aap book final

8/3/2019 AAP Book Final

http://slidepdf.com/reader/full/aap-book-final 1/52

1

Integrated Marketing

Communications Plan

For:

Jordan Prins

Courtney Gossen

Alex Kitson

Jason Greenlee

Craig Baird



3

Table of Contents

Company&SituationOverview.......................................................................................................5

BackgroundInformation..........................................................................................................6 AboutAdvancedAutomotiveProducts...............................................................................7 ExecutiveSummary.....................................................................................................................8 CompanyAnalysis.......................................................................................................................8 CustomerAnalysis.......................................................................................................................9 CoreCompetencyandSustainableCompetitiveAdvantage......................................9 EnvironmentalInDluences.....................................................................................................10 IndustryAnalysis.......................................................................................................................11 CompetitorAnalysis.................................................................................................................11MarketingPlanReview......................................................................................................................14 SituationAnalysis(SWOT)....................................................................................................14

MarketingMixProgram..........................................................................................................15 FCBPlanningModel.................................................................................................................16 ProductLifeCycle.....................................................................................................................17 Scheduling....................................................................................................................................17 CopyPlatform.............................................................................................................................18 TargetMarket..............................................................................................................................21BudgetOverview...................................................................................................................................25 CampaignBudget......................................................................................................................25 AdvertisingStrategies........................................................................................................................27

Objectives......................................................................................................................................27 ChannelsofMedia.....................................................................................................................27

PrintMediaExplanation.........................................................................................................28 Layout&Placement.................................................................................................................29 Advertisingemographics....................................................................................................30 etailSchedule...........................................................................................................................31 Two‐StepApproach..................................................................................................................33 AdvertisingBudget...................................................................................................................34 StoryBoard..................................................................................................................................35 PrintAdvertisements...............................................................................................................36DirectMarketingStrategies............................................................................................................39 Objectives......................................................................................................................................39 Explanation..................................................................................................................................39 MailingProtocol.........................................................................................................................40 RegionalMailingMap..............................................................................................................41 irectMarketingBudget........................................................................................................42 MailingPostcards......................................................................................................................43Internet/InteractiveStrategies....................................................................................................48 Objectives.....................................................................................................................................48 InternetInteractiveExplanation........................................................................................48



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Table of Contents

WebsiteHomepage...................................................................................................................49 SocialMedia.................................................................................................................................50 Internet/InteractiveBudget.................................................................................................51 Homepage.....................................................................................................................................51 FacebookPage............................................................................................................................52 TwitterPage................................................................................................................................52SalesPromotion.....................................................................................................................................54 Objectives......................................................................................................................................54 SalesPromotionExplanation...............................................................................................54 SalesPromotionBudget.........................................................................................................55PublicRelationsStrategies..............................................................................................................57 Objectives......................................................................................................................................57 PublicityStrategy.......................................................................................................................58 Texting4Life.................................................................................................................................58 MediaAdvisory...........................................................................................................................59 PressRelease...............................................................................................................................60 PublicRelationsBudget..........................................................................................................62PersonalSellingStrategies..............................................................................................................64 Objectives......................................................................................................................................64 Explanation..................................................................................................................................64 PersonalSellingBudget..........................................................................................................64Measurements........................................................................................................................................66

TelevisionAdvertising.............................................................................................................66 PrintAdvertising.......................................................................................................................66 irectMail....................................................................................................................................66 InternetAdvertising.................................................................................................................67 OverallMeasurement..............................................................................................................67Conclusion.................................................................................................................................................69

Non‐ImplementedMediaChannels...................................................................................69 Explanation..................................................................................................................................69 Conclusion....................................................................................................................................70 Appendix....................................................................................................................................................71 AppendixI

AppendixII AppendixIII



5

Company Situation and Overview

BackgroundInformation

Themanufacturingofthetirehappenedoveralongtime.In1843,CharlesGoodyearinventedthevulcanizationofrubber.Vulcanizationistheprocessofheatingrubberwithsulfur.Thisturnsstickyandtherawrubberturnsintoapliablematerial,whichcanbeusedtomaketires.In1846,RobertThompsoninventedthepneumatictirethatusesrubberandenclosedairtoreducevibrationandimprovetraction.In1888,Johnunlapstartedusingthepneumatictiretoputonbicycles.Thepneumatictirewastestedonautomobilesin1895,buttheattemptfailed.

However,in1911,PhillipStraussinventedtheDirstsuccessfultireusingacombinationoftirerubberandanairDilledinnertube.Throughtheyearsmanyinventionshavemadethetiremorefeasibleandbetter.CompaniessuchasGoodyear,Michelin,andFirestoneare

masteringtheartoftiremanufacturing.TheyaredoingsowithinventionsthatarenewandbeneDicialtomakingthetirefasterandsafer.In2011,AdvancedAutomotiveProducts(AAP)developedatirethatiscreatedfromauniquetirecompositematerial.IthasauniquetreaddesigntopromotefuelefDiciencyanditisguaranteedtolastfor100,000miles.Thetirescreatesuperiorcomfortwithsmoothhandling.Thetractioncanhandleeveryextremeconditionpossiblesuchastheheat,rain,andsnow.AdvancedAutomotiveProductsiscreatinganewtopofthelinetechnologyforthetireindustry.Thistiretechnologyisleadingthewayintothefutureforautomotivetires.Itisthistechnologythatwillbeginthepathfornewtiremodels.



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AboutAdvanceAutomotiveProducts

AdvanceAutomotiveProductsexiststoprovidecustomerswithhighqualityproductsfortheircustomers.AdvancedAutomotiveProductshasbeencombininginnovationwithpassionforanumberofyearstostayaheadoftheircompetitors.AdvancedAutomotive

Productsareavailableatlocaltirestoresnationwide.Locatedinthelargestcarproducingcityintheworld,etroit,AdvancedAutomotiveProductshasbeendevelopingnewtechnologyforvariousautomotiveparts.

emonstratinginnovation,AdvancedAutomotiveProductshasdevelopedabrandnew,100,000‐milewarranty.Thenewtire‐compositetechnologyisabreakthroughintheentireautomobileandtireindustry.Thetirewasmadesafetodriveinallregionsofthecountry.Thetireperformsinallelementssuchastheheat,rainandsnow.Thetireoutperformsitscompetitorsdemonstratingqualityperformanceandlong‐lastingsigniDicantvalue.

ThedevelopmentofthisnewtireisplannedtoslingshotAdvancedAutomotiveProductsaheadofitscompetitors.ByclearlydeDiningthebeneDitsandeffectivelyadvertisingthisnewtire,AdvancedAutomotiveProductscanbettercatertothetargetmarket’sneeds.AdvancedAutomotiveProductsbelievesinandfollowstheirslogan,“InnovativeProductsforEverydayPeople.”Everyoneinthecompanyknowstheimportanceofstayingaheadofcompetitorsanddevelopinginnovativeproductsfortheordinaryperson.Employeesunderstandtheimportanceoftheproductsbecauseoftheongoingdemand.AdvancedAutomotiveProductsbuildsconsumerconDidencebyemployeesusingtheirownproducts.



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ExecutiveSummary

AdvancedAutomotiveProductsisacompanywhospecializesincreatingnewandinnovativeautomotiveproducts.Theirgoalistostayaheadofcustomersbydevelopinglong‐lastingproducts.KnowingthecreativeinnovationskillsofAAP,theyarerollingouta

newspecialtytireproduct,SmarTred™.Theautomakerindustryregardsitasabreakthroughtoatire‐compositetechnology.IdentifyingandimplementingvariousaspectsoftheIntegratedMarketingCommunications(IMC)Campaign,AAPwillbesuccessfulinraisingmarketshareforthecompany.Theywillattempttocaptureandretainnewcustomersinthemarket.

CompanyAnalysis

AdvancedAutomotiveremainsanactivecompetitorintheautomotiveindustry.BuildingarecognizablebrandhasallowedAAPtomakeanameforitselfintheindustry.AAPis

currentlyfocusingonrollingoutanewtirethatisabreakthroughinthetireindustry.AAPishopingthiswillhelpobtainmanyDinancialandnon‐Dinancialgoals.AAPcontinuestostriveforexcellenceintheautomotivecarindustry.

MissionAdvancedAutomotiveProductshasbeenestablishedtoprovidequality,long‐lastingcarproductsforeverydaypeople.AAPprovidesguaranteeproductsthatcustomerscanrelyon.

Goals Non-Financial

•Increasebrandawareness•EstablishAAPaspromotingsafe‐driving•Increasecustomerbase•Establishcompanyas“communityfriendly”•Increaseresearchanddevelopmentofnewproducts•IncreasewebsitetrafDic

Financial

•Increasetiresales15%byecember,2012•IncreaseoverallproDit10%by2015



8

CustomerAnalysis

CustomersforautomotiveproductsaremadeupofmanycharacteristicsandproDiles.Whoeverownsacarneedstobethinkingaboutongoingmaintenance.Customersarealwaysmonitoringtheirautomobiles.Customersexpectcompetitiveproductsfrom

companies.Thereisaverylargecustomerbaseforautomotivecompaniestoappealto.Eveninaslowereconomy,carsstillneedtobemaintained;whichleadstocustomerspending.Customersexpecttoreceivehighqualityandlonglastingproducts.

CoreCompetencyandSustainableCompetitiveAdvantage

Outlast

AdvancedAutomotiveProductsdevelopscarproductsthatoutlastcompetitor’s products.Whenyougoinlongroadtrips,youfeelateasebecauseyouknowyou

havelong‐lastingproducts.AAPwarrantiesarelongerthantheaveragewarranty.

Outperform

AdvancedAutomotiveProductsaremadetooutperformcompetitor’sproducts.AAP developscarpartsthatperforminmultipleclimatesandconditions.Whenyou aredrivinginuncomfortableelements,youwillfeelsecureyouhaveAAPonyour car.

Outclass

HavingAdvancedAutomotiveProductsonyourcar,youknowyouhaveaproductof highclass.AAPisaffordable,butpositionsitselfasbeinghighclass.Whenyou’re drivingtoapartyorsocialevent,youshouldhaveconDidencebecauseofthehigh classproductsinyourautomobile.



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EnvironmentalInluences

FutureMarketingObjectives

AdvancedAutomotiveProductsstrivestoandcompetesefDicientlyintheautomobile

industry.AAPwilldothismymaintainingthecurrentmarket,addingnewmarkets, andaddingnewproducts.

CurrentMarket

AdvancedAutomotiveProductsunderstandstheimportanceofretainingcurrent customers.Thiswillbeaccomplishedbymaintainingqualityproducts,sending monthlyemailstothecustomerbaserecappingthecompany,theindustry,andcar maintenancetipswouldbehelpfulforbuildingastrongcustomerbase.Also,public relationseventswillbeconductedtocreategoodwill.

NewMarket

AdvancedAutomotiveProductslookstogainnewcustomersbycreating advertisementsthatappealspeciDicallytothetargetmarket,usingsimpleideas withinanoverallcampaigntheme.AAPwillattempttocreatealargercustomer base.

