Planning Advertising and Integrated Brand Promotion 8 1 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Polishing the Apple—Again and Again Apple’s launch of the iPad used a comprehensive and creative IPB campaign: The iPad was scheduled to go on sale in Spring 2010. The “launch” started months before, however, with rumors circulating weekly. Steve Jobs gave a sneak preview in January 2010 again teasing Apple fans. No ads ran for the two months, but the buzz was already built as bloggers started to speculate about the functionality and virtues of the iPad. The first ads ran during the Oscars in March 2010, followed by 2.4 million views on YouTube—a huge viral effect for the brand. Next, branded entertainment kicked in with the iPad featured the entire episode of Modern Family on March 31, 2010. The official sales date was finally set as April 3, 2010. Long lines began to form outside retail outlets on April 2, 2010.

Advertising Plan and Its Marketing Context Marketing Plan Specifies overall 4Ps Strategies Ad Plan Specifies thinking and tasks needed to conceive and implement an effective advertising effort 8

Advertising Plan Components Introduction Situation Analysis Objectives Budgeting Strategy Execution Evaluation 8

Advertising Plan Components Introduction Executive Summary Overview Cultural Context Ethnocentrism Self-Reference Criterion Historical Context Industry Analysis Market Analysis Competitor Analysis Situation Analysis 8

Historical context is an important consideration in developing an advertising plan for a brand. Courtesy of Business Objects S.A.

Advertising Plan Components: Objectives To create or maintain brand awareness To change consumer beliefs or attitudes To influence purchase intent To stimulate trial use To convert one-time users into repeat purchasers To encourage brand switching 8

Communication vs. Sales Objectives Advertising = Sales? Advertising = Communication? Effective Communication = Sales? Focusing on communications objectives allows advertisers to consider a broad range of strategies. Communications recognizes a greater complexity in the advertising/IBP process. Building brand loyalty can take years—and might not affect sales in the short term While there is tension, both objectives can be used 8

Advertising Plan Components: Objectives Characteristics of Workable Objectives Quantitative benchmarks Measurement/criteria for success Time frame 8

Advertising Plan Components: Budgeting Budgeting Methods Percentage of sales Does not relate spending to objectives Share of market/voice Likely to only maintain “status quo” market share Response models Associates dollars spent on advertising to sales generated Assumes simple causality Objective and Task Preferred and most strategic approach 8

Implementing Objective and Task Budgeting Determine Cost Based on Build-up Analysis Production costs Ancillary costs Other promotion/IBP Reach Frequency Time frame Media Compare Costs Against Industry and Corporate Benchmarks Reconcile and Modify Budget Determine Time Frame for Payout 8

Advertising Plan Components Strategy Brand Name Recognition? Repetition and frequency Broaden appeal to new segments Rhyming games Trial Use Stimulation? Introductory offers Product guarantees Brand Switching? Value Propositions Product comparisons 8

What is the strategy in this ad. Would you run this same ad in Mexico What is the strategy in this ad? Would you run this same ad in Mexico? (Hint: Think about SRC) Courtesy, Uno Restaurant Holding Group Corp.

Advertising Plan Components Execution Creative Brief Copy Strategy Media Plan Integrated Brand Promotion Evaluation Criteria Methods Consequences 8

The Role of the Advertising Agency in Planning Advertising and IBP Advertiser must bring to the table an assessment of the brand’s value, the external environment, and opportunities and threats. The advertising agency’s role is to translate the current marketing plan and market status of the brand into: advertising objectives advertising strategies finished advertisements and IBP materials media placement and execution of advertising and IBP 8

Check Your Understanding A marketing manager has always used the share-of-voice budget method and probably always will. One big problem with marketers who rely on a share-of-voice budget plan is that they assume, often wrongly, that their competition doesn’t know how to allocate its advertising dollars. their sales figures should automatically dictate their advertising figures. they know how much competitors are really spending. their ad is distinct, unique, and superior among all others in the field. 8

Check Your Understanding A fragrance manufacturer wants its target customers to demonstrate top-of-the-mind awareness regarding its long-standing perfume, Bouquet. This means that when they are asked to think of perfumes, they would include the name Bouquet somewhere on their list. realize that they want to purchase Bouquet. think of Bouquet first. only be able to think of Bouquet. 8