Transcript File

9e

Strategic Planning

Chapter 07

Wells Burnett Moriarty (8e, Ch 07)

Chapter Key Points

 What are The Differences Between Objectives, Strategies, and Tactics in Strategic Planning, and How are The Three Levels Of Planning Connected?

 How Is A Campaign Constructed, and What are Its Six Basic Sections?

 What Is Account Planning and How It Is Used In Advertising?  In What Ways Does an Integrated Marketing Communication (IMC) Plan Differ From an Advertising Plan? 2

Strategic Planning

Strategic Planning:

 A

Process

of

Identifying Problems

That Can Be

Solved

With

Marketing Comm

..

Determines Long-Term Objectives; What You Want To Accomplish?

Strategic Planning:

Decides Medium-Term Strategies; How To Accomplish The Objectives?

Implements Short-Term Tactics; Which Make The Plan Come To Life? 3

Strategic Planning

Strategic Planning: 3-Tiered 

Business Plan/BP

Followed By Divisions/SBUsBP Focus on Profit Maximization & ROI for the Entire CompanyBP Starts With Mission Statement That Supports The Broad Goals & Policies of SBU 

Marketing Plan/MP

 Helps Branding, Deals With Long-Terms Goals, Operate for a Few of Years MP Parallels the BP; Contains Many Common Objectives ,

Strategies

&

Tactics

 Objectives of MP is To Increase Sales Volume, Market Share, Profit etc & Dealing With Mix (Ps)  MP Deals With SWOT Analysis; External & Internal Situation Analysis  MP Helps Deciding  Target Market  Brand Position  Pricing  Product Design & Performance  Distribution & Services  Marketing Communication 

IMC/Advertising Plan

 Alike

BP

&

MP

,

IMC Plan

Has Concern For

Objectives

,

Strategies

&

Tactics

 It Focuses on

Comm

.

Objectives

,

Strategies

,

Tactics

,

Timing

,

Costs

&

Evaluation

 Heart of IMC Plan is Audience Insight

,

Message

&

Medium

 Plan

Matches Right Audience

To The

Right Message

Through

Right Medium

at The

Right Time

4

Typical Advertising/IMC/Campaign Plan

 It Focus on Solving a Particular Comm.. Problem  It Solves Message Problems That are Carried in Different Media & Trigger Different Targets

Typical Campaign Plan Outline

1) Situation Analysis

a) Background Research b) SWOT Analysis c) Key Comm. Problems To Be Solved

2) Key Strategic Campaign Decisions

a) Objectives b) Target Audience c) Brand Position: Features & Competitive Advantage d) Campaign Strategy: Key Strategic Approach & Communication Tools

3) Media Strategy

a) Media Objectives b) Media Selection c) Media Planning & Buying: I. Vehicle Selection II. Budget Allocation III. Scheduling

4) Message Strategy

a) Key Consumer Insight (Brand Relationship Insight in IMC) b) Message Objectives c) Selling Premise/Principle d) Big Idea e) Message Design & Executions

5) Other MarCom Tools Used in Support

a) Public Relations b) Direct Marketing c) Sales Promotion d) Personal Selling e) Merchandising, Packaging, Point-of-Purchase f) Integration Strategy (Maximize Synergy)

6) Campaign Management

a) Evaluation of Effectiveness b) Campaign Budget 5

What’s in a Campaign Plan? Cont’

Situation Analysis

Background Research

Research, Gather & Review Brand’s Current Market Situation  Then Analyze The Findings of the Research Called Situation Analysis  From Findings Identify The Problems That Need to Be Solved Through Comm.

SWOT Analysis

6

Campaign Plan Cont’

Situation Analysis

Cont’ 

SWOT Analysis

Strengths & Weakness:

Internal

Analysis  Opportunity & Threat:

External

Environmental Analysis  Opportunity: Identify & Develop Advantages Over RivalsLeverage Identified Opportunities in The Brand Communication  Threat: Handle Carefully or You Will Be Erased; Rivals are the Common Threats  Address The Threats Smartly or You Will Be Erase form the Market 

Macro-Environment Forces:

Micro-Environment Forces:

7

Campaign Plan Cont’

Objectives

 Goal is

What

The

Message

Must

Accomplish

During a Specified Time Period  Objectives May Depends on

………………………………………………………………….

      Perception Emotion Cognition Persuasion Association Behavior 

Measurable Objectives

   All Objectives Must Be

Benchmarked

 Objectives Must Be……………... ……..

      Specific Clear Measurable/Realistic Consistent Hierarchal Quantitative Easily Measurable Accomplish Within a Specific Time Frame 

Targeting

Identify & Profile an Audience  Get Inside The Targets To Find the Kinds of Messages Will Motivate Them  Know The Characteristics, Attributes, Beliefs, Values & Experiences of Targets 8

Campaign Plan Cont’

Positioning

 If Importance Changes, The Position Need To Be Adjusted  Position Creates in Over TimeOnce Position is Established, Difficult To Change

Product Features & Attributes

 1 st

Identify

&

Evaluate

Both Tangible & Intangible

Features

 Then

Determine

Rivals Which Features Provide & Also is Important Advantage To Prospects Over 

Differentiation & Competitive Advantage

 Differentiation Helps Standing Up in a Crowded Market  Undifferentiated/Parity Products: Difficult to Differentiate; Brand Image is Important; MilkDifferentiated: Feature Analysis Can Helps Identifying Advantages  Consider Factors To Take Market Advantages are………………….…..

Tell Product Has a Strong Feature  Tell The Feature is Important To Target  Hit Where The Competition Is Weaker 9

Campaign Plan Cont’

Positioning Cont’

Locating the Brand Position

Beside

Attributes

,

Also Position Through……….. 