NewProducts AdvancedAutomotiveProductsstrivestostayaheadofcompetitionbyleadingin innovation.CreatingnewproductswillallowAAPtomaintainalargecustomerbase. InnovativeproductswillallowAAPtocontinuewithindustryleadingwarranties

andoffers.

Positioning

AdvancedAutomotiveProductshaspositionedthemselves,andcontinuestostrive forapositionofaninnovativecompany.AAPstrivestobeknownasacompanywho valuessafety.AAPpositionsitselfasanaffordabletireformiddle‐upperclass consumers.AAPstrivesforthepositionofahigh‐qualityproductproducer.

.



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HighCDIandLowBDI

AdvancedAutomotiveProductswillhaveahighcategorydevelopmentindex(CI). CIisanindexthatiscalculatedbytakingthepercentageofaproductcategory’s totalsalesthatoccurinagivenmarketareaascomparedtothepercentageofthe

totalpopulationinthemarket.Thereisgoodmarketpotentialinthetireindustry forthenewSmarTred™tirethathasa100,000‐milewarranty.Thistireislong lastingandenvironmentallysafe.TheSmarTred™tirehasanewtreadthatpromotes fuelefDiciency.Thetreadalsoprovidesasmoothrideforthewholefamily.Thehigh CIisbecauseofthetargetmarketandtheirneedandinterestinbuyingtires

ThenewSmarTred™tirewillhavealowbranddevelopmentindex(BI).BIisan indexthatiscalculatedbytakingthepercentageofabrand’stotalsalesthatoccurin agivenmarketascomparedtothepercentageofthetotalpopulationinthemarket. ThelowBIisbecauseofthecompetitionandbecausetheSmarTred™isanewtire, soitisnotwidelyknown.Also,thereareanumberofwellestablishedtire

companiesalreadyonthemarket.

IndustryAnalysis

Theindustryforcarproductshas,likemanyindustries,beguntobouncebackfromapooreconomy.Customerscontinuetobuyproductsonaregularbasisbecauseitisanecessity.Wear‐outofautomotiveproductsremainscompletelydependentonwear‐outfromusage.Ascustomerskeepdriving,theywillcontinuetoneedtomaintaintheirvehicles

Therearemanycompetitorsintheautomobilepartsindustry.AdvancedAutomotiveProductshastomaintainacompetitiveedgeabovetherestofitscompetitorssuchasNAPA,AutoZone,O’RileyAutoParts,andcardealerships.ThetireindustryalsohasmanycompetitorssuchasMichelin,Goodyear,Bridgestone,Firestone,BFGoodrich,andunlop.ThesemajorcompaniesmakeuptheindustryandcompeteagainstAAP.

CompetitorAnalysis-Tires

Michelin

Withthe“MichelinMan”andthetagline,“ABetterWayForward,”Michelinhasestablisheditselfasoneofthetopcompetitorsinthetireindustry.Michelinhasbuiltastrongcustomerloyaltyovertheyears.Michelinhasbuiltastrongbrandandinternationalmarketoverthemanyyearsofthecompany’slife.Michelinprovidestiresforamultitudeoftirecategories;suchasautomobiles,campers,aviation,andagriculture.



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BFGoodrich

evelopingitselfasasportytirebrand,BFGoodrichhasalsomadeanimpactonthe tireindustry.SpecializingandpositioningBFGoodrichinasportythemehasproved successfulforthebrand.BFGoodrichisabrandsoldbyMichelin,boughtoutin

1988.Thebrandfocusesandpositionsitselfaroundthespeedcharacteristics.

Goodyear

EstablishingarecognizablebrandisagoalGoodyearhasspentmuchtimeandefforton.FamousfortheGoodyearblimps,Goodyearhasmadeitselfknownacrossthecountry.“Moreriven”isthesloganGoodyearhasadoptedtoincreasethebrand.SimilartoMichelin,GoodyeardevelopsmanytypesoftiressuchasPassengervehicle,commercialtrucks,ATVtires,racingandaviation.Goodyearhasalreadyestablishedthecredibilityintheindustry.Theyalsohaveacquiredunloptirestoincreasemarketshare.

Dunlop

BrandedunderGoodyear,unloptireshavebeensuccessfulinthetire industry.unlophaspositioneditselfasaquality,ordinarytireforeverydaypeople. unlophasdevelopedasimple,yeteffectivebrandreachingcommonpeople.

Bridgestone

Bridgestonebasestheirslogan,“YourJourney,OurPassion.”Bridgestonehasdevelopedacustomer‐friendlybrand,producingtiresformanyautomobiles,commercialtrucks,motorcycles,andagriculturalvehicles;whichhasallowedBridgestonetobecomesuccessfulinthetireindustry.BridgestoneexpandedandboughtFirestonein1988.ThisacquisitionhasallowedBridgestonetocontinuetogrowandgiveitmoremarketshare.

Firestone

OriginalsupplierofFordMotorCompany,Firestonehaspositioneditselfona traditionaltheme.Customersseethiscompanyasreliable.Firestonehasbeen creatingcustomerloyaltyformanyyears.AcquiredbyBridgestone,Firestonebrand hascontinuedtomakesalesinthemarket.



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Marketing Plan Review

SituationAnalysis(SWOT)

Strengths

AdvancedAutomotiveProductshasalreadyestablishedacustomerbase.AAPis innovativeincreatingnewproducts.ThenewtechnologyallowsAAPtogivelonger warranties,whichincreasescustomerawareness.

Weaknesses

AdvancedAutomotiveProductsalsoassomeweaknessesintheautomotiveindustry. First,ithasnoforeigninvolvement.Second,relativetocompetitors,AAPis somewhatsmall.Also,AAPhaslackedastrongidentiDiablebrand.

Opportunities

AdvancedAutomotiveProductshasfavorableopportunitiesinfrontofthem.AAP hasbeendevelopinginnovativeproducts.Thetechnologytheyusecandevelop brandidentity.AAPcancreatemoreproductlinesfordifferentautomobile speciDication.AAP’snewtirecanhelpthemgrowmarketshareintheautomobile industry.

Threats

AdvancedAutomotiveProductsrealizesthethreatsatstake.Therearemanywell distinguishedcompaniesalreadyestablishedintheUnitedStates.Also,consumers mightnotrespondtothenewproductthatAAPhasdevelopedbecauseitisnewand itsuncertaintyishigh.Lastly,thereisaneconomiccrunchthataffectsthemarket.



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MarketingMixProgram

AdvancedAutomotiveProductsproductmixconsistsoffourparts.Theyallworktogetherasawholetoassisttheproduct.Thefourproduct‐mixelementsareproductstrategy,pricestrategy,pacestrategy,andpromotionstrategy.

ProductStrategy

ThestrategyforAdvancedAutomotiveProductsistosellinnovative,new,and provenautomobileproducts.Customerswillbeabletotrustthequalityofthe products,knowingtheyaresupportedbyhonestwarranties.AAPsellsalarge varietyofproducts.Thenewestbeinganinnovativetiremadeupoftire‐composite technology.TheSmarTred™tireismadefordurability,withtheabilitytoperformin theelements.Thetireismeanttoallowforcustomerstohaveonelessmaintenance proceduretoworryabout.

PromotionStrategy

PromotionsareAdvancedAutomotiveProductswaytogainmoresalesand increasecustomerloyalty.Promotionswillraisecustomerawarenessfornew products.Aneffectivepromotionsstrategywillbeimplementedtostay competitiveandcontinuetogrowrevenue.AAPwillprimarilyuseconsumer orientedpromotions.Thegoalofthestrategyistoeducateconsumersaboutthe newproduct.

PlaceStrategy

AdvancedAutomotiveProductsarelocatedinpopulatedcitiesthroughoutthe country.Theybelievethiswillcreatethelargestcustomerbasepossible.Tiresfrom AAParealsoplacedinpopulardistributorssuchasSam’sClub,WholesaleTires,and TiresPlus.However,sincethisisanewproduct,itwillbeplacedinalimited numberofsites.Thiswillallowtimetoanalyzeproductsuccesswithoutlosing money.

PriceStrategy

AdvancedAutomotiveProductshasbeencreatingnewandinnovativeproducts forcustomers.Customersunderstandthequalityoftheproduct,andwhattheyare getting.Tostayaheadofcompetitionandcontinuetopromotenewandinnovative products,AAPhastochoseahigherpricethaneverydaytireswhichfallintothe categoriesoflower‐price,lowerwarrantytires.Sincetheelasticityfortiresinshort andlongtermisapproximately1,raisingandloweringpricescomparedtothe originalpricewillnotincreaseproDits.Initially,thepricewillbefollowinga skimmingstrategytorecoverthecostofdevelopment.



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FCBPlanningModel

AdvancedAutomotiveProductshasdevelopedatire,whichhasfallenintotheDirstquadrantonthefootcone&beldinggrid.Thisindicatesthattiresarehighinvolvementandhighthinkingproducts.Thisleadsconsumerstofollowthe“learn–feel–do”process.



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ProductLifeCycle

AdvancedAutomotiveProductsisintroducingthenewSmarTred™tire.TheSmarTred™isintheintroductionstageinwhichmarketingeffortsareaimedatcreatingconsumerawarenessstimulatingtrial.AAPmustspendmuchonadvertisingtoachievethesegoals.

Theproductwillfollowtheguidelinessetoutinthemarketingmixtobecomesuccessful.Thenewtirewillfollowtheshapeofproductlifeofhigh‐learningproductlifecycle.

Scheduling

Afterconductingextensivetargetmarketresearch,AdvancedAutomotiveProductswilllaunchitsinnovativetirecampaignstartinginearlyspring.AAPwilluseacombinationofpulsingandDlighting.Startinginearlysummer(May‐June)willallowforAAPtostartraisingawarenessandknowledgefortheproduct.Thegoalistogainalargeamountofreachinitially.uringthefall(July‐October),advertisingwillincreasetopromotelikingandpreference.StartinginAugust,AAPwillincreaseadvertisementswiththegoalofconvictionandbuyinconsumers.InNovember,advertisementswillstopforthatyear.Thisschedulingstrategywillbethemosteffectivebecauseofconsumerbuyingpatterns.iscoveredinresearch,consumersbuytiresmostfrequentlyinthefall.Theadvertisements,joinedwith

promotion,publicrelationefforts,anddirectmarketing,willbeaneffectivestrategytomeetthecampaignobjectives.[AdetailedschedulewillbeincludedintheAdvertisingsection.]



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CopyPlatform

ProblemBeingAddressed

TheprimaryproblemthatAdvancedAutomotiveProductswillfaceisattainingsales

inthebrandnewproduct.Sincethemarkethasneverseenanythingofthis magnitude,AAPwillhavetoprovethetiresdurability.AAPhastocommunicatethat factthatthetirehasbeenproventolastintheelements.AAPneedstocreate awarenessofthetireaswellascreateconsumerconDidenceintheirproducts.

