ABM-MS210__2_

Teaching Plan

Subject :-

Faculty :-

Prof. M. Yaseen Khan

ALL PROGRESS IS BORN OF INQUIRY. DOUBT IS OFTEN BETTER THAN OVER-CONFIDENCE, FOR IT LEADS TO

INQUIRY AND INQUIRY LEADS TO INVENTION.

Marketing Today

The course aims at making students understanding the concepts, philosophies, process, techniques and principles of Advertising and to develop an

understanding of the Brand concept and the operational aspects of managing a brand.

PEDAGOGY

Total Class Room Lectures

Total Assignment/ Presentation Hrs

Total OTW

34 8 16

ASSIGNMENT-1

–6 OTW & 3Contact Hrs.ASSIGNMENT-2

- 6 OTW & 3 Contact Hrs.CASE STUDY (02)

– 04 OTW & 02 Contact HrsCLASS ROOM LECTURES

- 34Hrs

SR.NO.

UNIT/CONTENT HRS.ALLOTTED

HRS.PLANNED

HRS.INESCAPABLE

1 Role of Integrated Marketing Communication in the Marketing Programme

10 10 11

2 Media Planning: Setting Media Objectives

10 10 7

3 Brand- concept: Nature and Importance of Brand

10 12 10

4 Brand Positioning 12 10 8

  Grand Total 42 42 36

210.1/ Role of Integrated Marketing Programme

Code Unit/Activity Lecture Pract/Pns CASE Total OTWLecture

No.

Unit-1

Role of Integrated Marketing Comm. In the Marketing

Prog.  1      1   1 

MS210.1.1

Process of Marketing Communication 1

Announcement of

Assignment-1 1  26+2=

8 2,3

MS210.1.2

Definition and Scope of Advertising Management 1   1 4

MS210.1.3

Determination of Target Audience; Advertising and Consumer

Behavior 1     1   5

MS210.1.4

Setting Advertising Objectives, DAGMAR 2 2 6,7

MS210.1.5 Determining Advertising Budgets; 1   1 8

MS210.1.6 Advertising Planning and Strategy 1     1   9

MS210.1.7 Creative Strategy Development 1   1   10

  TOTAL 9 1 10 8

210.2/ Media Planning: Setting Media Objectives

Code Unit/Activity LecturePract/

Pns Case Total OTWLecture

No.

Unit-2

Media Planning: Setting Media Objectives 1   1   11

MS210.2.1 Developing Media Strategies 1 1 12

MS210.2.2

Evaluation of Different Media and Media Selection 2   2   13,14

MS210.2.3

Media Buying; Measuring Advertising Effectiveness 1

Submission of  Assignment-1 3+1  

15,16,17,18

MS210.2.4

The Organisation for Advertising 1   1   19

MS210.2.5

Ethical and Legal Aspect of Advertising 1 1 20

TOTAL 7 3 10

210.3/Brand-concept

Code Unit/Activity Lecture Pract/Pns CASE Total OTWLecture

No.

Unit-3

Brand-concept: Nature and Importance of Brand          

210.3.1

Brand-concept: Nature and Importance of Brand 2

Announcement ofAssignment-2  2 6 21, 22

210.3.2 Brand vs Generics; Brand Life Cycle 1   1 23

210.3.3 Brand Name and Brand Mgt. 1     1   24

210.3.4

Brand Identity: Conceiving, Planning and Executing (Aaker Model) 1   1 25

210.3.5

Brand Loyalty, Measures of Loyalty; Brand Equity 1   1  

26

210.3.6 Concepts and Measures of Brand Equity-Cost 1 1 27

210.3.7 Price and Consumer Based Methods 1 1 28

210.3.8

Sustaining Brand Equity; Brand Personality; Definition of Brand Personality 1 1

29

210.3.9

Measures of Personality, Formulation of Brand Personality 1 1

30

210.3.10 Brand Vs Brand Personality 1 1 2 2 31,32

  TOTAL  11 1 12 8

210.4/ Brand Positioning

Code Unit/Activity Lecture Pract/Pns CASE Total OTWLecture

No.

