Chapter 8

Marketing The Planning Process

Introduction Introduction:

Key Concepts

The Single Biggest Thing

The Campaign Concept The Language of Marketing Planning & Strategy

How Advertising Works

The Planning Process

Questions & Discussion

Key Concepts Key Concepts

The Single Biggest Thing

Campaigns

Objectives & Strategies

Advertising & Marketing

The Single Biggest Thing: Key Concepts

Advertising dollars have great elasticity

Planning and implementing the Right Advertising is usually critical for success in the marketplace The Wrong Advertising is usually worthless It can probably impact sales more than any other element of the marketing mix.

Advertising can be The Single Biggest Thing

And it is the most fun!

The Single Biggest Thing Key Concepts

Advertising is just a part of The Five Ps All of IMC is important However... Advertising dollars are...

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

Advertising is often the tail that wags the marketing dog

Campaigns: Key Concepts

Origin of term Military Campaigns Political Campaigns Advertising Campaigns

Campaigns: Key Concepts

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

Campaigns: Key Concepts

Military Campaigns

Victory is my objective. War is my strategy.

Winston Churchill

Campaigns: Key Concepts

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

QuickTime and a TIFF (Un compressed) decompressor are neede d to see this picture.

Campaigns: Key Concepts

Political Campaigns

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

Each geographic or statewide campaign may have objectives and strategies contributing to the overall campaign. The final objective is an Electoral College majority.

Campaigns: Key Concepts

Advertising Campaigns

Advertising is a team sport!

Campaigns: Key Concepts

Advertising Campaigns
A team effort Structured and sequential activities An imaginative re-integration of new and existing factors Shared objectives and strategies

Advertising Campaign: Key Concepts

Next, well show you four billboard ads done years ago for a telecom company in Kansas City - Birch Telecom It was a successful advertising campaign Then, well discuss some of the basic common elements needed in an advertising campaign Here they are...

Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts

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

Campaigns are built with

Plans & Strategies

Plans & Concepts KeyStrategies:

Organized Actions and Imaginative Reintegration Plans & Strategies are a combination of:

Tightly organized planned actions Unique strategic configurations

Plans may contain strategies Strategies need plans to be implemented

Plans & Concepts KeyStrategies:

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 ones 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:

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:

Kenichi Ohmae (head of McKinsey Japan)

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

using nonlinear brain power.

Plans & Concepts KeyStrategies:

Now lets talk about Plans Marketing Plans are written:

By the Advertisers By their Advertising Agencies Creative strategies Creative blueprints Creative platforms Creative briefs And sometimes the word communication replaces the word creative

Creative Plans may be called:

Plans & Concepts KeyStrategies:

Plans contain Strategies and vice versa Marketing Plans may also have Strategies and Plans for Sales Promotion and PR The Campaign will also have

A Media Strategy - and A Media Plan Media Departments write Media Plans

The Advertising Strategy determines the Creative Objective and the Media Objective

Plans & Concepts KeyStrategies:

Marketing Objective Sell one million of product Market Strategy/Creative Establish brand as superior Market Strategy/Media Target audience W 18-49 Media Objective Deliver Advertising to Target audience W 18-49 Media Strategy To be determined

Creative Objective Establish brand as superior

Creative Strategy To be determined

Plans & Concepts KeyStrategies:

Whos going to manage all of this? At the client, Director of Marketing

Responsible for Marketing

Usually sets Marketing Objective and Budget

Agency is responsible for Advertising

Good agencies seek to do this work for their clients

At the agency, Account Managers:

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

Plans & Concepts KeyStrategies:

Agencies turn strategies into ideas And they turn those ideas into ads

Creative people actually make the ads Copywriters and art directors Clients and account management determine needs and budgets Media departments turn budgets and strategies into Media Plans

Agencies turn plans into campaigns

Plans & Concepts KeyStrategies:

To make plans and strategies work, a lot of people have to work together. And that means they have to speak

The same language!

Vocabulary: Key Concepts

The Language of Marketing & Advertising Original concepts came from military Now the business of marketing has its own intellectual infrastructure - a way of thinking and a way of talking Understanding the specific meanings of key words and concepts is critical

Yes, it will be on the test!

