Advertising Principles

and Practices

Strategic Planning

Questions Well Answer

What is the difference between objectives,
strategies, and tactics in strategic
planning?
How is a campaign plan constructed, and
what are its six basic sections?
What is account planning and how is it
used in advertising?
In what ways does an IMC plan differ
from an advertising plan?
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Repositioning Kodak
for the Digital Age
Kodaks specialty was
making film; it defined
their brand.
\
The Gallery campaign
emphasized that Kodak
is about pictures, no
matter what the
technology.

Kodak/frog pic

Visit the
Site

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Strategic Planning
For marketing communication, strategic planning is the
process of identifying a problem that can be solved with
marketing communications, determining objectives,
deciding on strategies, and implementing tactics.
Objectivea goal you want to accomplish.
Strategymeans, design, or plan for accomplishing
objectives.
Tacticsactions that execute the plan, such as how an
ad is designed or written.

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Strategic
Planning from
Top to Bottom
The business plan and
marketing plan
provide direction for
advertising planning
and other areas.

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Strategic Planning: the Business Plan

May cover an SBU (strategic business unit) which is a
line of products or all offerings of a brand.
The objective is profit or Return-on-Investment (ROI).
ROI is revenue earned above the amount invested.
Business planning starts with a a mission statement; an
expression of goals and policies.

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Sample Mission Statement

This mission statement
for Toms of Maine helps
its managers develop
specific business
objectives and goals. It
also guides all of
the companys
Visit the
marketing
Site
communication
efforts.

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Strategic Planning: the Marketing Plan

Developed for a brand or product line, usually annually.
Parallels the business strategic plan and contains many of
the same components.
A market situation analysis assesses the environment
affecting marketing.
Objectives are focused on sales levels and share of market.

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Strategic Planning: the

Advertising or IMC Plan
Advertising or IMC plan
also includes objectives,
strategies, and tactics (like
business and marketing
plan).
The focus is on the
communication program
supporting a brand.

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A Campaign Plan
More tightly focused on
solving a particular
problem in a particular
time frame.
Includes a variety of
messages carried in
different media and
sometimes targeted to
different audiences.

Typical Campaign
Plan Outline
I. Situation analysis
II. Key strategic
decisions
III. Media strategy
IV. Message strategy
V. Other tools
VI. Campaign
management
See pg. 197 for detail.

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Campaign Plan:
Situation Analysis
Backgrounding
Research and review the state of the business that is
relevant to the brand and gather all pertinent information
A problem statement identifies the problem to be solved

SWOT Analysis
Strengths, Weaknesses, Opportunities, Threats

Principle:
Analysis of SWOT means finding ways to
address the weaknesses and threats and
leverage the strengths and opportunities.
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Declining Cheese Consumption

The DDB Agency found that
a barrier to purchasing cheese
was the lack of good recipe
ideas using cheese products.
The American Dairy
Association responded by
offering more recipes through
advertising and its
Visit the
Web site.
Site

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Campaign Plan:
Situation Analysis
Key problems and opportunities
Analyze the market situation for communication
problems that hinder successful marketing and find
opportunities advertising can create or exploit.
Advertising cant solve problems related to price,
availability, or quality; but it can address the perception
of high prices or portray limited distribution as
exclusivity.

Principle:
Advertising can only solve message-related or
perception problems.
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Campaign Plan: Objectives

Objectiveformal goal
statement outlining what the
message is supposed to
achieve and how it will be
measured
The six categories of effects
or facets can serve as a basis
for common consumerfocused objectives.
Perception, emotion, cognition,
persuasion, association,
behavior

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Campaign Plan: Objectives

Some objectives are tightly
focused on a single effect;
others require a complex set
of effects.

Special K Ad 2

A campaign to create brand

loyalty must have both cognitive
(rational) and affective
(emotional) effects, and it must
move people to repeat buying
(behavioral).

