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Part 2 Principle: Be True to Thy Brand Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-1 What is the difference between objectives, strategies, and tactics in strategic planning and how are the three levels of planning connected? How is a campaign plan constructed, and what are its six basic sections? What is account planning and how is it used in advertising? In what ways does an IMC plan differ from an advertising plan? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-2 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-3 For marketing communication, strategic planning is the process of: identifying a problem that can be solved with marketing communications determining objectives deciding on strategies implementing tactics Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-4 What do each of these terms mean? Objective: what you want to accomplish. Strategy: how to accomplish the objectives. Tactics: actions that make the plan come to life. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-5 The business plan and marketing plan provide direction for advertising planning and other areas of marketing communication. The business plan may cover an SBU (strategic business unit), which is a line of products or all offerings of a brand. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-6 Objectives focus on profit or return on investment (ROI). ROI is revenue earned above the amount invested. Business planning starts with a business mission statement; an expression of broad goals and policies. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-7 Developed for a brand or product line, usually annually. Parallels the business strategic plan and contains many of the same components. A market situation analysis assesses the environment affecting marketing. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-8 Here, the “SWOTs” are also defined: Strengths Weaknesses Opportunities Threats Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-9 For marketing communication (marcom) managers, the marketing mix strategy is key. It includes decisions about: ◦ ◦ ◦ ◦ ◦ ◦ Target market Brand position Product design and performance Pricing Distribution Marketing communication Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-10 As with business and marketing plans, advertising and marketing communication plans also includes objectives, strategies, and tactics. The focus is on the communication program supporting a brand. ◦ Audience insight ◦ Message ◦ Medium …are at the heart of an advertising plan. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-11 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-12 A campaign plan is more tightly focused on solving a particular problem in a specified time. It includes a variety of marcom messages carried in different media and sometimes targeted to different audiences. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-13 1. Situation analysis 2. Key strategic campaign decisions 3. Media strategy (or points of contact in an IMC plan) 4. Message strategy 5. Other Marcom tools used in support 6. Campaign management Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-14 Backgrounding Research and review the state of the business that is relevant to the brand and gather all pertinent information. In the situation analysis, the goal is to identify a problem that can be solved with communication. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-15 SWOT analysis Finding ways to leverage the strengths and opportunities, address the weaknesses and threats. Strengths: positive traits, conditions and good situations Weaknesses: traits, conditions, situations perceived as negative Opportunities: areas in which the company could develop an advantage over its competition Threats: a trend or development in the environment that will erode business unless the company takes action Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-16 This two-week Kellogg’s Special K challenge promises customers they will lose up to six pounds in two weeks by replacing two meals a day with Special K and eating a sensible third meal. Reaching consumers at the moment they are in need and delivering a simple diet was highly effective Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-17 Key Problem(s) Analyze the market situation for communication problems that hinder successful marketing. Find opportunities advertising can create or exploit. Advertising can’t solve price, availability, or quality problems, but it can address the perception of these marketing mix factors. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-18 Formal goal statements outlining what the message is supposed to achieve and how it will be measured. Main effects and objectives: Recall the six categories in the facets model of advertising effects: Perception Cognition Association Emotion Persuasion Behavior These can be used to identify common consumerfocused objectives. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-19 Some objectives are tightly focused on a single effect; others require a complex set of effects. For example, a campaign to create brand loyalty must: ◦ generate cognitive (rational) effects. ◦ generate affective (emotional) effects. ◦ move people to repeat buying (behavioral). Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-20 Measureable objectives Every campaign is guided by specific, clear and measurable objectives. Objectives must be measurable so advertisers know whether the campaign or advertising is effective. Benchmarking: a similar product or prior brand campaign is used to predict a logical goal. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-21 Measureable objectives Five requirements: 1. A specific effect that can be measured 2. A time frame 3. A baseline (where we are or where we begin) 4. The goal (a realistic estimate of change to be created) 5. Percentage change (subtract the baseline from the goal; divide the difference by the baseline) Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-22 Marketing communication strategy is based on accurately targeting an audience that will respond to a particular message. Targeting is identifying and profiling an audience. Targeting is also getting inside the heads and hearts of the audience to find out what kinds of messages will motivate them. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-23 A brand’s position is how consumers define the product or brand in comparison to its competitors. A position must be based on a particular feature or attribute that is important to the consumer. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-24 Product features and attributes Product differentiation is a strategy that focuses attention to product differences that distinguish the company’s product from others in the eyes of consumers. Competitive advantage is found: 1. where the product has a strong feature 2. in an area that is important to the target 3. where the competition is weaker Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-25 These anti–drunk driving posters were used in the Nightlife Navigators campaign at the University of Florida. What is the positioning strategy? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-26 Locating the brand position A number of factors can be used, including: • Superiority position • Benefit position • Preemptive position • Usage position • Value position • Competitor’s strategy • Psychological position • Category factors Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-27 Repositioning can only work if the new position is related to the brand’s core concept. Although advertising shapes the position, the position is anchored in the target audience’s minds by their personal experiences. The role of the brand communication strategy is to relate the product’s new position to the target market’s life experience and associations. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-28 Brand identity Must be distinctive and familiar in terms of name, logo, colors, typeface, design, and slogan. Brand personality and liking It should have human characteristics like loving, trustworthy, sophisticated. Brand position and understanding The soul or essence of the brand; it stands for something that matters to consumers. