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


Advertising can be The Single Biggest Thing



It can probably impact sales more than any other element of the marketing mix. mix.

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. objective. War is my strategy. 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


Campaigns: Key Concepts



Political Campaigns

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

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

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 renew and existing factors  Shared objectives and strategies


Advertising Campaign: Key Concepts

Next, well show you four billboard ads for a telecom company in Kansas City Birch Telecom  Then, well discuss some of the basic common elements needed in an advertising campaign  Heres the first ad...


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 step-bysuch as systems analysis. Rather, it is that ultimate non-linear thinking tool, nontool, 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. power.

Plans & Concepts KeyStrategies:

Now lets talk about Plans  Marketing Plans are written:

 

By the Advertisers By their Advertising Agencies

Creative Plans may be called:

Creative strategies  Creative blueprints  Creative platforms  Creative briefs  And sometimes the word communication replaces the word creative


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:



Heres 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:

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

 

Responsible for Marketing



Usually sets Marketing Objective and Budget Good agencies seek to do this work for their clients

Agency is responsible for Advertising



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


Agencies turn plans into campaigns

Clients and account management determine needs and budgets  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.  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. 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.) 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. 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.) strategy.)
 

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

Vocabulary: Key Concepts

The Value Ladder Laddering Value Ladder Im a good mom  Value  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 nonnon-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  OK, now that we know how to talk about advertising, lets talk about how it works works


How Advertising Works Works

 Lets

Advertising
talk about how advertising works. Next, well cover...  Some things we know about people  Some things we know about advertising messages  The Lavidge-Steiner Learning Model Lavidge 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

things we know about Advertising  Branding and Advertising

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

contributes to Branding  Advertising is concerned with:

 Advertising
 

The Advertising Message Media Planning and Placement

Advertising How Advertising Works

 Some


things we know about Advertising

Advertising Communication Model

An 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

Advertising How Advertising Works

 The


LavidgeLavidge-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 Knowledge may try before being totally convinced 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  Factors That
 

think about Advertising 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

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!
 Aperture

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

This approach isnt for everybody.  Generally, this approach is right for a consumerconsumer-oriented marketer.  For example, a small industrial firm might emphasize other things - such as:
   

Trade Shows Their own Sales Force or Sales Reps Current Customer Relationships And also do some Trade Advertising

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

Quantitative Research
  

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! problem!


4. The Objective Planning

Marketing Objective is a number  It is the goal of your marketing activities
 The
 Usually,  It

it is a sales or volume goal

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

5. The Budget Planning

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.
 Determining a

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 disciplinediscipline-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: 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: Strategy:  To convince: ___________________ Adults 35-54 35 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 35___________________ 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

good Media Plan considers these important factors:  Media Cost-Effectiveness: CostA
 GRP (TRP)  Reach  Frequency

- Gross & Total Rating Points

 Media
 CPM

CostCost-Efficiency:

- Cost per thousand  CPP - Cost per point

8. Advertising Media Planning

Media Flow Chart can help you visualize the Media Plan: Plan:  Put a calendar time-line across the top timeA  Place

the media down the side

8. Advertising Media Planning

Media Flow Chart can help you visualize the Media Plan: :  Put a calendar time-line across the top timeA  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
 Public

Relations =

 Non-paid Non-

media coverage  3rd party endorsement (reviews, etc.)  Marketing PR (MPR)  Not Corporate PR (CPR)

9. Sales Promotion & Planning PR

 Sales

Promotion  Consumer Promotion = Win/Free/Save

 Sweepstakes

& Contests  Added Value Extras/Bonus Packs  Coupons/Savings/Rebates

 Trade

Promotion =

 Allowances  Other Payments/Incentives  Events/Sales Contests

9. Sales Promotion & Planning PR

 Public

Relations =

 Product

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

also include  Event Marketing

 May

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

 Creative
 Recall  Persuasion

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.