Advertising is effective if it
creates an impression,
influences people to respond,
and separates the brand from
the competition.
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Campaign Plan: Objectives

Objectives must be measurable so advertisers know
if the campaign or advertising is effective.
Five requirements of a measurable objective:

Specific effect that can be measured

A time frame
A baseline (where we are, where we begin)
The goal (realistic estimate of change to be created)
Percentage change (subtract the baseline from the goal;
divide the difference by the baseline)

Sample Objective: The goal of this campaign is to

increase customer awareness of Kodaks digital
products from 20% to 25% in 12 months.
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Campaign Plan: Targeting

Marketing communications strategy is
based on accurately targeting an audience
that will respond to a particular message.
Targeting is identifying and profiling an
audience.
Targeting is also getting inside the heads
and hearts of the audience to find out what
kind of message will motivate them.

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Campaign Plan: Positioning

A brands position its place in consumers minds
where the product or brand stands in comparison to
the competition.
Factors that define the competitive situation:
Product features and attributes, both tangible and
intangible.
Feature analysis is used to assess features relative to
competitors products.

Competitive advantage is where 1) the product has a

strong feature, 2) in an area that is important to the
target, and 3) where the competition is weaker.
Differentiation is a strategy that focuses attention to
product differences that distinguish the companys
product from all others in the eyes of consumers.
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Table 7.2
Feature

How to Do a Feature Analysis

Importance to Prospect

Product Performance
Yours

Price

Quality

Style

Availability

Durability

The product in Table 7.2 would compete well on both price and style
against X, on price against competitor Y, and on style against competitor
Z. Competitor X seems the most vulnerable on the two features, price and
style, that consumers rate as most important decision points.

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Eukanuba Features
Breed-specific Dog Food
Eukanubas Feed the Breed
campaign featured photos by a
famous animal photographer who
created artistic images of the unique
features of individual breeds, such
as this spine of a Rhodesian
Ridgeback.
Visit the
Site

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Campaign Plan: Positioning

Two factors used to locate the brand position:
Psychological factors
Volvo = safety, Coke = authentic, Hallmark = quality, Avis
= underdog

Consumer decision factors

Features or attributes such as fashion, price, quality
Planners use a technique called perceptual mapping
to plot competitors on a matrix based on two
important decision factors

Principle:
The goal of positioning is to establish a product in
the consumers mind based on its features and
advantages relative to its competition.
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A Perceptual Map for Cars

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Campaign Plan: Repositioning

Repositioning can only work if the new position is
related to the brands core concept.
Although advertising shapes the position, the
position is anchored in the target audiences minds
by their personal experiences.
The role of advertising in repositioning is to relate
the new position to the target markets life
experience and associations.

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Brand Communication Strategy

How consumers respond to marketing communications
messages creates a brand perception.
Consumer Response
Perceive
Feel
Think
Associate
Believe
Do

Advertisers Objective
Creates brand identity
Cue brand personality
Cue brand position
Cue brand image
Create brand promise and
brand preference
Inspire brand loyalty

Insert Harley-Davidson discussion about brand

Noted on Video Snippets sheet.
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Video Snippet
Harley-Davidson talks
about its brand.

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Brand Communication Strategy

Brand identity
Must be distinctive and familiar in terms of name, logo, colors,
typeface, design, and slogan

Brand personality

Human characteristics like loving, trustworthy, sophisticated

Brand position

The soul or essence of the brand; it stands for something

that matters to consumers

Brand image

The mental image consumers construct for a product based on

symbols and associations that customer link to a brand

Brand promise and brand preference

Believing the promise that a brand will meet your expectations

leads to brand preference

Brand loyalty

A connection built over time that leads to repeat purchases

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Campaign Strategic Approach

Determining how to achieve objectives requires a
general strategy statement.
May focus on branding, positioning, countering the
competition, or creating category dominance
Change customer perceptions, price perceptions, or the
price-value relationship
Increase share of wallet, launch a new brand or brand
extension, or move brand to a new market
Create excitement about a brand promotion

Strategies are designed to create a particular

consumer responses.
Those responses can be tied to the six facets

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American Express and

Jerry Seinfeld
An online mini-film
commercial for
American Express
featuring Jerry
Seinfeld was designed
to entertain and create
brand liking. It also
generated buzz, which
extended its impact
through the power of
word of mouth.
Prentice Hall, 2009

