Transcript wells07_basic

Strategic Planning
Part 2: Planning and Strategy
Chapter 7
Key Points
• Differentiate between objectives, strategies,
and tactics in strategic planning
• Identify the six basic decisions in an
advertising plan
• Explain how account planning works
• Outline the key features in an IMC plan
7-2
Strategic Planning
• The process of
determining
objectives,
deciding on
strategies, and
implementing
the tactics
• Objectives
– What you want to
accomplish
• Strategies
– How to accomplish the
objectives
• Tactics
– Make the plan come to
life
7-3
A Three-Tiered Process
1. The business
plan
2. The marketing
plan
3. The advertising
or IMC plan
• May cover a specific
division of the company
or a strategic business
unit with a common set
of problems
7-4
A Three-Tiered Process
1. The business
plan
2. The marketing
plan
3. The advertising
or IMC plan
• Parallels the business
strategic plan and
contains many of the
same components
7-5
A Three-Tiered Process
1. The business
plan
2. The marketing
plan
3. The advertising
or IMC plan
• Operates with the same
concern for objectives,
strategies, and tactics as
business and marketing
plans
7-6
Basic Strategic Planning Decisions
• Annual advertising or
IMC plan
– Outlines all the
advertising or marketing
communication activities
• Campaign plan
– More tightly focused on
solving a particular
marketing
communication problem
Typical Plan Outline
I. Situation analysis
II. Key strategic
decisions
III. Media strategy
IV. Message strategy
V. Other tools
VI. Evaluation of
effectiveness
7-7
Basic Strategic Planning Decisions
• Situation analysis
– Researching and
reviewing the current
state of the business
that is relevant to the
brand and gathering all
relevant information
– After the research is
compiled, analysis
begins
• SWOT analysis
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Strengths
Weaknesses
Opportunities
Threats
• Key problems and
opportunities
7-8
Basic Strategic Planning Decisions
• Objectives and
strategies
– Planners develop
specific objectives to
be accomplished
during a specific time
period
– The main categories of
effects can be used to
identify the most
common advertising
and IMC strategies
• It is important for
advertisers to know
what to expect from a
campaign or an ad
• Measurable objectives
– Specific effect that can
be measured
– A time frame
– A baseline
– The goal
– Percentage change
7-9
Basic Strategic Planning Decisions
• Segmenting and
targeting
– Market segment: a
group of consumers
having similar
characteristics
– The segments the
planner selects
becomes the target
audience
• Getting deeper insight
into consumers is the
responsibility of the
account planning
function
7-10
Basic Strategic Planning Decisions
• Positioning Strategy
– Determining what
place a product should
occupy in a given
market
– To establish a location
in the consumer’s mind
based on what the
product offers and how
that compares with the
competition
• Product features
– Feature analysis
• Competitive advantage
– Importance/performance
• Differentiation
– Branding
• Locating the brand
position
– Perceptual mapping
7-11
Basic Strategic Planning Decisions
• Budgeting
– Determines how many
targets and multiple
campaign plans a
company or brand can
support and the length
of time the campaign
can run
• Historical method
• Objective-task method
• Percentage-of-sales
method
• Competitive budgets
• All you can afford
7-12
Account Planning: What is It?
• Account planning
– The research-andanalysis process used to
gain knowledge and
understanding of the
consumer
Account Planning Elements
1. Consumer insight
2. Message strategy
3. Media strategy
7-13
Account Planning: What is It?
• Account planner
– A person in an agency
who uses account
planning to research a
brand and its customer
relationships in order to
devise advertising
message strategies that
are effective in
addressing consumer
needs and wants
Account Planner Tasks
1. Understand brand
2. Understand audience
relationship
3. Articulate strategies
4. Prepare creative
briefs
5. Evaluate
effectiveness
7-14
Account Planning: What is It?
• The Research
Foundation
• Consumer
Insight
• The
Communication
Brief
• Used in three phases of
the advertising planning
process
– Strategy generation
– Creative development
– Campaign evaluation
7-15
Account Planning: What is It?
• The Research
Foundation
• Consumer
Insight
• The
Communication
Brief
• Intersects with the
interests of the customer
and the brand features
• Insight mining
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Realistic response objective?
Causes of nonresponse?
Barriers to desired response?
Motivation to respond?
Role of each element in the
communication mix
7-16
Account Planning: What is It?
• The Research
Foundation
• Consumer
Insight
• The
Communication
Brief
• Explains the consumer
insight and summarizes
the basic strategy
decisions
• Six major parts:
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Marketing objective
Product
Target audience
The promise and support
Brand personality
Strategy statement
7-17