ADVERTISING AND

PROMOTION MANAGEMENT
[APM]
Birat Shrestha
BBA, August 2018
LACM, KU
3. CRAFTING MARKETING AND
ADVERTISING STRATEGIES
 Marketing Plan
• A marketing plan is a document that serves as
a guide for present and future marketing
activities of an organization
• Marketing plan execution
1. State organization’s mission
2. Situation analysis and environmental scanning
3. Set marketing objectives with SMART criteria
4. Describe strategies that will be used to achieve
marketing objectives with specific target markets
5. Describe tactics or action program (marketing mix
– 4Ps) for implementing the marketing strategy
6. Explain how the effectiveness of the marketing
efforts will be evaluated
7. Propose a budget for marketing activities
 Effect of Marketing Plan on Advertising
• Improves marketing and advertising programs
• Dictates the role of advertising in the marketing mix
• Enables better implementation, control, and
continuity of advertising programs
• Ensures the most efficient allocation of advertising
budget
• Communicates the intended message to the
targeted consumers
Marketing Plan: Top- Down Marketing

Situation Analysis

Marketing
Objectives

Marketing
Strategy

Marketing Tactics
 Situation Analysis
• Description of brand history, sales, market share,
profitability, competitive status, markets served, industry
growth rate, product sales trend, brand rankings
• Organization’s current situation – factual statement
• External market environment scanning – economic,
social, technological, commercial, political
• Prediction of future trends - trend spotting
• SWOT analysis
 Marketing Objectives
• Determination of marketing and advertising budget
• Corporate objectives – profit, ROI, net worth, reputation
• Marketing objectives – derived from corporate objectives
– Communication objectives (need-satisfying)
• Take a broader view of the market - solve customer problems
(Revlon selling hope; Levi’s selling comfort)
• Look through the customer’s eyes - what value are we offering
to our customers? – customer needs-products
• Creating favorable brand image, increased comprehension of
brand's attributes and benefits
– Sales-target objectives
• What are we planning to do for ourselves? – specific, quantitative
goals
• Sales volume – product wise, market segment wise, category wise,
product line wise
 Marketing Objectives
• A traditional model for setting objectives: DAGMAR – its
is Defining Advertising Goals for Measured Advertising
Results - developed by Russel Colley
• The DAGMAR system emphasized communication
objectives – it believed that the proper way to evaluate a
campaign is to determine how well it communicates
information within a given budget, to the target audience
• DAGMAR formulation of the objective for market
planners
– Awareness (knowing the brand exists)
– Comprehension (knowing about the brand’s benefits or
attributes)
– Conviction ( a favorable attitude toward the brand)
– Action (purchasing and using the brand)
 Marketing Strategy
• Selecting and defining the target market
– Market segmentation – gender, age, preference, education, first time or second
time buyers, geographical spread, personality, lifestyle
– Defining the target market – General Motors (college educated import owners and
intenders – highly educated young adults) Mountain Dew (active young people)
• Positioning the product (Al Ries & Jack Trout; David Ogilvy of Ogilvy & Mather)
– How do we want the consumers to perceive the brand
– The place a brand occupies competitively in consumer minds
• Lux: beauty; Lifebuoy: health; Dove: moisturizer
• Mountain Dew – Adventurous
• Xerox from a copier to “the document company”
– Positioning approaches (product attributes, price/quality, use/application/
product class, product user, product competitor, cultural symbol)
• Determining the marketing mix – 4 Ps (product, price, promotion, place)
with an IMC approach (sponsorship, PR, personal selling)
– The choice depends upon target market, market position, and product life cycle
 Marketing Tactics
• Objective (where it wants to go), strategy (intended
route), tactics (the action plan or action program)
• It is the short-term actions to be taken to execute the
strategy
• It is a way devised to fulfill the marketing objectives
• Its kind of by whom? and when? kind of things
• A tactic is a singular, competitive mental angle
• It is planning from the bottom-up
• Advertisers can focus all the elements of the
marketing mix on the tactic
• Advertising campaigns live in the world of marketing
tactics
• Tactics are the key to bottom up marketing
Marketing Plan: Bottom-Up Marketing

