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Chapter 8. &. Marketing. The Planning Process. Introduction. Introduction:. Key Concepts The Single Biggest Thing The Campaign Concept The Language of Marketing Planning & Strategy How Advertising Works The Planning Process Questions & Discussion. Key Concepts. Key Concepts.

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Chapter 8 l.jpg

Chapter 8

&

Marketing

The Planning Process


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Introduction

Introduction:

  • Key Concepts

    • The Single Biggest Thing

    • The Campaign Concept

    • The Language of Marketing

    • Planning & Strategy

  • How Advertising Works

  • The Planning Process

  • Questions & Discussion


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Key Concepts

Key Concepts

  • The Single Biggest Thing

  • Campaigns

  • Objectives & Strategies

  • Advertising & Marketing


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Key Concepts

The Single Biggest Thing:

  • Advertising dollars have great“elasticity”

    • Planning and implementingthe Right Advertisingis usually critical for success in the marketplace

    • The Wrong Advertisingis usually worthless

  • Advertising can beThe Single Biggest Thing

    • It can probably impact sales more than any other element of the marketing mix.

  • And … it isthe most fun!


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Key Concepts

The Single Biggest Thing

  • Advertising is just a part of “The Five Ps”

  • All of “IMC” is important

  • However...

  • Advertising dollars are...

    • Often,the biggest item in the marketing budget

    • The most visible part of marketing spending

    • The most controllable marketing activity

  • Advertising is often… “the tail that wags the marketing dog”


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Key Concepts

Campaigns:

  • Origin of term

  • Military Campaigns

  • Political Campaigns

  • Advertising Campaigns


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Key Concepts

Campaigns:

  • Origin of term

  • Fr. campagne, It. campagna - open country suited to military maneuvers

  • Campaign - a series of military operations with a particular objective in a war

  • Campaign - a series of organized planned actions with a particular purpose, as for electing a candidate.


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Key Concepts

Campaigns:

  • Military Campaigns

“Victory is my objective.

War is my strategy.”

WinstonChurchill


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Key Concepts

Campaigns:

  • Military Campaigns

  • “a series of military operations with a particular objective in a war”

  • Advertising and marketing use both the language and the military mindset

  • Example: a very popular marketing book…


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Key Concepts

Campaigns:

  • Political Campaigns

  • Each geographic or statewide campaign may have objec-tives and strategies contrib-uting to the overall campaign.

  • In politics, as in war, you have to pick your battles. National political campaigns focus on key states and voter groups.

  • The final objective is an Electoral College majority.


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Key Concepts

Campaigns:

  • Advertising Campaigns

“Advertising

is a team sport!”


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Key Concepts

Campaigns:

  • Advertising Campaigns

  • A team effort

  • Structured and sequential activities

  • An imaginative re-integration of new and existing factors

  • Shared objectives and strategies


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Key Concepts

Advertising Campaign:

  • Next, we’ll show you four billboard ads done years ago for a telecom company in Kansas City - Birch Telecom

  • It was a successful advertising campaign

  • Then, we’ll discuss some of the basic common elements needed in an advertising campaign

  • Here they are...


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Key Concepts

Advertising Campaign:


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Key Concepts

Advertising Campaign:


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Key Concepts

Advertising Campaign:


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Key Concepts

Advertising Campaign:


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Key Concepts

Advertising Campaign:

  • What were the common elements?

    1. ____________________________

    2. ____________________________

    3. ____________________________

    4. ____________________________

    5. ____________________________

    6. ____________________________

graphic look

strategic message

benefit statement

brand personality

executional elements - the dog

anything else?


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Key Concepts

Advertising Campaign:

  • Campaigns are built with…

Plans & Strategies


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Key Concepts

Plans & Strategies:

  • Organized Actions and…

  • “Imaginative Reintegration”

  • Plans & Strategies are a combination of:

    • Tightly organized planned actions

    • Unique strategic configurations

  • Plans may contain strategies

  • Strategies need plans to be implemented


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Key Concepts

Plans & Strategies:

  • Kenichi Ohmae (head of McKinsey Japan)

“In business as on the battlefield, the object of strategy

is to bring about the conditions most favorable

to one’s own side.

In strategic thinking ,

one first seeks a clear understanding

of the particular character of each element of a situation,

and then makes the fullest possible use

of human brainpower to restructure the elements

in the most advantageous way.”


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Key Concepts

Plans & Strategies:

  • Kenichi Ohmae (head of McKinsey Japan)

“Phenomena and events in the real world

do not always fit a linear model.