AdvertisingandCommunicationsObjectives

AdvancedAutomotiveProductshastocommunicateandadvertisesuccessfully.AAP

hastoprovetoconsumersthatthistiremeetstheconsumers’needs.Advertising andcommunicationsobjectiveswillattempttocreatemediawhichconsumerswill formattitudes,gainknowledge,choosepreferences,feelconvictions,anddevelopa purchasebehavior.Theprimaryobjectiveistogainawarenessforthenewproduct.

TargetAudience

Thetargetmarketfortiresisverylarge.AdvancedAutomotiveProductswillbe

selectingaspeciDicsegmentationforthenewSmarTred™tire.Themarketwillbe higherincome,educatedadultmaleswithfamilies.Thismarkethasbeenselected becauseofthehighercostforproducingsuchatechnologicalsavvytire.Therewill

alsobetwosegmentedtargetmarketsthatadvertisementsmayappealto.

MajorSellingIdeas

ThemajorsellingideasfortheSmarTred™tireisthenewtirecompositetechnology.

Becauseofthisnewtechnology,AdvancedAutomotiveProductscanoffera100,000‐ milewarranty.AAPisalsosellingtheideaofthetiretreadofferingfuelefDiciency. Also,thetireallowssuperiorhandling.Lastly,thetirehastractionforall drivingconditions.



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CreativeStrategyStatement

TheprimaryfocusfortheadvertisementsisscientiDicandtechnologicalevidence.

Thiswillbeincorporatedtocommunicatethehighlytechnicaladvancesinthetire. AdvancedAutomotiveProductswillincorporateanewlogotopromotebrand

identity.ThislogowillbepresentsinallsegmentsintheIMCcampaign.Thetirewas giventhenameSmarTred™.ThisisaplayonwordstohighlightthefuelefDiciencyof thetireandhowlongitwilllast.Thesloganfortheadvertisementsis,“Where RubberMeetsIntelligence.”Thishighlightsthehighleveloftechnologythetire possesses.Toaccomplishthemessageofadvertisements,AAPwillstrategically implementasymbolintotheadvertisements.Thesemanticsareofascientist,doing testsonthetiretomakesureit’sdurableandwillwithstandtheelements.The messageisthatthetirewilllastforalongtimewiththenewtechnology.

Logo

TheLogoforAdvancedAutomotiveProductsconsistsoftworacingDlags.TheDirstis agreenDlagwiththeemblemofthecompany,andthesecondisacheckeredDlag. Thecolorsusedinthelogoaregreen,silver,andblack.Inracing,thegreenDlag meansthedriversarefreetogoandthattheraceison.ThecheckeredDlagmeans thatthewinnerhascompletedtheraceandcrossedtheDinishline.Themeaning behindthelogoisfairlystraightforward: AdvancedAutomotiveProductswillgetyoufromstarttoDinish,andnotonlythat, butyouwillbeaheadofthecompetition,theDirsttostart,andtheDirsttocrossthe Dinishline.



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TireNameExplanation

ItissuggestedAdvancedAutomotiveProducttousethename,SmarTred™.Thenamewaschosentohighlightthecompositematerialwhichthetireismadeofandtheindustry‐leading100,000‐milewarranty.Inthisname,the“SmarT”represents

thetire’suniqueintelligence.Thissectionofthenamealsoconveysintelligenceinbothmaterialandwarrantytotheconsumer.Asaresult,theconsumerisabletotrustandbedrawntothisnewtireproductbecauseofitsdurabilityanddesign.Thesecondpartofthename,“Tred”alsorepresentstheinnovativematerialfromwhichthetireismade.AnotheressentialaspectofthissectionofthetirenameistheuniquetreddesignwhichpromotesfuelefDiciency.Inaneconomywherefuelisahighlyinelasticgood,themoremoneyAdvancedAutomotiveProducts’customerscansavefromnotbuyinggasolineasoften,thebetter.ThiscomponentofthetiredesignisessentialbecausethetargetmarketexpressedtheneedandwantforamorefuelefDicienttireproduct.Thisisamainreasonforthenecessarydesignandadvertisingofthisnewtire.

TireSloganExplanation

WhencommunicatingtheproductbeneDitsandspeciDicationstotheconsumer,itis importanttomakesurethereisasloganforthecompanyandtheproductinorder tocreatebrandrecognitionwithinconsumers.ThesloganfortheSmarTred™tireis “WhereRubberMeetsIntelligence.”Thiscreativesloganrepresentsthe implementationoftheadvancedintelligencewhichisincorporatedinevery SmarTred™tireproduced.Also,thisnewslogantobeadoptedbyAdvanced Automotiveproductsrepresentsthebeginningofanewandinnovativeproduct

whichwillbetheleaderofthetiremarketbecauseofitsrevolutionarydesignand uniquetechnologyusedtocreatethetire.

CompanySloganExplanation Companyslogansarealsocrucialinadvertisingpractices.Thecompanysloganfor AdvancedAutomotiveProductsis“InnovativeProductsforEverydayPeople.”This newsloganforAdvancedAutomotiveProductexplainstoconsumershowAdvanced AutomotiveProductsprovidesexceptionalproductsforeverydaydriver.Thisslogan alsorepresentstheinnovativeandindustry‐leadingproductsAdvancedAutomotive Productsprovidestotheirvaluedcustomers.Whenthetwoelementsofthisunique sloganarecombined,itprovidesconsumerwithabrandimagewhichispositiveand accurateoftheproductsAdvancedAutomotiveProductsprovides.Thisnewslogan willalsoallowAdvancedAutomotiveProductsadvertisetheircompanyfroma positiveandsociallyresponsiblepointofview.



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CharacterExplanation

AdvancedAutomotiveProductswillalsoincorporate acompanysymbol.Areallifecharacterwillbethe maincharacterinalltheadvertisements.This characterwillbeascientistwhoconductstestson

thetiretomakesureitisaqualityproduct.Thegoal istocreateafaceimagethatconsumerscanidentify andrelateto.Thecharacterwillbuildtrustin consumerstodeveloparelationshipforsustained sales.

TargetMarket

AdvancedAutomotiveProductsistargetingthoseinneedofeverydaytires.Themaintargetmarketislocatedthroughoutthreedifferentregions:thesouthwesternregion,northernregion,andthesoutheasternregion.Withineachregion,allstatesarebeingtargeted.

AdvancedAutomotiveProducts’targetmarketcanbedividedintothreedifferentsegments.TheDirstandprimarymarketsegmentiscomposedofmostlycollegegraduateswithabachelor’sdegree.Theyareintheworkforceandhaveanincomeof$70,000.Individualswithinthe“familyman”demographichaveaspouseandthreechildren,andtheusualfamilycarisamid‐sizedsportutilityvehicle(SUV).Also,membersofthisdemographicwatchtelevisiononanightlybasisandaresubscriberstodifferentformsofautomotivemagazines(i.e.Carandriver,MotorTrend,Automobile,etc.)Peoplewithinthismarketsegmentalsoenjoygoingonlongroadtripswithfamilytovisitrelativesandgoonvacations.

ThesecondmarketsegmentcontainsindividualsfromtheBaby‐Boomerbirthinggenerationandisinthemiddletoupperclass.Theseindividualshaveanincomethatrangesbetween$50‐75,000orhigher.Theseindividualshaveestablishedtheircareersoveralongperiodoftimethroughgenuinehardwork.Thissegmentofthetargetmarkethasacollegedegree,orfurther/continuingeducationdegree(orequivalent).Theindividualsmentionedinthismarketsegmentareoftenmarriedwithchildrenwhoarebecomingmoreindependent.Therefore,theparentsofthesefamiliesareabletolivealifestyleaccording

moretotheirwants.ThemaninthishouseholdisalsoacarenthusiastandenjoysspendingtimeDixingandrestoringcars.Thistypeofcarenthusiasminthistargetmarketisthemainfocusoftheadvertisingtothistargetmarket.ThistypeofindividualsappreciatesthequalityproductsprovidedbyAAP.ThroughtheSmarTred™tire,theseconsumersappreciatethedurabilityandfuelefDiciencypropertiesofthetire.ThroughtheconsumerpurchasingtheSmarTred™tire,heorshewillDindthathisorherneedsaremetinanexceedingfashionbyAAP.



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Thethirdmarketsegmentiscomprisedofindividualsbetweentheagesof20‐35.Theseindividualsaremostlysinglemalesandfemales.Theseindividualsreceivesalariesbetween$20,000and$50,000,andareworkingonadvancingtheircareerandreceivingrecognitionintheirrespectiveworkDields.Theseindividualsaremostlysingleandenjoyanactivelifestylethroughdifferentathleticandsocialevents.ThissectionofthetargetmarketisconsideredbornintotheGenerationYbirthingera.WhenconsideringtheSmarTred™tire,theseconsumerswillbeseekingafuel‐efDicienttirethatwillbeeffectivetotheirdrivinghabits.TheSmarTred™tirewillmeetandexceedthisconsumersneeds,provingwhyAAPprovidedinnovativeproductsforeverydaypeople.

ThesemarketingsegmentsarevitaltothemarketingoftheSmarTred™tire.Thesemarketsegmentswerediscoveredthroughnumeroussurveysconductedduringvarioustimesoftheweek.Throughdoingsurveysofconsumerpreferencesandadvertisingtechniques,thePinnaclewasabletoformulateamarketingplan,whichisbuiltaroundtheconsumer.Overall,withsuchawidetargetmarket,theindividualsinthetargetmarketingisanywherefromonetoDivepersonhouseholds.Theirhousingoptionsspanfromrentingtoowningtheirhomes.ItiscrucialtohaveasuperiorandextensivereachwiththeSmarTred™tire,thishasbeenaccomplishedwithsuperioradvertisingandmarketingtechniques.



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IndividualsintheTargetMarket

Markisacollegegraduatewithabachelor’sdegree.Heisin

theworkforceandhasanincomeof$70,000.Markismarried

andhasthreechildren.Mark’sfamilycareisamid‐sizedSUV.

Hejustcelebratedhisforty‐Difthbirthday.Marklivesinthe

suburbswithhisfamilyofDive.Markwatchestelevisionona

nightlybasisandisasubscribertoCarandriverMagazine.

Markenjoysgoingonlongroadtripswithhisfamilytovisit

relativesandgoondrivingvacations.

Steveisalsoanothervitalpartofthetargetmarket.Steve

isanavidcarenthusiastandlovestheproductsAdvanced

AutomotiveProductsprovides.Steveisbetweentheages

of35and55yearsofage.Stevereceivesanannualincomebetween$50,000and$75,000.Stevealsohasestablished

hiscareeroveralongandsuccessfulperiodoftime.Steve

enjoysputtingmoneyintohiscarsbyDixingandrestoring

variousvehicles.Stevealsohasafamilyandwhenheis

notworkingonrestoringandDixinghisvehicles,heenjoys

relaxingwithhisfamily.Steve’schildrenarestillinschool.

SteveisbrandloyaltoAdvancedAutomotiveProducts

becausetheirconstantpursuitofsuperiorautomotive

products.SteveisimportanttotargetwiththeSmarTred™

tirebecauseheappreciatesthetire’sdurabilityandfuel

efDiciencyproperties.

