Mcom 341-12 Advertising Plans


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Mcom 341-12 Advertising Plans

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