Download Key Points in Ch.7 Strategic Planning

Ch.7: Strategic Planning
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
Objectives, Strategies, and Tactics
•Objectives: What you want to accomplish
•Strategies: How to accomplish the objectives
•Tactics: Make the plan come to life
** Example:
Objectives: To increase baking soda consumption
Strategy:???
•Adding new target market
• Increase repeated purchase by loyal consumers
•Introducing new ways of using a product
Tactics
Big Picture: a three-tiered process
Business Plan
Marketing Plan
Figure 7.1: Strategic Planning from Top to Bottom (p. 182)
Advertising
Plan
Basic Strategic Planning Decisions
• Annual advertising or
IMC plan
– Outlines all the advertising
or marketing
communication activities
• Plansbook
• 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
Outline of an Advertising Campaign
I. Situation Analysis
•Background Research:
•Company and product history
•Product analysis and previous advertising analysis
•Consumer analysis
•Competitive analysis and their advertising analysis
•SWOT Analysis (Strengths, Weakness, Opportunities and Threats)
•Identify Key Problems and Opportunities
II. Key Strategic Decisions
•Advertising/IMC Objectives and Strategies
•Target Audience Selection
•Brand Position: brand’s competitive advantage
•Brand Image and Personality
•Budget
Outline of an Advertising Campaign
Budget: Total budget for the campaign:
•Media placement cost
•Production cost,
•Research cost,
•Any other promotional cost
•Set aside 10% Contingency fund: for any unexpected situation
Several Ways of Setting Budget
1. Historical Method
•
based on last year’s advertising spending,
add some inflation or other factor.
SeveralSeveral
Ways ofWays
SettingofBudget
Setting Budget
2. Percentage-of-sales Method
•
set advertising $ as certain portion of sales.(average
•
sales number/situation will determine how much people
can spend on advertising. - Any problem with this
method?
3. Competitive Method
•
look at major competitors’ advertising budget and try to
match its own advertising budget with it.
•
share of voice concept: $ advertising spent by a brand in
a medium vs. $ advertising spent by all brands in the
product category.
Several Ways of Setting Budget
Several Ways of Setting Budget
4. Task-Objective Method
•Based on objectives set for the whole campaign, agencies
come up with the cost to accomplish each objective, add them
up, and set the total budget.
•Best method for agencies, however, can be too costly
5. “All you can afford” Method
•worst method: Spend all necessary costs before you set aside
$ for advertising,
•then if they have extra $, take whatever left over and use
them for advertising campaign
Account Planner: The Creative Brief/Platform
• Explains the consumer
insight and summarizes
the basic strategy
decisions
• Six major parts:
–
–
–
–
–
–
Marketing objective
Product
Target audience
The promise and support
Brand personality
Strategy statement