Marketing The Planning Process

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Chapter 8

Introduction: Introduction
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Key Concepts

q The Single Biggest Thing q The Campaign Concept q The Language of Marketing q Planning & Strategy

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How Advertising Works The Planning Process Questions & Discussion

Key Concepts Key Concepts

s s s s

The Single Biggest Thing Campaigns Objectives & Strategies Advertising & Marketing

The Single Biggest Thing: Key Concepts

Advertising dollars have great elasticity
q q

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

q

And it is the most fun!

The Single Biggest Thing Key Concepts

Advertising is just a part of The Five Ps s All of IMC is important s However... s Advertising dollars are...
s
q The most controllable marketing activity

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

Advertising is often the tail that wags the marketing dog

Campaigns: Key Concepts

Origin of term s Military Campaigns s Political Campaigns s Advertising Campaigns
s

Campaigns: Key Concepts

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

Campaigns: Key Concepts

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Military Campaigns

Victory is my objective. War is my strategy.

Winston Churchill

Campaigns: Key Concepts

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Military Campaigns

a series of military operations with a particular objective in a war q Advertising and marketing use both the language and the military mindset q Example: a very popular marketing book
q
QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture.

Campaigns: Key Concepts

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Political Campaigns

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

x Each geographic or statewide campaign may have objec-tives and strategies contrib-uting to the overall campaign.

x The final objective is an Electoral College majority.

Campaigns: Key Concepts

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Advertising Campaigns

Advertising is a team sport!

Campaigns: Key Concepts

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Advertising Campaigns

q A team effort q Structured and

sequential activities q An imaginative reintegration of new and existing factors

q 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 s It was a successful advertising campaign s Then, well discuss some of the basic common elements needed in an advertising campaign s Here they are...
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Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts

Advertising Campaign: Key Concepts

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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

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Campaigns are built with

Plans & Strategies

Plans & Concepts KeyStrategies:

Organized Actions and s Imaginative Reintegration s Plans & Strategies are a combination of:
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q Tightly organized planned actions q Unique strategic configurations

Plans may contain strategies s Strategies need plans to be implemented

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Plans & Concepts KeyStrategies:

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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:

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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:

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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:

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Now lets talk about Plans Marketing Plans are written:

q q

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

Creative Plans may be called:

q q q q q

replaces the word

Plans & Concepts KeyStrategies:

s s

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 q A Media Plan q Media Departments write Media Plans
q

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 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:

s s

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

q q

Responsible for Marketing

v Usually sets Marketing Objective and Budget

Agency is responsible for Advertising

v Good agencies seek to do this work for their clients

At the agency, Account Managers:

q q q q

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:

s s

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

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

Agencies turn plans into campaigns

q q

Plans & Concepts KeyStrategies:

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

The same language!

Vocabulary: Key Concepts

s The Language of Marketing & Advertising

Original concepts came from military s Now the business of marketing has its own intellectual infrastructure - a way of thinking and a way of talking s Understanding the specific meanings of key words and concepts is critical
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Yes, it will be on the test!

Vocabulary: Key Concepts

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

Vocabulary: Key Concepts

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

Vocabulary: Key Concepts

The Value Ladder The Value Ladder Laddering s Value Im a good mom
s
s

Benefit q Consumer Benefit q Product Benefit

Good food for my family Kids like it Easy to serve

E-Z Open glass jar

Feature

Attribute

Apple sauce is made from apples

Vocabulary: Key Concepts

Some More Important Words s Target audience - person or group to whom advertising is directed
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q Primary target - the target audience q Secondary target - usually, the trade

Demographics - statistical description of target audience s Psychographics - psychological traits of target audience
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Vocabulary: Key Concepts

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Some More Important Words s Sales Promotion - use of incentives (a small bribe) to develop or stimulate sales s Public Relations (PR) - publicity through nonpaid media
q Publics - a PR version of target audience

Situation Analysis - beginning section of plan where current situation is evaluated s SWOT Analysis - Strengths, Weaknesses, Opportunities, and Threats
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Vocabulary: Key Concepts

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s

Some Important Media Words

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

Vocabulary: Key Concepts

s
s

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) s CPP (Cost per point) - how much it costs to buy a point of the broadcast audience s Share - percentage of an audience tuned to a specific station or specific show
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OK, now that we know how to talk about advertising, lets talk about how it works

Advertising
How Advertising Works Advertising Works
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Next, well cover...

