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Advertising Principles
and Practices
Strategic Planning
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
7-2
Repositioning Kodak
for the Digital Age
• Kodak’s specialty was
making film; it defined
their brand.
\
• The “Gallery” campaign
emphasized that Kodak
is about pictures, no
matter what the
technology.
Kodak/frog pic
Visit the
Site
Prentice Hall, © 2009
7-3
Strategic Planning
• For marketing communication, strategic planning
is the process of identifying a problem that can be
solved with marketing communications,
determining objectives, 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 from
Top to Bottom
The business plan and
marketing plan
provide direction for
advertising planning
and other areas.
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7-5
Strategic Planning: 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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Sample Mission Statement
• This mission statement
for Tom’s of Maine helps
its managers develop
specific business
objectives and goals. It
also guides all of
the company’s
Visit the
marketing
Site
communication
efforts.
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7-7
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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7-8
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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7-9
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
I. Situation analysis
II. Key strategic
decisions
III. Media strategy
IV. Message strategy
V. Other tools
VI. Campaign
management
See pg. 197 for detail.
Prentice Hall, © 2009
7-10
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
Principle:
Analysis of SWOT means finding ways to
address the weaknesses and threats and
leverage the strengths and opportunities.
Prentice Hall, © 2009
7-11
Declining Cheese Consumption
• The DDB Agency found that
a barrier to purchasing cheese
was the lack of good recipe
ideas using cheese products.
• The American Dairy
Association responded by
offering more recipes through
advertising and its
Visit the
Web site.
Site
Prentice Hall, © 2009
7-12
Campaign Plan:
Situation Analysis
• Key problems and opportunities
– Analyze the market situation for communication
problems that hinder successful marketing and find
opportunities advertising can create or exploit.
– Advertising can’t solve problems related to price,
availability, or quality; but it can address the perception
of high prices or portray limited distribution as
exclusivity.
Principle:
Advertising can only solve message-related or
perception problems.
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7-13
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 consumerfocused objectives.
– Perception, emotion, cognition,
persuasion, association,
behavior
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Prentice Hall, © 2009
7-15
Campaign Plan: Objectives
• Some objectives are tightly
focused on a single effect;
others require a complex set
of effects.
Special K Ad 2
– 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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Campaign Plan: Objectives
• Objectives must be measurable so advertisers know
if the campaign or advertising is effective.
• Five requirements of a measurable objective:
–
–
–
–
–
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.”
Prentice Hall, © 2009
7-17
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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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
7-19
Table 7.2
Feature
How to Do a Feature Analysis
Importance to Prospect
Product Performance
Yours
X
Y
Z
Price
1
+
–
–
+
Quality
4
–
+
–
+
Style
2
+
–
+
–
Availability
3
–
+
–
–
Durability
5
–
+
+
+
The product in Table 7.2 would compete well on both price and style
against X, on price against competitor Y, and on style against competitor
Z. Competitor X seems the most vulnerable on the two features, price and
style, that consumers rate as most important decision points.
Prentice Hall, © 2009
7-20
Eukanuba Features
Breed-specific Dog Food
Eukanuba’s “Feed the Breed”
campaign featured photos by a
famous animal photographer who
created artistic images of the unique
features of individual breeds, such
as this spine of a Rhodesian
Ridgeback.
Visit the
Site
Prentice Hall, © 2009
7-21
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
Principle:
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 Perceptual Map for Cars
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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.
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Brand Communication Strategy
How consumers respond to marketing communications
messages creates a brand perception.
Consumer Response
Perceive
Feel
Think
Associate
Believe
Do
Advertiser’s Objective
Creates brand identity
Cue brand personality
Cue brand position
Cue brand image
Create brand promise and
brand preference
Inspire brand loyalty
Insert Harley-Davidson discussion about brand
Noted on Video Snippets sheet.
Prentice Hall, © 2009
Video Snippet
Harley-Davidson talks
about its brand.
7-25
Brand Communication Strategy
• Brand identity
– Must be distinctive and familiar in terms of name, logo, colors,
typeface, design, and slogan
• Brand personality
– Human characteristics like loving, trustworthy, sophisticated
• Brand position
– The soul or essence of the brand; it stands for something
that matters to consumers
• Brand image
– The mental image consumers 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
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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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7-27
American Express and
Jerry Seinfeld
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.