See the
Ad

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Campaign Implementation
and Management: Budgeting
Historical Method
Last years budget plus inflation; not based on goals

Objective-Task Method
What do we want to do and what will it cost?
Based on goals

Percentage-of-Sales Method
Compares total sales with total advertising to get ratio

Competitive Budgets
Use competitors budgets as benchmarks and relates to the
products share of market

All You Can Afford

Whatever is left over; not a strategic approach
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Campaign Implementation
and Management: Evaluation
The process of determining the
effectiveness of a campaign.
Its impossible without established,
measurable objectives.

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Account Planning
Account planning is the research and analysis
process used to gain knowledge of the consumer
and uncover key consumer insights about how
people relate to a brand or product.
An account planner is the agency person who uses
a disciplined system to research a brand and its
consumer relationships to devise messages to
effectively address consumer needs and wants.
Principle:
The account manager is seen as the voice of the
client, and the account planner is seen as the
voice of the consumer.
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Account Planners Mission

Who? Who are you trying to reach and what
insight do you have about how they think,
feel, and act? How should they respond to
your advertising message?
What? What do you say to them? What
directions from the consumer research are
useful to the creative team?
Where? How and where will you reach
them? What directions from the consumer
research are useful to the media team?
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Account Planning: Research

Account planners use
consumer research to get
inside the targets heads,
hearts and lives.
The key to effective
advertising is a powerful
consumer insight.
Account planners are
information integrators who
bring all the info together;
and synthesizers who
express what it all means in
one simple statement.

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Consumer Insight:
the Fuel of Big Ideas
Account planners look at advertising as an
insight factory instead of an idea factory.
Consumer insights provide fuel for the big
ideas.
Account planners use strategic and critical
thinking to interpret consumer research to
find relevant consumer insights that explain
why consumers will care about a brand
message.

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Insight Mining
Finding the a-ha in a
stack of research reports,
data, and transcripts is the
greatest challenge for an
account planner.
Account planners use
strategic and critical
thinking to interpret
consumer research to find
relevant consumer insights
that explain why consumers
will care about a brand
message.
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The Account Planning Group

Founded in 1979, The APG is the longest-established
organization representing the interests of account
planners worldwide. A non-profit-making members
organization with around 700 members, APG is open to
account planners, communications strategists and
anyone with an interest in these areas. Its activities
include training, meetings, seminars, social events,
publications, and every second year, the APG Creative
Planning Awards.
Visit the
Site

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The Communications Brief

The outcome of research, the communication
brief (or creative brief) is a document that
explains the consumer insight and
summarizes the basic strategy decisions.
The first step in the creative process, it is
designed to spark creativity and serve as a
springboard for ideas.

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Communications Brief Outline

Problem: Whats the problem that communication can solve? (establish

position, increase loyalty, increase liking, etc.).
Target audience: Who do we want to speak to? (brand loyal, heavy
users, infrequent users, competitions users, etc.) .
Consumer insights: What motivates the target? What are the major
truths about the targets relationship to the product?
The brand imperatives: What are the important features and competitive
advantage? Whats the position? Also, whats the brand essence, brand
personality and/or image?
Communication objectives: What do we want customers to do in
response to our messages? (perception, knowledge, feelings, symbolic
meanings, attitudes and conviction, action).
The proposition or selling idea: What is the single thought that the
communication will bring to life in a provocative way?
Support: What is the reason to believe the proposition?
Creative direction: How can you best stimulate the desired response?
How can we best say it?
Media imperatives: Where and when should we say it?

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What is IMC planning?

Integrated Marketing Communications
(IMC) planning is similar to advertising
planning but is broader in scope and
involves more marketing communication
areas.
The objective is to most effectively use all
marketing communications tools and
functions and to control the impact of
other communication elements.
Effective IMC leads to profitable longterm brand relationships.
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Differences in IMC Planning

Stakeholders
The target market in IMC is not just
consumers, its anyone who has a stake in the
companys success (employees, shareholders).

