CHAPTER 8:
Marketing and IMC
Planning
Copyright © 2013 Pearson Education
Learning Objectives
8-1 Explain strategic planning using a marketing plan.
8-2 Detail the tactical or “bottom up” approach favored by
smaller businesses.
8-3 Differentiate the IMC planning approach from the
tactical.
8-4 Describe the important components of an IMC plan.
8-5 Explain how IMC budgets are determined.
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Exhibit 8-1 Traditional Top-Down Marketing Plan
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Strategic Planning: The Marketing Plan 1
The Marketing Plan
A written guide for the present and future marketing
activities of an organization.
• Dictates role of promotional messages in the marketing mix.
• Enables better implementation, control, and continuity of
campaigns.
• Guides allocation of promotional dollars.
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Strategic Planning: The Marketing Plan 2
The Mission Statement
A short description of an organization’s purpose and
philosophy.
Aspirational and inspirational.
Google’s mission statement:
• To organize the world’s information and make it universally
accessible and useful.
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Strategic Planning: The Marketing Plan 3
The Situation Analysis
A detailed description of a brand’s current marketing
situation.
SWOT analysis:
• Strengths and weaknesses are internal elements.
• Opportunities and threats are external, environmental factors.
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Strategic Planning: The Marketing Plan 4
The Marketing Objectives
The clear, quantifiable, realistic marketing goals to be
accomplished within a defined time period.
• Sales-target objectives.
• Communication objectives.
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Strategic Planning: The Marketing Plan 5
The Marketing Objectives continued
A traditional model for setting objectives: DAGMAR.
• Emphasizes communication objectives.
• Formulate objectives to one of four outcomes:
• Awareness.
• Comprehension.
• Conviction.
• Action.
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Strategic Planning: The Marketing Plan 6
The Marketing Strategy
A description of how the company plans to meet marketing
objectives.
• Define particular target markets.
• Determine strategic position.
• Develop appropriate marketing mix.
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Strategic Planning: The Marketing Plan 7
The Marketing Strategy continued
Approaches to developing positioning strategy:
• Product attribute.
• Price/quality.
• Use/application.
• Product class.
• Product user.
• Product competitor.
• Cultural symbol.
• New product category.
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Strategic Planning: The Marketing Plan 8
The Marketing Strategy continued
Next, determine a cost-effective marketing mix for each
target market.
• Product.
• Price.
• Distribution.
• Communications.
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Strategic Planning: The Marketing Plan 9
Marketing Tactics
• Determine the specific short-term actions to be taken,
internally and externally, by whom, and when.
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Tactical Planning: Small Company
“Bottom Up” Marketing 1
Bottom-Up Marketing
• Especially useful in a
small company.
• Focus on tactic first, then
develop strategy.
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Tactical Planning: Small Company
“Bottom Up” Marketing 2
Bottom-Up Marketing continued
Small company tactics:
• Partner with other local companies.
• Use transit ads.
• Build relationships with local tech groups.
• Use vivid, powerful stories.
• Sponsor, organize, or attend events.
• Organize industry events.
• Get involved in charities.
• Turn users into advocates.
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The IMC Approach to Marketing and
Campaign Planning 1
IMC Approach
• Mix marketing and communications planning together.
• Starts with the customer, works back to the brand.
• Utilizes ever-expanding database of customer behavior.
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The IMC Approach to Marketing and
Campaign Planning 2
IMC Approach continued
Wang and Schultz seven-step planning model:
• Segment customers and prospects in the database.
• Analyze information to understand attitudes, history, discovery of product.
• Set marketing objectives.
• Identify brand contacts and attitude changes required.
• Set communication objectives and strategies.
• Determine other elements of marketing mix that encourage behavior.
• Determine what communication tactics to use.
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Exhibit 8-4 Wang-Schultz Planning Model
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The IMC Approach to Marketing and
Campaign Planning 3
The Importance of IMC to the Study of Advertising
• Advertising people must become enlightened generalists.
• Effective communications can (and should) come from a
variety of media, platforms, and sources.