Unit-4

Brand Positioning: Concepts and Definitions  

Submission of  Assignment-2   3   

33, 34, 35

MS210.4.1

Brand Positioning: Concepts and Definitions 1     1   36

MS210.4.2

Celebrity Endorsement, Brand Extension 1     1   37

MS210.4.3

Differential Advantage: Strategies for Competitive

Advantage 1     1   38

MS210.4.4

Brand Pyramid; Branding in different sectors 2     2   39

210.4.5

Role of Information in Brand Management; Role of e-

communities in Brand Mgt. 2 2 40,41

  TOTAL  7 3   10  

Sr.No. Code Unit/Activity

Session ofAssignment

Session ofSubmission OTW MARKS Reference

1 MS210.1.3

Integrated Marketing Communication 3 15 6 20

Annexure-1

2 MS210.3.8

Brand-strength& Brand personality 22 32 6 20

Annexure-2

Annexure-1ADVERTISING & BRAND MANAGEMENT: MS (210)

MBA- IV-SemesterASSIGNMENT -I

Syllabus Ref: 210.1.3 Marks: 20

INTEGRATED MARKETING COMMUNICATION

Requirement

As a Marketing Officer, in Gr. Noida, for:1. Restaurant 2. Tour & Travel3 Beauty Parlour 4. School for Kids5. Hospital 6. Interior Decorator7 Management Institute 8. Readymade Garment9. Furniture Showroom 10. Coaching Centre11. Electronics Outlet 12. Stationery Shop

Develop an integrated marketing communication program to emphasize the USP of the business. Explain the problems as Marketing Officer you encounter in developing the

message and in ensuring that consumers understand the message correctly. Refer to the communication process you studied and also explain what kind noise may interfere with

the communication process.

Guidelines for writing assignment *Hand written, brief answers, not exceeding 6-10 pages are to be submitted in the standard AIMT file cover to Prof. M. Yaseen Khan by 9:30 am on ………., …………..2012. Use both sides of the sheet. *Late submissions will not be accepted and penalized.*Submission of the assignment will be followed by a classroom discussion on the possible solution of the problems given.

Annexure-1IADVERTISING & BRAND MANAGEMENT: MS (210)

MBA-07 IV-Semester

ASSIGNMENT -II

Syllabus Ref: 210.3.8 Marks: 20

BRAND STRENGTH & BRAND PERSONALITYRequirement

Go to a local retail store. Choose five packages that are effective and eye capturing. Describe the reasons they are effective and eye capturing. Do you really consider ‘brand-strength’ of a product when you buy it? Will you buy a prestigious brand,

knowing fully well that you are buying an expensive and an inferior product? Do you really believe that your personality changes as you change the brands you own? And ask yourself does society really confer prestige on people who possess prestigious

brands.

Guidelines for writing assignment *Hand written, brief answers, not exceeding 6-12 pages, are to be submitted in the standard AIMT file cover to Prof. M. Yaseen Khan by 9:30 am on ………………………, 2012. Use both sides of the sheet.*Late submissions will not be accepted and penalized.*Submission of the assignment will be followed by a classroom discussion on the possible solution of the problems given.

SCHEME OF EVALUATION

Evaluation Parameters Marks WeightageWritten Internal Test 50 15

Assignment-1 20 10

Quiz Test 10 5

Assignment-2 20 10

TOTAL 100 40

Marketing Concept and PhilosophyAt its very core are the customer and his or her satisfaction. The marketing concept and philosophy states that the organization should strive to satisfy its customers' wants and needs while meeting the organization's goals. In simple terms, "the customer is king".It is not something that the marketing department administers, nor is it the sole domain of the marketing department. Rather, it is adopted by the entire organization. Wal-Mart's motto of "satisfaction guaranteed" is an example of the marketing concept.

