Exam 8: Planning Advertising and Integrated Brand Promotion

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) In the past, Girl Powerz has set sales objectives for its advertising.You feel that this doesn't take into account the overall complexities presented in the situation analysis.On the other hand, you don't want to risk alienating a potential client by totally rejecting its current practices.Therefore, you are recommending combining sales objectives with

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) The folks at Girl Powerz initially consider using an advertising budgeting method that identifies a mathematical relationship associating ad dollars spent with sales generated.This would be the

The competition's strengths, weaknesses, tendencies, and any threats they pose are included in the competitor analysis.

Few companies use purchase intent as the criterion in setting ad objectives because it tends to be much less accurate in predicting sales than other factors, such as attitude.

Objectives for advertising are measurable only through quantifiable variables.

In an advertising plan, the ____ is the section in which the client and the agency lay out the key factors that define the current conditions and then explain the importance of each factor.

Minor modifications are common, but every precaution should be taken to avoid having to radically alter a budget after it is submitted.

Failing to address how the expenditures being proposed will actually meet the goals being pursued is a major downfall of the typical advertising budget.In fact, the only budgeting method that specifically relates spending to goals is the

Scenario 8-3 After working as an account executive in an advertising agency for 20 years, you've decided to chuck it all and be your own boss.You buy a neighborhood hardware store from a man who has owned and run the business for the past 52 years-Springfield Hardware.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 hand him a cashier's check, and he leaves without looking back.He heads to a vacation at a Club Med, and you head to an office that hasn't been cleaned in 52 years 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.In fact, you never even want to think about one again.Unfortunately, reality sets in and you realize that even if you do hire an agency, you will still have to provide the agency with statements regarding

Scenario 8-4 American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S.market.Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture.American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. -(Scenario 8-4) The marketers are keenly aware that many budgeting methods fail to address the objectives originally set and relate these to the dollars to be spent.Which budgeting technique does American Express ultimately most likely decide to use, based on this awareness and the information in this scenario?

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

Based on information gathered during various types of analyses, the primary expectations and intentions for advertising are embodied in the process of setting objectives.

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.

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

The industry analysis and market analysis work together to form part of the overall situation analysis.The industry analysis focuses on ____ and the market analysis focuses on ____.

A good advertising plan is the result of combining the knowledge and talents of both the advertising agency and the client.In heading up a team that is creating the marketing plan for a large cosmetics firm, an account manager needs to make sure all goals are met and all responsibilities are assigned.For what issues does the client take primary responsibility? For what elements does the agency take primary responsibility?

The percentage-of-sales approach to advertising budgeting

Share of voice, or share of market, is a method that bases an ad budget on whatever significant competitors are spending.

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?

Of all options for creating advertising budgets, the ____ relies most heavily on a marginal analysis involving the company's past sales, profits, and ad expenditures.