Marketing The Planning Process Chapter 8

Chapter 8
Marketing
The Planning Process
Introduction
Introduction:

Key Concepts

The Single Biggest Thing

The Campaign Concept

The Language of Marketing

Planning & Strategy

How Advertising Works

The Planning Process

Questions & Discussion
Key Concepts
Key
Concepts

The Single Biggest Thing

Campaigns

Objectives & Strategies

Advertising & Marketing
The Single Concepts
Biggest Thing:
Key

Advertising dollars have great “elasticity”



Advertising can be The Single Biggest Thing


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.
And … it is the most fun!
The Single Concepts
Biggest Thing
Key
Advertising is just a part of “The Five Ps”
 All of “IMC” is important
 However...
 Advertising dollars are...

Often, the biggest item in the marketing budget
 The most visible part of marketing spending
 The most controllable marketing activity


Advertising is often…
“the tail that wags the marketing dog”
Campaigns:
Key
Concepts
Origin of term
 Military Campaigns
 Political Campaigns
 Advertising Campaigns

Campaigns:
Key
Concepts

Origin of term
Fr. campagne, It. campagna - open country
suited to military maneuvers
 Campaign - a series of military operations
with a particular objective in a war
 Campaign - a series of organized planned
actions with a particular purpose, as for
electing a candidate.

Campaigns:
Key
Concepts

Military Campaigns
“Victory is my objective.
War is my strategy.”
Winston Churchill
Campaigns:
Key
Concepts

Military Campaigns
“a series of military operations with a
particular objective in a war”
 Advertising and marketing use
both the language and the
military mindset
 Example: a very popular
marketing book…

QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
Campaigns:
Key
Concepts

Political Campaigns
 In politics, as in war, you
have to pick your battles.
National political campaigns
focus on key states and voter
groups.
Each geographic or statewide
campaign may have objectives and strategies contributing to the overall campaign.
The final objective is an
Electoral College majority.
Campaigns:
Key
Concepts

Advertising Campaigns
“Advertising
is a team sport!”
Campaigns:
Key
Concepts

Advertising Campaigns
A team effort
 Structured and
sequential
activities
 An imaginative
re-integration of
new and existing
factors
 Shared objectives
and strategies

Advertising
Campaign:
Key
Concepts
Next, we’ll show you four billboard ads
done years ago for a telecom company in
Kansas City - Birch Telecom
 It was a successful advertising campaign
 Then, we’ll discuss some of the basic
common elements needed in an
advertising campaign
 Here they are...

Advertising
Campaign:
Key
Concepts
Advertising
Campaign:
Key
Concepts
Advertising
Campaign:
Key
Concepts
Advertising
Campaign:
Key
Concepts
Advertising
Campaign:
Key
Concepts

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

Campaigns are built with…
Plans & Strategies
Plans & Strategies:
Key
Concepts
Organized Actions and…
 “Imaginative Reintegration”
 Plans & Strategies are a combination of:

Tightly organized planned actions
 Unique strategic configurations

Plans may contain strategies
 Strategies need plans to be implemented

Plans & Strategies:
Key
Concepts

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 one’s 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 & Strategies:
Key
Concepts

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 & Strategies:
Key
Concepts

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 & Strategies:
Key
Concepts


Now let’s talk about Plans
Marketing Plans are written:



By the Advertisers
By their Advertising Agencies
Creative Plans may be called:





Creative strategies
Creative blueprints
Creative platforms
Creative briefs
And sometimes the word “communication”
replaces the word “creative”
Plans & Strategies:
Key
Concepts



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…
A Media Plan
Media Departments write Media Plans
The Advertising Strategy determines the Creative
Objective and the Media Objective
Plans & Strategies:
Key
Concepts
Marketing Objective
Sell one million of product
Market Strategy/Creative
Establish brand as superior
Market Strategy/Media
Target audience W 18-49
Creative Objective
Establish brand as superior
Media Objective
Deliver Advertising to
Target audience W 18-49
Creative Strategy
To be determined
Media Strategy
To be determined
Plans & Strategies:
Key
Concepts


