1. Chapter Seven Marketing, Advertising, and IMC Planning
Arens|Schaefer|Weigold
Chapter Seven Marketing, Advertising, and IMC Planning
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2. Learning Objectives
Explain the role and importance of a marketing plan
Distinguish between objectives, strategies, and tactics in marketing and advertising plans
Show what makes IMC planning different from traditional methods

3. Learning Objectives
Explain how to establish specific, realistic, and measurable advertising objectives
List the various approaches for determining advertising budgets

4. Marketing Plan Directs a company’s marketing effort
Assembles relevant facts about the organization, its markets, products, services, customers, and competition
Forces all departments to focus on the customer
Lists goals and objectives for specific periods of time

5. Marketing Plan Lays out precise strategies and tactics to achieve them
Length and complexity of the plan depends on the size of the company
Ongoing activity

6. Effect of the Marketing Plan on IMC
Helps analyze and improve all company operations
Defines the role of advertising in the marketing mix
Enables better implementation, control, and continuity of advertising programs
Ensures efficient allocation of IMC dollars

7. Exhibit 7.1 - Traditional Top-Down Marketing Plan

8. Marketing Objectives, Strategies, and Tactics
Goals of the marketing effort expressed in terms of the needs of specific target markets and specific sales objectives
Marketing Objectives
Statement of how the company is going to achieve its marketing objectives
Marketing Strategies
Specific short-term actions used to achieve marketing objectives
Marketing Tactics

9. Exhibit 7.2 - Bottom-Up Marketing Plan

10. Exhibit 7.3 - Relationship Levels and Profit Margins

11. Integrated Marketing Communications (IMC)
Building and reinforcing mutually profitable relationships with the stakeholders and the general public
By developing and coordinating strategic communications programs that make contact with a brand through media
Synergy: When the sum of the parts is greater than that expected from adding together the individual components

12. Exhibit 17.5 - The Integration Triangle

13. Advertising Plan Reviewing the marketing plan
Information from the situation analysis should be organized into a SWOT analysis
Setting advertising objectives
Tasks to be taken on by advertising is determined
Advertising objectives should be specific, realistic, and measurable

14. Allocating Funds for Advertising
Advertising - Current business expense
Increase in market share related to increase in marketing budget in consumer goods marketing
Requirement of consistent investment due to brief durability
Presence of levels:
Below which advertising has no effect on sales
Above which additional ad expenditures have no effect on sales

15. Methods of Allocating Funds
Based on a percentage of the previous year’s sales, the anticipated sales for the next year, or a combination of the two
Percentage-of-sales
Based on:
Determining the firm’s goals for a certain share of the market
Applying a slightly higher percentage of industry advertising dollars to the budget
Share-of-market/share-of-voice
Defines objectives and how advertising is to be used to accomplish them
Objective/task method