EVOLUTION OF THE MARKETING CONCEPT AND PHILOSOPHYThree major philosophies of marketing- are the product, selling, and marketing

philosophies.

PRODUCT PHILOSOPHYThe Industrial Revolution The product philosophy holds that the organization knows its product better than anyone or any organization. The company knows what will work in designing and producing the product and what will not work. This confidence in their ability is not a radical concept, but the confidence leads to the consumer being overlooked. This philosophy of only relying on the organization's skill and desires for the product lead to poor sales…………..?

Today, the gunsmith shop in Williamsburg, Virginia, still operates using the product philosophy. The gunsmiths produce single-shot rifles using the

technology available during the 1700s. They are only able to produce about four or five rifles every year, and they charge from $15,000 to $20,000 for each rifle. However, the high price does not deter the

demand for the guns; their uniqueness commands a waiting list of three to four years. Today's

Williamsburg Gunsmith Shop situation was typical for organizations operating before the Industrial

Revolution. Most goods were in such short supply that companies could sell all that they made.

Consequently, organizations did not need to consult with consumers about designing and producing their

products.When mass production techniques created the Industrial Revolution, the volume of output was greatly increased. Yet the increased production of goods did not immediately eliminate the shortages from the pre-industrial era.

SELLING PHILOSOPHY• The selling era has the shortest period of dominance around

1930 and stayed in widespread use until about 1950. • The selling philosophy holds that an organization can sell

any product it produces with the use of marketing techniques, such as advertising and personal selling. It assumes that a well-trained and motivated sales force can sell any product.

• Organizations could create marketing departments that would be concerned with selling the goods, and the rest of the organization could be left to concentrate on producing the goods.

• The reason for the emergence of the selling philosophy was the ever-rising number of goods available after the Industrial Revolution.

• Organizations became progressively more efficient in production, which increased the volume of goods.

• With the increased supply, competition also entered production.

• The selling philosophy also enabled part of the organization to keep focusing on the product, via the product philosophy. In addition, the selling philosophy held that a sales or marketing department could sell whatever the company produced.

MARKETING PHILOSOPHY• However, more companies began to realize that it

is easier to sell a product that the customer wants, than to sell a product the customer does not want. When many companies began to realize this fact, the selling era gave way to the marketing era of the marketing concept and philosophy.

• The marketing era started to dominate around 1950, and it continues to the present.

• The marketing concept recognizes that the company's knowledge and skill in designing products may not always be meeting the needs of customers.

• It also recognizes that even a good sales department cannot sell every product that does not meet consumers' needs.

• When customers have many choices, they will choose the one that best meets their needs.

• The marketing concept and philosophy states that the organization should strive to satisfy its customers' wants and needs while meeting the organization's goals. The best way to meet the organization's goals is also by meeting customer needs and wants.

• The marketing concept's emphasis is to understand the customers before designing and producing a product for them. With the customer's wants and needs incorporated into the design and manufacture of the product, sales and profit goals are far more likely to be met.

• The idea of keeping close to the organization's customers seems simple. In reality, it is very easy to forget the customer's needs and wants. Sometimes the management is so involved with the product that their own desires and wants begin to take dominance, even though they have adopted the marketing concept.

• For example:-Many years ago—before there was a Subway on every corner—a college student opened a small submarine sandwich shop near his university's campus. The sub shop was an immediate success. By using the marketing concept, the young entrepreneur had recognized an unmet need in the student population and opened a business that met that need.

Unfortunately, the story does not end at this point. The sub shop was so successful that it began to outgrow its original location after about three years. The shop moved to a larger location with more parking spaces, also near the university. At the new sub shop, waiters in tuxedos met the students and seated them at tables with tablecloths. Besides the traditional subs, the shop now served full meals and had a bar. Within a few months the sub shop was out of business. The owner of the shop had become so involved with his business vision that he forgot the customers' needs and wants. They did not want an upscale restaurant—there were other restaurants in the area that met that need, they just wanted a quick sub sandwich. By losing sight of the customers' wants and needs, the owner of the sub shop lost his successful business.

