Transcript 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