CynthiaisasigniDicantpartofthetargetmarket.Cynthia

isasingleindividualbetweentheagesof20and35

yearsofage.Shereceivesanannualincomebetween

$20,000and$50,000.Cynthiaenjoysparticipatinginan

activelifestyleincludingvarioussportsandspending

timewithfriendsbyrelaxingontheweekends.Cynthia

holdsafull‐timepositionandisworkingonadvancing

hercareer.EventhoughCynthiadoesnothavethe

highestincome,sheiswillingtoworklonghoursin

ordertogainrecognition.AAPproductsbestsuit

Cynthia’sneedsbecauseofthehighfuelefDiciency

propertieswithinthetires.Cynthiaalsoappreciatesthe

highqualityproductAdvancedAutomotiveProducts

offertotheeverdayconsumer.



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Budget Overview

CampaignBudget

TheIMCcampaignbudgetisalsoimportanttoidentifyandclearlydeDine.Sincethe

SmarTred™tireisnewtothemarket,it’sintheawarenessstageoftheproductlifecycle.OneoftheprimarygoalsofthecampaignistoraiseawarenessofthenewSmarTred™tire.Todothis,mostofthebudgetwillbespentonadvertisingtocreatethelargestreachpossible.Advertisingwillconsume$1,303,950.10ofthebudget.Thiswillbeallocatedtotelevision,magazines,andnewspapers.Televisionwillmakeup$541,958ofthebudget.Magazineswillmakeup$645,434ofthebudget.Newspaperswillmakeup$116,558.10ofthebudget.irectmailwillaccumulate$44,800towardstobudget.PublicRelationswilluse$48,926ofthebudget.Promotionswillcost$1690.88.Internetwillcost$100,000.Personalsellingwillcost$630.Thetotalcampaignbudgetspentis$1,499,996.00.

IMCCam aignBudget

Advertising $1,303,950.1

DirectMarketing $44,800

Internet/Interactive $100,000

PublicRelations $48,926

Promotion $1690.88

PersonalSelling $630

Total $1,499,996.98



23

Advertising

Objectives

• Toeffectivelyreachdifferentsegmentsofthetargetmarketbystrategicallyplacing

advertisementsinkeyprintresourceswherethetargetmarketwillregularlybeexposedtotheproduct.

• Usingsuperioradvertisingtechniquesbyusingcolorsandlayoutstrategiestoenticetheconsumerwithinthekeytargetmarket.

• UsingvariousformsofprintmediaandbroadcastmediaincludingavarietyofNewspapers,magazines,andtelevisiontoappealandcreateawarenessforthetargetmarket.

ChannelsofMedia

Pinnacleproposestheuseofthreemainformsofadvertising.SincetheSmarTred™tireisnewtotheindustry,informingandeducatingthemarketisahighpriority.ThiswasdecidedbaseduponastudyofmediainvolvementconductedbyBetaResearch.ThisinformationreDlectshowconsumersgetknowledge,information,andusableideasintheadvertisingworld.AfterspeciDicallylookingatautomobilesasawaytounderstandconsumersourceknowledgerelatingtoadvertisements,abetterunderstandingofconsumerswasattained.Marketresearchwasalsodoneforknowledgeofconsumers.Themajorityselectedoneofthesethreeitemsastheirprimaryadvertisementincentive.

Magazine

AdvancedAutomotiveProductswillspendmostofitseffortsinmagazines.AccordingtotheinformationfromBetaResearch,thirty‐ninepercentofconsumersgettheirinformationaffectingtheirlivesfrommagazines.AAPwillusethisstatisticandpromotetheproductheavilyinmagazinesattemptingtogainalargereach.Therearemanyadvantagestomagazines.AAPshouldtakeadvantageofmagazinesabilitytobeselectivetothetargetmarket,havecreativeDlexibility,andthecustomerreceptivity.MagazinesselectedareTime,Newsweek,Carandriver,andMotorTrend.emographicinformationonthesemagazineswillbehighlightedlater.

Newspaper

AdvancedAutomotiveProductswillalsospendmuchofitseffortsinNewspapers.Twenty‐ninepercentofcustomersrefertonewspapersastheirmainsourcetogettheirinformationonautomobiles.AAPwillusenewspapersaspartofitsstrategytomeetalargereachofconsumers.Newspapershaveadvantagessuchasextensivepenetrationandinvolvement.ThenewspaperAAPwilluseistheWallStreetJournal.FurtherreasoningforusingtheWallStreetJournalwillbediscussedlater.



24

Television

ThelastselectionofmediaAdvancedAutomotiveProductswilluseistelevision. Televisionhastwenty‐onepercentofconsumersreferringtoitforinformationon automobiles.Televisionwasselectedforitsabilitytobecreative,itscoverage,and

itsselectivity.AAPwilluseSundayNightFootballandExtremeMakeoverHome Editiontoreachalargeamountofthetargetmarket.Furtherreasonsforthe selectionoftheseprogramswillbediscussedlater.

PrintMediaExplanation

Intoday’scurrentbusinessclimate,printmediaismoreimportantthanever.Theadvertisementsproducedinthiscampaignenablethecompanytoreachtheirconsumerseffectively.Thisismadepossiblebyadvertisinginselectedmagazinesandnewspapersinwhichthetargetmarketisinvolvedandverylikelytobeactivereadersinthesemagazines

andnewspapers.

Awayprintmediacanreachthetargetmarketisthroughgeneratingadvertisements,whichareaimedtowardspeciDicmembersofthetargetmarket.ForexampleifanindividualisanafDluentmemberofsociety,thatindividualisgoingtoreadmagazinesandotherformsofprintmediathatpertaintothem.Then,theadvertisementsenticethisdemographic,thepeopleinthisdemographicarelikelytobuyhigherendproducts.Therefore,advertisementswerecreatedwhicharesuitedforpeopleinthissegmentandothersegmentsofthetargetmarket.

Oneofthekeywaystoreachthetargetmarketanddifferentiatedprintmediafromthe

competitionisthroughutilizingcreativedesigntactics.Oneofthemainwaysadvertisementsmetthisobjectiveisthroughusingvisuallyappealingcolorsanduniquelayouts.Thiswayofcreatingadvertisementsisessentialbecausecompaniesareonlyabletocommunicatewithconsumersthroughusingsuperioradvertisingpractices.Companiesarenotabletocontacttheconsumerliketheyareinpersonalselling,televisionadvertisements,andradioadvertisements.Throughthedesignofadvertisements,goalswereabletobemetandallowedgainofevenmoreknowledgeaboutthetargetmarket.Therefore,sincethetargetmarketknown,abetterabilitytocontactthemthroughallformsofadvertisingwasavailable.



25

Layout&Placement

Magazine

Theprintadvertisementsusedinmagazinesaremostlyhalfpagefullbleed

advertisements.Oneoftheadvertisementstowardstheendoftheadvertising scheduleisafullpage,fullbleedadvertisement.Theseadvertisementscapturedthe themebehindthecampaign.Intheseadvertisements,smallexplanationsections werealsocreated,whichareusedtogivetheconsumerapreviewofwhatsuperior speciDications,andbeneDitsareassociatedwiththeproduct.Also,the advertisementscreatedutilizenumerouspictures,whichexemplifythecertiDication ofthetires.

Whenconsideringtheplacementofthemagazineadvertisements,placementisvery important.Throughouttheadvertisingcampaignahighprioritywasputonthe placementoftheadvertisementsbecauseitisveryimportanttohavehighreach

amongconsumers.Concerningmagazineadvertisements,run‐of‐paperwouldbe themosteffectivemethodtoaccomplishneededgoals.Thiswouldalsoreachthe widestdemographicpossiblewhendealingwiththeproductwhilestilladvertising effectivelyaswellasbeingDinanciallyresponsible.

Newspaper

Newsprintadvertisementswillbestrategicallyplacedtoenhancetheconsumer’s readingofthenewspaperonthegivenday.Throughthesenewspaper advertisements,colorwillbeutilized.Thiswillbenecessaryinordertokeepthe

consumerinterestedintheproductwhethertheindividual(s)areessentialaspects ofthetargetmarketornot.

TheWallStreetJournaladvertisementwillbeplacedinaNationalEdition.Thehalf pageadvertisementwillreachacirculationof1,678,498.Theadvertisementwillbe runofpapertoresponsiblyusethebudget.

Television

Televisionadvertisementswillbeplacedstrategicallytocreateahighreachwiththe

SmarTred™.ExtremeMakeoverHomeEditionwillbeplayedonaSundayNightonNBC.Thiswillcreateahighreachforthefamilyman.PlacedinSundayNightFootball,ahighnumberofthetargetmarketwillbeexposedtothecommercial.TheadvertisementwouldberunduringthegameitselfduringthemiddleofOctober.



26

AdvertisingDemographics

Magazine

AdvancedAutomotiveProductswillputadvertisementsincertainmagazinesas

well.Oneofthemagazinesthatwillholdahalfpage,coloradisNewsweek.ThehouseholdincomeforreadersofNewsweekis$76,590.TheaverageageforNewsweek’sreadersis47andtheirtotalcirculationis1,500,000.Anothermagazinethatwillholdahalfpage,coloradisTimeMagazine.Theyhavea53/47maletofemaleratio.ThehouseholdincomeforreadersofTimeMagazineis$77,462.TheaverageageforreadersofTimeMagazineis48andthetotalcirculationis3,312,484.AdvancedAutomotiveProductsalsodecidedtoplaceadvertisementsinautomotivemagazinesandthetwotheychoseareMotorTrendandCarandriver.MotorTrendwillholdahalfpage,colorad.Theyhavea91/09maletofemaleratio.ThehouseholdincomeforreadersofMotorTrendis$86,000.TheaverageageofMotorTrend’sreadersis41.5with56%ofthemhavingcollegedegrees.Thetotal

circulationofMotorTrendis1,112,273.Carandriverwillholdafullpage,colorad.Theyhavean89/11maletofemaleratio.ThehouseholdincomeforreadersofCarandriveris$65,427.TheaverageageofCarandriver’sreadersis36.3with56.4%ofthemhavingcollegedegrees.ThetotalcirculationofCarandriveris1,304,241.PlacingadvertisementsinthesefourspeciDicmagazineswillreachthe

target market.

Newspaper

AdvancedAutomotiveProductswillputahalfpage,fullcoloradintheWallStreetJournal.Thisnewspaperreachestheirtargetmarketverywell.TheWallStreetJournalhasa75/25maletofemaleratio.TheaverageageofapersonwhoreadstheWallStreetJournalis50.84%ofthepeoplewhoreadTheWallStreetJournalhaveacollegeeducation.Thetotalcirculationofthenewspaperis1,678,498.PlacinganadvertisementintheWallStreetJournalwillreachthetargetmarket.



