Marketing & Advertising

Planning
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The effect of the marketing plan

on Advertising
It helps managers analyze and improve
all company operations, including
marketing and advertising programs
It dictates the role of advertising in the
marketing mix
It enables better implementation, control
and continuity of advertising programs
It ensures the most effective allocation of
advertising dollars

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Companies have a choice in

how they plan

Top-down marketing
Bottom-up model
Relationship Marketing
Integrated Marketing Communication
Model

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Top Down Marketing

Situation Analysis
Marketing Objectives
Marketing Strategy
Marketing Tactics

Companys SWOT
Derived from Corporate
Objectives
Target market,
Positioning, Marketing Mix
Action Programs

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Bottom Up Marketing
Situation Analysis
Marketing Objectives
Marketing Strategy
Marketing Tactics

Companys SWOT
Derived from Corporate
Objectives
Target market,
Positioning, Marketing Mix
Singular Competitive
Mental Angle

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Relationship Marketing
Creating, maintaining, and enhancing
long-term relationships with customers
and other stakeholders that result in
exchanges of information and other things
of mutual value.
Value defined as:
The ratio of perceived benefits to the price of
the product.
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Relationship levels as a
function of profit margin and
number of customers
Number of Customers

Profit margins
High

Medium

Low

Accountable

Reactive

Basic

Medium

Proactive

Accountable

Basic

Few

Partnership

Accountable

Reactive

Many

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The Integration Triangle

Say
Planned
messages

Confirm
Unplanned
messages

Do
Product, services
messages

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The Advertising Plan

Target
Product
audience Concept

Comm.Media

Ads
Message

Advertising Strategy
& the Creative Mix
Setting Advertising Objectives

Reviewing the Marketing Plan

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The Advertising Pyramid

Action
Desire
Conviction
Comprehension
Awareness

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The Relationship of Advertising

to Sales to Profits

In consumer goods marketing, increases in

market share are closely related to increases in
marketing budget. And market share is the
prime indicator of profitability
Sales normally increase with additional
advertising. At some point however the return
platen plateaus and then declines
Sales response to advertising may build over
time, but the durability of advertising is brief, so
a consistent investment is important

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The Relationship of Advertising

to Sales to Profits
There are minimum levels below which
advertising expenditures have no effect
on sales
There will be some sales even if there is
no advertising
Culture and competition impose
saturation limits above which no amount
of advertising can increase sales

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