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-29 Brand image The mental impression customers construct for a product based on symbols and associations that customer link to a brand. Brand promise and brand preference Believing the promise that a brand will meet your expectations leads to brand preference. Brand loyalty A connection built over time that leads to repeat purchases. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-30 Determining how to achieve objectives requires a general strategy statement. Strategies may focus on: ◦ branding ◦ positioning ◦ countering the competition ◦ creating category dominance Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-31 Budgeting Five common methods: 1. 2. Historical Method: Last year’s budget plus inflation; not based on goals. Objective-Task Method: What do we want to do and what will it cost? Based on goals. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-32 Budgeting Five common methods: 3. 4. 5. Percentage-of-Sales Method: Compares total sales with total advertising to get ratio. Competitive Budgets: Use competitors’ budgets as benchmarks and relates to the product’s share of market. All you can afford: Whatever is left over; not a strategic approach. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-33 An online mini-film commercial for American Express featuring Jerry Seinfeld was designed to entertain and create brand liking. It also generated buzz, which extended its impact through the power of word of mouth. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-34 Evaluation: determining effectiveness Evaluation is the process of determining the effectiveness of a campaign. It’s impossible without established, measurable objectives. In effect, evaluation is a research proposal. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-35 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-36 The research and analysis process used to gain knowledge of the consumer, and uncover key consumer insights about how people relate to a brand or product. An account planner is the agency person who uses a disciplined system to research a brand and its consumer relationships to devise message strategies to effectively address consumer needs and wants. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-37 The account planner’s mission is to discover: Who? Who are you trying to reach and what insight do you have about how they think, feel, and act? How should they respond to your advertising message? What? What do you say to them? What directions from consumer research are useful to the creative team? Where? How and where will you reach them? What directions from research are useful to the media team? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-38 The account manager is seen as the voice of the client. The account planner is seen as the voice of the consumer. As a class: Explain what these differences mean to you. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-39 Understanding begins with consumer research, which is at the core of account planning. Account planners are: ◦ information integrators who bring it all together. ◦ synthesizers who express what it all means in one simple statement. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-40 Account planners look at advertising as an “insight factory” instead of an “idea factory.” Consumer insights are the fuel that fires the ideas. Account planners interpret consumer research to find relevant consumer insights that explain why consumers will care about a brand message. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-41 Insight mining Finding the “a-ha” in a stack of research reports, data, and transcripts is the greatest challenge for an account planner. Account planners are looking for clues about the brand’s meaning, usually phrased in terms of: ◦ Brand essence ◦ Brand personality ◦ Brand image Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-42 These outdoor boards are for SeaPort Airlines, which serves Seattle, Juneau, Portland, and other West Coast cities. They make a statement about the SeaPort target audience—influential business travelers—and their lifestyle. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-43 The outcome of research, the communication brief or creative brief is a document that explains the consumer insight and summarizes the basic strategy decisions. The first step in the creative process, it is designed to spark creativity and serve as a springboard for ideas. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-44 Problem: What’s the problem that communication can solve? (establish position, increase loyalty, increase liking, etc.) Target audience: To whom do we want to speak? (brand loyal, heavy users, infrequent users, competition’s users, etc.) Consumer insights: What motivates the target? What are the “major truths” about the target’s relationship to the product? Brand imperatives: What are the important features and competitive advantage? What’s the brand position, essence, personality and/or image? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-45 Communication objectives: What do we want customers to do in response to our messages? (perception, knowledge, feelings, symbolic meanings, attitudes and conviction, action) The proposition or selling idea: What is the single thought that the communication will bring to life in a provocative way? Support: What is the reason to believe the proposition? Creative direction: How can you best stimulate the desired response? How can we best say it? Media imperatives: Where and when should we say it? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-46 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-47 Integrated Marketing Communications (IMC) planning is similar to advertising planning but is broader in scope and involves more marketing communication areas. The objective is to most effectively use all marketing communications tools and functions and to control the impact of other communication elements. Effective IMC leads to profitable long-term brand relationships. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-48 Objectives IMC objectives are tied to the effects created by the various forms of marketing communication. The main areas of IMC: • • • • Public Relations Consumer sales promotion Trade sales promotion Point of purchase • • • • Direct marketing Sponsorship and events Packaging Specialties Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-49 Stakeholders Any group who has a stake in the success of a company or brand (employees, shareholders). Contact points IMC maximizes all contacts stakeholders have with the brand; where a message is delivered. The seventh principle of IMC: All contact points deliver brand messages. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-50 IMC planning involves many messages delivered through multiple media at different contact points. Synergy: the brand impact of all messages together is greater than what any one message could deliver. The eighth principle of IMC: Consistency drives synergy. Synergy requires cross-functional planning. Everyone involved in creating and delivering messages should be involved in planning to ensure consistency. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-51 In Part 3, we will: Review the creative side of marketing communication. In Chapter 8, we will: Continue the strategy discussion in terms of message strategy. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-52 “Winning the Coke Zero Infringement Case” How did the Coke Zero campaign strategies work at: ◦ exciting the interest of young males? ◦ conveying that Coke Zero tastes similar to real Coke? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-53 “Winning the Coke Zero Infringement Case” Key lessons: Review the three measurable objectives: Increase brand awareness Motivate the target audience to try Coke Zero Convince men ages 18 to 34 that Coke Zero tastes like Coke. As a class: What others can you think of? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-54