chapter seven
Developing
Marketing and
Advertising
Plans
McGraw-Hill/Irwin
Essentials of Contemporary Advertising
Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Objectives_1
 Explain the role and importance of a
marketing plan
 Give examples of need-satisfying and
sales-target objectives
 Explain the difference between
objectives, strategies, and tactics in
marketing and advertising plans
7-2
Objectives_2
 Discuss the suitability of top-down,
bottom-up, and integrated marketing
communications planning
 Describe how marketing and advertising
plans are related
 Explain how to establish specific,
realistic, and measurable objectives
 Explain how advertising budgets are
determined
7-3
The Importance of Marketing Planning
 The marketing plan assembles all the
pertinent facts about
– the organization
– the market it serves
– its products, services, customers, and
competition
7-4
Planning Approaches
TopDown
Model
BottomUp
Model
Integrated
Marketing
Communications
Model
7-5
Top-Down Marketing Plan
Situation
Analysis
Marketing
Objectives
Marketing
Strategy
Marketing
Tactics
7-6
Objectives
 Corporate objectives are stated in terms
of profit, net worth, financial ratios, and
reputation
 Marketing objectives relate to the needs
of the target market and sales goals
– Need-satisfying objectives
– Sales-target objectives
7-7
Marketing Strategy
Step 1: Define the target market
Step 2: Determine the strategic positioning
Step 3: Develop the marketing mix
7-8
Positioning
This ad positions
Tide as an alternative
to detergent with bleach.
7-9
Positioning Strategy
Approaches






Product attribute
Price/quality
Use/application
Product class
Product user
Product
competitor
 Cultural symbol
 A brand’s position
can sometimes be
discerned from its
tagline:
–
–
–
–
BMW
Bounty
Sara Lee
Others?
7-10
Bottom-up Marketing Plan
Marketing Results
Marketing Strategy
Marketing Tactics
7-11
Why are Relationships Important?
 The cost of lost customers
– Lifetime customer value (LTCV)
 The cost of acquiring new customers
 The value of loyal customers
7-12
Levels of Relationships
Partnership
Proactive
Accountable
Reactive
Transactional
7-13
Exhibit 7-3
Relationship
levels as a
function of
profit
margin
and number
of customers
7-14
Integrated Marketing
Communications
The process of building and reinforcing
mutually profitable relationships with
employees, customers, other
stakeholders, and the general public by
developing and coordinating a strategic
communications program that enables
them to have a constructive encounter
with the company/brand through a
variety of media or other contacts
7-15
Integrated Marketing
Communications
A Concept
A Process
7-16
Four Sources of Brand Messages
Planned
Product
Service
Unplanned
7-17
Exhibit 7-4 The Integration Triangle
Say
Planned messages
Confirm
Unplanned messages
Do
Product, service messages
7-18
The Advertising Plan
 Represents an outgrowth of the
marketing plan
 Organizes the marketing plan’s situation
analysis into a SWOT analysis
 Sets advertising objectives
 Determines advertising strategy
 Sets budget
7-19
Exhibit 7-6 The Advertising Pyramid
Action
Desire
Conviction
Comprehension
Awareness
7-20
Advertising Strategy
 Creative Strategy
– Address target
audience
– Restates the
objective
– Specifies key
benefits to be
communicated
– Offers support for
benefits
 Media Strategy
– Defines
communication
objectives
– Describes use of
media and vehicles
7-21
Methods of Allocating Funds






Percentage-of-sales
Percentage-of-profit
Unit-of-sale
Competitive-parity
Share-of-market
Objective task
7-22
Key Terms_1




Action programs
Advertising plan
Advertising strategy
Bottom-up
marketing
 Corporate objectives
 Creative strategy
 Endcap promotion
 Integrated marketing
communication
 Lifetime customer
value
 Marketing objectives
 Marketing plan
 Marketing strategy
 Media strategy
7-23
Key Terms_2
 Need-satisfying
objectives
 Objective/task
method
 Percentage-ofsales method
 Planned messages
 Positioning
 Product life cycle
 Product messages
 Relationship
marketing
 Sales-target
objective
 Service messages
 Share-ofmarket/share of
voice method
7-24
Key Terms_3




Situation analysis
Stakeholders
SWOT analysis
Synergy
 Tactics
 Top-down marketing
 Unplanned
messages
 Value
7-25