Marketing The Planning Process

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Chapter 8

Introduction: Introduction
s

Key Concepts
q The q The q The

Single Biggest Thing Campaign Concept Language of Marketing & Strategy

q Planning

s s s

How Advertising Works The Planning Process Questions & Discussion

Key Concepts Key Concepts
The Single Biggest Thing s Campaigns s Objectives & Strategies s Advertising & Marketing
s

The Single Biggest Thing: Key Concepts
s

Advertising dollars have great “elasticity”
q Planning and implementing the Right Advertising

is usually critical for success in the marketplace q The Wrong Advertising is usually worthless
s

Advertising can be The Single Biggest Thing
q It can probably impact sales more than any other

element of the marketing mix.
s

And … it is the most fun!

The Single Biggest Thing Key Concepts
Advertising is just a part of “The Five Ps” s All of “IMC” is important s However... s Advertising dollars are...
s
q The most controllable marketing activity

q Often, the biggest item in the marketing budget q The most visible part of marketing spending

s

Advertising is often… “the tail that wags the marketing dog”

Campaigns: Key Concepts
Origin of term s Military Campaigns s Political Campaigns s Advertising Campaigns
s

Campaigns: Key Concepts
s

Origin of term
q Fr.

campagne, It. campagna - open country suited to military maneuvers q Campaign - a series of military operations with a particular objective in a war q Campaign - a series of organized planned actions with a particular purpose, as for electing a candidate.

Campaigns: Key Concepts
s

Military Campaigns

“Victory is my objective. War is my strategy.”
Winston Churchill

Campaigns: Key Concepts
s

Military Campaigns
q “a

series of military operations with a particular objective in a war” q Advertising and marketing use both the language and the military mindset q Example: a very popular marketing book…

Campaigns: Key Concepts
s

Political Campaigns

x In politics, as in war, you have to pick your battles. National political campaigns focus on key states and voter groups.

x Each single geographic or statewide campaign may have its own objectives and strategies which contribute to the overall campaign. x The objective is a majority in the Electoral College.

Campaigns: Key Concepts
s

Advertising Campaigns

“Advertising is a team sport!”

Campaigns: Key Concepts
s

Advertising Campaigns

q A team effort q Structured and

sequential activities q An imaginative reintegration of new and existing factors
q Shared objectives

and strategies

Advertising Campaign: Key Concepts
Next, we’ll show you four billboard ads for a telecom company in Kansas City Birch Telecom s Then, we’ll discuss some of the basic common elements needed in an advertising campaign s Here’s the first ad...
s

Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts
s

What were the common elements?

1. ____________________________ graphic look 2. ____________________________ strategic message 3. ____________________________ benefit statement 4. ____________________________ brand personality 5. ____________________________ executional elements - the dog 6. ____________________________ anything else?

Advertising Campaign: Key Concepts
s

Campaigns are built with…

Plans & Strategies

Plans & Concepts KeyStrategies:
Organized Actions and… s “Imaginative Reintegration” s Plans & Strategies are a combination of:
s
q Tightly organized planned actions q Unique strategic configurations

Plans may contain strategies s Strategies need plans to be implemented
s

Plans & Concepts KeyStrategies:
s

Kenichi Ohmae (head of McKinsey Japan)

“In business as on the battlefield, the object of strategy is to bring about the conditions most favorable to one’s own side. In strategic thinking , one first seeks a clear understanding of the particular character of each element of a situation, and then makes the fullest possible use of human brainpower to restructure the elements in the most advantageous way.”

Plans & Concepts KeyStrategies:
s

Kenichi Ohmae (head of McKinsey Japan)

“Phenomena and events in the real world do not always fit a linear model. Hence, the most reliable means of dissecting a situation into its constituent parts and then reassembling them in the desired pattern is not a step-by-step methodology such as systems analysis. Rather, it is that ultimate non-linear thinking tool, the human brain.”

Plans & Concepts KeyStrategies:
s

Kenichi Ohmae (head of McKinsey Japan)

using nonlinear brain power.”