27

Television

PinnacleAgencyproposestoairacommercialonNBC’sSundayNightFootballandABC’sExtremeMakeoverHomeEdition.TomeasureTVaudience,therearetwodifferentformulas.Tomeasureprogramrating,theformulaishouseholdstunedto

theshowdividedbytotalU.S.households.Tomeasureshareofaudience,theformulaishouseholdstunedtotheshowdividedbyU.S.householdsusingtheTV.AdvancedAutomotiveProductschosetoairacommercialduringSundayNightFootballbecauseithashighratingsandsharestotheirtargetmarket.uringtheweekofOctober13‐19,SundayNightFootballhadaratingandsharesof18.2/34.uringtheDirstDivegamesoflastyear’sseason,SNFwasaveragingnearly22millionviewers.ItwasratedastheNo.1showoftheprimetimetelevisionseasonintheadultandmaledemographics.AdvancedAutomotiveProductsfeelsthatthisshowwouldbeverybeneDicialtoairacommercialduring.AdvancedAutomotiveProductsalsochosetoairacommercialduringExtremeMakeoverHomeEdition.Thereasonwasbecausetheywantedtoreachmoreofafamilydemographic.uringtheweekof

October13‐19,ExtremeMakeoverHomeEditionhadaratingandsharesof7.1/11.Theyhada4.1ratingforadultsages18‐49.AiringacommercialduringExtremeMakeoverHomeEditionwillreachthetargetmarket.

DetailSchedule

ThesuccessforAdvancedAutomotiveProductscampaignrevolvesaroundtheadvertisingandschedulingstrategy.Whattheconsumerexperiencesattherighttimewillmakethedifferencewithsales.AdvancedAutomotiveProductswillintegratetheproperadvertisingscheduleinordertoincreasemarketshare.ThemediaofadvertisingwillreDlectmarketresearchanddemographicinformation.SchedulingwillreDlectmarketresearchandbuyingpatterns.

SincetheSmarTred™tireisnewtothemarketandisinthebeginningoftheproductlifecycle,AdvancedAutomotiveProductswillstrivetohavealargereachfortheiradvertisements.Todothis,advertisementswillbeplacedinmanymainstreamformsofmedia.AdvancedAutomotiveProductswillattempttoreachthetargetmarketbyinsertingadvertisementsinthemoststrategicmediaselectionsgiventhebudget.

StartinginMay,AdvancedAutomotiveProductsadvertisementswillbegintothereleasedtothepublic.Inmid‐May,ahalf‐pagecolornationaladvertisementwillbepublishedinthewallstreetJournal.Thiswillbeginthehighreachstrategybygainingacirculationof

1,678,498readers.WallStreetJournalwasselectedbecauseofitsabilitytoreachthetargetmarket.Themalepercentageofreadersisseventy‐Divepercent.TheaveragereaderageisDifty.Finally,eighty‐fourpercentofthereadershaveattendedcollege.

InJuneanotherhalf‐pagecoloradvertisementwillbereleased.However,thisadvertisementwillbeplacedinNewsweekmagazine.ThiswillbetheDirstmagazinethatholdstheAdvancedAutomotiveProductsadvertisement.Newsweekmagazinewasselectedbecauseofitsabilitytoreachthetargetmarket.Newsweekmagazinehasatotalcirculationof1.5million.Theaveragehouseholdincomeis$76,590andtheaverageageisforty‐seven.



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InJulyAdvancedAutomotiveProductswillpublishitsDirstadvertisementinanautomobilemagazinetoappealtocarenthusiasts.MotorTrendmagazinewillbetheDirsttoreceiveanAdvancedAutomotiveProductsadvertisement.Ahalf‐pageadvertisementincolorwillbeplacedinthemagazine.ThetotalcirculationforMotorTrendMagazineis1,122,273.Ninetypercentofviewersaremaleswhohaveanaveragehouseholdincomeof$86,000.The

averageageisforty‐twoandDifty‐sixpercenthaveattendedcollege.

InAugustAdvancedAutomotiveProductswillpublishinitssecondmagazine.Time,apopularmagazine,hasatotalcirculationof3,313,484.ThestrategyistoreachmanyviewersandmakethemawareoftheSmarTred™tire.Timewasselectedforitsabilitytoreachmultitudeofconsumersinthemarket.Thehalf‐pagecoloradvertisementwillappeartoindividualswithanaveragehouseholdincomeof$77,462.TheaverageageofTimemagazineisforty‐eight.AlsoinAugustwillbethestartofthetire‐recyclingprogram.Thestrategyistoincorporateapromotionpossibilitywithapublicrelationseventtopromoteanenvironmentallyfriendlyimage.

InSeptember,AdvancedAutomotiveProductswillbegintoincreaseitsadvertisementsin

ordertoproperlytimethemarketsbuyingpatterns.AdvancedAutomotiveProductswillreleaseitsDirsttelevisionadvertisement.Thethirty‐secondcommercialwillairduringABC’sExtremeMakeoverHomeeditiononSundaynight.Thistelevisionshowhasan18‐49yearoldratingof3.2intheDirsthalfanhourand4.1inthesecondhalfanhour.Thetelevisionstrategyistoreachmanyviewersinthetargetmarketwhomaybewatching.AlsoduringthemonthofSeptemberdirectmailwillbesentouttothoseonAdvancedAutomotiveProductsmailinglist.ThiswillallowthosewhoalreadyuseAdvancedAutomotiveProductstobeinformedofthenewSmarTred™tireenteringthemarketplace.Thedirectmailwillincreaseknowledgeofthenewproducttotherecipientswiththegoalofincreasingsales.

InOctoberAdvancedAutomotiveProductswillreleaseafullage,fullbleedadvertisementinCarandriver.Carandriverhasatotalcirculationof1,304,241.Thegoalistoincreaseawarenessofthenewproductincarenthusiastmagazinestoappealtothetargetmarket.Malesmakeupeighty‐ninepercentofthereadersofthemagazine.Theaveragehouseholdincomeis$65,427,theaverageageis36yearsold,andDifty‐sixpercentattendedcollege.AdvancedAutomotiveProductswillalsoairthesamecommercialontheDirstofNBC’s

SundayNightFootball.SundayNightFootballwasselectedbecause oftheviewershipofthetargetmarket.Thestrategyistoimplementthecommercialintoamediumwithahighamountofviewers.Theseconddirectmailadvertisementwillbesentouttothecustomersonthemailinglist.Also,inOctober,therecyclingpromotionwillend.

ThisistheAdvancedAutomotiveProductsschedulingstrategy.ThisstrategywillbeeffectiveinraisingawarenessforthenewSmarTred™tire.Theschedulingstrategyfollowsthegoalofimplementingtoalargereachtothehighestprobabilityofthetargetmarket.



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Two-StepApproach

AdvancedAutomotiveProductswillbeusingatwo‐stepapproachfortheirsales.ThetwostepapproachisadirectmarketingstrategyinwhichtheDirsteffortisdesignedtoscreenorqualifypotentialbuyers,whilethesecondefforthastheresponsibilityofgeneratingthe

response.AdvancedAutomotiveProductswillsendoutfourdirectmailpiecestotheirpreferredcustomerlist.Thesewillbesenttothreedifferentregionsnationwide.Thepieceofdirectmailthatanindividualwillreceivewilldependonwheretheindividuallives.Thedirectmailpieceswerecreatedtotargeteachindividualregion.Thefourthandlastpieceofdirectmailwillbesenttoeveryoneontheircustomerlistnationwide.

AdvancedAutomotiveProductswilluseprintadvertisementsinmagazinesandnewspapers.Thehalfpageandfullpageadvertisementswillcatchtheattentionofthereadersandalsodirectthemtothecompany’swebsite.Atthecompany’swebsite,thereaderswillbeabletoprintoffacouponofftheirnextbuy.Whileatthewebsite,thereaderswillalsobeabletogainmoreinformationabouttheSmarTred™tire.Thistwostep

approachisbeneDicialbecauseitpromotesthereaderstousemultiplemediachannelstogainaccesstoAdvancedAutomotiveProducts’advertisements.Thisway,thereaderwillbeexposedtodoubletheadvertisements,sotheywillbemorelikelytobuytheSmarTred™tire.

AdvancedAutomotiveProductswillusecommercialsfortelevisionadvertisements.Thiswillreachtheattentionofthetargetmarketmoreeffectively.Attheendofthetelevisioncommercial,thenameofthecompany’swebsitewillbeshownsotheaudiencewillknowwheretogotogettheircouponofftheirnextpurchase.ThistwostepapproachisbeneDicialbecausethetelevisioncommercialgivetheaudienceinsightintowhattheSmarTred™tirelookslikeandwhatitsadvantagesareandthentheaudienceisdirectedtothewebsiteto

gainmoreinformation.

Inconclusion,AdvancedAutomotiveProductswilluseatwo‐stepapproach.ThisapproachismorebeneDicial.ItwillcreatemoreawarenessandwillleadtothesaleofmoreSmarTred™tires.



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AdvertisingBudget

Theadvertisingbudgetismadeupofthethreeformsofmediaselected.Televisionwillconsumepartofthebudgetwithcommercialbroadcastsduringtwotelevisionprograms.SundayNightFootballwillcost$415,000.Theotherprogram,ExtremeMakeoverHome

Editionwillconsumetherestofthebudgetallocatedtotelevisionadvertising.ExtrememakeoverHomeEditionwillcost$126,958.Magazineswillconsumethelargestamountofthebudget.Themagazinebudgetwillbeallocatedtofourdifferentmagazines.Time,Newsweek,Car&river,andMotorTrendwillcost$226,400,$117,810,$187,365,and$113,955,respectively.Newspaperswillconsumetherestoftheamountallocatedtoadvertising.AnadvertisementwillruninWallStreetJournalcosting$116,558.10.Thetotaladvertisingbudgetwillbe$1,303,950.10.

Advertisi gBudget

Television $541,958

Newspapers $116,558

Magazines $645,434

Total $1,303,950.10



31

DIRECT MARKETING

Objectives

• ToreachthecustomerefDicientlyandeffectivelybycreatinguniquedirectmailpieceswhencomparedtocompetitorsintheindustry

• Useadvertisingtechniquesthroughdirectmarketingwhichencouragethecustomertorespondtothedirectmailing.

• EffectivelycommunicatebeneDitsoftheSmarTred™tireintheweatherelementsthetargetmarketwillface.

• Createawarenessforcustomersontheconsumerlist.

Explanation

Intoday’svolatilebusinessclimate,directmarketingneedstobeavitalpartofthemarketingandadvertisingcampaigns.Theadvertisingtechniquesusedarefocusedonthetargetmarketforthetireandusingadvertisingtechniquestomakethedirectmarketingpieceappealingtotheviewervisuallyandpsychologically.Thechosencolorswereusedinorderforthedirectmailstandoutamongotherdirectmailpieces,whichtheconsumermaydisregardas“junkmail.”Avarietyofcolorsandlayoutwereusedtomeetthisgoal.ThedirectmarketingpieceswerealsocreatedinadifferentsizespeciDicationfromthecompetitionandothercompanieswhichparticipateindirectmarketingtechniques.Ifcompaniesarenotparticipatingindirectmarketing,theyarebehindwhendealingwithcompetition.Whenconsideringthelayoutoftheadvertisements,weusedtechniqueswhichstrategicallyleadtheconsumer’seyearoundthedirectmarketingpiece.ThisgoalwasexecutedbyefDicientlyplacingpicture,words,andlogosinawaywhichwouldbemostappealingtotheconsumer.Imagerywasusedwhichhelpedtheconsumerthinkabouttiresandautomotiveproducts.Forexample,usingcheckeredDlagpatternsandboldcolorswhich

peopleinthetargetmarketDindvisuallyappealing.