Vocabulary: Key Concepts

Mission: Overall goals & values your reason for being Objective: What you want to accomplish. Strategy: How you are going to do it. Tactic: Specific action. (Should be specific action that helps meet strategic goals - tactics should be on strategy.) Remember, objectives first, then strategy. (If you dont know where youre going, any road will take you there.)

Vocabulary: Key Concepts

Mission: Overall goals & values your reason for being Objective: What you want to accomplish. Strategy: How you are going to do it. Tactic: Specific action. (Should be specific action that helps meet strategic goals - tactics should be on strategy.) Remember the acronym M.O.S.T. Mission, Objective, Strategy, Tactics

Vocabulary: Key Concepts

The Value Ladder Laddering Value Ladder Value Im a good mom Benefit Good food for my family

Consumer Benefit
Product Benefit

Kids like it
Easy to serve

Feature Attribute

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

Vocabulary: Key Concepts

Some More Important Words Target audience - person or group to whom advertising is directed

Primary target - the target audience Secondary target - usually, the trade

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

Vocabulary: Key Concepts

Some More Important Words Sales Promotion - use of incentives (a small bribe) to develop or stimulate sales Public Relations (PR) - publicity through non-paid media

Publics - a PR version of target audience

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

Vocabulary: Key Concepts

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

Vocabulary: Key Concepts

Some More Important Media Words CPM (Cost per thousand) - how much it costs to reach a thousand people (the M is the Roman numeral for a thousand) CPP (Cost per point) - how much it costs to buy a point of the broadcast audience Share - percentage of an audience tuned to a specific station or specific show OK, now that we know how to talk about advertising, lets talk about how it works

Advertising How Advertising Works Works

Next, well cover...

Some things we know about people Some things we know about advertising messages The Lavidge-Steiner Learning Model AIDA

Advertising How Advertising Works

Some

things we know about people. People read what interests them, sometimes its an ad. (Gossage) People are strategic - they look out for their own best interests. People are bombarded with messages
A key concern is getting through clutter
People

(and advertising) work from both logic and emotion

Advertising How Advertising Works

Some
Branding

things we know about Advertising Branding and Advertising

= overall brand equity building Advertising = specific messages and goals
Advertising

contributes to Branding Advertising is concerned with:

The Advertising Message Media Planning and Placement

Advertising How Advertising Works

An Advertising Communication Model

Advertising Communication Model

Feedback
Advertiser Audience

Sender
(Encoder)

Receiver
(Decoder)

MESSAGE Note it is more difficult for the audience to communicate back to the advertiser.

Feedback is one purpose of Market Research

 The

Advertising How Advertising Works

Lavidge-Steiner Learning Model
Purchase Conviction Preference Liking

How people learn ads Begins with Awareness Moves to Conviction and Purchase
NOTE: Process may be quite rapid and you may try before being totally convinced

Knowledge Awareness

Advertising How Advertising Works

AIDA Attention

Interest

Desire

Action!

Advertising How Advertising Works

What we need to know:

Target Audience Factors That Motivate Purchase Behavior Unique Brand Characteristics

Advertising How Advertising Works

More

ways to think about Advertising Factors That Influence Purchase Behavior

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.

The Problem The Advertising Must Solve

Advertising How Advertising Works

More

ways to think about Advertising Brand Contact Points Aperture and Personal Media Network Unique Selling Proposition inherent drama Whatever and however you think about it, eventually you have to do it You need a Plan!

Planning Introduction
The

Planning Process

Generally, plans cover at least four areas:

Marketing Objective and Strategy (The 5 Ps) Advertising Objective and Strategy Creative Strategy (The Advertising Message) Media Objective and Media Strategy Other Plans and Strategies

Sales Promotion, PR, etc.

Planning Introduction
The

Planning Process

Generally, this approach is right for a consumer-oriented marketer. For example, a small industrial firm might emphasize other things - such as:
Trade Shows and Trade Advertising Their own Sales Force or Sales Reps Current Customer Relationships

However, the underlying principles apply.

