Increasing Perceived Value
Suppose you would like to move your position on the matrix toward the upper right corner. One way to do this, of course, is by decreasing costs. The other way is by increasing perceived value. Perceived value depends on many things the benefits the product or service provides, how well they are provided, whether the customer correctly perceives how well they are provided, how important the benefits are to the customer, and the brand reputation. Perceived value can be increased several ways, but...
Action Objectives
Action objectives describe actions you would like to see the target customer take as a result of your advertising. This might include product trial, brand trial, brand shift, repurchase, increase usage, or model shift. Action objectives for an advertising campaign are important because they are directly related to your business objectives. Each action objective has an impact on one of the components of profit Exhibit 19.3 . In developing any advertising strategy, you first should determine your...
Substitute Products or Services
Existing substitutes should have been taken into consideration when our product market strategy was developed, so usually they are not the main problem in this category. The substitute products or services that often are a concern are ones that are likely superior to your product or service. Although they are not currently in the market, they are expected in the future. Such products can overhang the market, which means that customers may not buy your product or service while they wait for the...
Key Planning Assumptions
After you have worked through an evaluation of the competitive environment, then you should step back and consider what changes or trends have the potential to have the largest impact on your marketing efforts. Those changes or trends are known as the key planning assumptions. Normally, there should be just three to five key planning assumptions. The temptation is to make a long list of planning assumptions so that every possible event is covered. Unfortunately, such long lists are not very...
Advertising Objectives
The objectives of an advertising strategy are what you would like the customer to do, think, or feel as a result of the advertising. Advertising objectives include both action objectives for your target customers, such as trying the product or repurchasing the product, and intermediate objectives, such as awareness or preference Exhibit 19.2 . Advertising objectives are not the same as the business objectives in your product market strategy such as market share or profitability, but they need...