Developing Marketing and Advertising Plans chapter seven Developing Marketing and Advertising Plans McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
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
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
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
Planning Approaches Top- Down Model Bottom- Up Model Integrated Marketing Communications Model
Top-Down Marketing Plan Situation Analysis Marketing Objectives Marketing Strategy Marketing Tactics
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
Marketing Strategy Step 1: Define the target market Step 2: Determine the strategic positioning Step 3: Develop the marketing mix
Positioning This ad positions Tide as an alternative to detergent with bleach.
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?
Bottom-up Marketing Plan Marketing Results Marketing Strategy Marketing Tactics
Why are Relationships Important? The cost of lost customers Lifetime customer value (LTCV) The cost of acquiring new customers The value of loyal customers
Levels of Relationships Partnership Proactive Accountable Reactive Transactional
Exhibit 7-3 Relationship levels as a function of profit margin and number of customers
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
Integrated Marketing Communications A Concept A Process
Four Sources of Brand Messages Planned Product Service Unplanned
Exhibit 7-4 The Integration Triangle Say Planned messages Confirm Do Unplanned messages Product, service messages
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
Exhibit 7-6 The Advertising Pyramid Action Desire Conviction Comprehension Awareness
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
Methods of Allocating Funds Percentage-of-sales Percentage-of-profit Unit-of-sale Competitive-parity Share-of-market Objective task
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
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
Key Terms_3 Situation analysis Stakeholders SWOT analysis Synergy Tactics Top-down marketing Unplanned messages Value