ConsumerjurieswereusedtocreatepossibledirectmarketingsuggestionsforAdvancedAutomotiveProducts.Thiswascompletedbycreatingfourdifferentsetsofdirectmarketingpieces,creatingeightseparatedirectmailingopportunities.Afterdoingthis,randomlychosenindividualsfromthetargetmarketwereselected.Aftergatheringthesepeople,theywereaskedwhichdirectmarketingpiecestheyaremostlikelytobethemostresponsiveto.Then,aftergatheringandanalyzingthisdata,thefourmostpopulardirectmailingpiecesweremailedouttoindividualsbasedoninformationgatheredfromaconsumerlistprovidedbyAdvancedAutomotiveProducts.



32

AdvancedAutomotiveProductscurrentlyhasaneffectiveconsumerlistofcurrentandmostfrequentpurchasersoftheirgoods.TheconsumerlistwasboughtfromlocalcardealershipthatcarriesAdvancedAutomotiveProduct’stiresandautomotiveproducts.Thisliststatesconsumernames,consumerages,familydemographics,whentheconsumer’slastbuytookplace,anddrivingpreferences.Forexample,iftheliststatedthatpersonAboughtahigher‐

endvehicle,withmoreexpensivetires,AdvancedAutomotiveProductswouldsendthehigherenddirectmailpiececreated.Therefore,theconsumerismoreabletorelateandmorelikelytorespondtothenewtireAdvancedAutomotiveProductsislaunching.

MailingProtocol

Whendesigningadirectmarketingcampaign,itiscrucialtodecidewhenthemailingsaregoingtogoouttotheconsumers.InthecurrentsituationofAdvancedAutomotiveProducts,itisbesttouseacombinationofpulsingandDlightingmethodbecauseofthecurrentschedulingdemands.Lessadvertisingwillhappeninthespring;however,

throughoutthesummeradvertisingwillincreasetopromotelikingandpreferencefortheproduct.Lastly,inearlyAugustdirectmarketingadvertisementswillbedistributedtoindividualsintheconsumerliststocreateasenseofconvictionandneedinconsumers.Thesemailingwillhaveahighreachandfrequencyaswell.Asaresulttheconsumerwillbuymoretiresbecauseofadvertisementsandpromotionalideas.

Itisalsocrucialtodecidewhichregionsofthecountryreceivewhattypeofdirectmarketingadvertisement.uringthedesignofthedirectmarketingadvertisements,advertisementsneededtobespeciDicallymadetoeachgeographicsegmentofthemarketinwhichAdvancedAutomotiveProductsisinvolved.Toillustratethispoint,thedirectmarketingpiecescreatedwillbedistributedasfollows:

DirectMail#1:Thisdirectmarketingadvertisementwillbedistributedthroughout thesoutheasternstatesbecauseoftheirfamiliaritywithrain.Tireswhichcan withstandtherainareveryimportanttothisdemographic.

DirectMail#2:Thisdirectmarketingadvertisementwillbesenttoconsumersin

thesouthwesternpartoftheUnitedStates.Thereasonforthisisbecausethepeople

inthisdemographicvalueatirewhichhashandletheheatinthegeographic region.

DirectMail#3:Thisdirectmarketingpiecewillbesentouttopeoplethroughout

theconsumerlistwhichareforcedtodriveinthesnowduringthewintermonths.

Thesemembersoftheconsumerlistvaluehightractiontireswithhighdurability.

DirectMail#4:Thisdirectmarketingmailisaimedtowardsallcustomersonthe

consumerlist.However,thisdirectmailingwillbesentonaDlightingscheduleone

monthaftertheDirstdirectmailadvertisementinordertocreatemoreawareness

andconvictionamongpeopleintheconsumerlist.



33

RegionalMailingMap

SectionI(grey) SectionII(black)

Southeast Southwest irectMail1 irectMail2

SectionIII(green) AllRegionsNorth irectMail4irectMail3



34

DirectMarketingBudget

TheconsumerlistprovidedbyAdvancedAutomotiveProductspreviouslymentionedtounderstandthevolumeofpeopletowhichdirectmailadvertisementswouldbesent.The

numberofpeoplewhowouldreceiveadirectmailpieceisbasedonthenumberofpeopleinthe“preferredcustomer”listattainedfromAdvancedAutomotiveProducts.ThisDigurewascountedtobe80,000people.Whenthisistakenmultipliedby$0.28forpostagefees,thetotaldirectmailexpenditureisforecastedat$44,800.Thenumberofpeoplethedirectmailwouldreachwouldbemosteffectivebasedonthecost‐beneDiteconomicprinciple.Eachcustomerwillreceivetwoseparatedirectmailadvertisements.

DirectMark tingBudget

DirectMail#1,2,3 $22,400

DirectMail#4 $22,400

Total $44,800



35

Internet/Interactive Marketing

Objectives

• IncreasecustomertrafDictothewebsitetocreateawarenessforconsumers.

• evelopsocialmediapagestodeliverinformationtoconsumers.

• Createattractivebanneradvertisementstobringawarenesstothenewproduct.

Explanation

OnlineadvertisingisanimportantwayforAdvancedAutomotiveProductstocreateawarenessandrecognitionoftheirbrand,increasetheirreachamongpotentialcustomers,andultimately,drivesales.ThetypeofonlineadvertisingthatAAPwillutilizeisbanneradvertising.InordertohavethebiggestimpactAAPwillrunasingleadonthefrontpageoftheESPNwebsite.ThisisbecausethemajorityofvisitorsareinAAP'stargetmarket.The

viewersoftheESPNsiteconsistof79%men,31%ofwhicharebetweentheagesof18‐34.Theirmedianincomeis$81K.33%make100Kormore.AccordingtoresearchdonebyNielsenOnline,ESPNisthe#1sportssiteforvideo,#1mobilesportssite,andhasanaverageof20.5millionuniquevisitorseachmonth.

TheadvertisementsbeingrunontheESPNwebsitewillbeCPMadvertisementswhichmeanAAPwillpayperthousandimpressionstorunit.TherearetwomainreasonsforusingCPMadvertising[asopposedtoCPC(costperclick)]:Dirst,largerwebsitesincludingESPNonlyallowtheoptionofCPM.ThesecondreasonforusingaCPMadisthatthistypeofadisexcellentforgainingproductandbrandrecognition.SinceAdvancedAutomotive

Productsisfocusingmostoftheiradvertisingeffortsinotherareas,thisapproachtoonlineadvertisingplaysasupportiverole.Itmaynotbethefactorthatmotivatestheconsumertomakeapurchasedecision,butitwillhelpcreatefamiliarityinthecustomer'smindandmakethemmorereceptivetotheproductsandbrandthatarebeingoffered.

Theadsizesusedwillbe300x250pixels,and728x90pixels.ESPNchargesarateof$7CPMonthegeneralareasoftheirsiteand$11ontheNFLsectionoftheirsite.Toensurethatthegreatestnumberofviewersseetheadvertisement,AdvancedAutomotiveProductswilldisplaythe300x250adonthemainpageoftheESPNsite.Sincetheadvertisementswillberunduringthefall,the728x90adwillbedisplayedontheNFLchannelofthesite.



36

WebsiteHomepage

TheAdvancedAutomotiveProductswebsiteisanextremelyvaluabletoolforthecompany.ThemajorityofhouseholdsinAAP'stargetmarkethaveaccesstotheInternetandthewebpageprovidescustomerswithaccesstoinformationaboutthecompany,products,and

servicesanytimeofday.

ThewebpageisofgreatvaluetoAdvancedAutomotiveProductsbecausewebsitesarefairlyinexpensivetomaintain.Websitesarealsoveryeasytotrackandprovidethecompanywithimmediatefeedbackonwhatwebpagecustomerscamefrom,whatpagestheyarelookingatonthecompany'ssite,howlongtheyarethere,whatlinkstheyclicked,andwhatwebpagetheyleftthesitefor.Thisinformationhelpsgivethecompanyabetterideaofhowsuccessfultheiradvertisementsareincreatinginterestinandpurchaseoftheirproducts.

Themainpageofthewebsitefeaturesanadvertisementforanewproductastheattentiongrabberofthesite.Ifclickedon,thecustomerwillbetakentoanotherpageofthewebsite

thatwillprovidethemwithmoreinformationabouttheproductandanoptiontoorder.Thisadvertisementwillbeupdatedfrequentlytocreatevarietyandmaintaininterest.Thefeaturedadvertisementswillcontainverysimilarcontentandthemetotheprintadvertisementsanddirectmailpiecesthatarebeingcirculatedatthetimetokeepconsistencyacrossdifferentmedia.

InthetopleftcornerofthesitetheAdvancedAutomotiveProductslogoandtagline"InnovativeProductsForEverydayPeople"isfeatured.AsearchbarinthetoprightcornerofthepagegivescustomerstheoptiontosearchthesiteforspeciDicproductsthattheymayhavebeenresearchingandwantedtoorder,orheardaboutandwantedmoreinformation

on.irectlyabovethesearchbararelinkstocontactinformation,andfrequentlyaskedquestions.



37

Ontherightsideofthepageisasidebarwithlinkstoinformationalcontentrelatedtotheproducts,aswellaspictures,promotionalvideos,andlinkstodifferentautomotiveservicesofferedbyAAP.

InthebottomleftcornerofthesitearelinkstoAAP’sFacebookandTwitterpages.These

pageswillofferfrequentupdatesaboutnewproducts,offers,andservices,aswellasprovidepicturesandvideolinks.FacebookandTwitterwillreachthetargetmarket,butwillbroadenAAP’sadvertisingreachbecauseteensandyoungadultsalsoveryheavilypopulatethesetwosites.SincethesesitesarefreeresourcesforAAPtouse,usingthemcanhelpbroadentheirreach,aswellasstartbuildingbrandrecognitionamongstsoontobetargetmarket.

SocialMedia

AfacebookpagewillbedevelopedtoincreaseawarenessaboutAAP.Heretheircustomers

andtargetmarketcangainadditionalinformationabouttheirproducts.Picturesofproductsontheirpagewillbedisplayed.CustomerscangoonlineandlearnmoreaboutthecompanyofAdvancedAutomotiveProductsandtheproductswhichtheysell.Customerscanbedirectedtogetcouponsfordiscountswhichtheycanredeemontheirnextpurchase.

