1. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-1 Chapter 7 Planning for IMC

2. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-2 1.To understand the role of planning in an organisation’s IMC program. 2.To understand the role of target marketing, segmentation and positioning in planning for an IMC program. 3.To explore the concepts and models of IMC planning. 4.To demonstrate the strategic importance of account planning in advertising. Learning objectives

3. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-3 Future of planning Planning process IMC strategic decisions IMC planning Situation analysis IMC audit Planning for IMC Identifying markets Role of planner Data for planning Consumer insight Market segmentation Selecting target market Outside-in Zero-based Account planning Marketing plan Positioning

4. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-4 The best job in the world Source: Courtesy of Tourism Queensland

5. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-5 The best job in the world (cont.) Source: Courtesy of Tourism Queensland

6. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-6 IMC defined By definition, IMC involves the process of: planning, executing, evaluating and controlling the use of the various communications tools to effectively communicate with target audiences.

7. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-7 Review of the marketing plan Marketing strategy and program Marketing objectives Situation analysis Implementation program Performance evaluation

8. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-8 IMC situation analysis External factors 1.Customer analysis 2.Competitive analysis 3.Environmental analysis External factors 1.Customer analysis 2.Competitive analysis 3.Environmental analysis Internal factors 1.Promotional capabilities 2.Prior promotional programs 3.Brand image 4.Strengths and weaknesses of product or service Internal factors 1.Promotional capabilities 2.Prior promotional programs 3.Brand image 4.Strengths and weaknesses of product or service

9. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-9 David Jones

10. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-10 The IMC audit

11. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-11 IMC Audit

12. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-12 Future of planning Planning process IMC strategic decisions IMC planning Situation analysis IMC audit Planning for IMC Identifying markets Role of planner Data for planning Consumer insight Market segmentation Selecting target market Outside-in Zero-based Account planning Marketing plan Positioning

13. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-13 Market segmentation and targeting Market segmentation is the process of dividing up a total market into distinct groups that: 1) have common needs 2) will respond similarly to a marketing action.

14. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-14 The target marketing process Positioning through marketing strategies Selecting market to target Determining market segmentation Identifying markets with unfulfilled needs

15. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-15 Market served A broad market means more customers, but presents a challenge for identifying common needs. Narrow markets results in fewer customers and may be too small to be viable. A key question is how far to go in the segmentation process A key question is how far to go in the segmentation process Market segmentation and targeting (cont.)

16. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-16 IMC strategic decisions

17. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-17 Beer is beer?

18. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-18 Bases for segmentation Behaviour Benefits Outlets Psychographic Geographic Demographic Socioeconomic Usage Awareness Customer characteristics Customer characteristics Buying situation Buying situation

19. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-19 Market segmentation

20. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-20 Demographic segments

21. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-21 Behaviouristic segmentation

22. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-22 Benefit segmentation

23. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-23 Selecting a target market How many segments to enter? (coverage strategy) Target market selection Two key questions Target market selection Two key questions Which segments offer greatest potential?

24. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-24 Market coverage strategy Undifferentiated marketing Single product or service offered to the whole market; no segmentation P1 P2P3 Differentiated marketing Develop different products for different segments; segmentation, no targeting P4 Concentrated marketing Focus on single market or a few markets; segmentation and targeting P1

25. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-25 Developing a positioning strategy What position do we have now? Do we have the money to do the job? What position do we want to own? From whom must we win this position? Do we have the tenacity to stay with it? Does our creative strategy match it? The position The position

26. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-26 Positioning strategies By attributes and benefits? By price or quality? By use or application? By product class? By product user? By competitor? By cultural symbols? How should we position?

27. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-27 Positioning by product user

28. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-28 Positioning by competitor

29. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-29 Developing a positioning platform 6.Monitor the position 5.Make the positioning decision 4.Analyse consumer preferences 3.Determine competitors’ current positions 2.Assess consumers’ perceptions of competitors 1.Identify the competitors

30. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-30 Positioning decisions Is the current position strategy working? Is the segmentation strategy appropriate? Are there sufficient resources to communicate the position? How strong is the competition? The checklist The checklist

31. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-31 Positioning strategy

32. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-32 Future of planning Planning process IMC strategic decisions IMC planning Situation analysis IMC audit Planning for IMC Identifying markets Role of planner Data for planning Consumer insight Market segmentation Selecting target market Outside-in Zero-based Account planning Marketing plan Positioning

33. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-33 Outside-in planning

34. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-34 Zero-based planning

35. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-35 IMC strategy

36. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-36 IMC planning

37. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-37 Account planning Account planning is ‘the marketing services agency discipline that researches and defines the client’s offering in the marketplace; applies strategic thinking, grounded in intelligence and insights, to campaign planning.' Role of account planner Role of account planner Strategy development Researcher (inspire creative insights) Researcher (inspire creative insights) Link between service staff & creative

38. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-38 Big ideas

39. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-39 Data for planning Read about it Talk to customers Ask designers, engineers Use the product Work for client Store visits Background research Background research

40. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-40 Developing the consumer insight Is the insight fresh? New? Innovative? Is it relevant? Does it resonate with consumers? Is it inspiring? Does it excite the team and inspire different applications? Is it enduring? Is it built on a deep understanding of consumers’ beliefs and needs so that it will endure? The consumer insight The consumer insight

41. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-41 Future of account planning  Increasing recognition of consumers’ emotional attachment to products and brands  Sustainability—embedding in strategy and operations  Extensions to boundaries of planning  communications across non-traditional channels  alignment of media strategy and planning  integration of account planning and IMC planning  rise of super planners

42. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-42 Sustainability

43. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-43 Summary and conclusions  Great ideas begin with clever planning.  Key strategic decisions include:  segmentation and targeting  positioning  developing the customer insight  creative strategy.  Strategic planning should lead to a deep consumer insight that inspires great creative ideas.