CHAPTER 7

Marketing and Advertising Planning: Top-Down, Bottom-up,

and IMC

Why Plan?

The Marketing Plan: Has a profound effect on the

organization’s IMC program Helps analyze and improve

all company operations Dictates the role of

advertising in the marketing mix

Enables better implementation, control, and continuity of promotions

Ensures the most efficient allocation of IMC dollars

Relationship MarketingRelationship Marketing: Creating, maintaining and enhancing

long-term relationships with customers That result in exchanges Offering mutual value to all parties

Value: The ratio of perceived benefits To the price of the product

Why are relationships important? The cost of lost customers

Life-time customer value Negative word-of-mouth

The cost of acquiring new customers The value of loyal customers

Positive word-of-mouth

Top-Down vs. Bottom-Up Marketing

Situation Analysis: A factual statement of the organization’s

current situation and how it got there

Marketing Objectives: Corporate Objectives:

stated in financial terms Net Profit, ROI, Growth

Marketing Objectives Derived from Corporate Objectives Relate to:

target market needs Specific sales goals

Need-satisfying objectives Sales-target objectives

Marketing Strategy: How the company plans to meet the

marketing objectives

Marketing Tactics:Specific action plans

Levels of Relationships

Basic transactional relationship: Kmart

Reactive relationship: Men’s Warehouse

Accountable relationship: Ford Dealers

Proactive relationship: CompuServe

Partnership: Gateway

Wang-Schultz IMC Planning Model

Database1. Segmentation Classification2. Brand Connection3. Marketing Objectives4. Brand Behavior Objectives5. Communication Objectives and Strategy6. Market Communication/Contact Tools7. Market Communication/Contact Tactics

See Exhibit 7-7 page 243

Advertising Strategy and the Creative MixCommunication Objective: Tells where the

advertiser wants to be with respect to: Consumer awareness Attitude Preference

Creative Objective: Describes how to get there

Creative Mix: Target Audience Product Concept Communications Media Advertising Message

Advertising Strategy: Blends the elements of the creative mix Tells what to do

Ways to Set Advertising Budgets Percentage of Sales Percentage of Profits Unit of Sale Competitive Parity Share of Market/Share of Voice Objective/Task Empirical Research Quantitative Mathematical Models All available Funds