AtwitterpagewillalsobedevelopedtoincreaseawarenessaboutAAP.Heretheircustomersandtargetmarketcanfollowthem.ConsumerscanlearnaboutthelatestnewsofAdvancedAutomotiveProducts.Consumerscanseethenewdealsandtheycaninteractwithothercustomers.ThecustomerscantweetwhattheythinkaboutAdvancedAutomotiveProductsandalsoseeothercustomer’sopinionsabouttheproducts.Thismakesthecustomersfeelthattheirvoiceisbeingheard;whetheritisapositiveora

negativecomment.

FacebookandtwitterarebeneDicialbecausetheworldismovinginthedirectionofsocialmedia.Thisisagreatwaytointeractwithcustomersandmakesiteasierforcustomerstolearnaboutthem.UsingsocialmediaAAPwilldevelopalargerandmoreloyalcustomerbasebecausetheyareabletoanswercustomersquestionsandhelpthemfeelsecureaboutbeingarepeatbuyerfromAdvancedAutomotiveProducts.



38

Internet/InteractiveBudget

AdvancedAutomotiveProductshasallotted$100,000torunthisadvertisement.ESPNchargesaminimumadvertisingfeeof$500.Withallthistakenintoaccount,thefront‐pageadcanrunfor7,107,143impressions,andtheNFLpageadcanrunfor4,522,727

impressions.

Intern tBudget

AdvertisingFee $500

BannerAdvertising $99,500

Total $100,000

Homepage



39

FacebookPage

TwitterPage



40

Sales Promotion

Objectives

• Createexcitementovernewproducttocreateawareness.

• Increasesalesbyusingconsumer‐orientedcoupons.

• PositionCompanyasenvironmentallyfriendlytoappealto“green”consumers.

Explanation

TheobjectiveforAdvancedAutomotiveProductsusingsalespromotionistoattractcustomerswithoffersforextraincentivesfortheautomotiveproducts.Theobjectivesaretoincreasesalesbyconsumersshorteningthepurchasecycle.Incentivesofpromotions

encourageimmediateactionofconsumers.

AAPwilluseconsumerorientedsalespromotion.Thesepromotionswillbeintheformofprice‐offcoupons.Thepromotions,directedatconsumers,aredesignedtoinducethemtopurchasetheAdvancedAutomotiveProductsbrand.Theseconsumerorientedpromotionsarepartofapullstrategy.Thegoalisforpromotiontoworkwithadvertisingtocreatedemandfortheproduct.

CouponsaregoingtobeAAP’smostusedpromotionstrategy.Couponsallowpricecutsonlyforthosewhoarepricesensitive.Couponswillhopefullyencouragerepurchaseafterinitialtrial.CouponswillbeofferedontheAAPwebsite.ThiswillhelppromoteInternettrafDic.AAPwillbeofferingapromotionofbuythreetires,getone‐halfprice.

Promotionswillbescheduledduringthetimeasthecampaignbeginning.Thiswillbeusedinincreasetrialbycustomers.uringthefallseason,whenthecampaignisatitspeak,couponswillbeavailableontheAAPwebsite.Schedulinginapulsingformisnecessarybecausethetargetmarketbuystiresmostofteninthefall.ThisschedulefallsundertheentirecampaignstrategyforAAP.



41

AnotherpromotioneventAAPwillincorporateisrecyclingtiresforcustomerstowinacruiseforfour.Thisisasweepstakesandagoodwaytocreateexcitementforthenewproduct.ThecruisewillbeontheRoyalCaribbeanInternationalforfournights.ThecruiseleavesfromMiamiandtoursCaribbeanIslands.Tobeinthesweepstakescustomersmustrecycleallfourtires.Customerswhorecyclewillbeputintoadrawingatachancetowin

thecruiseforfour.

SalesPromotionBudget

ThepromotionbudgetismuchsmallerthantheotherIMCsections.Thepromotionbudgetwillbespentonticketsforafamilyoffourtotakeacruise.ThetotalcostforthePromotionbudgetis$1,690.88.

Promotio nBudget

Cruise $1,690.88

Total $1,690.88



42

Public Relations

Objectives

• CreateoverallgoodwillforAdvancedAutomotiveProductsandgainawarenessfor

theSmarTred™

• CreateapartnershipwithTexting4Lifetopromotesafedrivingandpositionthecompanyassuch.

• Toremainenvironmentalfriendlywiththerecyclingtirespromotion.

PublicityStrategy

AdvancedAutomotiveProductshasdevelopedanewandinnovativeproduct,the

SmarTred™tire.Theyexisttoprovidecustomershighqualityproductsfortheircustomers.AAP’snewtirehasbeenmadewithinnovativetechnology.ThematerialoftheSmarTred™tireiscreatedfrom,iscomposedofauniquetirecompositematerial.IthasauniquetreaddesigntopromotefuelefDiciencyanditisguaranteedtolastfor100,000miles.

AdvancedAutomotiveProductsplansonusingcouponstopromotethenewtire.Theyalsoplantouseapromotion“Buy3tires,getonehalf‐price.”TheyarealsopromotingtheirnewSmarTred™tirebyhandingoutawarenessbracelets.TheSmarTred™tiregivesAdvancedAutomotiveProductsagoodimagebybeingenvironmental‐friendly.CustomersareabletodropofftheirtiresatanyAAPlocationtoberecycledproperly.AdvancedAutomotiveProductswillbehostingapromotionaleventtopromotetheirnewproduct.

ApromotionaleventwillbeheldonSaturday,August13,2011,startingat5p.m.andendingat9p.m.AAPisholdingtheeventtokickofftheirnewandinnovativeSmarTred™tire.ThiseventwillbeheldrightoutsideofwhereAAPoriginated,etroit,Michigan.ThevenuechosenistheVanAndelArena®inGrandRapids,Michigan.

ThevenuewaschosenbecauseitisMichigan'ssecondlargestandfastest‐growingmarket,andhasmovedGrandRapidsintotheforefrontoftheentertainmentindustry.TheVanAndelArena®hasattractedthebiggestnamesinfamilyshows,concertsandsportingevents,soAAPwantedtousethisvenuetopromotetheirnewtiresinceitisapopularandwidelyknownvenueforspecialevents.

TheVanAndelArena®wasalsochosenbecauseitcanseatover12,000peopleandhasvariousotheractivitiesforthosewhoattendthepromotionaleventtopartakein,outsideofthearena.Someoftheseincludemuseums,parks,restaurantsandbars,andsoon.Ticketswillnotbesold,sincetheeventhasbeencreatedentirelyforpublicity.

Theeventwillhavemanyactivitiesforthosewhoattendtopartakein.Therewillbebasketballcourtssetup,anarcadespot,andseveralothergamesforpeopleofallagestopartakein.



43

AnotherpromotionaleventAAPwillbedoingisrecyclingtiresforcustomerstowinacruiseforfour.Thissweepstakeswillbeagoodwaytocreateexcitementforthenewproduct.ThecruisewillbeontheRoyalCaribbeanInternationalforfournights.ThecruiseleavesfromMiamiandtoursCaribbeanIslands.Tobeenteredintothesweepstakes,customersmustrecycleallfourtires.Customerswhorecycleallfouroftheirtireswillbe

putintothedrawingandreceiveachancetowinthecruiseforfour.

Texting4Life

AdvancedAutomotiveProductshasdecidedtocreateapartnershipwithasmallnon‐for‐proDitcompanycalledTexting4Life.TheobjectiveistopositionAAPasacompanywhosupportssafedriving.Thisappealstotheemotionalsideofpeople.Texting4Lifeappealstothefamilyorientedmarket.ToassistTexting4Life,AAPwillbeprovidingbraceletsatAAPeventstoraiseawarenessforsafedriving.



44

ForRelease: Contact:CourtneyGossen10August2010 763.227.0353

MediaAdvisory

AdvancedAutomotiveProducts

ToReleaseSmarTred™Tire

Who: PaigeWinters,CEOofAdvancedAutomotiveProducts

What: ReleaseofnewSmarTred™tire

When: Saturday,August13,5p.m.

Where: VanAndelArena130WFultonSt.GrandRapids,Mich.49503

Why: AdvancedAutomotiveProducts(AAP)isreleasingtheirnewest100,000‐miletire,theSmarTred™.Theyarehostingapromotionaleventtokickoffthenewtireandtherewillbeasweepstakesdrawing,games,andothersurprisesattheeventpromotingAAP’s

newSmarTred™tire.

###



45

ForImmediateRelease Contact:CourtneyGossen763.227.0353

AdvancedAutomotiveProductsToReleaseSmarTred™Tire

DETROIT—August13,2011—Today,AdvancedAutomotiveProducts(AAP)releasedtheir

newestpromotionalfortheirnewproduct,theSmarTred™tire.AAPhasdevelopeda

warrantyforthetiretolast100,000‐miles.TheeventAAPhostedwastopromotethe

SmarTred™tireandAAP.TheeventheldattheVanAndelArena,andattractedthousandsof

currentandnewcustomers,creatingmoregoodwillforAAP.

Thenewtire‐compositetechnologyisabreakthroughintheentireautomobileand

tireindustry.TheSmarTred™ismadesafetodriveinallregionsofthecountry,and

performsinallelementssuchas,snow,rain,andmountainousdesertregions.

TheSmarTred™outperformsitscompetitors,demonstratingqualityperformance

andlonglastingsigniDicantvalue.AAPdemonstratestheirslogan,“Innovativeproductsfor

everydaypeople,”inalltheirproducts.

‐Continued‐



46

ReleaseofSmarTred™TirePage2

“Thistireisnewandinnovativeandwilloutlastallitscompetitors.TheSmarTred™

driveswellinallregionsandelementsaroundthecountry,andwillhelpkeepyourfamily

safe.Thereisnoothertirethatcanmatchthis100,000‐miletire,”saidPaigeWinters,CEO

ofAdvancedAutomotiveProducts.

“ThenewSmarTred™tireisthebesttireIhaveeverbought.Iwouldhighly

recommendspendingalittlemoremoney,becausethequalitylasts.Youdogetwhatyou

payfor,”saidanAAPcustomerMark.

EveryoneatAdvancedAutomotiveProductsknowstheimportanceofstayingahead

oftheircompetitorsanddevelopinghigh‐qualityproducts.AAPbuildsconsumer

conDidencebyemployeesusingtheirownproducts.TheSmarTred™tireislonglastingand

willhelpkeepyouandyourfamilysafe.

“AdvancedAutomotiveProductsdevelopedagreattire!I’msobusyanddrivealot,

theSmarTred™tireishigh‐qualityandhashelpedincreasefuelefDiciencywithmycar.Iwill

deDinitelybebuyingthisproductagaininthefuture,”saidanewAAPcustomerCynthia.

Thetirescreatesuperiorcomfortwithsmoothhandling.Thetractioncanhandle

everyextremeconditionpossible.AdvancedAutomotiveProductsiscreatingnewtopofthe

linetechnologyforthetireindustry.Thistiretechnologyisleadingthewayintothefuture

forautomotivetires.Itisthistechnologythatwillbeginthepathfornewtiremodels.

