources of Brand Messages

Planned Product

Service Unplanned

8-20

Using IMC to Make Relationships

WorkThe Integration Triangle

Say

Planned messages

Do

Product & servicemessages

Confirm

Unplanned messages

8-21

Using IMC to Make Relationships

Work

IMC Macro Model

8-22

Using IMC to Make Relationships

Work

Wang-Schultz IMC Planning

ModeI

8-23

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?

8-24

The Advertising Plan: Setting

Objectives

Traditional Advertising Pyramid

8-25

The Advertising Plan: New Model

Feedback circle replaces the IMC pyramid

8-26

Strategy & the Creative MixTarget

Audience

ProductConcept

CommunicationsMedia

AdvertisingMessage

8-27

Strategy & the Creative Mix

Enhanced Kim-Lord Grid

8-28

Strategy & the Creative Mix

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

8-29

Sales/Profit Relationship

8-30

Business Environment

Variables

Social

Political Legal

Economic

8-31

Allocating Funds for Advertising

Methods of Allocating Funds

Sales Percentage

Objective/ Task

Market Share

Empirical Research

8-32

Advertising Fallacies

Advertising is a result of sales

Advertising creates sales