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Ch.

7: Strategic Planning Key Points
• Differentiate between objectives, strategies, and tactics in strategic planning
• Identify the six basic decisions in an advertising plan • Explain how account planning works

and Tactics •Objectives: What you want to accomplish •Strategies: How to accomplish the objectives •Tactics: Make the plan come to life ** Example: Objectives: To increase baking soda consumption Strategy:??? •Adding new target market • Increase repeated purchase by loyal consumers •Introducing new ways of using a product Tactics .Objectives. Strategies.

Big Picture: a three-tiered process Advertising Plan Business Plan Marketing Plan Figure 7. 182) .1: Strategic Planning from Top to Bottom (p.

Key strategic decisions III. Message strategy V. Other tools VI. Media strategy IV.Basic Strategic Planning Decisions • Annual advertising or IMC plan – Outlines all the advertising or marketing communication activities • Plansbook • Campaign plan – More tightly focused on solving a particular marketing communication problem Typical Plan Outline I. Evaluation of effectiveness . Situation analysis II.

Weakness.Outline of an Advertising Campaign I. Situation Analysis •Background Research: •Company and product history •Product analysis and previous advertising analysis •Consumer analysis •Competitive analysis and their advertising analysis •SWOT Analysis (Strengths. Key Strategic Decisions •Advertising/IMC Objectives and Strategies •Target Audience Selection •Brand Position: brand’s competitive advantage •Brand Image and Personality •Budget . Opportunities and Threats) •Identify Key Problems and Opportunities II.

•Any other promotional cost •Set aside 10% Contingency fund: for any unexpected situation Several Ways of Setting Budget 1.Outline of an Advertising Campaign Budget: Total budget for the campaign: •Media placement cost •Production cost. . Historical Method • based on last year’s advertising spending. add some inflation or other factor. •Research cost.

Competitive Method • • . share of voice concept: $ advertising spent by a brand in a medium vs.Several Ways of Setting Several Ways ofBudget Setting Budget 2.(average • sales number/situation will determine how much people can spend on advertising. - Any problem with this method? look at major competitors’ advertising budget and try to match its own advertising budget with it. Percentage-of-sales Method • set advertising $ as certain portion of sales. 3. $ advertising spent by all brands in the product category.

Several Ways of Setting Budget 4. agencies come up with the cost to accomplish each objective. •Best method for agencies. Task-Objective Method Several Ways of Setting Budget •Based on objectives set for the whole campaign. •then if they have extra $. can be too costly 5. take whatever left over and use them for advertising campaign . add them up. “All you can afford” Method •worst method: Spend all necessary costs before you set aside $ for advertising. and set the total budget. however.

Account Planner: The Creative Brief/Platform • Explains the consumer insight and summarizes the basic strategy decisions • Six major parts: – – – – – – Marketing objective Product Target audience The promise and support Brand personality Strategy statement .