Superiority

Preemptive

Value

Psychological

Benefit

Usage

Competitor’s Strategy

Category Factors

Repositioning

Is Your Mortgage Squeezing Your Wallet

?

Squeeze Back

!

Needed

When Current Positioning is Blur & Marketplace Has Changed 

Coca-Cola

in US

Reposition

its “

Energy Drink”

Branded “

Mother Energy

” 

Frutica’s

Positioning Strategy “

Pure

” is Already “

Blur

” Now Reposition Through

“ ………”

10

Campaign Plan Cont’

Brand Communication Strategy;

Use Following 2 Approaches

1) Hard-Sell

is Used To Persuade

2) Soft-Sell

Builds Brand Image; Touches The Emotions 

Hard & Soft Sells

Both are

Affected

By

6 Facets

Model…...

Brand Identity: See/Hear  Brand Personality & Liking: Feel  Brand Position & Understanding: Think/Understand  Brand Image: Connect  Brand Promise & Preference: Believe  Brand Loyalty: Act/Do 11

Campaign Plan Cont’

Campaign Strategies & Mgmt

 Campaign Strategies Focus on Branding, Positioning, Category Dominance, Handling Rivals, Changing Perception on The Price, Share of Wallet, Launching/Extension, Deciding Spokesperson etc  Say Strategies are Identified, Now Develop Budget & Evaluation Process for Implementation

Budgeting

 5

Budgeting

Methods are……..….

 Historical Method  Objective-Task Method  Percentage-of-Sales Method  Competitive Budgets  Affordable Method  Evaluation: Determining Effectiveness  Evaluation Determines The Effectiveness of The Campaign  Evaluation Impossible Without Establishing Measurable Objectives  Usually, Evaluation is a Research Proposal 12

Account Planning: What is it?

Account Planner/AP

 AP is The Agency Person Who Researches Brand-Consumer Relationships  AP Plans Message Strategies To Addresses Consumer Needs & Wants  AP Develops Strategies Together With Client & AgencyDetermines the Kind of Message, to Which Customer May Respond

Doesn’t Design

the Creative Strategy: Creative Dep’t Does It 

AP’s Mission is to Answer……………..

Who: Who are You Trying To Reach? What Insight Do You Have About How They Think, Feel & Act? How Should They Respond To Your Ad Message?

What: What Do You Say To Them? What Directions Come From The Consumer Research That Will Be Useful To The Creative Team?

Where: How & Where Will You Reach Them? What Directions Come From The Consumer Research That Will Be Useful To The Media Team?

13

Account Planning/AP: What is it? Cont’

The Research Foundation

 AP Must Ensure That, His Researchers & Creative Teams is Working Closely  AP Planners Use Various Research Tools To Do Consumer “Insight Mining

Consumer Insight: The Fuel of Big Ideas  APs Go To Consumer Insight To Discover The Big Idea Through Pre-Written Questioner  Success of the Big Idea Depends on Nature of Consumer’s Thinking; Mindsets, Moods, Motivations, Desires etc That Trigger Attitudes & Actions 14

Account Planning: What is it? Cont’

The Comm./Creative Brief;

Outcome of the Strategic Research  It lights Up The Creative Team; Explains Acquired Consumer Insight & Decisions for Big Idea to Team 

Creative Brief Outlines……………………..

Problem: What is the Problem That Comm. Can Solve?  Target Audience: To Whom Do We Want To Speak?  Consumer Insights: What Motivates The Target to Act?

Brand Imperatives: What are The Important Features? What’s The Point of Competitive Advantage? What’s The Brand’s Position Relative To Rivals? What is Its Essence, Personality & Image?

Comm. Objectives: What Do We Want Customers To Do in Response To The Messages?

The Proposition/Selling Idea: What Is The Single Thought That The Comm. Will Bring To Life?

Support: What Is The Reason To Believe The Proposition?  Creative Direction: How Can You Best Stimulate Desired Response? How Can We Best Say It?

Media Imperatives: Where & When Should We Say It? 15

Planning For IMC Campaigns

IMC & Advertising Plans Both Follow the Same Basic Outline; As Ad is One of the Components of IMC  Just IMC Plan Uses Variety of Tools 

IMC Campaign Planning

Areas Where an IMC Plan Differs From an Ad Plan 

Objectives

 IMC

Objectives

are

Tied

With

Multiple Comm. Tools

 These

Tools

Have

Different Strengths

&

Weaknesses

IMC Plan

Sets

Multiple Objectives

& Develops

Different Strategies

to Achieve Them 

Public Relations

Consumer Sales Promotion

Trade Sales Promotion

Point-of-Purchase

Direct Marketing

Sponsorship & Events

Specialties

16

Planning For IMC Campaigns Cont’

IMC Campaign Planning Cont’ Areas Where an IMC Plan Differs From an Advertising Plan Cont’ 

Stakeholders

 Stakeholders are the

Primary

Medium for

WOM

Contact Points/ Touch Points

 Contact Points Helps

Retaining

&

Growing

Customer Base  Also

Crucial

While

Dealing

With

Stakeholders

Synergy/Impact & Strategic Consistency

 IMC Plan

Involves

Delivering Messages Through

Multiple Media

&

Different Contact Points

 So the

Concern

Here is to

Create Consistent Messages

 IMC

Planners

are

Continuously Looking

For

Ways

To

Strengthen

The

Synergy

of The Messages 

Synergy

is Also

Important

For Marketers To

Maximize

The

Cost Efficiency

of The

Budgets

17