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

Advertising
How Advertising Works
s Some things we know
q

about people.

s People read what interests them, sometimes

its an ad. (Gossage) s People are strategic - they look out for their own best interests. s People are bombarded with messages
A key concern is getting through clutter

s People (and advertising) work from both logic

and emotion

Advertising
How Advertising Works
s Some things
s Branding and Advertising
q Branding = overall brand equity building q Advertising = specific messages and goals

we know about Advertising

s Advertising contributes to
q q

Branding s Advertising is concerned with:

The Advertising Message Media Planning and Placement

Advertising
How Advertising Works
s Advertiser

An Advertising Communication Model

Advertising Communication Model

Feedback

Sender
(Encoder)

Receiver
(Decoder)

Audience

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

Feedback is one purpose of Market Research

s The Lavidge-Steiner

Advertising
How Advertising Works
Model
Liking Knowledge Awareness

Learning Purchase

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

Conviction Preference

Advertising
How Advertising Works
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AIDA

Attention
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Interest

Desire s Action!

Advertising
How Advertising Works
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What we need to know:

q

Target Audience q Factors That Motivate Purchase Behavior q Unique Brand Characteristics

Advertising
How Advertising Works
s Factors That Influence
q q

s More ways to think about Advertising

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

q

Advertising
How Advertising Works
s Brand

s More ways to think about Advertising

Contact Points s Aperture and Personal Media Network s Unique Selling Proposition s inherent drama s Whatever and however you think about it, eventually you have to do it

Introduction Planning
s The Planning Process
s

Generally, plans cover at least four areas:

q Marketing Objective and Strategy (The 5 Ps) q Advertising Objective and Strategy q Creative Strategy (The Advertising Message) q Media Objective and Media Strategy q Other Plans and Strategies
v Sales Promotion, PR, etc.

Introduction Planning

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

However, the underlying principles apply.

Introduction Planning
s The Planning Process

Introduction Planning
s A Ten Part Process s Evaluation
1. Situation Analysis 2. Research 3. Problems & Opportunities
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Goal Setting
4. Marketing Objective 5. Budget

And then...

Introduction Planning
s A Ten Part Process
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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

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q Current Users q Seasonality q Geography q Creative Requirements q Purchase Cycle q Competitive Review

Also called Background Review s Its a Summation of current knowledge:

q And anything else that might help you understand

your situation.

2. Research Planning
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q Target Audience

You do Secondary Research first s You do Primary Research second s Research is usually in these three areas:
v Improve Understanding, Gain Insight

q Factors That Motivate Purchase Behavior

v Improve Effectiveness, Gain Insight

q Unique Brand Characteristics

v Look for key point of difference

2. Research Planning
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Research Techniques:
q

Qualitative Research
v Focus groups v One-on-one interviews

Quantitative Research
v Surveys v Observation v Experiments

When preparing The Research Plan

v Be sure to know what youre looking for!

3. Problems & Opportunities Planning

s s

Also known as a SWOT Analysis

q Strengths, Weaknesses, Opportunities, Threats

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

4. The Objective Planning

s The Marketing Objective is a number
s It is the goal of your marketing activities
q Usually, it is a sales or volume goal q It may be difficult to get to, but the final answer is

simple and measurable.

5. The Budget Planning

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

5. The Budget Planning

s Budgeting Methods
s s s
q

Historical expenditures
Often done as percent of sales

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

q q q q

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

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

Advertising Creative Advertising Media Sales Promotion and Public Relations

7. Advertising Creative Planning

Target Audience q Objective q Strategy q Considerations q Support q Tone
q

s Creating The Advertising Message:

7. Advertising Creative Planning

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s Creating The Advertising Message:

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

7. Advertising Creative Planning

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s

Creating The Advertising Message:

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

7. Advertising Creative Planning

s Creating The
s

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

To convince: s To buy: s Instead of: s Because:

s

8. Advertising Media Planning

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Media Objectives usually include:

q q q q

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

q q q

s A good Media Plan considers these

important factors: s Media Cost-Effectiveness:

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

Media Cost-Efficiency:
q q

8. Advertising Media Planning

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

8. Advertising Media Planning

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

9. Sales Promotion Planning& PR

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Sales Promotion =
q q q

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 =
q q q q

9. Sales Promotion Planning& PR

s s
q q q

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 =
q q q

9. Sales Promotion Planning& PR

s Public Relations =
q

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

May also include Event Marketing

10. Evaluation Planning

s s s s

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

Tracking studies Attitude, usage, and awareness studies Recall Persuasion

Creative
q q

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