MKTG410 Course Project Advertising Campaign

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Advertising Campaign Kaleb Merck MKTG410 Professor Helman DeVry University Advertising Objective The objective of the Mercedes-Benz new model advertising campaig... n is to reach, engage and capture the 23-30 years of age adult target market. The development and implementation of new C-Class and CLA-Class vehicle models has given Mercedes an opportunity to reach a new target market segment by offering a vehicle model that is in the $25,000-$35,000 price range. The objective of the advertising campaign for the C-Class and CLA-Class is to inform, engage and to create a perceived experience of what the new Mercedes’ models have to offer the consumer. Mercedes will achieve this objective through exploiting their established marketing channels, premium location naming right ownership, event sponsorships, digital and social media presences and print ads. This advertising campaign report section of the overall promotional mix report focuses on the print ads, magazine ads, television and radio advertisements and displays. Success of the advertising campaign will be measured and analyzed in multiple ways. The first and most basic method for measuring advertising success is to compare sales revenues (specifically the C-Class and CLA-Class models) before the campaign, during the campaign and after the campaign has concluded. The success of the print advertisements will be measured by analyzing the online traffic of the web address that will displayed on the print advertisement for additional product information. The percentage of change, time spent per page and click-through rates will be calculated and analyzed to the baselines Mercedes’ has established from previous successful advertising campaigns. The overall advertising campaign’s success will be determined through measuring the “return on investment” (ROI) and “value-added” calculations to determine the cost-benefit margin of the campaign during and after. The sales revenue increase goal (C-Class and CLA-Class) is 9% ROI, which is slightly under Mercedes’ overall advertising ROI goal of 10%. Other metrics that will be used to measure and analyze the performance of the individual advertising outlets will be reach, gross rating points, cost per thousand (TV ads) and impressions (exposure to # of people per household). Budget Determination The overall budget of the C-Class and CLA-Class advertising campaigns will be determined as a percentage of overall sales revenue projections for 2016. In 2016, Mercedes- Benz is expected to sell 38,249 new vehicles with an “average marketing cost of $870 per car” (Ace Metrix, 2015). The projected 2016 sales revenues for Mercedes globally is $86 billion dollars for vehicle sales, of which “31% of Mercedes-Benz vehicle sales revenues is from the U.S. Mercedes-Benz branch” (Daimler AG, 2015) therefore the 2016 U.S. Mercedes-Benz sales revenues are projected to be $26,660,000,000. The final marketing/advertising budget for 2016 will be calculated using an percentage allotment of total U.S. sales revenues, which was “8%-12% on average from 2013-2015” (Gomes, 2016). For 2016, the total spending on Mercedes’ marketing will be budgeted at 10% of 2016 projected U.S. sales revenues and will be approximately $2.3994 billion dollars in total expenditures (subject to change). Message Strategy The message strategy of the 2016 C-Class and CLA-Class advertising campaign will utilize a combination of three strategic message strategy appeals to engage the target market, capture their attention and invoke a “call to action”. The overall message that Mercedes will convey to the target market is that “style, performance, image and the quality of the Mercedes Brand now has new model lines available for under $30,000”. Mercedes will use a “brand image” affective message strategy to utilize the “world’s highest brand awareness” Mercedes- ...........................................CONTINUED......................... [Show More]

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