1. C HAPTER 7 Marketing and Advertising Planning: Top-Down, Bottom-up, and IMC

2. Why Plan? The Marketing Plan: Has a profound effect on the organization’s IMC program Helps analyze and improve all company operations Dictates the role of advertising in the marketing mix Enables better implementation, control, and continuity of promotions Ensures the most efficient allocation of IMC dollars

3. Relationship Marketing Relationship Marketing: Creating, maintaining and enhancing long- term relationships with customers That result in exchanges Offering mutual value to all parties Value: The ratio of perceived benefits To the price of the product Why are relationships important? The cost of lost customers Life-time customer value Negative word-of-mouth The cost of acquiring new customers The value of loyal customers Positive word-of-mouth

4. Top-Down vs. Bottom-Up Marketing Situation Analysis: A factual statement of the organization’s current situation and how it got there Marketing Objectives: Corporate Objectives: stated in financial terms Net Profit, ROI, Growth Marketing Objectives Derived from Corporate Objectives Relate to: target market needs Specific sales goals Need-satisfying objectives Sales-target objectives Marketing Strategy: How the company plans to meet the marketing objectives Marketing Tactics: Specific action plans

5. Levels of Relationships Basic transactional relationship: Kmart Reactive relationship: Men’s Warehouse Accountable relationship: Ford Dealers Proactive relationship: CompuServe Partnership: Gateway

6. Wang-Schultz IMC Planning Model Database 1.Segmentation Classification 2.Brand Connection 3.Marketing Objectives 4.Brand Behavior Objectives 5.Communication Objectives and Strategy 6.Market Communication/Contact Tools 7.Market Communication/Contact Tactics See Exhibit 7-7 page 243

7. Advertising Strategy and the Creative Mix Communication Objective: Tells where the advertiser wants to be with respect to: Consumer awareness Attitude Preference Creative Objective: Describes how to get there Creative Mix: Target Audience Product Concept Communications Media Advertising Message Advertising Strategy: Blends the elements of the creative mix Tells what to do

8. Ways to Set Advertising Budgets Percentage of Sales Percentage of Profits Unit of Sale Competitive Parity Share of Market/Share of Voice Objective/Task Empirical Research Quantitative Mathematical Models All available Funds