Top-down, Bottom-up and IMC
The Marketing Plan
1. The Importance of Marketing Planning
1. The marketing plan assembles all the pertinent facts about the organization, the markets it serves, and its products, services, customers, competition, and so on. 2. It forces all of the departments-product development, production, selling, advertising, credit, transportation-to focus on the customer. 3. Finally, it sets goals and objectives for specified periods of time and lays out strategies and tactics to achieve them.
2. The Effect of the Marketing Plan on Advertising
1. It helps managers analyze and improve all company operations, including marketing and advertising programs. 2. It dictates the role of advertising in the marketing mix. 3. It enables better implementation, control, and continuity of advertising programs, and it ensures the most efficient allocation of advertising dollars.
3. Top-Down Marketing Planning
1. Situation analysis - factual statement of the organization’s current situation and how it got there. It also:
1. Present all relevant facts about the company’s history, growth, products, sales volume, share of market, competitive status, markets served, distribution system, past advertising programs, results of marketing research studies, company capabilities, strengths and weaknesses, and any other pertinent information. 2. After gathering historical information, on focus changes to potential threats and opportunities based on key factors outside the company’s control: economic, political, social, technological, or commercial environments the company operates in.
2. Marketing Objectives
1. Corporate objectives are usually stated in terms of profit or return on investment-or net worth, earnings ratio, growth, or corporate reputation. 2. Marketing objectives, which derive from corporate objectives, relate to the needs of target markets and to specific sales goals referred to as:
1. Need-satisfying objectives - shift manager’s view of the organization from a producer of products or services to a satisfier of target market needs. 2. Sales-target objectives - are specific, quantitative, realistic marketing goals to be achieved within a specified time period.
3. Marketing Strategy - the total directional thrust of the company’s marketing efforts; a statement of how the company is going to achieve its objectives. A company’s marketing strategy has a dramatic impact on its advertising and it determines the following:
1. Selecting the target market
2. Determining the market mix
3. Positioning the product
4. Marketing Tactics (action program) - determine the specific short-term actions to be taken - internally and externally - by whom and when.
4. Bottom-Up Marketing: How Small Companies Plan
1. The tactic: A singular, competitive mental angle - Advertisers need to find just one tactic and build a strategy around it, focusing all the elements of the marketing mix on the tactic.
The New Marketing Mantra: Relationship Marketing
1. 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 2. Importance of Relationships: the cost of lost customers, the cost of acquiring new customer, and the value of loyal customers 3. Levels of Relationships: Kotler & Armstrong
Using Integrated Marketing Communications (IMC) to Make Relationship Work
A. IMC: The Concept and the Process
1. IMC is both a concept and process. Integration of the elements of marketing mix. 2. The evolution of the IMC concept - integrated marketing communications is the process of building and reinforcing mutually profitable relationships with...