Download Marketing Plan - McGraw Hill Higher Education

Marketing, Advertising and
IMC Planning
Chapter 07
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
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
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
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
The Importance of
Marketing Planning
• Top-Down Marketing
Plans
– very common
– four main elements
Situation Analysis
the organization’s situation & how it got there
Marketing Objectives
goals of the marketing effort
Marketing Strategy
how to achieve the objectives
Marketing Tactics
specific short-term actions to support strategy
7-5
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
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
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
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
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
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
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
The Advertising Plan
• The Advertising Pyramid (learn – feel – do)
those who buy or take some form of action
Action
desire for the product
Desire
conviction and belief in the product
understanding the product
awareness of the product
Conviction
Comprehension
Awareness
7-13
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
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
The Advertising Plan
• Allocating funds for advertising
– Percentage-of-Sales
– Share-of-Market/Share-of-Voice
– Objective-Task
7-16