How Marketing Evolves

Barter

Era

One- on-One Trading

Production

Era

Demand Exceeds Supply

Sales

Era

Supply Equals Demand

Marketing

Dept. Era

Supply Exceeds Demand

Marketing a Sub-sidiary Function

Marketing

Co. Era

Supply Exceeds Demand

Integrated Role for Marketing

PROMOTION MIX

Propagating the distinctiveness of the product and the nature and extent of value it carries by using different methods and media of comm.

a) Personal Selling b) Advertisingc) Sales Promotion d)

Publicity/Public Relation

What are Marketing Communications?

Marketing communications are the means by which firms attempt to inform,

persuade, and remind consumers, directly or indirectly, about the products and

brands they sell.

Modes of Marketing Communications

• Advertising• Sales promotion• Events and

experiences• Public relations and

publicity

• Direct marketing• Interactive marketing• Word-of-mouth

marketing• Personal selling

Communication Platforms

Advertising• Print and broadcast ads• Packaging inserts• Motion pictures• Brochures and booklets• Posters• Billboards• POP displays• Logos• Videotapes

Sales Promotion• Contests, games,

sweepstakes• Premiums• Sampling• Trade shows, exhibits• Coupons• Rebates• Entertainment• Continuity programs

Integrated Marketing Communications (IMC)

• As defined by the American Association of Advertising Agencies, Integrated Integrated Marketing Communications (IMC)Marketing Communications (IMC) “recognizes the value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines—advertising, public relations, personal selling, and sales promotion—and combines them to provide clarity, consistency, and maximum communication impact.

INFORM, PURSUADE & REMIND

INTEGRATED MARKETING COMMUNICATION MIX

• Sum of quality product, attractive and convenient packages, pictures and symbols, the price and terms of sale, attractive store/showroom, and efficient sales-person.

• “ The endeavor of presenting a set of messages to a target market using all the 4Ps of marketing and multiple methods, sources, cues and media, with the objective of effectively conveying the value proposition of a product offer, simultaneously providing for feedback from the market for the improvement and modification of the offer.”

“ A firm is not only a sender of market messages but also a receiver of

market responses.”

INTEGRATED MARKETING COMMUNICATION MIX

PRODUCT PRICE PLACE PROMOTION

Personal SellingAdvertising

Sales PromotionPublicity/Public Relation

Direct Marketing

Marketing Communication Through PRODUCT Cues

The product is a carrier of certain messages. It comm. With consumer through its personality.

Elements of Product PersonalityPhysical features- the material, the size, shape, design, color,

the finish etc. convey something to the buyer. Comm. Can be:-

Visual, Tactile (touch), aroma, performance. The package- First appeal to consumer-color, design, picture,

symbols, labels colors and illustration. Color has great communicative significance.

There are exciting colors, dull, soothing and inviting

color.there are color evoke apetite color that invite sleep. There are colors associated with prosperity, love and romance. There is color of war and aggression and color of peace, colors of festivals and colors associated with mourning. Race, religion, climate, age, education, literacy and when prpoerly used, color is a source of emotinal enjoyment to most people.

The brand name and logo: Soap, Cold Cream, Shampoo, Ponds, LakmeL’Oreal Halo, Sunsilk, Clinic-

All Clear, Dove, Lux, DTH, LCD, Music System, MobileReliance, Samsung, Philips, Nokia, Fast-Food, Soap (Rural) Toothpaste,

MotorcycleMaggi,McDonald,Lifebouy, Colgate, Close,

Hero HondaThe company name communicate.A TATA Product, BPL, RAYMONDS,

• Price-quality equation: Consumers see price as an index of quality.

• Price-status equation: Symbol of prestige or status.

