Chapter SevenMarketing, Advertising, and IMC Planning

Arens|Schaefer|Weigold

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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

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Learning Objectives

• Explain how to establish specific, realistic, and measurable advertising objectives

• List the various approaches for determining advertising budgets

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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

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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

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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

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Exhibit 7.1 - Traditional Top-Down Marketing Plan

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Marketing Objectives, Strategies, and Tactics

• Goals of the marketing effort expressed in terms of the needs of specific target markets and specific sales objectives

Marketing Objectives

• Statement of how the company is going to achieve its marketing objectives

Marketing Strategies

• Specific short-term actions used to achieve marketing objectives

Marketing Tactics

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Exhibit 7.2 - Bottom-Up Marketing Plan

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Exhibit 7.3 - Relationship Levels and Profit Margins

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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

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Exhibit 17.5 - The Integration Triangle

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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

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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

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Methods of Allocating Funds

• Based on a percentage of the previous year’s sales, the anticipated sales for the next year, or a combination of the two

Percentage-of-sales

• 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

Share-of-market/share-of-voice

• Defines objectives and how advertising is to be used to accomplish them

Objective/task method