Chapter 6: Situation Analysis and The Market Strategy Plan Pearls of Wisdom By Jason Tondre and Shawn Hartwig March 19, 2001

Media Planning Built around brand’s most important problem Finding the problem is a problem in itself One way for a brand to solve their problem is through situation analysis.

Situation Analysis Research prepared in document format to provide the background for a media planner to prepare a plan. 5 Essential Parts of a Situation Analysis Market History Distribution Channels Consumers Product Advertising and Media Planning

Market History Sales of all the brands within a given market, including the brand the media planner is working for. Includes Geographic sales distribution Market size in both dollars and units Market shares Seasonal effects Price effects Helps determine where the brand currently lies and where it has been in the past.

Distribution Channels How a brand and it’s competition distribute their products. Includes information about: Shelf-facings Inventories held Out-of-stock situations Selling methods Display and advertising allowances and How and why promotions are used. For each of the distribution channels. Knowing the distribution information often will help the media planner decide where to advertise.

Consumers Gives the profile of the users of the product. Personal demographics Age Sex Income Occupation Geographic Information Psychographics Buying habits When products are purchased, Where there purchased What colors and sizes are purchased What models are purchase

Product Product history and its development Product changes Effects of changes on competing brands as well as the consumers’ perception of the values of the brands.

Advertising and Media Analysis Media expenditures for competing brands is probably the most important information for a media planner. Includes Media classes used Individual vehicles used Number of ads When the advertising was run and Dollar and percentage allocation for each of the media and markets.

Marketing Objectives Serve as controls for media planning Most relate directly to achieving share of market for a brand Others relate to communication objectives Examples: To maintain national coverage To find and persuade new customers for our product To increase share in an expanding segment of the X market

Marketing Mix and Strategy Each element of the mix is a selling tool Good product, meets consumers’ wants and needs, price, distribution, etc. It takes a number of different elements to sell a product “mix” is important in terms of finding the optimum elements for selling Marketing mix requires integration, because each element could convey a different message and thereby reduce the effectiveness of communication.

Budget Estimating the Cost of a Marketing Plan 1. Estimating Media Costs Checking media rate books Media planner is responsible 2. Estimating Production Costs Allocating given percentage of the total budget for that purpose Obtaining estimates for production pieces

Marketing Plan Will money spent for advertising attain a given set of objectives? Experience is crucial Use experience and math models to measure

Creative Strategy Aids the planner in decision making Color: magazines, TV Demonstration: TV, print media, radio Music: TV, radio, or magazine inserts Large illustrations: Billboards, two-page ad NOTE: the impact of these media is hazy

Dealers and Distribution Limit advertising to product’s available areas, except if trying to “force” market availability Select media to best communicate with dealers Trade magazines, conventions, direct mail Dealers important in selling at the local level Self-serving influence

Overall Sales Strategy More specific strategy=better strategy Advertising’s communication task Pricing tactics: price announcements Sales promotion: inserts, coupons, etc. Tie-in local store info with national ads Personal selling, public relations, packaging less important

Questions 1. From a practical standpoint, the planner does not need to know every detail, only those items that will contribute to ________ ________. 2. The planner cannot start work without first knowing what is to be _____ and how it is to be _______ to consumers.