Marketing Communication Through PRICES Cues

Marketing Communication Through PROMOTION Cues

Personal SellingAdvertising

Sales PromotionPublicity/Public Relation

Direct Marketing

Marketing Communication Through PLACE Cues

The Store Image

The Store Level Merchandise

Dove’s Campaign for Real Beauty

Elements in the Communications Process

Field of Experience

Receiver’s

field

Sender’s

field

The Communications Process

Selective attention

Selective distortion

Selective retention

AdvertisingAdvertising

Personal SellingPersonal Selling

Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.

Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.

Sales Promotion Short-term Incentives to Encourage Trial or Purchase.

Public Relations

Direct MarketingDirect Communications With Individuals to Obtain an Immediate Response.

Protect and/or Promote Company’s Image/products.

Personal Presentations.

The Marketing Communications Mix

The Marketing Communications Mix

ADVERTISING

paid, nonpersonal communication regarding goods, services,

organizations, people, places, and ideas that is transmitted through various

media by business firms, government and other nonprofit organizations, and

individuals who are identified in the advertising message as the sponsor.

PERSONAL SELLING

involves oral communication with one or more prospective buyers by paid representatives for the

purpose of making sales.

SALES PROMOTION

• Involves…paid….marketing communication activities

• (other than advertising, publicity, or personal selling) that are intended to stimulate consumer purchases and dealer effectiveness

PUBLIC RELATIONS / PUBLICITY

• Publicity is nonpersonal public relations that is transmitted Public relations includes any communication to foster a favorable image for goods, services, organizations, people, places, and ideas. It may be personal or nonpersonal, paid or nonpaid, and sponsor controlled or not controlled through media but not paid for by an identified sponsor.

AIDS prevention campaign in West Bengal was a unique integrated mass media campaign

What is Advertising?

Advertising is any paid form of nonpersonal presentation and promotion

of ideas, goods, or services by an identified sponsor.

Procter & Gamble’s Advertising History

The Five M’s of Advertising

Steps in Developing Effective Communications (Process)

Identify target audience

Determine objectives

Design communications

Select channels

Establish budget

Decide on media mix

Measure results/ manage IMC

Determination of Target Audience

What to say How to say

When to sayWhere to say

To Whom

The process must start with a clear target audience: potential buyers current users, deciders, or

influencers, individuals, groups, particular publics or the general public

Patterns of Target Market Selection

Patterns of Target Market Selection

Patterns of Target Market Selection

Pepsi used Megamarketing in India

Advertising Objectives

Informative

advertising

Reminder

advertising

Reinforcement

advertising

Persuasive

advertising

OBJECTIVE SETTING

The objectives of promotion may be categorized as stimulating demand and enhancing company image.

• The sequential short-term, intermediate, and long-term promotion goals for a firm to pursue.

Primary demand is an objective when seeking consumer interest for a product category.

Selective demand is a later objective that seeks consumer interest for a particular brand of a product.

DAGMARDefining Advertising Goals for Measured Advertising Results

Russell Colley (1961) developed a model for setting

advertising objectives and measuring the results. This model was entitled ‘Defining Advertising Goals for Measured Advertising Results- DAGMAR.’ DAGMAR model suggests that the ultimate objective of advertising must carry a consumer through four levels of understanding: from unawareness to Awareness—the consumer must first be aware of a brand or company Comprehension—he or she must have a comprehension of what the product is and its benefits; Conviction—he or she must arrive at the mental disposition or conviction to buys the brand; Action—finally, he or she actually buy that product.

Communication Process in DAGMAR Approach

AWARENESS

• The model suggests that before the acceptance of a product by an individual, there is a series of mental steps which the individual goes through. At some point of time, the individual will be unaware of the product or offer in the market. The initial communication task of the advertising

activity is to increase consumer awareness of the product or offer.

COMPREHENSION & IMAGE

• The second step of the communication process is comprehension of the product or offer and involves the target audience learning something about the product or offer. What are its specific characteristics

and appeals, including associated imagery and feelings? In what way does it differ

from its competitors? Whom is it supposed to benefit?

