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Arens|Schaefer|Weigold
Chapter Seven
Marketing, Advertising, and IMC Planning
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Learning Objectives
• Explain the role and importance of a
marketing plan
• Distinguish between objectives,
strategies, and tactics in marketing and
advertising plans
• Show what makes IMC planning
different from traditional methods
7-2
Learning Objectives
• Explain how to establish specific,
realistic, and measurable advertising
objectives
• List the various approaches for
determining advertising budgets
7-3
Marketing Plan
• Directs a company’s marketing effort
• Assembles relevant facts about the
organization, its markets, products,
services, customers, and competition
• Forces all departments to focus on the
customer
• Lists goals and objectives for specific
periods of time
7-4
Marketing Plan
• Lays out precise strategies and tactics
to achieve them
• Length and complexity of the plan
depends on the size of the company
• Ongoing activity
7-5
Effect of the Marketing Plan
on IMC
• Helps analyze and improve all company
operations
• Defines the role of advertising in the
marketing mix
• Enables better implementation, control,
and continuity of advertising programs
• Ensures efficient allocation of IMC
dollars
7-6
Exhibit 7.1 - Traditional TopDown Marketing Plan
7-7
Marketing Objectives,
Strategies, and Tactics
Marketing Objectives
• Goals of the marketing effort expressed in terms of the
needs of specific target markets and specific sales objectives
Marketing Strategies
• Statement of how the company is going to achieve its
marketing objectives
Marketing Tactics
• Specific short-term actions used to achieve marketing
objectives
7-8
Exhibit 7.2 - Bottom-Up
Marketing Plan
7-9
Exhibit 7.3 - Relationship
Levels and Profit Margins
7-10
Integrated Marketing
Communications (IMC)
• Building and reinforcing mutually
profitable relationships with the
stakeholders and the general public
– By developing and coordinating strategic
communications programs that make
contact with a brand through media
• Synergy: When the sum of the parts is
greater than that expected from adding
together the individual components
7-11
Exhibit 17.5 - The Integration
Triangle
7-12
Advertising Plan
• Reviewing the marketing plan
– Information from the situation analysis
should be organized into a SWOT analysis
• Setting advertising objectives
– Tasks to be taken on by advertising is
determined
– Advertising objectives should be specific,
realistic, and measurable
7-13
Allocating Funds for
Advertising
• Advertising - Current business expense
– Increase in market share related to
increase in marketing budget in consumer
goods marketing
– Requirement of consistent investment due
to brief durability
– Presence of levels:
• Below which advertising has no effect on sales
• Above which additional ad expenditures have
no effect on sales
7-14
Methods of Allocating Funds
Percentage-of-sales
• Based on a percentage of the previous year’s sales, the anticipated
sales for the next year, or a combination of the two
Share-of-market/share-of-voice
• Based on:
• Determining the firm’s goals for a certain share of the market
• Applying a slightly higher percentage of industry advertising dollars
to the budget
Objective/task method
• Defines objectives and how advertising is to be used to accomplish
them
7-15