APR Arens Chapter 7

A written guide for the present and future marketing activities of an organization. Organizes relevant facts about the organization, its markets, products, services, customers, and competition. Lists goals and objectives and describes strategies and tactics to achieve them

Marketing plan

What are the four elements of top down marketing?

Situation analysis, marketing objectives, marketing strategy, marketing tactics

A factual statement of the organization's current situation and how it got there. Presents facts about the company's history, growth, products and services, sales volume, share of market, competitive status, markets served, distribution systems, past IMC programs, and marketing research studies.

Situation analysis

What does SWOT stand for?

Strengths

Weaknesses

Opportunities

Threats

Which parts of SWOT are internal and which are external?

Strengths and weaknesses: internal

Opportunities and threats: external

What is the point of SWOT

Help a business or organization understand its current situation so it can make better decisions.

What is a corporate objective?

Goals of the company stated in terms of profit or return on investment.

What is a marketing objective?

Relates to the needs of target markets as well as to specific sales goals

What is the difference between corporate and marketing objectives?

Corporate objectives are about the company's financial success, while marketing objectives are about how the company connects with customers and grows its market.

What is a need-satisfying objective?

A marketing objective that shifts management's view of the organization from a producer of products or services to a satisfier of target market needs.

What is a sales target objective?

Marketing objectives that relate to a company's sales. They may be expressed in terms of total sales volume; sales by product, market segment, or customer type; market share; growth rate of sales volume; or gross profit.

What is the difference between a need-satisfying and a sales-target objective?

Need-satisfying objectives emphasize customer satisfaction, while sales target objectives emphasize measurable sales results.

What are the types of positioning?

Product attribute: setting the brand apart by stressing a particular product feature important to customers

Price/quality: positioning on the basis of price or quality

Use/application: positioning on the basis of how a product is used

Product class: positioning the brand against other products that offer the same class of benefits

Product user: positioning against the particular group who uses the product

Product competitor: positioning against competitors

Cultural symbol: positioning apart from competitors through the creation or use of some recognized symbol or icon

The specific short-term actions that will be used to achieve marketing objectives.

Tactics

What are the three elements of bottom up marketing?

Marketing results, marketing strategy, marketing tactics

Creating, maintaining, and enhancing long-term relationships with customers and other stakeholders that result in exchanges of information and other things of mutual value.

Relationship marketing

In relationship marketing, customers, employees, centers of influence, stockholders, the financial community, and the press.

Stakeholders

Why is managing loyalty among customers and stakeholders important?

The cost of losing customers is great, as well as the cost of acquiring new customers. Loyal customers add lots of value to a company

What are the 5 levels of relationship?

Basic transactional relationship: company sells the product but doesn't follow up in any way

Reactive relationship: company sells the product and encourages customers to call if they encounter problems

Accountable relationship: company phones customers shortly after the sale to check if product met expectations and ask for comments to help improve

Proactive relationship: company contacts customers from time to time with suggestions about improved product use or helpful new products

Partnership: company works continuously with customers to discover ways to deliver better value

What are the four sources of brand messages?

Planned message: traditional marketing communication messages. Least impact because they are self serving

Product messages: Messages communicated by a product, its packaging, price, or distribution elements. Great impact

Service messages: Messages resulting from employee interactions with customers. These messages typically have greater impact than planned messages.

Unplanned messages: Messages that emanate from gossip, unsought news stories, rumors, or major disasters. Companies have little control over unplanned messages, but the messages can dramatically affect customers' attitudes.

The plan that directs the company's advertising effort. A natural outgrowth of the marketing plan, it analyzes the situation, sets advertising objectives, and lays out a specific strategy from which ads and campaigns are created.

Advertising plan

List the advertising pyramid bottom up

Awareness, Comprehension, Conviction, Desire, Action

Declares what the advertiser wants to achieve with respect to consumer awareness, attitude, and preference. Describes how to get there.

Advertising strategy

What are the two substrategies of advertising strategy

Creative strategy: A guide for those developing the advertising. At minimum, the creative strategy defines the target audience, restates the objective of the advertising, specifies the key benefits to be communicated, and offers support for those benefits

Media Strategy: A document that helps media planners determine how messages will be delivered to consumers. It defines the target audience, the communication objectives that must be achieved, and the characteristics of the media that will be used for delivery of the messages.

Advertising budget is determined by allocating a percentage of last year's sales, anticipated sales for next year, or a combination of the two. The percentage is usually based on an industry average, company experience, or an arbitrary figure

Percentage of sales method

Percentage is applied to profit, either past years' or anticipated

Percentage of profit method

Also called the case-rate method. A specific dollar amount is set for each box, case, barrel, or carton produced. Used primarily in assessing members of horizontal co-ops or trade associations

Unit of sales

Also called the self defense method. Allocates dollars according to the amounts spent by major competitors

Comparative parity

Also referred to as the budget buildup method, this method has three steps: defining objectives, determining strategy, and running experimental tests in different markets with different budgets.

Objective and task