“No matter how difficult or unprecedented the problem, a breakthrough to the best possible solution can come only from a combination of rational analysis based on the real nature of things, and imaginative reintegration of all the different items into a new pattern

Plans & Concepts KeyStrategies:
Now let’s talk about Plans s Marketing Plans are written:
s
q q

By the Advertisers By their Advertising Agencies

s

Creative Plans may be called:
q Creative strategies q Creative blueprints q Creative platforms q Creative briefs q And sometimes the word “communication”

replaces the word “creative”

Plans & Concepts KeyStrategies:
s

Plans contain Strategies and vice versa s Marketing Plans may also have Strategies and Plans for Sales Promotion and PR s The Campaign will also have
q A Media Strategy - and… q A Media Plan q Media Departments write Media Plans

s

The Advertising Strategy determines the Creative Objective and the Media Objective

Plans & Concepts KeyStrategies:
s

Here’s a graphic representation…
Marketing Objective Sell one million of product

Market Strategy/Creative Establish brand as superior Creative Objective Establish brand as superior Creative Strategy To be determined

Market Strategy/Media Target audience W 18-49 Media Objective Deliver Advertising to Target audience W 18-49 Media Strategy To be determined

Plans & Concepts KeyStrategies:
Who’s going to manage all of this? s At the client, Director of Marketing
s
q Responsible for Marketing
v Usually sets Marketing Objective and Budget

q Agency is responsible for Advertising
v Good agencies seek to do this work for their clients

s

At the agency, Account Managers:
q They are the link to the client q They develop strategy - or lead development q They manage the resources of the agency q and, very often, they write the Plans

Plans & Concepts KeyStrategies:
Agencies turn strategies into ideas s And they turn those ideas into ads
s
q Copywriters and art directors q Creative people actually make the ads

s

Agencies turn plans into campaigns
q Clients and account management determine

needs and budgets q Media departments turn budgets and strategies into Media Plans

Plans & Concepts KeyStrategies:
To make plans and strategies work, a lot of people have to work together. s And that means they have to speak…
s

The same language!

Vocabulary: Key Concepts
The Language of Marketing & s Advertising Original concepts came from military
s

Now the business of marketing has its own intellectual infrastructure - a way of thinking and a way of talking s Understanding the specific meanings of key words and concepts is critical
s

s Yes, it will be on the test!

Vocabulary: Key Concepts
s

Mission: Overall goals & values your “reason for being” s Objective: What you want to accomplish. s Strategy: How you are going to do it. s Tactic: Specific action. (Should be specific action that helps meet strategic goals - tactics should be on strategy.)
s

Remember, objectives first, then strategy. (If you don’t know where you’re going, any road will take you there.)

Vocabulary: Key Concepts
s

Mission: Overall goals & values your “reason for being” s Objective: What you want to accomplish. s Strategy: How you are going to do it. s Tactic: Specific action. (Should be specific action that helps meet strategic goals - tactics should be on strategy.)
s

Remember the acronym M.O.S.T. Mission, Objective, Strategy, Tactics

Vocabulary: Key Concepts
The Value Ladder The Value Ladder “Laddering” s Value “I’m a good mom” s Benefit Good food for my family
s
q Consumer

Benefit q Product Benefit

Kids like it Easy to serve

Feature s Attribute
s

E-Z Open glass jar Apple sauce is made from apples

Vocabulary: Key Concepts
Some More Important Words… s Target audience - person or group to whom advertising is directed
s
q Primary target - the target audience q Secondary target - usually, the trade

Demographics - statistical description of target audience s Psychographics - psychological traits of target audience
s

Vocabulary: Key Concepts
Some More Important Words… s Sales Promotion - use of incentives (a small bribe) to develop or stimulate sales s Public Relations (PR) - publicity through nonpaid media
s
q Publics - a PR version of target audience

Situation Analysis - beginning section of plan where current situation is evaluated s “SWOT” Analysis - Strengths, Weaknesses, Opportunities, and Threats
s

Vocabulary: Key Concepts
Some Important Media Words… s Reach - percentage of the audience exposed to an advertising message s Frequency - average number of times audience has had the opportunity to see the message s GRPs (Gross Rating Points) - the sum of the ratings points (a point is one percent of the audience) s TRPs (Target Rating Points) - this is a subset, measuring rating points for the target group
s

Vocabulary: Key Concepts
Some More Important Media Words… s CPM (Cost per thousand) - how much it costs to reach a thousand people (the “M” is the Roman numeral for a thousand) s CPP (Cost per point) - how much it costs to buy a “point” of the broadcast audience s Share - percentage of an audience tuned to a specific station s OK, now that we know how to talk about advertising, let’s talk about how it works… works
s

Advertising
How Advertising Works Advertising Works
s Let’s talk about how advertising works.