Marketing Results

Marketing
Strategy

Marketing Tactics
 Marketing Plan: Bottom-Up Marketing
• It is mainly planned by small companies

• When day to day details come first and there is no time for formal
planning

• Develop a tactic into a strategy

• Focus on indigenous tactic and develop a strategy (Jack Trout & Al Ries)

• New discoveries are made with this reverse method

– When Vicks discovered it put people to sleep, the startegy became to position
NyQuil as a night-time cold remedy

– A home delivery tactic of pizza to a customer who could not collect it became the
strategy of Dominos
 Relationship Marketing
• Transactional to relationship marketing
• Market driven conception – managing strategic
partnership
• Delivering value – perceived benefits
• The importance of relationships
– The cost of lost customers – huge loss
• Life Time Customer Value (LTCV) – profit security
– The cost of acquiring new customers – high
• Defensive marketing costs less than offensive marketing
– The value of loyal customers – customer retention
• Customer’s relationship with the brand
(Classic Coke to New Coke to Classic Coke issue )
 Level of Relationship
• Basic transactional relationship (the company sells the
product but does not follow-up)
• Reactive relationship (the company sell the product and
encourages customers to call if they encounter any
problems)
• Accountable relationship (the company or a salesperson
call the customer shortly after the sale to know if the
product met the expectations and for feedback and
suggestions)
• Proactive relationship (the company call customer time-
to-time with suggestions about new or improved product
or services)
• Partnership (the company works continuously with
customers to discover ways to deliver better value)
 Integrated Marketing Communication (IMC)
• How the Customer Sees Marketing Communications
– Various communications or brand contacts, sponsored or not create an integrated
product in the consumer’s mind
– Consumers automatically integrate all the brand-related messages that they encounter
– The way they integrate those messages determine their perception of the company
– IMC can manage those perceptions and create a superior relationship
• Inside-out view of IMC
– A way to coordinate and manage marketing communication mix (advertising, sales
promotion, public relations, personnel selling, direct marketing)
– To give consumers a consistent message
• Outside-in perspective
– Sees customers as partners in an ongoing relationship
– Recognizes the reference they use
– Acknowledges the whole of the communication system
– Accepts the many ways they come into contact with the company or the brand
 The Four Sources of Brand Messages
- Tom Duncan
1. Planned messages
1. Traditional marketing communication messages
2. Advertising, sales promotion, personal selling, merchandising
materials, publicity releases, event sponsorships
3. They have least impact as they are self serving
2. Product messages
1. Messages from the product, price, or distribution channel
2. Packaging, color, type fonts, imagery, design, & layout
3. Should not be gap between performance & message
3. Service messages - employee interactions with customers
4. Unplanned messages
1. Companies have no control over these messages
2. Gossips, criticisms of the brand
3. W-O-M communication can change consumer attitudes
The Integration Triangle - Messages

Say

Planned
messages

Confirm Do

Unplanned Product,
messages service
messages
Slide Note
IMC Approach to Marketing & Advertising Plan
Wang &Schultz – Seven Step IMC Planning Model (ref Exbh 8-7, pg 248)
1. Segments the customer and prospects in the database by purchase
behavior
2. Analyzes the information on customers to understand their attitudes,
history, and their contact with brand or product (determining the best
time, place, and situation to communicate with them)
3. Marketing objectives based on this analysis – building and maintaining
usage or nurturing brand loyalty
4. Identifies, what brand contacts and what change in attitude are
required to support consumer’s continuance or change of purchase
behavior
5. Sets communications objectives and strategies for making contact with
consumer and influencing her/his attitudes beliefs, and purchase
behavior
6. Decides what other elements of marketing mix can be used to further
encourage the desired behavior
7. Determines what communications tactics to use – media advertising,
direct marketing, publicity, sales promotion, special events
Slide Note
 Advertising Plan
• Reviewing Marketing Plan
– Where the company is going
– How it intends to go there
– Role of advertising in the marketing mix
– SWOT analysis
– Market Positioning
– Marketing mix

