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Managerial Issues 285

Figure 9.6 Life cycle of
advertising plans Set Up
Advertising Goals

Execute Plans, Identify
Monitor
Performance Target Customers

Develop Performance Choose Media
Measures and and Advertising
monitoring Plans Tools, Process

Develop Action and
Implementation
Plans

2. Identify the target customers: A group of target custom- Note that other social networking sites such as Google+,
ers must be determined for the advertising plan. As we Instagram, Twitter, and Pinterest also advertise. Advertising
have discussed in this chapter, customer segmentation is on social media is a trend in online marketing.
useful for reducing costs and increasing effectiveness.
Depending on the nature of the campaign, segmentation
may be based on demographics or other criteria. SECTION 9.7 REVIEW QUESTIONS
3. Choose media and advertising tools: Once the target cus-
tomer is chosen, the advertising plan should select proper 1. Describe permission advertising.
media and tools that can access the target customers. For 2. Describe video ads and their sudden increase in appear-
instance, many firms use mobile social media to enhance ance.
their brand awareness in the younger generation in Taiwan. 3. Discuss the process and value of affiliate marketing.
4. Develop action and implementation plans: After 4. How does the “ads as a commodity” strategy work?
choosing media and tools, a number of implementation 5. Describe other kinds of online advertising methods.
issues must be planned, such as budget, time frame for 6. What is localization? What are the major issues in
advertising, advertising designs (e.g., video), and so on. localizing Web pages?
5. Develop performance measurement and monitoring 7. Describe choose-your-own-ad format.
plans: In order to ensure that the money spent on adver- 8. Describe the six-step process life cycle for an advertising
tising is not wasted, performance measurement and moni- plan.
toring plans must be developed before the plan is put into
action. The performance measurement must be clearly
defined and objectively measurable. MANAGERIAL ISSUES
6. Execute plans and evaluate performance: After the
advertising plan is approved, attention must be given to its Some managerial issues related to this chapter are as
execution, and finally, its performance must be evaluated follows:
to see whether the originally planned goals are achieved.
For preparing a promotion plan, see Sauer (2013), and for 1. Do we focus on value-creating customers? Under-
mobile marketing, see Brocato and Fairbrother (2013). standing customers, specifically what they need and how
to respond to those needs, is the most critical part of
consumer- centered marketing. This was not possible
Advertising on Facebook before the solutions for database marketing, one-to-one
marketing, and customer relationship marketing became
In 2012, Facebook began generating billions of dollars from available. What tools do we use to satisfy and retain cus-
advertising. For example, users’ “Likes” can appear in ads tomers, monitor the entire process of marketing, sales,
targeted to friends. For 45 “tips and tricks” see Marrs (2014). maintenance, and follow-up services? Do we focus