Who’s going to manage all of this?
At the client, Director of Marketing

Responsible for Marketing


Agency is responsible for Advertising


Usually sets Marketing Objective and Budget
Good agencies seek to do this work for their clients
At the agency, Account Managers:




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 & Strategies:
Key
Concepts

Agencies turn strategies into ideas

And they turn those ideas into ads


Creative people actually make the ads

Copywriters and art directors
Agencies turn plans into campaigns

Clients and account management determine
needs and budgets

Media departments turn budgets and strategies
into Media Plans
Plans & Strategies:
Key
Concepts
To make plans and strategies work, a lot of
people have to work together.
 And that means they have to speak…

The same language!
Vocabulary:
Key
Concepts
The Language of Marketing & Advertising
 Original concepts came from military
 Now the business of marketing has its own
intellectual infrastructure - a way of
thinking and a way of talking
 Understanding the specific meanings of
key words and concepts is critical


Yes, it will be on the test!
Vocabulary:
Key
Concepts
Mission: Overall goals & values
your “reason for being”
 Objective: What you want to accomplish.
 Strategy: How you are going to do it.
 Tactic: Specific action. (Should be specific
action that helps meet strategic goals - tactics
should be on strategy.)
 Remember, objectives first, then strategy. (If
you don’t know where you’re going, any road
will take you there.)

Vocabulary:
Key
Concepts
Mission: Overall goals & values
your “reason for being”
 Objective: What you want to accomplish.
 Strategy: How you are going to do it.
 Tactic: Specific action. (Should be specific
action that helps meet strategic goals - tactics
should be on strategy.)
 Remember the acronym M.O.S.T.
Mission, Objective, Strategy, Tactics

Vocabulary:
Key
Concepts
The Value Ladder “Laddering”
 Value
“I’m a good mom”
 Benefit
Good food for my family


Consumer Benefit
Kids like it

Product Benefit
Easy to serve
Feature
 Attribute

E-Z Open glass jar
Apple sauce is made
from apples
Vocabulary:
Key
Concepts
Some More Important Words…
 Target audience - person or group to whom
advertising is directed

Primary target - the target audience
 Secondary target - usually, the trade

Demographics - statistical description of
target audience
 Psychographics - psychological traits of
target audience

Vocabulary:
Key
Concepts
Some More Important Words…
 Sales Promotion - use of incentives (a small
bribe) to develop or stimulate sales
 Public Relations (PR) - publicity through
non-paid media


Publics - a PR version of target audience
Situation Analysis - beginning section of plan
where current situation is evaluated
 “SWOT” Analysis - Strengths, Weaknesses,
Opportunities, and Threats

Vocabulary:
Key
Concepts
Some Important Media Words…
 Reach - percentage of the audience exposed to
an advertising message
 Frequency - average number of times audience
has had the opportunity to see the message
 GRPs (Gross Rating Points) - the sum of the
ratings points (a point is one percent of the
audience)
 TRPs (Target Rating Points) - this is a subset,
measuring rating points for the target group

Vocabulary:
Key
Concepts
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)
 CPP (Cost per point) - how much it costs to buy
a “point” of the broadcast audience
 Share - percentage of an audience tuned to a
specific station or specific show
 OK, now that we know how to talk about
advertising, let’s talk about how it works…

Advertising
How Advertising Works

Next, we’ll cover...
Some things we know about people
 Some things we know about
advertising messages
 The Lavidge-Steiner Learning Model
 “AIDA”

Advertising
How Advertising Works
 Some
things we know about people.
 “People read what interests them,
sometimes it’s an ad.” (Gossage)
 People are strategic - they look out for
their own best interests.
 People are bombarded with messages

A key concern is getting through clutter
 People
(and advertising) work from both
logic and emotion
Advertising
How Advertising Works
 Some
things we know about Advertising
 Branding and Advertising
 Branding
= overall brand equity building
 Advertising = specific messages and goals
 Advertising
contributes to Branding
 Advertising is concerned with:


The Advertising Message
Media Planning and Placement
Advertising
How Advertising Works

An Advertising Communication Model
Advertising Communication Model
Feedback

Advertiser
Audience
Sender
Receiver
(Encoder)
(Decoder)
MESSAGE
Note it is more difficult for the audience to
communicate back to the advertiser.