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The IMC Plan 1
Reviewing the Marketing Plan
• Understand where company is going, how it will get there,
and role of IMC in the marketing mix.
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The IMC Plan 2
Setting Objectives
Understand what campaigns can do.
• IMC objectives should always be related to communication effects.
• “Marketing sells; IMC tells.”
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The IMC Plan 3
Setting Objectives continued
The IMC pyramid:
• First objective: acquaint consumers with company, product, service,
brand.
• Second objective: communicate information so consumers
recognize product in some way.
• Third objective: persuade consumers to believe in product’s value.
• Fourth objective: move consumers to desire product.
• Fifth objective: use measures to get consumers to take action.
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Exhibit 8-5 The IMC Pyramid
The initial message promotes
awareness of the product to a
large audience (the base of the
pyramid). But only a
percentage of this large group
will comprehend the product’s
benefits. Of that group, even
fewer will go on to feel
conviction about, then desire
for, the product. In the end,
compared with the number of
people aware of the product,
the number of people who take
action is usually quite small.
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The IMC Plan 4
Different Ways Consumers Learn About Brands
• IMC pyramid represents learn-feel-do model of effects.
• Impulse buys at the checkout counter may represent a do-
feel-learn model.
• When marketers establish a relationship, the model
becomes a circle, not a pyramid.
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Exhibit 8-6 The Circle Model
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The IMC Plan 5
IMC Strategy and the Creative Mix
Creative mix includes:
• Target audience.
• Product concept.
• Communications media.
• Advertising message.
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The IMC Plan 6
IMC Strategy and the Creative Mix continued
The target audience: everyone who should know.
• Target audience typically larger than target market.
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Exhibit 8-7 Brand Popularity
Dominant brands are the most popular at
each level of purchasing frequency.
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The IMC Plan 7
IMC Strategy and the Creative Mix continued
The product concept: a “bundle of values.”
• To create product concept, company must consider how
consumers perceive product and weigh this against marketing
strategy.
• FCB grid: different levels and types of consumer involvement,
either cognitive or affective.
• Kim-Lord grid: people cognitively and affectively involved at the
same time.
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Exhibit 8-8 The Kim-Lord Grid
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The IMC Plan 8
IMC Strategy and the Creative Mix continued
The communications media: the message delivery system.
• All the vehicles that transmit the marketer’s message.
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The IMC Plan 9
IMC Strategy and the Creative Mix continued
The IMC message: what the campaigns communicate.
• Verbal and nonverbal components of what company plans to say.
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IMC Budgeting Approaches 1
IMC: An Investment in Future Sales
The relationship of IMC to sales and profits:
• In consumer goods, increases in market share closely related to
increases in marketing budget.
• Sales normally increase with additional advertising.
• Durability of advertising brief, so consistent investment needed.
• Some sales occur even without advertising.
• Culture and competition impose saturation limits that advertising
cannot break.
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IMC Budgeting Approaches 2
IMC: An Investment in Future Sales continued
The variable environments of business:
• Economic.
• Political.
• Social.
• Legal.
• Internal.
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IMC Budgeting Approaches 3
Developing an IMC Budget
Percentage of sale method:
• Based on percentage of previous year’s sales, anticipated sales for
next year, or combination of the two.
• Simple method that’s considered safe.
• Difficulty in knowing which percentage to use.
• Ignores strategic structure of marketing.
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IMC Budgeting Approaches 4
Developing an IMC Budget continued
Share of market/share of voice method:
• Links promotional dollars with sales objectives.
• Commonly used for new products.
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IMC Budgeting Approaches 5
Developing an IMC Budget continued
Strategic budgeting: objective/task method:
• Also called the budget buildup method.
• Three steps:
• Define objectives.
• Determine strategy.
• Estimate cost.
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IMC Budgeting Approaches 6
Developing an IMC Budget continued
Additional methods:
• Empirical research involves company running a series of tests in
different markets with different budgets to determine best level of
advertising expenditure.
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IMC Budgeting Approaches 7
The Bottom Line
IMC budgeting methods based on two fallacies:
• IMC is a result of sales.
• IMC creates sales.
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