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Strategic Planning
Part 2: Principle: Strategy is Creative, Too
Chapter 7
Prentice Hall, © 2009
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CHAPTER KEY POINTS
Questions We’ll Answer
• What is the difference between
objectives, strategies, and tactics in
strategic planning?
• 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?
Prentice Hall, © 2009
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STRATEGIC PLANNING
What is strategic planning?
• For marketing communication, strategic planning
is the process of identifying a problem that can be
solved with marketing communications,
determining objectives, and deciding on strategies,
and implementing tactics.
– Objective—a goal you want to accomplish.
– Strategy—means, design, or plan for accomplishing
objectives.
– Tactics—actions that execute the plan, such as how
an ad is designed or written.
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STRATEGIC PLANNING
The Business Plan
• The business plan and marketing plan provide
direction for advertising planning and other areas.
• The business plan may cover an SBU (strategic
business unit), which is a line of products or all
offerings of a brand.
– The objective is profit or Return-on-Investment
(ROI).
– ROI is revenue earned above the amount invested.
– Business planning starts with a a mission statement;
an expression of goals and policies.
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STRATEGIC PLANNING
Steps in the Business Plan
• Business mission statement
• Research (external and internal environment
analysis)
• Goal formulation
• Strategy formulation
• Tactical formulation
• Implementation
• Feedback and control
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STRATEGIC PLANNING
The Marketing Plan
• 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.
• Objectives are focused on sales levels and
share of market.
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STRATEGIC PLANNING
Steps in the Marketing Plan
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Select marketing objectives
Identify threats and opportunities
Select target markets
Develop marketing strategies
Design action plans
Execute plans
Measure results/take action
Prentice Hall, © 2009
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STRATEGIC PLANNING
The Advertising or IMC Plan
• Advertising or IMC plan also includes
objectives, strategies, and tactics (like
business and marketing plan).
• The focus is on the communication program
supporting a brand.
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A CAMPAIGN PLAN
What is a campaign plan?
• More tightly focused on solving a particular
problem in a particular time frame.
• Includes a variety of messages carried in different
media and sometimes targeted to different
audiences.
• Typical campaign plan outline:
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Situation analysis
Key strategic campaign decisions
Media strategy (or points of contact in an IMC plan)
Message strategy
Other Marcom tools used in support
Campaign management
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A CAMPAIGN PLAN
Situation Analysis
• Backgrounding
– Research and review the state of the business that is relevant
to the brand and gather all pertinent information.
– A problem statement identifies the problem to be solved.
• SWOT Analysis
– Strengths, Weaknesses, Opportunities, Threats
– Finding ways to address the weaknesses and threats and
leverage the strengths and opportunities.
• Key Problems and Opportunities
– Look 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 high prices or portray
limited distribution as exclusivity.
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A CAMPAIGN PLAN
Objectives
• Objective—formal goal statement outlining what
the message is supposed to achieve and how it will
be measured.
• The six categories of effects or facets can serve as
a basis for common consumer-focused objectives.
• Some objectives are tightly focused on a single
effect; others require a complex set of effects.
– A campaign to create brand loyalty must have both
cognitive (rational) and affective (emotional) effects, and
it must move people to repeat buying (behavioral).
• Advertising is effective if it creates an impression,
influences people to respond, and separates the
brand from the competition.
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A CAMPAIGN PLAN
Measurable Objectives
• Objectives must be measurable so advertisers
know if the campaign or advertising is effective.
• Five requirements of a measurable objective:
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Specific effect that can be measured
A time frame
A baseline (where we are, where we begin)
The goal (realistic estimate of change to be created)
Percentage change (subtract the baseline from the goal;
divide the difference by the baseline)
• Sample objective: “The goal of this campaign is to
increase customer awareness of Kodak’s digital
products from 20% to 25% in 12 months.”
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A CAMPAIGN PLAN
Targeting
• Marketing communications 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
kind of message will motivate them.
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A CAMPAIGN PLAN
Positioning
• A brand’s position its place in consumers’ minds
where the product or brand stands in comparison to
the competition.
• Factors that define the competitive situation:
– Product features and attributes, both tangible and
intangible.
• Feature analysis is used to assess features relative
to competitors’ products.
– Competitive advantage is where 1) the product has
a strong feature, 2) in an area that is important to the
target, and 3) where the competition is weaker.
– Differentiation is a strategy that focuses attention to
product differences that distinguish the company’s
product from all others in the eyes of consumers.
Prentice Hall, © 2009
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A CAMPAIGN PLAN
Positioning
• Two factors used to locate the brand position:
– Psychological factors
• Volvo = safety, Coke = authentic, Hallmark = quality,
Avis = underdog
– Consumer decision factors
• Features or attributes such as fashion, price, quality
• Planners use a technique called perceptual
mapping to plot competitors on a matrix based on
two important decision factors
• The goal of positioning is to establish a product in
the consumer’s mind based on its features and
advantages relative to its competition.
