1. Developing Marketing and Advertising Plans
chapter seven
Developing Marketing and Advertising Plans
McGraw-Hill/Irwin
Essentials of Contemporary Advertising
Copyright © The McGraw-Hill Companies, Inc. All rights reserved.

2. Objectives_1 Explain the role and importance of a marketing plan
Give examples of need-satisfying and sales-target objectives
Explain the difference between objectives, strategies, and tactics in marketing and advertising plans

3. Objectives_2
Discuss the suitability of top-down, bottom-up, and integrated marketing communications planning
Describe how marketing and advertising plans are related
Explain how to establish specific, realistic, and measurable objectives
Explain how advertising budgets are determined

4. The Importance of Marketing Planning
The marketing plan assembles all the pertinent facts about
the organization
the market it serves
its products, services, customers, and competition

5. Planning Approaches Top- Down Model Bottom- Up Model Integrated
Marketing
Communications
Model

6. Top-Down Marketing Plan
Situation
Analysis
Marketing
Objectives
Marketing
Strategy
Marketing
Tactics

7. Objectives
Corporate objectives are stated in terms of profit, net worth, financial ratios, and reputation
Marketing objectives relate to the needs of the target market and sales goals
Need-satisfying objectives
Sales-target objectives

8. Marketing Strategy Step 1: Define the target market
Step 2: Determine the strategic positioning
Step 3: Develop the marketing mix

9. Positioning This ad positions Tide as an alternative
to detergent with bleach.

10. Positioning Strategy Approaches
Product attribute
Price/quality
Use/application
Product class
Product user
Product competitor
Cultural symbol
A brand’s position can sometimes be discerned from its tagline:
BMW
Bounty
Sara Lee
Others?

11. Bottom-up Marketing Plan
Marketing Results
Marketing Strategy
Marketing Tactics

12. Why are Relationships Important?
The cost of lost customers
Lifetime customer value (LTCV)
The cost of acquiring new customers
The value of loyal customers

13. Levels of Relationships
Partnership
Proactive
Accountable
Reactive
Transactional

14. Exhibit 7-3 Relationship levels as a function of profit margin
and number of customers

15. Integrated Marketing Communications
The process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general public by developing and coordinating a strategic communications program that enables them to have a constructive encounter with the company/brand through a variety of media or other contacts

16. Integrated Marketing Communications
A Concept
A Process

17. Four Sources of Brand Messages
Planned
Product
Service
Unplanned

18. Exhibit 7-4 The Integration Triangle
Say
Planned messages
Confirm Do
Unplanned messages
Product, service messages

19. The Advertising Plan Represents an outgrowth of the marketing plan
Organizes the marketing plan’s situation analysis into a SWOT analysis
Sets advertising objectives
Determines advertising strategy
Sets budget

20. Exhibit 7-6 The Advertising Pyramid
Action
Desire
Conviction
Comprehension
Awareness

21. Advertising Strategy Creative Strategy Media Strategy
Address target audience
Restates the objective
Specifies key benefits to be communicated
Offers support for benefits
Media Strategy
Defines communication objectives
Describes use of media and vehicles

22. Methods of Allocating Funds
Percentage-of-sales
Percentage-of-profit
Unit-of-sale
Competitive-parity
Share-of-market
Objective task

23. Key Terms_1 Action programs Advertising plan Advertising strategy
Bottom-up marketing
Corporate objectives
Creative strategy
Endcap promotion
Integrated marketing communication
Lifetime customer value
Marketing objectives
Marketing plan
Marketing strategy
Media strategy

24. Key Terms_2 Need-satisfying objectives Objective/task method
Percentage-of-sales method
Planned messages
Positioning
Product life cycle
Product messages
Relationship marketing
Sales-target objective
Service messages
Share-of-market/share of voice method

25. Key Terms_3 Situation analysis Stakeholders SWOT analysis Synergy
Tactics
Top-down marketing
Unplanned messages
Value