Feedback is one purpose of Market Research
Advertising
How Advertising Works
 The
Lavidge-Steiner
Learning Model
Purchase
How people “learn” ads
 Begins with Awareness
 Moves to Conviction
and Purchase
Conviction

NOTE: Process may be
quite rapid and you
may try before being
totally convinced
Preference
Liking
Knowledge
Awareness
Advertising
How Advertising Works

“AIDA”
 Attention

Interest

Desire

Action!
Advertising
How Advertising Works

What we need to know:
Target Audience
 Factors That Motivate
Purchase Behavior
 Unique Brand Characteristics

Advertising
How Advertising Works
 More
ways to think about Advertising
 Factors That Influence
Purchase Behavior



Basis of competition
A critical decision
The Problem The Advertising Must Solve

From the Y&R Creative Work Plan - one of
the key tasks is determining what you want the
advertising to do.
Advertising
How Advertising Works
 More
ways to think about Advertising
 “Brand Contact Points”
 Aperture and Personal Media Network
 Unique Selling Proposition
 “inherent drama”
 Whatever and however you think about it,
eventually you have to do it…
 “You need a Plan!
Planning
Introduction
 The

Planning Process
Generally, plans cover at least four areas:
Marketing Objective and Strategy (The 5 Ps)
 Advertising Objective and Strategy
 Creative Strategy (The Advertising Message)
 Media Objective and Media Strategy
 Other Plans and Strategies


Sales Promotion, PR, etc.
Planning
Introduction
 The
Planning Process
Generally, this approach is right for a
consumer-oriented marketer.
 For example, a small industrial firm might
emphasize other things - such as:

Trade Shows and Trade Advertising
 Their own Sales Force or Sales Reps
 Current Customer Relationships


However, the underlying principles apply.
Planning
Introduction
 The
Planning Process
Planning
Introduction
 A Ten

Part Process
Evaluation
1. Situation Analysis
2. Research
3. Problems & Opportunities

Goal Setting
4. Marketing Objective
5. Budget

And then...
Planning
Introduction
 A Ten

Part Process
Building the Plan
6. Strategies
7. Advertising Creative
8. Media
9. Sales Promotion
+ Other appropriate “IMC” plans and strategies
10. Evaluation

Now let’s go step by step…
1. Situation Analysis
Planning
Also called Background Review
 It’s a Summation of current knowledge:

Current Users
 Seasonality
 Geography
 Creative Requirements
 Purchase Cycle
 Competitive Review
 And anything else that might help you
understand your situation.

2. Research
Planning
You do Secondary Research first
 You do Primary Research second
 Research is usually in these three areas:


Target Audience


Factors That Motivate Purchase Behavior


Improve Understanding, Gain Insight
Improve Effectiveness, Gain Insight
Unique Brand Characteristics

Look for key point of difference
2. Research
Planning

Research Techniques:

Qualitative Research



Quantitative Research




Focus groups
One-on-one interviews
Surveys
Observation
Experiments
When preparing The Research Plan

Be sure to know what you’re looking for!
3. Problems & Opportunities
Planning

Also known as a “SWOT” Analysis

Strengths, Weaknesses, Opportunities, Threats
“For every problem there is an opportunity”
 Understanding problems is a critical skill
 Identify the right problem and you’re on the
road to the solution
 And, whatever you do…
 Don’t solve the wrong problem!