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A CAMPAIGN PLAN
Repositioning
• 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 advertising in repositioning is to
relate the new position to the target market’s
life experience and associations.
Prentice Hall, © 2009
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A CAMPAIGN PLAN
Brand Communication Strategy
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Brand identity
– Must be distinctive and familiar in terms of name, logo, colors,
typeface, design, and slogan.
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Brand personality
– Human characteristics like loving, trustworthy, sophisticated.
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Brand position
– The soul or essence of the brand; it stands for something that
matters to consumers
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Brand image
– The mental image consumers construct for a product based on
symbols and associations that customer link to a brand
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Brand promise and brand preference
– Believing the promise that a brand will meet your expectations
leads to brand preference
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Brand loyalty
– A connection built over time that leads to repeat purchases
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A CAMPAIGN PLAN
Campaign Strategic Approach
• Determining how to achieve objectives requires a
general strategy statement.
– May focus on branding, positioning, countering the
competition, or creating category dominance
– Change customer perceptions, price perceptions, or the
price-value relationship
– Increase “share of wallet,” launch a new brand or brand
extension, or move brand to a new market
– Create excitement about a brand promotion
• Strategies are designed to create a particular
consumer responses
– Those responses can be tied to the six facets
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A CAMPAIGN PLAN
Campaign Implementation
and Management: Budgeting
• 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
• 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
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A CAMPAIGN PLAN
Campaign Implementation
and Management: Evaluation
• The process of determining the
effectiveness of a campaign.
• It’s impossible without established,
measurable objectives.
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ACCOUNT PLANNING: WHAT IS IT?
Account Planning
• Account planning is 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 messages to
effectively address consumer needs and wants.
• The account manager is seen as the voice of the
client, and the account planner is seen as the voice
of the consumer.
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ACCOUNT PLANNING: WHAT IS IT?
Account Planner’s Mission
• 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 the consumer research are
useful to the creative team?
• Where? How and where will you reach
them? What directions from the consumer
research are useful to the media team?
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ACCOUNT PLANNING: WHAT IS IT?
Account Planning: Research
• Account planners use consumer research to get
inside the target’s heads, hearts, and lives.
• The key to effective advertising is a powerful
consumer insight.
• Account planners are information integrators
who bring all the info together; and
synthesizers who express what it all means in
one simple statement.
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ACCOUNT PLANNING: WHAT IS IT?
Consumer Insight:
the Fuel of Big Ideas
• Account planners look at advertising as an
“insight factory” instead of an “idea factory.”
• Consumer insights provide fuel for the big
ideas.
• Account planners use strategic and critical
thinking to interpret consumer research to find
relevant consumer insights that explain why
consumers will care about a brand message.
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ACCOUNT PLANNING: WHAT IS IT?
Insight Mining
• Finding the “a-ha” in a stack of research
reports, data, and transcripts is the greatest
challenge for an account planner.
• Consumer insights provide fuel for the big
ideas.
• Account planners use strategic and critical
thinking to interpret consumer research to find
relevant consumer insights that explain why
consumers will care about a brand message.
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ACCOUNT PLANNING: WHAT IS IT?
The Communications Brief
• 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.
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ACCOUNT PLANNING: WHAT IS IT?
Communications Brief Outline
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Problem: What’s the problem that communication can solve? (establish
position, increase loyalty, increase liking, etc.)
Target audience: Who do we want to speak to? (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?
The brand imperatives: What are the important features and
competitive advantage? What’s the position? Also, what’s the brand
essence, brand personality and/or image?
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?
Prentice Hall, © 2009
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PLANNING FOR IMC
What is IMC planning?
• 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.
Prentice Hall, © 2009
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PLANNING FOR IMC
Differences in IMC Planning
• Stakeholders
– The target market in IMC is not just consumers,
it’s anyone who has a stake in the company’s
success (employees, shareholders).
• Contact points (touch points)
– IMC maximizes all contacts stakeholders have
with the brand; where a message is delivered.
• IMC objectives
– IMC uses interrelated objectives with specific
strategies for different tools (e.g., PR to
announce, sales promotion to drive action).
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PLANNING FOR IMC
Synergy in IMC Planning
• IMC planning involves many messages delivered
through multiple media at many different contact
points.
• The planner’s biggest concern is creating consistent
messages.
• Synergy means that the brand impact of all
messages together is greater than what any one type
of message could deliver.
• Synergy requires cross-functional planning—
everyone involved in creating and delivering
messages should be involved in planning to ensure
consistency.
Prentice Hall, © 2009
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Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
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