Next, we’ll cover... s Some things we know about people s Some things we know about advertising messages s The Lavidge-Steiner Learning Model s “AIDA”

Advertising
How Advertising Works
q

s Some things we know about people. s “People read what interests them,

sometimes it’s an ad.” (Gossage) s People are strategic - they look out for their own best interests. s People are bombarded with messages
A key concern is getting through clutter
s People (and advertising) work from both

logic and emotion

Advertising
How Advertising Works
s Branding and Advertising s Advertising is concerned with:
q q

s Some things we know about Advertising
q Branding = overall brand equity building q Advertising = specific messages and goals

s Advertising contributes to Branding

The Advertising Message Media Planning and Placement

Advertising
How Advertising Works
s Advertiser

s Some things we know about Advertising

An Advertising Communication Model
Advertising Communication Model

Feedback

Sender
(Encoder)

Receiver
(Decoder)

Audience

s

MESSA GE Note it is more difficult for the audience to communicate back to the advertiser.
q

Feedback is one purpose of Market Research

s The Lavidge-Steiner

Advertising
How Advertising Works
Learning Model
Purchase Conviction Preference Liking

How people “learn” ads s Begins with Awareness s Moves to Conviction and Purchase
s
s

NOTE: Process may be quite rapid and you Knowledge may try before being totally convinced Awareness

Advertising
How Advertising Works
s

“AIDA” s Attention
s s

Interest

Desire
s

Action!

Advertising
How Advertising Works
qTarget Audience qFactors That Motivate Purchase

sWhat we need to know:

Behavior qUnique Brand Characteristics

Advertising
How Advertising Works
Purchase Behavior
q q

s More ways to think about Advertising s Factors That Influence

Basis of competition A critical decision From the Y&R Creative Work Plan - one of the key tasks is determining what you want the advertising to do.

s

The Problem The Advertising Must Solve
q

Advertising
How Advertising Works
s Unique Selling Proposition s “inherent drama”

s More ways to think about Advertising s “Brand Contact Points” s Aperture and Personal Media Network

s Whatever and however you think about it,

eventually you have to do it… s “You need a Plan!

Introduction Planning
s The Planning Process
s

Generally, plans cover at least four areas:
q Marketing Objective and Strategy (The 5 Ps) q Advertising Objective and Strategy q Creative Strategy (The Advertising Message) q Media Objective and Media Strategy q Other Plans and Strategies
v Sales Promotion, PR, etc.

Introduction Planning
s The Planning Process
s

This approach isn’t for everybody. s Generally, this approach is right for a consumer-oriented marketer. s For example, a small industrial firm might emphasize other things - such as:
q Trade Shows q Their own Sales Force or Sales Reps q Current Customer Relationships q And also do some Trade Advertising

s

However, the underlying principles apply.

Introduction Planning
s The Planning Process

Introduction Planning
s A Ten Part Process
s

Evaluation
1. Situation Analysis 2. Research 3. Problems & Opportunities

s

Goal Setting
4. Marketing Objective 5. Budget

s

And then...

Introduction Planning
s A Ten Part Process
s

Building the Plan
6. Strategies 7. Advertising Creative 8. Media 9. Sales Promotion + Other appropriate “IMC” plans and strategies 10. Evaluation

s

Now let’s go step by step…

1. Situation Analysis Planning
s
q Current

Also called Background Review s It’s a Summation of current knowledge:
Users q Seasonality q Geography q Creative Requirements q Purchase Cycle q Competitive Review q And anything else that might help you understand your situation.

2. Research Planning
You do Secondary Research first s You do Primary Research second s Research is usually in these three areas:
s
q Target Audience
v Improve Understanding, Gain Insight

q Factors That Motivate Purchase Behavior
v Improve Effectiveness, Gain Insight

q Unique Brand Characteristics
v Look for key point of difference

2. Research Planning
s

Research Techniques:
q Qualitative
v Focus

Research Research

groups v One-on-one interviews
q Quantitative
v Surveys v Observation v Experiments

s

When preparing The Research Plan
v Be sure to know what you’re looking for!

