1. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 8 Marketing and Advertising Planning

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

3. 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

4. 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

5. 8-5 Top-Down Marketing Plan

6. 8-6 Situation Analysis Strengths Weaknesses Opportunities Threats SWOT Analysis =

7. 8-7 Marketing Objectives Brand recognition Benefit understanding Positive attitudes Buy intentions Sales volume Gross profits Distribution points Market share Sales Target Objectives Communication Objectives

8. 8-8 Defining Advertising Goals Awareness Comprehension Conviction Action DAGMAR Method

9. 8-9 The Marketing Strategy Develop market mix for each target Define the target markets Determine the strategic position

10. 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

11. 8-11 The Marketing Mix Product Price Communi- cations Distribution Company controlled elements

12. 8-12 Bottom-Up Marketing Plan

13. 8-13 Relationship Marketing Market relationships, not transactions Focus on customers, not products Deliver superior value Keys to Building Brand Equity

14. 8-14 Relationship Marketing Value of loyal customers Cost of acquiring new customers Cost of lost customers (LTCV) The Importance of Relationships

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

16. 8-16 Levels of Relationships Profit Margin HighMediumLow ManyAccountableReactiveBasic MediumProactiveAccountableBasic FewPartnershipAccountableReactive Customers

17. 8-17 Using IMC to Make Relationships Work DeScenza: preserving brand value requires careful attention to consumer “touch points”

18. 8-18 Using IMC to Make Relationships Work Levels of Integration

19. 8-19 Using IMC to Make Relationships Work Sources of Brand Messages Planned Product Service Unplanned

20. 8-20 Using IMC to Make Relationships Work The Integration Triangle Say Planned messages Do Product & service messages Confirm Unplanned messages

21. 8-21 Using IMC to Make Relationships Work IMC Macro Model

22. 8-22 Using IMC to Make Relationships Work Wang-Schultz IMC Planning ModeI

23. 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?

24. 8-24 The Advertising Plan: Setting Objectives Traditional Advertising Pyramid

25. 8-25 The Advertising Plan: New Model Feedback circle replaces the IMC pyramid

26. 8-26 Strategy & the Creative Mix Target Audience Product Concept Communications Media Advertising Message

27. 8-27 Strategy & the Creative Mix Enhanced Kim-Lord Grid

28. 8-28 Strategy & the Creative Mix There are many ways to deliver a message without using traditional media: cement mixers

29. 8-29 Sales/Profit Relationship

30. 8-30 Business Environment Variables Social Political Legal Economic

31. 8-31 Allocating Funds for Advertising Methods of Allocating Funds Sales Percentage Objective/ Task Market Share Empirical Research

32. 8-32 Advertising Fallacies Advertising is a result of sales Advertising creates sales