L9_SettingObjectives - Lecture 09 Understand marketplace...

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Unformatted text preview: Lecture 09 Understand marketplace/ Identify Market Opportunities Design Marketing Strategy Develop Marketing Communication Program Consumer Segmentation Promotion Company Competition Targeting Positioning q  Set Objectives and Budgeting q  Develop Marketing Communication Strategy q  Creative Strategy q  Media Strategy q  Monitor, Control, Evaluation §  A communications objective is an explicit statement of proposed accomplishments §  We need objectives to: §  Coordinate action across parties §  Guide planning and decision making §  Justify budget requests §  Evaluate completed programs § Objectives should be: §  Specific (who, what, when) §  Time-­‐defined and measurable §  Realistic but challenging §  Consistent with mission and overall goals §  Consistent with internal environmental analysis §  Appropriate in light of opportunities and threats Sales-oriented Objectives • Primary goal is increased sales • Requires economic justification • Should produce quantifiable results Communications Objectives • Increased brand knowledge, interest, favorable attitudes and image • Immediate response not expected • Goal is creating favorable predispositions §  Sales are usually a function of many factors, not just advertising and promotion §  Effects of IMC tools such as advertising often occur over an extended period §  Sales objectives provide little guidance for those responsible for planning and developing the IMC program Mercury Insurance Group Consolidated Edison 5% Use 20% Trial 25% Preference 40% Liking 70% Knowledge/comprehension 90% Awareness ¡  What is adequate level of awareness, knowledge, liking, preference, or convic;on? ¡  No formulas or guidelines Define Advertising Goals for Measuring Advertising Results Awareness Comprehension Conviction Action •  Concrete and measurable communication task •  A specific target audience •  A benchmark starting point and degree of change sought •  A specified time period within which to accomplish the objectives Problems with response hierarchy Sales objectives Costly and time consuming Inhibits creativity ¡  What would be different objec;ves in three different countries? §  Singapore §  Canada §  Vietnam (Hanoi) § Two major budgeting decisions: §  Size of the budget (how much $ to spend on advertising and promotion?) §  Allocation of the budget §  Top-­‐Down approaches: §  The affordable method (how much $$ to spare?) §  Arbitrary allocation (no system) §  % of sales (past, or projected future) §  Competitive parity (match competitors) §  Return on Investment (ROI) §  Bottom-­‐Up approaches: §  Objective and task method §  The objective and task method: 1.  Establish objectives 2.  Determine activities to achieve objectives 3.  Determine the cost associated with each activity in the plan 4.  Sum the cost of all elements ¡  Budge;ng Factors §  Alloca;ng to IMC elements §  Client/agency policies §  Market size §  Market poten;al §  Market share goals ¡  Crea;ve Tac;cs 1 §  Chapter 8: pp. 268-­‐271, 276-­‐282, 288-­‐293 ...
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