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  • 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 advertising’s relationship to sales & profitability
    Describe how advertising budgets are determined
  • 3. The Marketing Plan
    Assembles relevant facts about the 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
    Situation Analysis
    Marketing Objectives
    Marketing Strategy
    Marketing Tactics
    Mtn Dew logo: eteamz.com
    How small companies work… and some big ones.
    Marketing Results
    Marketing Strategy
    Marketing Tactics
    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.com Subaru 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.com Description: articles.mplans.com
  • 9. Situation Analysis: SWOT
    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
    Graphic: browselocaljobs.com Description: articles.mplans.com
  • 10. Situation Analysis: SWOT
    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
    Graphic: browselocaljobs.com Description: articles.mplans.com
  • 11. Situation Analysis: SWOT
    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
    Graphic: browselocaljobs.com Description: articles.mplans.com
  • 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 Farm’s 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
  • 13. Group SWOT Exercise: State Farm
    Billboard (May 2010)
    Photo c/o Don Khamlaksana, picasaweb.google.com
  • 14. Print Advertising
    USA Today (November 2010).
    Refers to Facebook app:
    Photo c/o: newsadvertisements.com
  • 15. Group SWOT Exercise: State Farm
    Television Commercials
    Approach 1: Ask Your Neighbors
    People Trust People:
    Approach 2: Magic Jingle
    Magic Jingle Hot Tub: http://www.youtube.com/user/statefarm#p/a/u/2/SauUa5Z4Ihw
    Magic Jingle Anniversary:
    Photo c/o: attackmarketing.wordpress.com
  • 16. Group SWOT Exercise: State Farm
    Yahoo! Internet Banner Ad
    Screen shot from Yahoo!
  • 17. Group SWOT Exercise: State Farm
    Social Media
    State Farm Nation:
    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/
    Photo c/o: attackmarketing.wordpress.com
  • 18. Result of SWOT Exercise: State Farm
    What did your groups decide?
  • 19. Traditional Ad Plan: Advertising Pyramid
    People do something related to the product, such as request information, visit a store, buy the product.
    People want the product for themselves.
    Persuade people to believe in the product, its value.
    Help people understand product’s purpose, image, position, features.
    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/o ilounge.com Ads 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 product’s 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.
    Advertising’s 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.
    Sales of Old Spice body wash increased 107% in 1 month.
    Article: Old Spice Sales Double With YouTube Campaign published 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.
    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 year’s sales, this year’s anticipated sales or a combination of the 2.
    Percentages vary by industry: