1. Marketing, Advertising and IMC Planning Chapter 07 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives LO1: Explain the role & importance of a marketing plan. LO2: Explain the difference between objectives, strategies, and tactics in marketing and advertising plans LO3: What makes IMC planning different from traditional methods. LO4: Explain how to establish specific, realistic, and measurable objectives. LO5: Explain how advertising budgets are determined. 7-2

3. The Importance of Marketing Planning The Marketing Plan assembles relevant facts about the organization, its markets, products, services, customers, competition, and so on. – lists goals & objectives for specific periods of time – lays out precise strategies & tactics to achieve them – While planning is ongoing, the document should be reviewed & revised yearly – Approach can be top-down or bottom-up 7-3

4. The Importance of Marketing Planning The effect of the Marketing Plan on IMC – Helps manage and improve all company operations – Ensures efficient allocation of IMC dollars – Defines the role of advertising in the Marketing Mix 7-4

5. The Importance of Marketing Planning Top-Down Marketing Plans – very common – four main elements Marketing Tactics specific short-term actions to support strategy Marketing Strategy how to achieve the objectives Marketing Objectives goals of the marketing effort Situation Analysis the organization’s situation & how it got there 7-5

6. The Importance of Marketing Planning Situation Analysis – Factual statement of the organization's situation and how it got there – SWOT analysis uses situation analysis to point out strengths, weaknesses, opportunities & threats 7-6

7. The Importance of Marketing Planning Marketing Objectives – Corporate Objectives profit, growth, company reputation, earnings, etc – Marketing Objectives need-satisfying: customer’s perspective – Mountain Dew sells a nonconformist’s view on life, not a beverage sales-target: company’s perspective, – realistic marketing goals – total sales volume, sales volume by product, market segment 7-7

8. The Importance of Marketing Planning Marketing Strategy – how the company will achieve its marketing objectives Marketing Tactics – Specific short-term actions to be taken 7-8

9. The Importance of Marketing Planning Bottom-up Marketing Plans – for smaller companies – when details come first – an ingenuous tactic can develop into a strategy Situation Analysis Marketing Objectives Marketing Tactics 7-9

10. The Importance of Relationship Marketing Relationship Marketing – creating, maintaining, & enhancing long-term relationships with customers & other stakeholders that results in exchanges of information & other things of mutual value 7-10

11. Using IMC to Make Relationships Work IMC: The concept and the Process – IMC: Integrated Marketing Communications building & reinforcing mutually profitable relationships with employees, customers, stakeholders, & the general public by developing & coordinating strategic communications programs that enables them to make consecutive contact with a brand through a variety of media 7-11

12. The Advertising Plan Review the Marketing Plan – Create a SWOT analysis from the situation analysis Setting Advertising Objectives – Advertising Objectives should be specific, realistic, and measurable Understanding what advertising can do – Marketing sells, Advertising tells Advertising Objectives are communication related 7-12

13. The Advertising Plan The Advertising Pyramid (learn – feel – do) Action Desire Conviction Comprehension Awareness those who buy or take some form of action desire for the product conviction and belief in the product understanding the product awareness of the product 7-13

14. The Advertising Plan Determining the Advertising Strategy – Advertising strategy has two subcategories the creative strategy: – target audience – objective of the advertising – benefits to be communicated – support for the benefits the media strategy – provides direction to media planners to deliver the message 7-14

15. The Advertising Plan The relationship of advertising to sales & profits market share, profitability & the marketing budget are related sales normally increase with advertising, to a point sales from advertising builds over time, but ad durability is brief there are levels below which ad spending has no effect there will be some sales even without advertising there are saturation limits above which advertising cannot increase sales 7-15

16. The Advertising Plan Allocating funds for advertising – Percentage-of-Sales – Share-of-Market/Share-of-Voice – Objective-Task 7-16