Competitive Parity approach Establishes a budget based on the actions of the

Competitive parity approach establishes a budget

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Competitive Parity approach Establishes a budget based on the actions of the firm's closest competitors. This strategy seeks to mirror rivals' changes in promotional objectives to the funding required to achieve specific, objective-related tasks. Objective and task Relies on the matching of promotional objectives to the funding required to achieve specific, objective related tasks New firms often spend as much as they can when initially setting a ___ ___ Promotion budget All available funds Once all other elements of the marketing plan have been funded, this technique allocates remaining resources to promotional activities ___ ___ are Determined By the Marketing Strategy for the Product or Firm. Advertising objectives Advertising Objectives include: ~ New Product Introduction---Build Brand Awareness ~ Establish Brand Preference (Selective Demand) ~ Create and Maintain Brand Loyalty ~ Market Development ~ Build Primary Demand, Industry Sales ~ Increase Product Uses or Rates of Usage ~ Support the Firm's Sales Force ~ Enhance the Firm's Image Several ___ ___ are Typically Combined in the Development of an Advertising Plan. Advertising objectives Advertising Budget Stems from the budget developed in the Promotion Plan. The determination of a specific dollar allocation reflects the costs associated with alternative media and production costs. Media planning
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An advertising strategy most commonly employed to target consumers using a variety of informational outlets. Media planning is generally conducted by a professional media planning or advertising agency and typically finds the most appropriate media outlets to reach the target market. Media Planning Decision-Making Levels (1) The choice of media-type and (2) the selection of specific vehicles within each medium; once appropriate vehicles have been identified, the process of developing advertising schedules and buying media begins. Alternative media available to advertisers TV, radio, newspapers, magazines, outdoor advertising, direct mail; each has strengths and weaknesses depending on the creative requirements of the ad and the nature of the product Television's Distinctive Characteristics Strengths: Combines action and sound. Extensive market coverage. Weaknesses: Very expensive. Viewers' short attention span. Radio's Distinctive Characteristics Strengths: Station formats can provide access to target markets. Weaknesses: Audio only. Very passive medium Newspapers Distinctive Characteristics Strengths: Flexible--short lead times. Concentrated market. Weaknesses: Poor-quality printing. High ad clutter. Magazine's Distinctive Characteristics Strengths: High-quality color printing. Very selective means of access to specific audiences. Long life, good pass-along value. Weaknesses: Less flexible scheduling of ads--long lead times.
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