Mcom 341-12 Advertising Plans

1.Advertising Plans

2. Class Objectives
Describe how marketing plans impact advertising plans
Perform a SWOT analysis for an advertising campaign
Discuss 2 types of advertising plans
Understand the 2 elements of an advertising strategy
Evaluate advertisings relationship to sales & profitability
Describe how advertising budgets are determined
3. The Marketing Plan
Assembles relevant facts aboutthe organization, its markets, products, services, customers, and competition
Forces company departments to work together(pro-duct development, production, selling, advertising, credit, transportation) to focus efficiently on the customer
Sets goals and objectives to be attained within specified periods of time and lays out the precise strategies that will be used to achieve them
4. TOP-DOWN MARKETING
Situation Analysis
Example:
Marketing Objectives
Marketing Strategy
Marketing Tactics
Mtn Dew logo:eteamz.com
5. BOTTOM-UP MARKETING
How small companies work and some big ones.
Marketing Results
Marketing Strategy
Marketing Tactics
6. RELATIONSHIP MARKETING IMC
Customers, not products, are the focus
Keys to Building Brand Equity
Know that the customer has choices
Market relationships, not transactions
7. Effect of Marketing Plan on Advertising
Defines the role of advertising within the marketing mix (product, price, place, promotion).
Enables better implementation, control, and continuity of advertising programs
Ensures the most efficient allocation of advertising dollars
Porsche ad:localemedia.comSubaru ad:autospectator.com
8. Situation Analysis: SWOT
STRENGTHS (internal factor):
The positive attributes, tangible and intangible, internal to your organization
Within your control
What do you do well?
What resources do you have?
What advantages do you have over your competition?
E.g. employees with expertise, the best equipment, strong customer base, high quality
Graphic:browselocaljobs.comDescription: articles.mplans.com
WEAKNESSES (internal factor):
The negative aspects of your business that detract from the value you offer, or place you at a competitive disadvantage
Within your control
Areas in need of improvement to effectively accomplish your marketing objectives
E.g. inadequate technology, lack of expertise, poor customer service, bad business location
OPPORTUNITIES (external factor):
The external, attractive factors that represent the reason for your business to exist and prosper
Outside your control
What opportunities exist in your market, or in the environment, from which you hope to benefit?
E.g. growth of product class, lifestyle changes, market trends
THREATS (external factor):
Factors beyond your control that could place your marketing strategy, or the business itself, at risk
Outside your control
What situations might threaten your marketing efforts?
E.g. the economy, government regulation, competition, bad reputation, price increases
12. Group SWOT Exercise: State Farm
Event Marketing
State Farm hired spokesmodels to work the Omaha-Maha Music Festival in Nebraska to help promote State Farms 2010 Insurance campaign. They handed out branded t-shirts, informational flyers, and spoke to attendees about the benefits of State Farm programs.
Photo c/o:attackmarketing.wordpress.com
Billboard (May 2010)
Photo c/o Don Khamlaksana, picasaweb.google.com
14. Print Advertising
USA Today (November 2010).
Refers to Facebook app:
http://www.facebook.com/imconnected
Photo c/o:newsadvertisements.com
Television Commercials
Approach 1:Ask Your Neighbors
People Trust People:
http://www.youtube.com/watch?v=Ve0qs8BZEnk
Carrie:
http://www.youtube.com/watch?v=VoJruVj0MBI&NR=1
Approach 2:Magic Jingle
Magic Jingle Hot Tub: http://www.youtube.com/user/statefarm#p/a/u/2/SauUa5Z4Ihw
Magic Jingle Anniversary:
http://www.youtube.com/user/statefarm#p/a/u/1/I79Jmgb8nyw
Yahoo! Internet Banner Ad
Screen shot from Yahoo!
Social Media
State Farm Nation:
http://twitter.com/statefarmnation
http://www.facebook.com/StateFarmNation
Sports Sponsorships
NFL, NBA, LeBron James, MLB, NCAA, USA Basketball
Win with a Song Contest (NBA):
TV Commercial:http://www.youtube.com/watch?v=AVo9g0vStoM
Game: http://www.scorewithasong.com/
18. Result of SWOT Exercise: State Farm
What did your groups decide?
Strengths:
Weaknesses:
Opportunities:
Threats:
19. Traditional Ad Plan: Advertising Pyramid
People do something related to the product, such as request information, visit a store, buy the product.
Do
People want the product for themselves.
Feel
Persuade people to believe in the product, its value.
Help people understand products purpose, image, position, features.
Learn
Acquaint people with company, product, brand.
3 Dimensions:Time, Dollars, People
20. IMC Ad Plan: Circle
21. Example:iPod
Current iPod product line
First iPod
Current lineup photo c/o Wikipedia.First iPod photo c/oilounge.comAds c/o prblog.typepad.com
22. Advertising Strategy
Creative Strategy:
Defines target audience
States objective of the advertising
Specifies benefits to communicate
Offers support for those benefits
Media Strategy:
Provides direction to media planners
Defines communication objectives
Details how objectives will be achieved through media vehicles
23. Example
Advertising Strategy:
Seattle Chocolate Company wanted to communicate their products benefit: bite-sized moments of decadence and indulgence.
It communicates that benefit via a tongue-in-cheek play on nutrition labeling.
24. Advertising Relationship to Sales, Profits
Consistent Principles:
Increases in market share relate directly to increases in marketing budgets.And market share is a prime indicator of profitability.
Sales generally increase with additional advertising.At some point the rate of return flattens, then declines.
Advertisings impact is brief, so a consistent investment is important.
Graph c/odomusinc.com
25. Advertising Relationship to Sales, Profits
There are minimum levels below which advertising has no impact on sales.
There will be some sales even if there is no advertising.
There are saturation limits above which no amount of advertising can increase sales.
Photo c/o etsy.com
26. Advertising Increases Sales: Old Spice
From Mashable.com:
Old Spice and their marketing agency Wieden + Kennedy launched a campaign in summer 2010 with Old Spice Man Isaiah Mustafa.
Twitter followers sent in questions, and Mustafa answered them via YouTube videos.
http://twitter.com/#!/OldSpice
http://www.youtube.com/watch?v=s5KIYhXa_8E
http://www.youtube.com/watch?v=_-fLV28SkZ8
Sales of Old Spice body wash increased 107% in 1 month.
Article:Old Spice Sales Double With YouTube Campaignpublished July 27, 2010 by Samuel Axon
27. Not So Much: Rozerem
From Pharma Marketing Blog:
In 2006 Takeda Pharmaceuticals launched a direct-to-consumer ad campaign for its Rozerem sleep aid.
http://www.youtube.com/watch?v=wdpOIaGnzvA
The ads were loved by critics and consumers, but sales never took off.
In the first quarter of 2007, Takeda had spent $14 million more on advertising than sales of the medication had generated in revenue.
Content c/o http://www.forums.pharma-mkting.com/showthread.php?t=684
28. Market Share
Percentage of Sales
Objective/ Task
Methods of allocating funds
Ad budget based on % of market share.
Example:Mtn Dew has 8% of the carbonated beverage market, so it should make up 8% of industry ad spending.
Three Steps:
Define objectives
Determine strategy
Estimate cost
Focuses on achievement of specific goals, like increase sales 10%.
Ad budget based on a % of last years sales, this years anticipated sales or a combination of the 2.
Percentages vary by industry:
http://adage.com/datacenter/datapopup.php?article_id=119881

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Mcom 341-12 Advertising Plans