Marketing

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Chapter 8

• Marketing

The Planning Process
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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

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Key Concepts
Key Concepts

• The Single Biggest Thing
• Campaigns
• Objectives Strategies
• Advertising Marketing

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The Single Biggest Thing
Key Concepts

• Advertising dollars have great elasticity
• Planning and implementing the Right Advertising
  is usually critical for success in the
  marketplace
• The Wrong Advertising is usually worthless
• Advertising can be The Single Biggest Thing
• It can probably impact sales more than any other
  element of the marketing mix.
• And it is the most fun!

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The Single Biggest Thing
Key Concepts

• 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

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Campaigns
Key Concepts

• Origin of term
• Military Campaigns
• Political Campaigns
• Advertising Campaigns

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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.

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Campaigns
Key Concepts

• Military Campaigns

Victory is my objective. War is my
strategy. Winston Churchill
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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

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Campaigns
Key Concepts

• Political Campaigns

• Each geographic or statewide campaign may have
  objec-tives and strategies contrib-uting to the
  overall campaign.

• In politics, as in war, you have to pick your
  battles. National political campaigns focus on
  key states and voter groups.

• The final objective is an Electoral College
  majority.

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Campaigns
Key Concepts

• Advertising Campaigns

Advertising is a team sport!
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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

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Advertising Campaign
Key Concepts

• Next, well show you four billboard ads done
  years ago for a telecom company in Kansas City -
  Birch Telecom
• It was a successful advertising campaign
• Then, well discuss some of the basic common
  elements needed in an advertising campaign
• Here they are...

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Advertising Campaign
Key Concepts
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Advertising Campaign
Key Concepts
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Advertising Campaign
Key Concepts
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Advertising Campaign
Key Concepts
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Advertising Campaign
Key Concepts

• What were the common elements?
• 1. ____________________________
• 2. ____________________________
• 3. ____________________________
• 4. ____________________________
• 5. ____________________________
• 6. ____________________________

graphic look strategic message benefit
statement brand personality executional elements
- the dog anything else?
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Advertising Campaign
Key Concepts

• Campaigns are built with

Plans Strategies
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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

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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 ones 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.
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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.
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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.
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Plans Strategies
Key Concepts

• Now lets 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

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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

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Plans Strategies
Key Concepts
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Plans Strategies
Key Concepts

• Whos going to manage all of this?
• At the client, Director of Marketing
• Responsible for Marketing
• Usually sets Marketing Objective and Budget
• Agency is responsible for Advertising
• 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

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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

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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!
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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!

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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 dont know where youre going, any road will
  take you there.)

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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

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Vocabulary
Key Concepts

• The Value Ladder

• The Value Ladder

Laddering

• Value

Im a good mom

• Benefit

Good food for my family

• Consumer Benefit

Kids like it

• Product Benefit

Easy to serve

• Feature

E-Z Open glass jar

• Attribute

Apple sauce is made from apples
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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

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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

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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

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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, lets talk about how it works

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How Advertising Works
Advertising
How Advertising Works
How Advertising Works
How Advertising Works
How Advertising Works

• Next, well cover...

• Some things we know about people
• Some things we know about advertising messages
• The Lavidge-Steiner Learning Model
• AIDA

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Advertising
How Advertising Works

• Some things we know about people.

• People read what interests them, sometimes its
  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

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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

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Advertising
How Advertising Works

• An Advertising Communication Model

• Note it is more difficult for the audience to
  communicate back to the advertiser.
• Feedback is one purpose of Market Research

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Advertising
How Advertising Works

• The Lavidge-Steiner Learning Model

• How people learn ads

• Begins with Awareness
• Moves to Conviction and Purchase

• NOTE Process may be quite rapid and you may
  try before being totally convinced

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Advertising
How Advertising Works

• AIDA

• Attention

• Interest

• Desire

• Action!

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Advertising
How Advertising Works

• What we need to know

• Target Audience
• Factors That Motivate Purchase Behavior
• Unique Brand Characteristics

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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 YR Creative Work Plan - one of the key
  tasks is determining what you want the
  advertising to do.

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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!

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Introduction
Planning

• 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.

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Introduction
Planning

• 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.

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Introduction
Planning

• The Planning Process

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Introduction
Planning

• A Ten Part Process

• Evaluation
• 1. Situation Analysis
• 2. Research
• 3. Problems Opportunities
• Goal Setting
• 4. Marketing Objective
• 5. Budget
• And then...

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Introduction
Planning

• 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 lets go step by step

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Planning
1. Situation Analysis

• Also called Background Review
• Its 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.

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Planning
2. Research

• You do Secondary Research first
• You do Primary Research second
• Research is usually in these three areas
• Target Audience
• Improve Understanding, Gain Insight
• Factors That Motivate Purchase Behavior
• Improve Effectiveness, Gain Insight
• Unique Brand Characteristics
• Look for key point of difference

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Planning
2. Research

• Research Techniques
• Qualitative Research
• Focus groups
• One-on-one interviews
• Quantitative Research
• Surveys
• Observation
• Experiments
• When preparing The Research Plan
• Be sure to know what youre looking for!

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Planning
3. Problems Opportunities

• 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 youre on the road
  to the solution
• And, whatever you do

• Dont solve the wrong problem!

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Planning
4. The Objective

• The Marketing Objective is a number

• It is the goal of your marketing activities
• Usually, it is a sales or volume goal
• It may be difficult to get to, but the final
  answer is simple and measurable.

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Planning
5. The Budget

• 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.

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Planning
5. The Budget

• Budgeting Methods

• Historical expenditures
• 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

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Planning
6. Strategies

• 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

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Planning
7. Advertising Creative

• Creating The Advertising Message

• Target Audience
• Objective
• Strategy
• Considerations
• Support
• Tone

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Planning
7. Advertising Creative

• Creating The Advertising Message

• A Sample Creative Strategy Template
• To convince ___________________
• To use ___________________
• Instead of ___________________
• Because ___________________

Target Audience Brand/Product Competition
Factors that influence purchase behavior
(Target Audience Insight)
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Planning
7. Advertising Creative

• Creating The Advertising Message

• A Sample Creative Strategy
• To convince ___________________
• To buy ___________________
• Instead of ___________________
• Because ___________________

Adults 35-54 Volkswagen Other cars
Volkswagen will last a long time
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Planning
7. Advertising Creative

• Creating The Advertising Message

• To convince ___________________
• To buy ___________________
• Instead of ___________________
• Because ___________________

Adults 35-54 Volkswagen Other cars
Volkswagen will last a long time
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Planning
8. Advertising Media

• 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.

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Planning
8. Advertising Media

• 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

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Planning
8. Advertising Media

• 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

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Planning
8. Advertising Media

• 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

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Planning
9. Sales Promotion PR

• 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)

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Planning
9. Sales Promotion PR

• 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

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Planning
9. Sales Promotion PR

• Public Relations

• Product Publicity Opportunities
• 3rd Party Endorsements Influencers
  (columnists, talk show hosts, etc.)
• Press Relations
• Other Strategic Publicity
• May also include
• Event Marketing

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Planning
10. Evaluation

• It starts and ends with Research
• Methods for evaluating the plan.
• Input/learning for next years plan
• Methods include
• Tracking studies
• Attitude, usage, and awareness studies
• Creative
• Recall
• Persuasion

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Planning
In Conclusion

• Putting plans and strategies together is a lot
  of work.
• Its worth it, because this is the way to build
  sales and make the most of a businesss
  potential.
• If you go to work in The Business of Brands,
  chances are, youll have to play a part creating
  a winning plan.