Exam 8: Planning Advertising and Integrated Brand Promotion

An advertising plan is designed to create sales strategies for the client in a process that is totally separate from the overall marketing plan.

Which budgeting method monitors the amount spent by significant competitors and then allocates an equal or proportionate amount as its advertising dollars?

The essence and take-away part of an advertising plan is the:

The tension between those who advocate sales objectives and those who push communications objectives precludes a marketer from using both types when developing an overall plan for a brand.

The account planner at an Indianapolis ad agency has done a survey and found that a significant percentage of people already recognize the name of the cold remedy his client is about to advertise.When consumers know that a brand exists and recall its name to some degree, they are demonstrating

Which element is essential to articulating a well-stated advertising objective?

Viewing advertising strictly from a communications perspective restricts marketers to a narrower range of advertising strategies.

Scenario 8-3 After working as an account executive in an advertising agency for 20 years, you've decided to own your own business.You buy Springfield Hardware, a neighborhood hardware store, from a man who has owned and run the business for the past 52 years.He sells the store and all the inventory, with one warning-he wasn't much on paperwork, so there won't be a lot of records to be found.You buy the store and begin to create your ad plan. -(Scenario 8-3) You decide that as soon as you are financially able, you will hire an agency to put together an advertising plan for you.Unfortunately, you realize that even if you do hire an agency, you will still have to provide the agency with statements regarding:

Intentions and expectations for advertising are embodied in the process of setting objectives.

Combining sales objectives with communications objectives:

In theory, of the major options for advertising objectives, most.

Scenario 8-2 Following the announcement that the world's largest e-tailer, Amazon.com, made a profit for the first time since it started business in the early 1990s, the company saw more than 90 percent of its market value disappear as part of the dot-com collapse.It is questionable whether or not Amazon figured out a profitable business model after changing its tune several times over those early years.Then it began circling back somewhat to an earlier focus on becoming the Walmart of the Internet.It said it wanted to sell huge volumes of merchandise cheaply, and in the process eke out enough of a profit to satisfy Wall Street. Although investors had to wait some time for the e-tailer to work out the kinks, and it's uncertain how much longer they'll remain patient, Amazon's mainstay retail business may see further improvements as it grows.As we all have now witnessed, unlike brick-and-mortar retailers who must build new stores, stock them, and hire people to staff them, Amazon has been able to open new stores with minimal additional cost.Some years ago, it reported turning over its inventory 17 times a year-close to double that of traditional retailers at the time.And on average, it reported having gotten paid 32 days before it must pay its suppliers-in essence, providing millions of dollars in cash flow. Information updated for 2011, based on the following initial articles: (David Shook, "Can Amazon Turn Baby Steps Into Strides?," Businessweek Online, February 13, 2002.) (Rob Hof, "Why Amazon Could Keep Flowing," Businessweek Online, January 5, 2005.) -(Scenario 8-2) When dealing with its advertising agency, Amazon wants a strategy that maximizes media expenditures to target the appropriate markets.It is Amazon's primary responsibility to bring forth a well­articulated statement of the brand's , a key concept in reaching and informing the customer through promotion.

The initial section of the ad plan should be a budgeting section that directly states what it will cost to implement this plan.

Scenario 8-5 Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market in several months.In test marketing, many consumers liked the product but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands.Helene Curtis has always used an objective-and-task approach to develop advertising budgets.Due to these research results, the firm must now do a detailed build-up analysis. -(Scenario 8-5) The build-up analysis will also address costs not listed elsewhere, particularly those associated with advertising to the trade and doing specialized research.Which factor does this involve?

A frozen dessert manufacturer surveys consumers, asking them if they plan on buying desserts at one of its outlets soon.What is the manufacturer researching?

Scenario 8-5 Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market in several months.In test marketing, many consumers liked the product but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands.Helene Curtis has always used an objective-and-task approach to develop advertising budgets.Due to these research results, the firm must now do a detailed build-up analysis. -(Scenario 8-5) The advertising agency for Helene Curtis is in the process of doing a build-up analysis.This means it is

Bias is another name for one's subconscious guide for decision making and behavior.

You are the marketing manager for an online merchandiser of a diverse line of casual sportswear, athletic clothing, and outerwear for both men and women.Write a brief memo to your advertising agency.In the memo, explain why you'd like the agency to abandon its recommendation for a share-of-market strategy in creating the budget.Give several reasons why this approach is unfavorable.Then explain why you want the agency to adopt an objective-and- task method.Also, there are four main steps that must be taken to implement this approach after advertising objectives are determined.List as many as you can.(It is not necessary to describe the steps in detail.)

Scenario 8-1 You are owner of a 15-person advertising agency in a major market.You've been invited to pitch the Girl Powerz account, the largest female-only fitness center chain in the region, one that could quickly grow into a national franchise.If you land the account, it will be your biggest revenue producer by far.You'll be able to staff up, move to a nicer space, and buy some decent office furniture.It also will put you, personally, in a position to make a ton of money by selling out to a larger agency some day.Considering the importance of the pitch to Girl Powerz execs, you have decided to spearhead the pitch yourself. -(Scenario 8-1) You announce that you will write the part of the ad plan that contains the crucial information that Girl Powerz execs need to know, even if they remember nothing else.This means you will write the section.

When devising the evaluation stage of ad planning, it is determined how much time the agency has, how it will be graded, and what criteria will be applied when judging its efforts.