Strategic PlanningChapter 07

Wells Burnett Moriarty

9e

(8e, Ch 07)

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Chapter Key PointsWhat are The Differences Between Objectives, Strategies, and Tactics in

Strategic Planning, and How are The Three Levels Of Planning Connected?How Is A Campaign Constructed, and What are Its Six Basic Sections?What Is Account Planning and How It Is Used In Advertising? In What Ways Does an Integrated Marketing Communication (IMC) Plan

Differ From an Advertising Plan?

Strategic PlanningStrategic Planning:

A Process of Identifying Problems That Can Be Solved With Marketing Comm..

Determines Long-Term Objectives; What You Want To Accomplish?

Decides Medium-Term Strategies; How To Accomplish The Objectives?

Implements Short-Term Tactics; Which Make The Plan Come To Life?

Strategic Planning:

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Followed By Divisions/SBUsBP Focus on Profit Maximization & ROI for the Entire CompanyBP Starts With Mission Statement That Supports The Broad Goals & Policies of SBU

Business Plan/BP

Marketing Plan/MP

Helps Branding, Deals With Long-Terms Goals, Operate for a Few of Years MP Parallels the BP; Contains Many Common Objectives, Strategies & TacticsObjectives of MP is To Increase Sales Volume, Market Share, Profit etc & Dealing With Mix (Ps) MP Deals With SWOT Analysis; External & Internal Situation Analysis

MP Helps Deciding

Strategic PlanningStrategic Planning: 3-Tiered

Target MarketBrand PositionPricing

Product Design & PerformanceDistribution & ServicesMarketing Communication

IMC/Advertising Plan Alike BP & MP, IMC Plan Has Concern For Objectives, Strategies & TacticsIt Focuses on Comm. Objectives, Strategies, Tactics, Timing, Costs & EvaluationHeart of IMC Plan is Audience Insight, Message & MediumPlan Matches Right Audience To The Right Message Through Right Medium at The Right Time

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Typical Advertising/IMC/Campaign PlanIt Focus on Solving a Particular Comm.. ProblemIt Solves Message Problems That are Carried in Different Media & Trigger Different Targets

Typical Campaign Plan Outline

6) Campaign Management

1) Situation Analysisa) Background Researchb) SWOT Analysisc) Key Comm. Problems To Be Solved

2) Key Strategic Campaign Decisionsa) Objectivesb) Target Audiencec) Brand Position: Features & Competitive Advantaged) Campaign Strategy: Key Strategic Approach & Communication Tools

3) Media Strategya) Media Objectivesb) Media Selectionc) Media Planning & Buying:

I. Vehicle SelectionII. Budget AllocationIII. Scheduling

4) Message Strategya)Key Consumer Insight (Brand Relationship Insight in IMC)

b)Message Objectivesc)Selling Premise/Principled)Big Ideae)Message Design & Executions

5) Other MarCom Tools Used in Supporta)Public Relationsb)Direct Marketingc)Sales Promotiond)Personal Sellinge)Merchandising, Packaging, Point-of-Purchasef)Integration Strategy (Maximize Synergy)

a) Evaluation of Effectiveness b) Campaign Budget

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What’s in a Campaign Plan? Cont’Situation Analysis

Background Research

SWOT Analysis

Research, Gather & Review Brand’s Current Market Situation Then Analyze The Findings of the Research Called Situation Analysis From Findings Identify The Problems That Need to Be Solved Through Comm.

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Campaign Plan Cont’

Situation Analysis Cont’

SWOT Analysis

Strengths & Weakness: Internal Analysis

Opportunity: Identify & Develop Advantages Over RivalsLeverage Identified Opportunities in The Brand Communication

Threat: Handle Carefully or You Will Be Erased; Rivals are the Common ThreatsAddress The Threats Smartly or You Will Be Erase form the Market

Macro-Environment Forces: Micro-Environment Forces:

Opportunity & Threat: External Environmental Analysis

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Campaign Plan Cont’Objectives

Goal is What The Message Must Accomplish During a Specified Time Period

Objectives May Depends on ………………………………………………………………….

Perception Emotion Cognition Persuasion Association Behavior

All Objectives Must Be BenchmarkedObjectives Must Be……………... ……..

Measurable Objectives Specific Clear Measurable/Realistic Consistent Hierarchal Quantitative Easily Measurable Accomplish Within a Specific Time Frame

Targeting Identify & Profile an Audience Get Inside The Targets To Find the Kinds of Messages Will Motivate Them Know The Characteristics, Attributes, Beliefs, Values & Experiences of Targets

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Campaign Plan Cont’Positioning

If Importance Changes, The Position Need To Be Adjusted Position Creates in Over Time Once Position is Established, Difficult To Change

1st Identify & Evaluate Both Tangible & Intangible Features

Then Determine Which Features Provide Advantage Over Rivals & Also is Important To Prospects

Differentiation Helps Standing Up in a Crowded Market Undifferentiated/Parity Products: Difficult to Differentiate; Brand Image is Important; MilkDifferentiated: Feature Analysis Can Helps Identifying AdvantagesConsider Factors To Take Market Advantages are………………….…..

Product Features & Attributes

Differentiation & Competitive Advantage

Tell Product Has a Strong FeatureTell The Feature is Important To TargetHit Where The Competition Is Weaker

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Campaign Plan Cont’Positioning Cont’

Locating the Brand PositionBeside Attributes, Also Position Through………..