Prentice Hall, © 2009
See the
Ad
7-28
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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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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7-30
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.
Principle:
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 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: 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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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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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 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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7-35
The Account Planning Group
• Founded in 1979, The APG is the longest-established
organization representing the interests of account
planners worldwide. A non-profit-making members’
organization with around 700 members, APG is open
to account planners, communications strategists and
anyone with an interest in these areas. Its activities
include training, meetings, seminars, social events,
publications, and every second year, the APG Creative
Planning Awards.
Visit the
Site
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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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Communications Brief Outline
•
•
•
•
•
•
•
•
•
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?
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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 longterm brand relationships.
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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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Table 7.3
Types of Stakeholder Audiences
Corporate Level
Marketing Level
Marketing Communication Level
Employees
Investors, financial
community (analysts,
brokers, and the
financial press)
Government bodies
and agencies
Regulatory bodies
Business partners
Consumers
Customers
Stakeholders
Market segments
Distributors, dealers,
retailers, and others in
the distribution channel
Suppliers and vendors,
including agencies
Competitors
Target audiences
Target stakeholders
Employees
Trade audiences
Local community
Media (general, special interest,
trade)
Consumer activist groups
groups
General public
Opinion leaders
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Table 7.3
Marketing Communication Objectives
Marketing
Communication Area
Typical Objectives
Public Relations
Announce news; affect attitudes and opinions; maximize credibility and
likeability; create and improve stakeholder relationships
Consumer Sales
Promotion
Stimulate behavior; generate immediate response; intensify needs,
wants, and motivations; reward behavior; stimulate involvement and
relevance; create pull through the channel
Trade Sales
Promotion
Build industry acceptance; push through the channel; motivate
cooperation; energize sales force, dealers, distributors
Point-of-Purchase
Increase immediate sales; attract attention at decision point; create
interest; stimulate urgency; encourage trial and impulse purchasing
Direct Marketing
Stimulate sale; create personal interest and relevance; provide
information; create acceptance, conviction
Sponsorship and
Events
Build awareness; create brand experience, participation, interaction,
involvement; create excitement
Packaging
Increase sales; attract attention at selection point; deliver product
information; create brand reminder
Specialties
Reinforce brand identity; continuous brand reminder; reinforce
satisfaction; encourage repeat purchase
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7-42
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.
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7-43
Discussion Questions
Discussion Question 1
• Think of a product you purchased
recently.
• How was it advertised?
• Which strategies can you discern in the
advertising?
• Did the advertising help to convince
you to purchase the product? Why or
why not?
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7-45
Discussion Question 2
• The following is a brief excerpt from Luna Pizza’s
situation analysis for the next fiscal year. Luna is a
regional producer of frozen pizza. Its only major
competitor is Brutus Bros. Estimate next year’s
advertising budgets for Luna under each of the following
circumstances:
a. Luna follows a historical method by spending 40 cents per unit
sold in advertising, with a 5% increase for inflation.
b. Luna follows a fixed percentage of projected sales method, using
7%.
c. Luna follows a share-of-voice method. Brutus is expected to use
6% of sales for its advertising budget in the next year.
Units sold
$ Sales
Brutus $ Sales
Actual Last Year
120,000
420,000
630,000
Prentice Hall, © 2009
Estimates Next Year
185,000
580,000
830,000
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Discussion Question 3
• You are assigned to the account for a new
hybrid automobile.
• Use the Communication Brief outline and
list the research you need to conduct for
each step in the strategic decision-making
process.
• What do you need to do to put together a
useful brief for the creative team?
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Discussion Question 4
• Three-minute debate: You are in a meeting about the
strategy for a new automotive client. One of your team
members says positioning is an old strategy and no
longer useful for modern products.
• Another person argues strongly that you need to
understand the position in the consumer’s mind before
you can even begin to develop an advertising strategy.
• In class, organize into small teams with pairs of teams
taking one side or the other. Set up a series of threeminute debates with each side taking half that time to
argue its position. Every team of debaters has to present
new points not covered in the previous teams’
presentations until there are no arguments left to present.
Then the class votes as a group on the winning point of
view.
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7-48
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Prentice Hall, © 2009
7-49