ATTITUDE

• The third step is the attitude (or conviction) step and intervenes between comprehension

and final action.

COGNITIVE- mental image, understanding interpretation

AFFECTIVE- feelings or emotions about the object, idea or topic.

CONATIVE- intentions, actions or behaviour

ACTION

• The action phase involves some overt move on the part of the buyer such as

trying a brand for the first time, visiting a showroom, or requesting information.

Think?• You are a dealer or distributor and want to sell

products of a reputed company. You don't have to worry about the image and perception of the brand. You are just worried that customers might not want to buy from you. And, instead, buy from a competiting shop next to yours dealing with the same kinds of products. In such a case-

• what should be done? • What should be your advertising objective?• Should you have a advertising strategy? • What would be the ingredients of such an

advertising plan? • What should be the budget?

The whole communication process is a bit more complex. And under different circumstances, it may differ slightly, but the basic concept revolves around what is mentioned above. The DAGMAR approach emphasizes the communication task of advertising.

The second important concept of the approach is that the advertising goal should be specific. It should be a written, measurable task involving a starting point, a defined audience, and a fixed time period.

Advertising and Consumer Behavior

• The primary goal of an IMC program is to develop effective methods of informing, persuading reminding and reinforcing

consumer/customer to purchase products. The best way reach the goal is to clearly

understand how a buyer makes the decision to purchase from a particular

vendor/retailer.

Consumer Buying Process:

The decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service.

STIMULUS ProblemRecognition

Information Search

EvaluationOf

AlternativesPurchase

Post-PurchaseBehaviour

DemographicsFactors

Social and Psychological

factors

STIMULUS• A cue (social, commercial, or non-commercial)• Social cue-friends, family, co-workers etc. Interpersonal

source• Commercial cue-Ads, personal selling and sales promotion.• Non-commercial cue-consumer reports, the Govt. Bulletin.

• A drive (Physical) meant to motivate a person• A physical drive occurs when a person’s physical

senses are affected. (Thirst, Hunger & fear) • A person may be exposed to any or all these stimuli.

If sufficiently stimulated, person will proceed to the next stage in the decision process. If not, the person will ignore the cue and delay or terminate the decision process for the given goods, service, organization, person, place, or idea.

Problem Recognition

• Consumer recognizes that the goods, service organization, person, place or idea under consideration may solve a problem of shortage or unfulfilled desire.

• Recognition of Shortage- Repurchase is needed.

• Recognition of Unfulfilled Desire- Consumer becomes aware of a goods, service, organization, person, place, or idea that has not been bought before.

Information Searchwhere the customers go through previous memories and

experiences looking for acceptable ways to meet a need by buying a product. An affective IMC program targets potential buyers as

they are involved in these process. The objective of IMC/Advertising is to find out ways to influence consumer

purchasing decisions.

NEED

WANT

INFORMATION SEARCHStarts with

Internal Search(Mental recalling of product that might satisfy/meet the need)

How it was met in the past

Internal Search

Purchased in the past and satisfied

Not Satisfied/First time Purchasing

Same Purchase Decision

i) Consumer conducts a more complete internal search

ii) Not every possible brand is considered.iii) Product tried, not met the need, left out.iV) Little knowledge about product, left out.v) no. of brands are reduced to a group that is mentally manageable

MARKETERS JOB

• Make sure brand becomes part of the awareness set at least.

• Convincing to bring them into consideration set by different mode of advertisement.

• Obtain high level of brand equity-high quality, reasonable price through attractive and powerful advertising message.

Search Dynamics

Market Partitioning-Identifying the hierarchy

*Brand Dominant Hierarchy-General Motors Cars Pontiac*Nation Dominant Hierarchy-Japanese Cars Toyota Corolla

SUCCESSIVE SETS INVOLVE IN CONSUMER DECISION MAKING

TOTAL SET

AWARENESS SET

CONSIDERATION SET

CHOICE SET

DECISION

External SearchConsumer still feel uncertain about the right

brand to purchase.