• Setting advertising objectives

– SMART
(Specific, Measurable, Achievable, Realistic, Time-bound)
– Understanding what advertising can do
• Advertising should inform, persuade, and remind the
consumers
• Advertising objectives should be related to
communications effects
• “Marketing sells, advertising tells”
Advertising Pyramid: A guide to setting Objectives

Action

Desire

Conviction

Comprehension

Awareness

Slide Note
 Advertising Pyramid: A guide to setting Objectives
• Awareness – Acquaint people (PR and mass media Ads)
– Toyota Prius a hybrid car run on gas & electricity
– Communicate the existence of it to 5,00,000 people who buy foreign economy
cars
• Comprehension, interest and credibility –
Communicate enough information (media Ads, publicity, direct mail,
brochures, events)
– Inform 70% of this people regarding its fuel efficiency & environment friendly
aspects, design, safety, service, image, position & value
• Conviction - Persuade people to believe in the value
– Convince the “informed group” that Prius is a high-quality car, reliable,
economical, status oriented, and fun to drive.
• Desire - Make them move towards the product (good reviews, media
Ads, brochure, sales promotions)
– Invite the “convinced group” to a test drive
• Action – Sell it (direct mail, sales promotion, personal selling in
showroom)
– May request additional information, send in a coupon, visit a store
– Can actually buy it
– Motivate 70% of the “desire group” to visit the showroom for a test drive
 Different Ways Consumers Learn About Brands
• The Advertising Pyramid
– Learn-feel-do model
– Reflects traditional mass-marketing monologue
– Advertising affects attitude and attitude leads to behavior
– True for expensive, high-involvement purchases
• The Impulse Purchases
– POS materials
– Checkout counters
– Do-feel-learn model
– Behavior leads to attitude
• IMC Model
– Database, information about customers
– Where they live, what they buy, their likes, dislikes, etc.
– Marketers can have a dialogue and relationship with customers
– From pyramid model to circle
– Message to customer-feedbacks-message evolve
– Interactive media and brand experience
– Store design, sales promotion, PR
IMC: From Pyramid to Circle
Contact points

Information

Consumer
attitudes / Consumer
motivators behavior

Information

Contact points

Slide Note
Advertising Strategy and the Creative Mix
(Creative Strategy)
• Advertising objective – where it wants to be
– Consumer awareness, attitude & preference

• Advertising Strategy – how to get there

– Blends the elements of creative mix

• Creative Mix
– Target audience
– Product concept
– Communication media
– Advertising message
 Creative Mix: The Target Audience
• Everyone who should know

• Specific people the advertising addresses

• Purchasers, influencers, end-users

• Heavy users, light users

– McDonald’s campaigns are directed towards
kids
 Creative Mix: The Product Concept
• Presenting the product
• The “bundle of values”
• Same product can be marketed to two different TGs
• Considering how consumers perceive the product
• Its about how the advertising presents and positions
the product
• Give consumers the reason to pick it up
• Cognitive involvement (think) & Affective
involvement (feel)
• High involvement or low involvement product
• Emotional value or rational value
• Different product called for different advertising
 The Kim-Lard Grid
Affective involvement (Feel)
Cognitive involvement (Think)

