Exam 8: Planning Advertising and Integrated Brand Promotion

Regarding the relationship between the client and agency, things will go most smoothly and efficiently when

Describe the essential difference between an industry analysis and a market analysis.In what section of an ad plan are they typically included? What are the other considerations for an advertiser that should be part of this section? Where does the competitor analysis come in?

Some argue that sales should not be set as an objective for advertising, since advertising is only one variable in an entire marketing mix and cannot be solely responsible for selling the product.

The percentage-of-sales approach to advertising budgeting

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 number of exposures required to accomplish the advertising objectives for the shampoo, referred to as , will also be included in the build-up analysis for Helene Curtis.

A canned soup manufacturer and its agency are nailing down the responsibilities of each side as they begin their planning effort.In a nutshell, the agency will

Within the advertising plan, what does a build-up analysis actually build up?

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) Amazon.com began by facing a myriad of problems since its inception, with perhaps the biggest obstacle being the demise of hundreds of dot-com companies in the late 1990s and early 2000.Those dot-com companies that did survive initially had a difficult time making a profit, and over time a few began to face new competition.The issue as to who will supply online consumers has been continually evolving and changing since then.This type of information would most likely be noted in the section of an ad plan.

Every precaution should be taken to avoid having to radically alter a budget after it is submitted.