SOURCE: Friends, relatives, experts, books magazines newspaper advertisement publicity in-store display, sales people internet radio/TV

How much time consumer spends on?• 1. Ability to search 2. Motivation • 3. Cost/benefit

• The consumer’s goal in making the effort to perform an external search is to acquire information leading to a better, more informed decision.

• The goal of marketers is to provide information that allows consumers to make the right choice. When a consumer has not yet made up his mind it is an ideal time for marketers to influence the decision-making process.

• The key is to provide the right information at the right time.

MARKETERS JOB

Consumer Attitudes

• Mental position taken towards atopic, person, event that influence holder’s feelings, perceptions, learning process and subsequent behaviors.

Attitude can drive purchase decision. Positive attitude improve the propensity to purchase the product.. If consumers like advt. the probability to purchase the product being featured increased.

Three Components

• Affective- the feelings or emotions about the object

• Cognitive- mental images, understanding, and interpretation of the object

• Conative - intention to, action or behavior.

Sequence of Events

A. Cognitive Affective Conative

C . Conative Cognitive Affective

B. Affective Conative Cognitive

Some may feel favorably about topic but not be moved to change their purchasing behavior.

Cognitive Affective Conative Understanding feeling, emotion intention

How to develop? the product name,

colors size

Cognitive Affective Conative

Affective Conative Cognitive

Evaluation Of Alternatives

• The Evoked Set Method

• The Multiattribute Approach

• Affect Referral

New Aspects in Evaluation

• Age Complexity

• Gender Complexity

• Individualism

• Active, Busy Lifestyles

• Cocooning

• Pleasure Pursuits

• Health Emphasis

EVM MODEL

Computer   Attributes    

Memory Capacity=40%

Graphics capability=30% Size & Weight=20% Price=10%

Dell 10 8 6 4

HCL 8 9 8 3

HP 6 8 10 5

IBM 4 3 7 8

Post-Purchase use and Disposal

KEEP IT GET RID OF IT PERMAMNENTLY GET RID OF IT TEMPORARILY

USE IT TOSERVE

ORIGINAL PURPOSE

TRADE IT

STORE IT LEND IT

SELL IT

RENT IT

PRODUCT

USE IT TOSERVE NEW

PURPOSE

THROW IT AWAYGIVE IT AWAY

THROUGH MIDDLEMEN

DIRECT TO CONSUMER

TO BE RESOLD

TO BE USED TO INTERMEDIRIES

Issues to consider in setting advertising budget

• Product Life Cycle

• Market share

• Competitive clutter

• Product Substitutability

Advertising Plan: Budgeting

1.

Setting Objectives

2.

Assigning Responsibility

3.

Establishing Budget

The firm establishes a budget after

considering various requirements such as types of ads, medium,

frequency, and campaign goals. Budget types

• All-you-can-afford

• Incremental

• Competitive parity

• Percentage-of-sales

• Objective-and-task

Setting Advertising Budgets

Affordable Method

Setting Promotion Budget at the Level theCompany Thinks They

Can Afford.

Percentage-of-Sales MethodSetting Promotion

Budget at a Certain % of Current or Forecasted Sales

Competitive-ParityMethod

Setting PromotionBudget to Match

Competitors’ Outlay

Objective-and-TaskMethod

Setting Promotion Budget by Defining

Objectives, Tasks & Costs.

Elements of the Advertising Planning Process

Comparative Advertising

Finance Human Resources

Production Marketing R & D

President

Marketing Research

Advertising Sales Product Planning

The Advertising Department Under a Centralized System

Packaging Strategy

• “Packaging is the least expensive form of advertising”

• “Every package is a 5 second commercial”

• “The package is the product”

Determining Advertising Budgets;

Determining Advertising Budgets;

• Determining Advertising Budgets;

• Advertising Planning and Strategy

• Creative Strategy Development

• Determining Advertising Budgets;

• Advertising Planning and Strategy

• Creative Strategy Development