4. The Objective
Planning
 The
 It
Marketing Objective is a number
is the goal of your marketing activities
 Usually,
 It
it is a sales or volume goal
may be difficult to get to, but the final
answer is simple and measurable.
5. The Budget
Planning
Determining a budget usually involves
asking two very important questions:
 How much will it take?
 How much do we have?
 Here are ways marketers work to
develop good answers to those questions.

5. The Budget
Planning
 Budgeting

Historical expenditures



Methods
Often done as percent of sales
A to S ratio (Advertising to sales ratio)
Elements of the budget include:




Advertising (Media and Production)
Sales promotion (may include discounts)
PR and Event marketing
All other
6. Strategies
Planning
Marketing Strategies state how you
will fulfill the Objective
 The Marketing Strategies become
discipline-specific objectives for…




Advertising Creative
Advertising Media
Sales Promotion and Public Relations
7. Advertising Creative
Planning
 Creating
The Advertising Message:
 Target Audience
 Objective
 Strategy
 Considerations
 Support
 Tone
7. Advertising Creative
Planning
 Creating

The Advertising Message:
A Sample Creative Strategy Template:
 To convince:
___________________
Target Audience
 To use:
___________________
Brand/Product
 Instead of:
___________________
Competition
Factors that influence
 Because:
___________________
purchase behavior +
(Target Audience Insight)
7. Advertising Creative
Planning


Creating The Advertising Message:
A Sample Creative Strategy:
 To convince:
___________________
Adults 35-54
 To buy:
___________________
Volkswagen
 Instead of:
___________________
Other cars
Volkswagen will last
 Because:
___________________
a long time
7. Advertising Creative
Planning
 Creating
The Advertising Message:

To convince:
 To buy:
 Instead of:
 Because:

___________________
Adults 35-54
___________________
Volkswagen
___________________
Other cars
Volkswagen will last
___________________
a long time
8. Advertising Media
Planning

Media Objectives usually include:





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
 A good
Media Plan considers these
important factors:
 Media Cost-Effectiveness:




GRP (TRP) - Gross & Total Rating Points
Reach
Frequency
Media Cost-Efficiency:


CPM - Cost per thousand
CPP - Cost per point
8. Advertising Media
Planning
A Media Flow Chart can help you
visualize the Media Plan:
 Put a calendar time-line across the top
 Place
the
media
down
the
side

8. Advertising Media
Planning
A Media Flow Chart can help you
visualize the Media Plan:
 Put a calendar time-line across the top
 Place
the
media
down
the
side

9. Sales Promotion & PR
Planning

Sales Promotion =




Tangible motivation to buy
An incentive or small bribe
To both consumers and the trade
Public Relations =




Non-paid media coverage
3rd party endorsement (reviews, etc.)
Marketing PR (MPR)
Not Corporate PR (CPR)
9. Sales Promotion & PR
Planning


Sales Promotion
Consumer Promotion = Win/Free/Save




Sweepstakes & Contests
Added Value Extras/Bonus Packs
Coupons/Savings/Rebates
Trade Promotion =



Allowances
Other Payments/Incentives
Events/Sales Contests
9. Sales Promotion & PR
Planning
 Public
Relations =
Product Publicity Opportunities
 3rd Party Endorsements & “Influencers”
(columnists, talk show hosts, etc.)
 Press Relations
 Other Strategic Publicity



May also include…
Event Marketing
10. Evaluation
Planning




It starts and ends with Research
Methods for evaluating the plan.
Input/learning for next year’s plan
Methods include:



Tracking studies
Attitude, usage, and awareness studies
Creative


Recall
Persuasion
In Conclusion
Planning
Putting plans and strategies together is a lot
of work.
 It’s worth it, because this is the way to
build sales and make the most of a
business’s potential.
 If you go to work in The Business of
Brands, chances are, you’ll have to play a
part creating a winning plan.
