1. Strategic Planning Chapter 07 Wells Burnett Moriarty 9e (8e, Ch 07)

2. 2 Chapter Key Points  What 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?

3. Strategic Planning  Strategic 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: 3

4. 4  Followed By Divisions/SBUs  BP Focus on Profit Maximization & ROI for the Entire Company  BP 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 & Tactics  Objectives 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 Planning  Strategic Planning: 3-Tiered  Target Market  Brand Position  Pricing  Product Design & Performance  Distribution & Services  Marketing Communication  IMC/Advertising Plan  Alike BP & MP, IMC Plan Has Concern For Objectives, Strategies & Tactics  It Focuses on Comm. Objectives, Strategies, Tactics, Timing, Costs & Evaluation  Heart of IMC Plan is Audience Insight, Message & Medium  Plan Matches Right Audience To The Right Message Through Right Medium at The Right Time

5. 5 Typical Advertising/IMC/Campaign Plan  It Focus on Solving a Particular Comm.. Problem  It Solves Message Problems That are Carried in Different Media & Trigger Different Targets  Typical Campaign Plan Outline 6)Campaign Management 1) Situation Analysis a) Background Research b) SWOT Analysis c) Key Comm. Problems To Be Solved 2) Key Strategic Campaign Decisions a) Objectives b) Target Audience c) Brand Position: Features & Competitive Advantage d) Campaign Strategy: Key Strategic Approach & Communication Tools 3) Media Strategy a) Media Objectives b) Media Selection c) Media Planning & Buying: I.Vehicle Selection II.Budget Allocation III.Scheduling 4) Message Strategy a)Key Consumer Insight (Brand Relationship Insight in IMC) b)Message Objectives c)Selling Premise/Principle d)Big Idea e)Message Design & Executions 5) Other MarCom Tools Used in Support a)Public Relations b)Direct Marketing c)Sales Promotion d)Personal Selling e)Merchandising, Packaging, Point-of-Purchase f)Integration Strategy (Maximize Synergy) a)Evaluation of Effectiveness b)Campaign Budget

6. 6 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.

7. 7 Campaign Plan Cont’  Situation Analysis Cont’  SWOT Analysis  Strengths & Weakness: Internal Analysis  Opportunity: Identify & Develop Advantages Over Rivals  Leverage Identified Opportunities in The Brand Communication  Threat: Handle Carefully or You Will Be Erased; Rivals are the Common Threats  Address The Threats Smartly or You Will Be Erase form the Market  Macro-Environment Forces:  Micro-Environment Forces:  Opportunity & Threat: External Environmental Analysis

8. 8 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 Benchmarked  Objectives 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

9. 9 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  1 st 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; Milk  Differentiated: Feature Analysis Can Helps Identifying Advantages  Consider Factors To Take Market Advantages are………………….…..  Product Features & Attributes  Differentiation & Competitive Advantage  Tell Product Has a Strong Feature  Tell The Feature is Important To Target  Hit Where The Competition Is Weaker

10. 10 Campaign Plan Cont’  Positioning Cont’  Locating the Brand Position  Beside Attributes, Also Position Through………..  Superiority  Preemptive  Value  Psychological  Benefit  Usage  Competitor’s Strategy  Category Factors  Needed When Current Positioning is Blur & Marketplace Has Changed  Coca-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!

11. 11 Campaign Plan Cont’  Brand Communication Strategy; Use Following 2 Approaches 1)Hard-Sell is Used To Persuade 2)Soft-Sell Builds Brand Image; Touches The Emotions  Brand Identity: See/Hear  Brand Personality & Liking: Feel  Brand Position & Understanding: Think/Understand  Brand Image: Connect  Brand Promise & Preference: Believe  Brand Loyalty: Act/Do  Hard & Soft Sells Both are Affected By 6 Facets Model…...

12. 12 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 etc  Say Strategies are Identified, Now Develop Budget & Evaluation Process for Implementation  5 Budgeting Methods are……..….  Historical Method  Objective-Task Method  Percentage-of-Sales Method  Competitive Budgets  Affordable Method  Budgeting  Evaluation: Determining Effectiveness  Evaluation Determines The Effectiveness of The Campaign  Evaluation Impossible Without Establishing Measurable Objectives  Usually, Evaluation is a Research Proposal

13. 13 Account Planning: What is it?  Account Planner/AP  AP’s Mission is to Answer……………..  AP Develops Strategies Together With Client & Agency  Determines 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

14. 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 14

15. 15 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……………………..

16. 16 Planning For IMC Campaigns  IMC & Advertising Plans Both Follow the Same Basic Outline; As Ad is One of the Components of IMC  Just IMC Plan Uses Variety of Tools  IMC Campaign Planning Areas Where an IMC Plan Differs From an Ad Plan  Objectives  Public Relations  Consumer Sales Promotion  Trade Sales Promotion  Point-of-Purchase  Direct Marketing  Sponsorship & Events  Specialties  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

17. 17 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 Consistency  IMC Plan Involves Delivering Messages Through Multiple Media & Different Contact Points  So the Concern Here is to Create Consistent Messages  IMC 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