________________________________________________________________________________________________________

AdvancedAutomotiveProducts(AAP)existstoprovidecustomerswithhighqualityproducts

fortheirautomobiles.Foranumberofyears,AAPhascombinedinnovationwithpassionto

stayaheadoftheircompetitors.Theystronglybelieveinandfollowtheirslogan,“Innovative

productsforeverydaypeople.”

###



47

PublicRelationsBudget

AfterAdvancedAutomotiveProductspersonneldecidedtohosttheeventattheVanAndelArena,thereneededtobeabudgetputinplace.TheArenawillcost$35,000fortheevening.Cateringwillcost$5,000.Sincetheeventisplannedfor500+peopletoattend,

therewillbegamesandotherentertainmentplanned.Audiovisualwillconsistofoneemergencytelephone,whichcosts$100;Divemicrophones,whichcost$50total;andonevideoprojector,whichcosts$200.Therewillalsobeskirtedtablesandchairsfortheattendees;pipeanddrapewiththeroundandrectangulartablestotalacostof$450(chairsincluded).Therewillalsobesignspostedoneaselsaroundthearena,sopeopleknowwhereeachgameislocated,alongwithplacestosit;totalcostofteneasels(signageincluded)is$100.Therearethestaffandsecurityaswell.ThetotalcostforstafDingratesis$832forthefront‐of‐house(i.e.set/strikesupervisorandstaff,custodial,EMT’s),$330forthein‐housearenastaff,andthecostofsecurityis$396fortheevening.TheentertainmentconsistsofaJ(ratesandperformance)andarcadegames,whichwillbestationedaroundthearena.TheJcosts$200andtheperformanceis$800forfourhours.Arcadegames

totalacostof$3,468.Lastly,theTexting4Lifepromotionalbraceletstotalacostof$2,000(for2,000bracelets).

PublicRelat ionsBudget

Texting4LifeBracelets $2,000

PromotionalEvent $46,926

Total $48,926



48

Personal Selling

Objectives

• EstablishSmarTred™tireindistributors.

• eveloplonglastingrelationshipswithistributors.

Explanation

PersonalSellingisanimportantpartoftheintegratedmarketingcommunicationsystem.Now,whileAdvancedAutomotiveProductswillnotbesellingtheirtiredirectly,face‐to‐face,tothecustomers,itwillplacetheirtireintothedistributer’sstores.TheDirstpersonalsellingobjectiveofAdvancedAutomotiveProductsistoestablishalong‐termrelationshipwiththedistributors.Thegoalistodevelopagoodrapportwiththedistributers.AnotherpersonalsellingobjectiveofAdvancedAutomotiveProductsistoplacetheirtireintothedistributer’sstores.Themoredistributersthataresellingthenewtire,themoreproDititwillbringin.

AdvancedAutomotiveProductsdoesnotjustselltires,butalsosellspeaceofmind.AdvancedAutomotiveProductsisgreatlyconcernedwithsafety;safetyoftheircustomersandsafetyoftheenvironment.ThenewlonglastingSmarTred™tire,hasanewcompositetechnology.Ithasaguaranteed100,000‐milewarranty.AdvancedAutomotiveProductsiscombiningthetechnologyfeaturesandthesafetymentalitythatmakesforafarsuperior

tire.

PersonalSellingBudget

EverydistributorthatAdvancedAutomotiveProductssellstheirtiresinwillreceiveapersonalizedAdvancedAutomotiveProductspen.ThisisjustareminderthatAdvancedAutomotiveProductsisthankfulfortheirbusinessanditisawayforthemtorememberAdvancedAutomotiveProducts.Thecostperpenis$0.63andAdvancedAutomotiveProductsisbuying1000penssothetotalcostwillbe$630.00.

PersonalSe lingBudget

Pens $630

Total $630



49

Measurement Explanation

ThegoalwiththeadvertisementsfortheSmarTred™tireforAdvancedAutomotiveProductsistoreceiveanacceptablereturnthroughefDicientadvertisements.Itisimportantfortheadvertisementstohaveawidereachwithinthetargetmarket.Tomakesurethe

advertisementswhichtheconsumersareexposedtoareefDicient,theadvertisementsmustbemeasuredtobeeffectiveandcostefDicient.

TelevisionAdvertising

Whenutilizingadvertisingthroughtelevisionmedia,itiscrucialtocreateaneffectivereachwithinthetargetmarket.Alargeportionoftheadvertisingbudgetisallocatedtowardstelevisionmediabecausethetelevisionmediachannelistheprimarywaycustomerscanbereachedinrelationtoautomotiveproductadvertising.Pre‐testDinishedadvertisementswill

beconductedtounderstandifthecommercialisappealingtothetargetmarket.

PrintAdvertising

PrintadvertisingisalsoacrucialcomponentoftheadvertisingstrategyforAdvancedAutomotiveProducts.Notonlyinthelayoutandthevisualelementsanessentialaspectoftheadvertisingprogram,butadvertisementplacementandtheadvertisingscheduleplaysavitalrole.However,themostvitalaspectofprintmediaintheadvertisingcampaignisthereturnontheadvertisinginvestment.Throughmeasuringtheeffectivenessofthe

advertisementconveyedtotheconsumer,AdvancedAutomotiveProductscanmakesuretheirinvestmentinadvertisingcanbebothefDicientandeffective.Tomeasurethepreferenceofprintbasedmedia,consumerjurieswillbeconductedtounderstandconsumerpreferences.

DirectMail

Eventhoughdirectmailingtechniquescanbeoverlookedbytheconsumer,directmarketingadvertisingwouldbeaneffectiveadvertisingstrategywithlowproductionandcirculationcostsinrelationtothereachoftheadvertisement.However,itisimportantto

measurethestrengthofthedirectmarketingpracticesinorderfortheseadvertisementstoremainaneffectiveelementoftheadvertisingcampaign.Trackingstudieswillbeconductedtodeterminethereturnoninvestmentofthemailadvertisements.



50

InternetAdvertising

Intoday’scurrentbusinessclimate,advertisingintheInternetisanessentialchannelofadvertisingcommunication.Itseemsmostcompaniesareonlineandinteractingwithcustomersthroughtheworld‐wide‐web.Throughtargetmarketresearch,itwasdiscovered

thatinternetadvertisingisvitalpartofconsumerdecisionmakingprocesses.Internetmarketingisalsoplaysamajorroleinbudgetallocationofautomotiveproductproducingcompanies,representingasigniDicantportionoftheadvertisingbudget.Giventheimportanceoftheinternetintoday’sbusinessmarketingarena,theadvertisementsplacedontheinternetforAdvancedAutomotiveProducts,needtobemeasured.etailsaboutaremeasuredarerepresentedbelow.

OverallMeasurement

ThoughtherearemanywaystomeasuretheeffectivenessandefDiciencyofadvertisements,

AdvancedAutomotiveProductswillbeabletomeasuretheeffectiveofadvertisingbasedonadvertisingperformancesurveys.ThewaythesurveyswouldworkisforanemployeefromAdvancedAutomotiveProductstoaskthepurchaserofthetires,“Whatadvertisingchannelwereyouexposedtowhichcausedyoutobuythetires?”Thiswouldbethebestwaytogettoknowwhatadvertisementsaffectedtheconsumerthemost.Knowingthepreviousinformation,AdvancedAutomotiveProductswouldbeableknowiftheadvertisingpracticesinplacewereeffectiveandefDicient.



51

Conclusion

Non-ImplementedMediaChannels

Radio

RadiowasnotimplementedintotheAdvancedAutomotiveProductscampaign.The

mainreasonbehindthisisbecausethereisanotahighdemandforradio commercials.Therefore,placingouradvertisingdollarsinthisadvertisingcategory mightnotgeneratethegreatestandmostefDicientreturnontheadvertising investment.Anotherreasonisbecausethetargetmarketfortiresisverywideandis comprisedofawidedemographic.Sincethetargetmarketissowide,itwouldbe verydifDicultandineffectivetotryanddecidewhichradiostationsandfrequencies toadvertiseonaswellaswhichstationstonotadvertiseon.

OutdoorAdvertising

Outdooradvertisingsuchasbillboards,busstopbenchesandshelters,phonebooths,etc.ThiscouldbeconsideredinefDicientinregardstothetargetmarket.Anobviousexampleofwhythisadvertisingdecisionwouldbeineffectiveisbecausethepeopleinthetargetmarketarenotlikelytoberidingthebussincetheyhavetheirowncarstobuytiresfor.Also,spendingadvertisingdollarsinthiswayisconsideredinefDicientbecausepeople,whowereabletoseetheseadvertisements,wouldonlybeseeingthemforasplitsecondandarenotlikelytobeveryrespondenttotheadvertisementwhencomparedtoresponseratemeasuredbyadvertisingthroughtheotheravenuesourteamhasselected.Likeradioadvertising,thereturnonthis

investmentwouldnotbethegreatestpossiblebecauseoftheexposurerate.

Explanation

Asaresultofmakingthesedecisionsadvertisingdollarswerespentinmoreeffectiveadvertisingavenueswhichwoulddoabetterjobofreachingortargetmarket.Throughselectingtheadvertisingchannelsactuallyselected,thereachwouldbemorefrequent.Also,thereachwouldbebroaderwithinthetargetmarket.Whenadvertising,theadvertisementcansigniDicantlyaffectthetargetmarketandpossibleindividualswhowouldbeconsideredexternaltothepresenttargetmarket.



Conclusion

Throughimplementingthesuggestedadvertisingandpromotionpractices,AdvancedAutomotiveProductswillbeabletosuccessfullythelaunchoftheirnewtirewitha100,000milewarranty,uniquetreaddesign,andadvancedtechnology;thesecharacteristicsarevital

componentsofthetireaswellastheintegratedmarketingcommunicationsplan.Whenconsideringtheadvertisingobjectives,itiscrucialtodesignanintegratedmarketingcommunicationsplanswhichsuccessfullyimplementseffectiveadvertising,directmarketing,interactivemarketing,promotions,publicrelationstactics,andpersonalsellingstrategies.Targetmarketresearchandextensiveexplanationofthemarketingplanarealsoveryimportantincreatinganintegratedmarketingcommunicationsplan.Throughtheseadvertisements,slogans,andmarketingmessagesdevelopedwithinthisplan,AdvancedAutomotiveproductswillbeabletoincreasemarketshareandbrandawarenessinthehighlycompetitiveautomotiveproductmarket.MeasurementsarealsoanimportantlaststepincreatinganadvertisingcampaignforAdvancedAutomotiveProducts.Whenmeasurementsareconsidered,theywillguaranteeAdvancedAutomotiveProductswill

knowiftheirmarketingpracticesaresuccessfullyimplementedandmanagedthroughthemarketingcycle.Asaresultofsuccessfulmarketingimplementationandmeasurement,AdvancedAutomotiveProductswillseeanincreaseinsalesandsigniDicantreturnontheiradvertisinginvestment.

ThePinnacleAdvertisingAgencywouldliketothankAdvancedAutomotiveProductsforselectingouragencytocreateanintegratedmarketingcommunicationsplanandmarketingplanfortheirnewtireAdvancedAutomotiveProductswillbereleasing.Thankyouforpartneringwithus!

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