Low High

College Car
Video Camera Shampoo
High
Motor Oil Skin Lotion

Laundry Detergent Greeting Card

Paper Towels Pizza
Low
Bread
Product Concept
Product Concept
 Creative Mix: The Communications Media
• The message delivery system
• Traditional media
– ATL – TV, Radio, Newspaper,
Magazine
– BTL – Stalls, POS materials,
Posters, Boards
• Integrated communication
programs – Internet, video game
characters, product sampling,
special events, endorsement
deals, public relations, personal
selling, sales promotion, direct
marketing and alternative and
ambient media
• Balancing on both ends –
grass-roots and mass-appeal
Slide Note
 Creative Mix: The Advertising Message
• What the advertising communicates
• How the advertising communicates
• Verbal, and non-verbal (visual) message –
Copy, art
– Singaporean girls – Singapore airlines; Golden M - McDonald
• Keeping the brand youthful – Mountain Dew
(Skateboards, Rafting, Athletes, Cheetah),
Pepsi (youths)
• Taking the brand to new heights and appealing
to new segments
– Diesel jeans communicating to youths
– See Portfolio Review – Strategic Use of the Creative Mix (pg 256-258)
Slide Note
The Advertising Message
The Advertising Message
The Advertising Message
The Advertising Message
Marketing and Advertising Planning
• Target Market consideration
• Element of Advertising (Creative) Strategy
Determination
– Product concept to be communicated
– Various media to be used to communicate
– Nature of the advertising message

• The work of the creative team begins

 Advertising Budget
• In the early 1990 after years of growth
US & Canada experienced recession
• Interest rate rose, real estate sales dropped,
home construction slowed, defense spending
cut, unemployment was on the rise, consumer
confidence declined, retail sales sank
• Corporate companies cut down on marketing &
advertising budget taking them as expenses
• Two years later, the government announced that
recession was over
• Sales of those companies were still down, &
those companies had lost market share
• Advertising – not an expense; an investment in
future sales
• The power of advertising is in its cumulative,
long-range, reinforcement effect
• Advertising builds consumer preference and
promotes goodwill and increases product value
 Advertising, Sales, and Profit
• In consumer goods marketing – increase in market share
are closely related to increase in marketing budget –
market share is a prime indicator of profitability
• Sales normally increase with advertising – at some point,
however, the rate of return plateaus and then declines
• Sales response to advertising may build over time, the
durability of advertising is brief, so a consistent
investment is important
• Advertising expenditures below certain minimum levels
have no effect on sales
• Some sales will occur even if there is no advertising
• Culture and competition impose saturation limits above
which no amount of advertising can increase sales
Methods of Allocating Advertising Budgets
• Percentage of Sales
 Determined by allocating last year’s sales, future sales forecast or their
combinations – the percentage is based on industry average of company
experience
 Its shortcoming – it takes advertising as an occurrence of sales

• Percentage of Profit
 Percentage is applied to last year’s or coming year’s
forecasted profit
• Unit of Sale
 It is also called case-rate method
 A specific dollar is set for each sale of case, barrel, carton, bottle, pack
 It is used by traders
Methods of Allocating Advertising Budgets
• Competitive Parity
 It is also called self-defense method
 Dollars allocation as spent by closest competitors
• Share of Market/Share of Voice
 Allocates dollar maintaining the percentage share of industry
advertising to somewhat ahead of desired market share
 A company wanting to maintain a 30% market share will
invest 35% of the industry’s advertising dollars
 Often used for new product introductions
Methods of Allocating Advertising Budgets
• Objective/Task
 It is also called budget build-up method
 Defining objectives
 Determining strategy
 Estimating cost to execute that strategy
 Forces companies to think about their goals
 Appropriate if the results are measurable
 Adaptable to the changing market environment
Methods of Allocating Advertising Budgets
• Empirical Research
– Different budgets for different markets
– Run an experimental tests
– Determine the most efficient level

• Quantitative Mathematical Models

– Computer based programs relied on previous information

• All Available Funds or Residual Method

– Go-for-broke technique
– Used by small firms
– Used when trying to introduce new products or services Assignment
Questions/Answers/Discussions

Thank You/ Best Wishes