SuperiorityPreemptiveValuePsychologicalBenefitUsageCompetitor’s StrategyCategory Factors

Needed When Current Positioning is Blur & Marketplace Has ChangedCoca-Cola in US Reposition its “Energy Drink” Branded “Mother Energy”

Frutica’s Positioning Strategy “Pure” is Already “Blur” Now Reposition Through “ ………”

Repositioning Is Your Mortgage Squeezing Your Wallet? Squeeze Back!

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Campaign Plan Cont’Brand Communication Strategy; Use Following 2 Approaches

1) Hard-Sell is Used To Persuade2) Soft-Sell Builds Brand Image; Touches The Emotions

Brand Identity: See/HearBrand Personality & Liking: FeelBrand Position & Understanding: Think/UnderstandBrand Image: ConnectBrand Promise & Preference: BelieveBrand Loyalty: Act/Do

Hard & Soft Sells Both are Affected By 6 Facets Model…...

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Campaign Plan Cont’Campaign Strategies & Mgmt

Campaign Strategies Focus on Branding, Positioning, Category Dominance, Handling Rivals, Changing Perception on The Price, Share of Wallet, Launching/Extension, Deciding Spokesperson etcSay Strategies are Identified, Now Develop Budget & Evaluation Process for Implementation

5 Budgeting Methods are……..…. Historical MethodObjective-Task MethodPercentage-of-Sales MethodCompetitive BudgetsAffordable Method

Budgeting

Evaluation: Determining Effectiveness Evaluation Determines The Effectiveness of The CampaignEvaluation Impossible Without Establishing Measurable ObjectivesUsually, Evaluation is a Research Proposal

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Account Planning: What is it?Account Planner/AP

AP’s Mission is to Answer……………..

AP Develops Strategies Together With Client & AgencyDetermines the Kind of Message, to Which Customer May Respond Doesn’t Design the Creative Strategy: Creative Dep’t Does It

Who: Who are You Trying To Reach? What Insight Do You Have About How They Think, Feel & Act? How Should They Respond To Your Ad Message?

What: What Do You Say To Them? What Directions Come From The Consumer Research That Will Be Useful To The Creative Team?

Where: How & Where Will You Reach Them? What Directions Come From The Consumer Research That Will Be Useful To The Media Team?

AP is The Agency Person Who Researches Brand-Consumer Relationships

AP Plans Message Strategies To Addresses Consumer Needs & Wants

Account Planning/AP: What is it? Cont’

AP Must Ensure That, His Researchers & Creative Teams is Working Closely

AP Planners Use Various Research Tools To Do Consumer “Insight Mining”

The Research Foundation

Consumer Insight: The Fuel of Big Ideas

APs Go To Consumer Insight To Discover The Big Idea Through Pre-Written Questioner

Success of the Big Idea Depends on Nature of Consumer’s Thinking; Mindsets, Moods, Motivations, Desires etc That Trigger Attitudes & Actions

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Account Planning: What is it? Cont’The Comm./Creative Brief; Outcome of the Strategic Research

Problem: What is the Problem That Comm. Can Solve?

Target Audience: To Whom Do We Want To Speak?

Consumer Insights: What Motivates The Target to Act?

Brand Imperatives: What are The Important Features? What’s The Point of Competitive Advantage? What’s The Brand’s Position Relative To Rivals? What is Its Essence, Personality & Image?

Comm. Objectives: What Do We Want Customers To Do in Response To The Messages?

The Proposition/Selling Idea: What Is The Single Thought That The Comm. Will Bring To Life?

Support: What Is The Reason To Believe The Proposition?

Creative Direction: How Can You Best Stimulate Desired Response? How Can We Best Say It?

Media Imperatives: Where & When Should We Say It?

It lights Up The Creative Team; Explains Acquired Consumer Insight & Decisions for Big Idea to Team

Creative Brief Outlines……………………..

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Planning For IMC CampaignsIMC & Advertising Plans Both Follow the Same Basic Outline; As Ad is One of the Components of IMCJust IMC Plan Uses Variety of Tools

IMC Campaign Planning

Areas Where an IMC Plan Differs From an Ad Plan

Objectives

Public Relations Consumer Sales PromotionTrade Sales PromotionPoint-of-PurchaseDirect MarketingSponsorship & EventsSpecialties

IMC Objectives are Tied With Multiple Comm. Tools

These Tools Have Different Strengths & Weaknesses

IMC Plan Sets Multiple Objectives & Develops Different Strategies to Achieve Them

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Planning For IMC Campaigns Cont’IMC Campaign Planning Cont’

Contact Points Helps Retaining & Growing Customer Base

Also Crucial While Dealing With Stakeholders

Areas Where an IMC Plan Differs From an Advertising Plan Cont’

Stakeholders

Stakeholders are the Primary Medium for WOM

Contact Points/Touch Points

Synergy/Impact & Strategic ConsistencyIMC Plan Involves Delivering Messages Through Multiple Media & Different Contact PointsSo the Concern Here is to Create Consistent MessagesIMC Planners are Continuously Looking For Ways To Strengthen The Synergy of The Messages

Synergy is Also Important For Marketers To Maximize The Cost Efficiency of The Budgets