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Chapter 7 Planning for IMC Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-1 Learning objectives 1. To understand the role of planning in an organisation’s IMC program. 2. To understand the role of target marketing, segmentation and positioning in planning for an IMC program. 3. To explore the concepts and models of IMC planning. 4. To demonstrate the strategic importance of account planning in advertising. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-2 Marketing plan Situation analysis IMC audit Planning process Future of planning Planning for IMC Role of planner Data for planning Identifying markets IMC strategic decisions Account planning Market segmentation Selecting target market Positioning IMC planning Consumer insight Outside-in Zero-based Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-3 The best job in the world Source: Courtesy of Tourism Queensland Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-4 The best job in the world (cont.) Source: Courtesy of Tourism Queensland Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-5 IMC defined By definition, IMC involves the process of: planning, executing, evaluating and controlling the use of the various communications tools to effectively communicate with target audiences. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-6 Review of the marketing plan Situation analysis Marketing objectives Marketing strategy and program Implementation program Performance evaluation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-7 IMC situation analysis Internal factors 1. Promotional capabilities 2. Prior promotional programs 3. Brand image 4. Strengths and weaknesses of product or service External factors 1. Customer analysis 2. Competitive analysis 3. Environmental analysis Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-8 David Jones Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-9 The IMC audit Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-10 IMC Audit Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-11 Marketing plan Situation analysis IMC audit Planning process Future of planning Planning for IMC Role of planner Data for planning Identifying markets IMC strategic decisions Account planning Market segmentation Selecting target market Positioning IMC planning Consumer insight Outside-in Zero-based Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-12 Market segmentation and targeting Market segmentation is the process of dividing up a total market into distinct groups that: 1) have common needs 2) will respond similarly to a marketing action. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-13 The target marketing process Identifying markets with unfulfilled needs Determining market segmentation Selecting market to target Positioning through marketing strategies Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-14 Market segmentation and targeting (cont.) Narrow markets results in fewer customers and may be too small to be viable. A broad market means more customers, but presents a challenge for identifying common needs. Market served A key question is how far to go in the segmentation process Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-15 IMC strategic decisions Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-16 Beer is beer? Popular Imports Domestic specialties Premium Light Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-17 Bases for segmentation Psychographic Demographic Customer characteristics Socioeconomic Geographic Behaviour Usage Outlets Buying situation Awareness Awareness Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Benefits 7-18 Market segmentation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-19 Demographic segments Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-20 Behaviouristic segmentation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-21 Benefit segmentation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-22 Selecting a target market Target market selection Two key questions Which segments offer greatest potential? How many segments to enter? (coverage strategy) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-23 Market coverage strategy Undifferentiated marketing Single product or service offered to the whole market; no segmentation P1 P2 Differentiated marketing Develop different products for different segments; segmentation, no targeting Concentrated marketing Focus on single market or a few markets; segmentation and targeting P3 P4 P1 P1 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-24 Developing a positioning strategy What position do we have now? Does our creative strategy match it? The position Do we have the tenacity to stay with it? Do we have the money to do the job? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell What position do we want to own? From whom must we win this position? 7-25 Positioning strategies How should we position? By attributes and benefits? By price or quality? By use or application? By product class? By product user? By competitor? By cultural symbols? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-26 Positioning by product user Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-27 Positioning by competitor Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-28 Developing a positioning platform 1. Identify the competitors 2. Assess consumers’ perceptions of competitors 3. Determine competitors’ current positions 4. Analyse consumer preferences 5. Make the positioning decision 6. Monitor the position Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-29 Positioning decisions Is the current position strategy working? Is the segmentation strategy appropriate? The checklist How strong is the competition? Are there sufficient resources to communicate the position? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-30 Positioning strategy Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-31 Marketing plan Situation analysis IMC audit Planning process Future of planning Planning for IMC Role of planner Data for planning Identifying markets IMC strategic decisions Account planning Market segmentation Selecting target market Positioning IMC planning Consumer insight Outside-in Zero-based Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-32 Outside-in planning Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-33 Zero-based planning Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-34 IMC strategy Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-35 IMC planning Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-36 Account planning Account planning is ‘the marketing services agency discipline that researches and defines the client’s offering in the marketplace; applies strategic thinking, grounded in intelligence and insights, to campaign planning.' Role of account planner Strategy development Researcher Link between service staff & creative (inspire creative insights) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-37 Big ideas Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-38 Data for planning Background research Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-39 Developing the consumer insight Is the insight fresh? New? Innovative? Is it relevant? Does it resonate with consumers? The consumer insight Is it enduring? Is it built on a deep understanding of consumers’ beliefs and needs so that it will endure? Is it inspiring? Does it excite the team and inspire different applications? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-40 Future of account planning Increasing recognition of consumers’ emotional attachment to products and brands Sustainability—embedding in strategy and operations Extensions to boundaries of planning communications across non-traditional channels alignment of media strategy and planning integration of account planning and IMC planning rise of super planners Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-41 Sustainability Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-42 Summary and conclusions Great ideas begin with clever planning. Key strategic decisions include: segmentation and targeting positioning developing the customer insight creative strategy. Strategic planning should lead to a deep consumer insight that inspires great creative ideas. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-43