Planning Introduction
The

Planning Process

Planning Introduction
A Ten

Part Process

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

Goal Setting
4. Marketing Objective 5. Budget

And then...

Planning Introduction
A Ten

Part Process

Building the Plan

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

Now lets go step by step

1. Situation Analysis Planning

Also called Background Review Its a Summation of current knowledge:

Current Users Seasonality Geography Creative Requirements Purchase Cycle Competitive Review And anything else that might help you understand your situation.

2. Research Planning
You do Secondary Research first You do Primary Research second Research is usually in these three areas:

Target Audience

Improve Understanding, Gain Insight Improve Effectiveness, Gain Insight Look for key point of difference

Factors That Motivate Purchase Behavior

Unique Brand Characteristics

2. Research Planning

Research Techniques:

Qualitative Research

Focus groups One-on-one interviews

Quantitative Research

Surveys Observation Experiments Be sure to know what youre looking for!

When preparing The Research Plan

3. Problems & Opportunities Planning

Also known as a SWOT Analysis

Strengths, Weaknesses, Opportunities, Threats

For every problem there is an opportunity Understanding problems is a critical skill Identify the right problem and youre on the road to the solution And, whatever you do Dont solve the wrong problem!

4. The Objective Planning

The It

Marketing Objective is a number

it is a sales or volume goal

is the goal of your marketing activities

may be difficult to get to, but the final answer is simple and measurable.

Usually, It

5. The Budget Planning

Determining a budget usually involves asking two very important questions: How much will it take? How much do we have? Here are ways marketers work to develop good answers to those questions.

5. The Budget Planning

Budgeting

Methods

Historical expenditures
Often done as percent of sales

A to S ratio (Advertising to sales ratio) Elements of the budget include:

Advertising (Media and Production) Sales promotion (may include discounts) PR and Event marketing All other

6. Strategies Planning
Marketing Strategies state how you will fulfill the Objective The Marketing Strategies become discipline-specific objectives for

Advertising Creative Advertising Media Sales Promotion and Public Relations

7. Advertising Creative Planning

Creating

The Advertising Message: Target Audience Objective Strategy Considerations Support Tone

7. Advertising Creative Planning

Creating

The Advertising Message:

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

7. Advertising Creative Planning

Creating The Advertising Message:

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

7. Advertising Creative Planning

Creating

The Advertising Message:

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

To convince: To buy: Instead of: Because:

8. Advertising Media Planning

Media Objectives usually include:

Target Audience Geography Seasonality Reach or Frequency objective

The Media Plan will work to achieve those objectives in the most efficient way.

8. Advertising Media Planning

A

good Media Plan considers these important factors: Media Cost-Effectiveness:

GRP (TRP) - Gross & Total Rating Points Reach Frequency CPM - Cost per thousand CPP - Cost per point

Media Cost-Efficiency:

8. Advertising Media Planning

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

8. Advertising Media Planning

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

9. Sales Promotion & Planning PR

Sales Promotion =

Tangible motivation to buy An incentive or small bribe To both consumers and the trade
Non-paid media coverage 3rd party endorsement (reviews, etc.) Marketing PR (MPR) Not Corporate PR (CPR)

Public Relations =

9. Sales Promotion & Planning PR

Sales Promotion Consumer Promotion = Win/Free/Save

Sweepstakes & Contests Added Value Extras/Bonus Packs Coupons/Savings/Rebates Allowances Other Payments/Incentives Events/Sales Contests

Trade Promotion =

9. Sales Promotion & Planning PR

Public

Relations =

Product Publicity Opportunities 3rd Party Endorsements & Influencers (columnists, talk show hosts, etc.) Press Relations Other Strategic Publicity

May also include Event Marketing

10. Evaluation Planning

It starts and ends with Research Methods for evaluating the plan. Input/learning for next years plan Methods include:

Tracking studies Attitude, usage, and awareness studies Recall Persuasion

Creative

In Conclusion Planning
Putting plans and strategies together is a lot of work. Its worth it, because this is the way to build sales and make the most of a businesss potential. If you go to work in The Business of Brands, chances are, youll have to play a part creating a winning plan.