Contact points (touch points)

IMC maximizes all contacts stakeholders have
with the brand; where a message is delivered.

IMC objectives
IMC uses interrelated objectives with specific
strategies for different tools (e.g., PR to
announce, sales promotion to drive action).
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Table 7.3

Types of Stakeholder Audiences

Corporate Level

Marketing Level

Marketing Communication Level

Employees
Investors, financial
community (analysts,
brokers, and the
financial press)
Government bodies
and agencies
Regulatory bodies
Business partners

Consumers
Customers
Stakeholders
Market segments
Distributors, dealers,
retailers, and others in
the distribution channel
Suppliers and vendors,
including agencies
Competitors

Target audiences
Target stakeholders
Employees
Trade audiences
Local community
Media (general, special interest,
trade)
Consumer activist groups
groups
General public
Opinion leaders

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Table 7.3

Marketing Communication Objectives

Marketing
Communication Area

Typical Objectives

Public Relations

Announce news; affect attitudes and opinions; maximize credibility and

likeability; create and improve stakeholder relationships

Consumer Sales
Promotion

Stimulate behavior; generate immediate response; intensify needs,

wants, and motivations; reward behavior; stimulate involvement and
relevance; create pull through the channel

Trade Sales
Promotion

Build industry acceptance; push through the channel; motivate

cooperation; energize sales force, dealers, distributors

Point-of-Purchase

Increase immediate sales; attract attention at decision point; create

interest; stimulate urgency; encourage trial and impulse purchasing

Direct Marketing

Stimulate sale; create personal interest and relevance; provide

information; create acceptance, conviction

Sponsorship and
Events

Build awareness; create brand experience, participation, interaction,

involvement; create excitement

Packaging

Increase sales; attract attention at selection point; deliver product

information; create brand reminder

Specialties

Reinforce brand identity; continuous brand reminder; reinforce

satisfaction; encourage repeat purchase

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Synergy in IMC Planning

IMC planning involves many messages delivered
through multiple media at many different contact
points.
The planners biggest concern is creating
consistent messages.
Synergy means that the brand impact of all
messages together is greater than what any one
type of message could deliver.
Synergy requires cross-functional planning
everyone involved in creating and delivering
messages should be involved in planning to
ensure consistency.
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Discussion Questions

Discussion Question 1
Think of a product you purchased
recently.
How was it advertised?
Which strategies can you discern in the
advertising?
Did the advertising help to convince
you to purchase the product? Why or
why not?
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Discussion Question 2
The following is a brief excerpt from Luna Pizzas situation
analysis for the next fiscal year. Luna is a regional producer
of frozen pizza. Its only major competitor is Brutus Bros.
Estimate next years advertising budgets for Luna under
each of the following circumstances:
a. Luna follows a historical method by spending 40 cents per unit sold
in advertising, with a 5% increase for inflation.
b. Luna follows a fixed percentage of projected sales method, using
7%.
c. Luna follows a share-of-voice method. Brutus is expected to use 6%
of sales for its advertising budget in the next year.
Actual Last Year
Estimates Next Year
Units sold
120,000
185,000
$ Sales
420,000
580,000
Brutus $ Sales
630,000
830,000

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Discussion Question 3
You are assigned to the account for a new
hybrid automobile.
Use the Communication Brief outline and
list the research you need to conduct for
each step in the strategic decision-making
process.
What do you need to do to put together a
useful brief for the creative team?

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Discussion Question 4
Three-minute debate: You are in a meeting about the
strategy for a new automotive client. One of your team
members says positioning is an old strategy and no
longer useful for modern products.
Another person argues strongly that you need to
understand the position in the consumers mind before
you can even begin to develop an advertising strategy.
In class, organize into small teams with pairs of teams
taking one side or the other. Set up a series of threeminute debates with each side taking half that time to
argue its position. Every team of debaters has to present
new points not covered in the previous teams
presentations until there are no arguments left to present.
Then the class votes as a group on the winning point of
view.
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Copyright 2009 Pearson Education, Inc.

Publishing as Prentice Hall
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