3. Problems & Opportunities Planning
s s

Also known as a “SWOT” Analysis

q Strengths, Weaknesses, Opportunities, Threats

“For every problem there is an opportunity” s Understanding problems is a critical skill s Identify the right problem and you’re on the road to the solution s And, whatever you do… s Don’t solve the wrong problem!

4. The Objective Planning
s The Marketing Objective is a number s It is the goal of your marketing activities
q Usually, it is a sales or volume goal q It may be difficult to get to, but the final

answer is simple and measurable.

5. The Budget Planning

s Determining a budget usually involves

asking two very important questions: q How much will it take? q How much do we have? s Here are ways marketers work to develop good answers to those questions.

5. The Budget Planning
s Budgeting Methods
s s

Historical expenditures
q Often done as percent of sales

A to S ratio (Advertising to sales ratio) s Elements of the budget include:
q Advertising (Media and Production) q Sales promotion (may include discounts) q PR and Event marketing q All other

6. Strategies Planning
s Marketing Strategies state how you will

fulfill the Objective s The Marketing Strategies become discipline-specific objectives for…
q Advertising Creative q Advertising Media q Sales Promotion and Public Relations

7. Advertising Creative Planning
s Creating The Advertising Message: q Target Audience q Objective q Strategy q Considerations q Support q Tone

7. Advertising Creative Planning
s Creating The Advertising Message:

A Sample Creative Strategy Template: s To convince: ___________________ Target Audience s To use: ___________________ Brand/Product s Instead of: ___________________ Competition s Because: Factors that influence ___________________ purchase behavior + (Target Audience Insight)
s

7. Advertising Creative Planning
s Creating The Advertising Message:

A Sample Creative Strategy: s To convince: ___________________ Adults 35-54 s To buy: ___________________ Volkswagen s Instead of: ___________________ Other cars s Because: Volkswagen will last ___________________ a long time
s

7. Advertising Creative Planning
s Creating The
s

Advertising Message:
___________________ Adults 35-54 ___________________ Volkswagen ___________________ Other cars Volkswagen will last ___________________ a long time

To convince: s To buy: s Instead of: s Because:
s

8. Advertising Media Planning
s Media Objectives usually include:
q Target Audience q Geography q Seasonality q Reach or Frequency objective

s The Media Plan will work to achieve

those objectives in the most efficient way.

8. Advertising Media Planning

s A good Media Plan considers these

important factors: s Media Cost-Effectiveness:
q Reach q Frequency

q GRP (TRP) - Gross & Total Rating Points

s Media Cost-Efficiency:
q CPM - Cost per thousand q CPP - Cost per point

8. Advertising Media Planning
s Place

s A Media Flow Chart can help you

visualize the Media Plan: s Put a calendar time-line across the top the media down the side

8. Advertising Media Planning
sA s Place

Media Flow Chart can help you visualize the Media Plan: s Put a calendar time-line across the top the media down the side

9. Sales Promotion Planning& PR
s Sales Promotion =
q Tangible motivation to buy q An incentive or small bribe q To both consumers and the trade

s Public Relations =
q Non-paid media coverage q 3rd party endorsement (reviews, etc.) q Marketing PR (MPR) q Not Corporate PR (CPR)

9. Sales Promotion Planning& PR
s Sales Promotion s Consumer Promotion = Win/Free/Save
q Sweepstakes & Contests q Added Value Extras/Bonus Packs q Coupons/Savings/Rebates

s Trade Promotion =

q Allowances q Other Payments/Incentives q Events/Sales Contests

9. Sales Promotion Planning& PR
s Public Relations =
q Product Publicity Opportunities q 3rd Party Endorsements & “Influencers”

(columnists, talk show hosts, etc.) q Press Relations q Other Strategic Publicity
s May also include… s Event Marketing

10. Evaluation Planning
s Methods include:
q Tracking studies

s It starts and ends with Research s Methods for evaluating the plan. s Input/learning for next year’s plan

q Attitude, usage, and awareness studies

s Creative
q Recall q Persuasion

In Conclusion Planning

s Putting plans and strategies together is

a lot of work. s It’s worth it, because this is the way to build sales and make the most of a business’s potential. s If you go to work in The Business of Brands, chances are, you’ll have to play a part creating a winning plan.

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