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Unformatted text preview: 11-5-07Marketing and Advertising PlanningTop-Down, Bottom-Up, and IMCWhat is marketing?•The process of developing, pricing, promoting, and distributing a product•To create exchanges that satisfy the needs, wants, and objectives of consumers•Customer-centricityTop-Down Marketing•Situation analysisMarketing objectivesMarketing StrategyMarketing tactics•Traditional approach•Fits for most companies•Appropriate for a new product launching•Step 1: Situation AnalysisoThe organization’s current status and how it got thereCompany – History of company and what the company has/doesn’t haveProduct – strengths and weaknesses of product, and it’s featuresCompetition – how is the product doing in the marketTarget market – what kind of people are buying productoSWOT AnalysisStrengths, Weaknesses, Opportunities, Threats•Step 2: Marketing ObjectivesoConsider corporate objectivesProfit, ROI (return on investment), growth, corporate reputationoNeeds-satisfying objectivesWhat kind of needs; how to satisfy themoSales target objectiveSpecific, quantitative goal within a certain time period•Step 3: Marketing Strategy (more abstract)oHow to achieve the marketing objectivesoDefine the target marketoDetermine the strategic positionoDevelop an appropriate marketing mix (4 Ps)oMarketing strategy determines the role/amount of advertising•Step 4: Marketing Tactics (more specific)oStrategy dictates the intended routeoTactics determine the specific short-term actions to be takenInternally/externally, by whom, whenAdvertising campaigns are marketing tacticsBottom-Up Marketing•Marketing Tacticsmarketing strategymarketing results•Suitable for small companies•Day-to-day; short-term decisions•Focus on a single, competitive tactic1oEx. Domino’s Pizza tactic is that they promise 30min deliver11-7-07Relationship Marketing•“The lifeblood of the business is the customer, not the product”•Creating, maintain, and enhancing long-term relationships with customers and other stakeholdersoEmployees, investors, retailers, etc.•The sale is not the end but the beginning in the relationship marketingoPresale vs. post-sale marketing (post-sale: marketers follow up to see how satisfied customer is)Why Relationships?•Lifetime Customer Value (LTCV)oThing long-term!oWord-of-Mouth (WOM)•Cost of acquiring a new customer is higho5-8 times more expensive than keeping a current customer•Loyal customers are lucrativeo90% of the profit comes from repeat purchasesIMC Broadly Defined•Integrated marketing CommunicationsoThe process of building and reinforcing mutually profitable relationshipsoWith employees, customers, other stakeholders, and the general publicoBy developing and coordinating a strategic communications programthat enables them to have a constructive encounter with the company/brandKey Concepts of IMC•WholenessoEver marketing communication should convey a consistent message•SynergyoEach element of the communication mix reinforces the other for greater effect...
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This note was uploaded on 03/20/2008 for the course ADV 305 taught by Professor Yeokim during the Fall '07 term at University of Texas at Austin.
- Fall '07