chapter 7 advertising

Marketing plan
assembles relevant facts about the organization, its markets, products, services, customers, competition, etc.
The plan that directs the company’s marketing effort.
top down marketing
the traditional planning process. has four main elements: situational analysis, marketing objectives, marketing strategy, and marketing tactics (or action programs)
situation analysis
a factual statement of the organizations current situation and how it got there.
SWOT analysis
Part of situation analysis of the top down marketing plan. after assessing a company situation, the writer of a marketing plan prepares an analysis that identifies the brand’s or products Strengths, Weaknesses, Opportunities, and Threats
Corporate objectives
Part of marketing objectives of the top down marketing plan.
Goals of the company stated in terms of profit or return on investment
Marketing objectives
Goals of the marketing effort that may be expressed in terms of the needs of specific target markets and specific sales objectives. Derive from corporate objectives. Part of the top down marketing plan.
need satisfying objectives
Part of top down marketing plan.
The first part of marketing objectives.
Need satisfying objectives are Goals of the marketing effort that may be expressed din terms of the needs of specific target markets and specific sales objectives
ex. an insurance company sells financial security.
Managers must see through the customer’s eyes. They need to think about the customers needs first and then identify products that meet those neds
sales target objective
the second kind of marketing objective. This is a specific, quantitative, realistic *marketing goal* to be achieved within a specified period of time.
Marketing objectives that relate to a company’s sales.
-They may be expressed in terms of total sales volume; sales by product, market segment, or customer type; market share; or therewith rate of sales volume; or gross point.
marketing strategy
the statement of how the company is going to accomplish its marketing objectives . The third part of the Top Down marketing plan.
Steps of marketing strategy:
1) defining the target markets
2) determine the strategic positioning
3) developing an appropriate marketing mix for each target market
It determines the amount of advertising in the marketing mix, its creative thrust, and the media to be employed
Positioning
the association of a brand’s features and benefits with a particular set of customer needs, clearly differentiating it from the competition in the mind of the customer.
-Based on consumer perceptions
-for ex. Dove is positioned as a soap to moisturize skin
Positioning strategy
1. Positioning attribute – setting the brand apart by stressing a particular product feature important to customers
2)Price/quality – positioning on the basis of price or quality
3) Use/application – positioning on the basis of how a product is used (ex. Arm&Hammer)
4) Product class – positioning the brand against other products that, while not the same, offer the same class of benefits
5) product user – positioning against the particular group who uses the product
6) product competitor – positioning against competitors, using the strength of the competitor’s position to help define the subject brand
7) Cultural symbol – positioning apart form competitors thru the creation or use of some recognized symbol or icon
8) by category – positioning by defining or re defining a business category
product life cycle
Progressive stages in the life of a product – including introduction, growth, maturity, and the decline – that affect the way a product is marketed and advertised
tactics
also called action programs. The specific short term actions that will be used to achieve marketing objectives.
Tactics are key to bottom up marketing
bottom up marketing
The opposite of standard, top down marketing planning.
Bottom up marketing planning focuses on one specific tactic and develops it into an overall strategy. Used by smaller companies.
relationship marketing
creating, maintaining, and enhancing long term relationships with customers and other stakeholders that result in exchanges of information and other things of mutual value
stakeholders
In relationship marketing, customers, employees, centers of influence, stockholders, the financial community, and the press. Different stakeholders require different types of relationships.
Lifetime consumer value (LCV)
the total sales or profit value of a customer to a market of the course of that customer’s lifetime.
Basic transactional relationship
The company sells the product but does not follow up in any way (ex Target)
Reactive relationship
The company sells the product and encourages customers to call if they encounter any problems (ex. Men’s Wearhouse)
Accountable Relationship
the company phones customers shortly after the sale to check whether to product meets expectations and asks for product improvement suggestions and any specific disappointments. Information helps the company to continuously improve its offering (Acura dealers)
Proactive relationship
the company contacts customers from *time to time* w/ suggestions about improved product use or helpful new products
Partnership
the company works continuously with customers (and other stakeholders) to discover ways to deliver better value (Nordstrom’s Personal Shopper)
synergy
The principal benefit of IMC. An effect achieved when the sum of the parts is greater than that expected from simply adding together the individual components.
Marketing synergy happens when multiple marketing initiatives combine to create an effect greater than the sum of their parts.
endcap promotion
a merchandising method that uses special displays on shelving at the end of aisles in a store.
integrated marketing communications (IMC)
the process of building and reinforcing mutually profitable relationships with employees, customers, the general public, and other stakeholders by developing and coordinating a strategic comm program that enables them to make consecutive contact w/ the company/brand through a verity of media
sources of brand messages
planned, product, service, and unplanned.
planned messages
traditional marketing messages, including advertising, sales, promotion, publicity, and personal selling. these messages have the least impact because they are seen as self-serving
Product messages
messages communicated by a product, its packaging, price, or distribution elements.
service messages
Messages resulting from employee interactions w/ customers. These messages typically have greater impact than planned messages.
unplanned messages
messages that emanate from gossip, unsought news stories, rumors, or major disasters. Companies have little control over unplanned messages, but the messages can dramatically affect customers’ attitudes.
advertising plan
the plan that directs the company’s advertising effort. a natural outgrowth of the marketing plan, it analyzes the situation, sets advertising objectives, and lays out a specific strategy from which ads and campaigns are created.
Advertising Pyramid
Awareness –> comprehension –>conviction –> desire –>action
advertising strategy
The advertising objective declares what the advertiser wants to achieve w/ respect to consumer awareness, attitude, and preference. Advertising strategy describes how to get there. It consists of two sub strategies: the creative strategy and the media strategy.
creative strategy
a written statement that serves as the creative team’s guide for writing and producing an ad
media strategy
a document that helps media planners determine how messages will be delivered to consumers. it defines the target audience, the communication objectives that must be achieved, and the characteristic of the media that will be used for delivery of the messages.
percentage of sales method
a method of advertising budget allocation 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 method
a method of allocating advertising funds based on determining the firm’s goals for a certain share of the market and then applying a slightly higher percentage of industry advertising dollars to the firm’s budget.
example: if mountain dew has an 8 percent share of the soft drink market it should spend 8 percent of the soft drink industry advertising dollars.
objective/task method
a method of determining advertising allocations, also referred to as the budget buildup method that defines objectives and how advertising is to be used to accomplish them. it has three steps: defining objectives, determining strategy, and estimating the cost