Hence, the most reliable means of dissecting a situation

into its constituent parts and then reassembling them

in the desired pattern is not a step-by-step methodology such as systems analysis.

Rather, it is that ultimate non-linear thinking tool,

the human brain.”


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Key Concepts

Plans & Strategies:

  • Kenichi Ohmae (head of McKinsey Japan)

“No matter how difficult or unprecedented the problem,

a breakthrough to the best possible solution

can come only from a combination of rational analysis

based on the real nature of things,

and imaginative reintegration

of all the different items into a new pattern

using nonlinear brain power.”


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Key Concepts

Plans & Strategies:

  • Now let’s talk about Plans

  • Marketing Plans are written:

    • By the Advertisers

    • By their Advertising Agencies

  • Creative Plans may be called:

    • Creative strategies

    • Creative blueprints

    • Creative platforms

    • Creative briefs

    • And sometimes the word “communication” replaces the word “creative”


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Key Concepts

Plans & Strategies:

  • Plans contain Strategies and vice versa

  • Marketing Plans may also have Strategies and Plans for Sales Promotion and PR

  • The Campaign will also have

    • A Media Strategy - and…

    • A Media Plan

    • Media Departments write Media Plans

  • The Advertising Strategy determines the Creative Objective and the Media Objective


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Marketing Objective

Sell one million of product

Market Strategy/Creative

Establish brand as superior

Market Strategy/Media

Target audience W 18-49

Creative Objective

Establish brand as superior

Media Objective

Deliver Advertising to

Target audience W 18-49

Creative Strategy

To be determined

Media Strategy

To be determined

Key Concepts

Plans & Strategies:


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Key Concepts

Plans & Strategies:

  • Who’s going to manage all of this?

  • At the client, Director of Marketing

    • Responsible for Marketing

      • Usually sets Marketing Objective and Budget

    • Agency is responsible for Advertising

      • Good agencies seek to do this work for their clients

  • At the agency, Account Managers:

    • They are the link to the client

    • They develop strategy - or lead development

    • They manage the resources of the agency

    • and, very often, they write the Plans


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Key Concepts

Plans & Strategies:

  • Agencies turn strategies into ideas

  • And they turn those ideas into ads

    • Creative people actually make the ads

    • Copywriters and art directors

  • Agencies turn plans into campaigns

    • Clients and account management determine needs and budgets

    • Media departments turn budgets and strategies into Media Plans


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Key Concepts

Plans & Strategies:

  • To make plans and strategies work, a lot of people have to work together.

  • And that means they have to speak…

The same language!


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Key Concepts

Vocabulary:

  • The Language of Marketing & Advertising

  • Original concepts came from military

  • Now the business of marketing has its own intellectual infrastructure - a way of thinking and a way of talking

  • Understanding the specific meanings of key words and concepts iscritical

  • Yes, it will be on the test!


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Key Concepts

Vocabulary:

  • Mission: Overall goals & values your “reason for being”

  • Objective: What you want to accomplish.

  • Strategy: How you are going to do it.

  • Tactic: Specific action. (Should be specific action that helps meet strategic goals - tactics should be on strategy.)

  • Remember, objectives first, then strategy. (If you don’t know where you’re going, any road will take you there.)


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Key Concepts

Vocabulary:

  • Mission: Overall goals & values your “reason for being”

  • Objective: What you want to accomplish.

  • Strategy: How you are going to do it.

  • Tactic: Specific action. (Should be specific action that helps meet strategic goals - tactics should be on strategy.)

  • Remember the acronym M.O.S.T. Mission, Objective, Strategy, Tactics


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Key Concepts

Vocabulary:

  • The Value Ladder

  • The Value Ladder

“Laddering”

  • Value

“I’m a good mom”

  • Benefit

Good food for my family

  • Consumer Benefit

Kids like it

  • Product Benefit

Easy to serve

  • Feature

E-Z Open glass jar

  • Attribute

Apple sauce is made from apples


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Key Concepts

Vocabulary:

  • Some More Important Words…

  • Target audience - person or group to whom advertising is directed

    • Primary target - the target audience

    • Secondary target - usually, the trade

  • Demographics - statistical description of target audience

  • Psychographics - psychological traits of target audience


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Key Concepts

Vocabulary:

  • Some More Important Words…

  • Sales Promotion - use of incentives (a small bribe) to develop or stimulate sales

  • Public Relations (PR) - publicity through non-paid media

    • Publics - a PR version of target audience

  • Situation Analysis - beginning section of plan where current situation is evaluated

  • “SWOT” Analysis - Strengths, Weaknesses, Opportunities, and Threats


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Key Concepts

Vocabulary:

  • Some Important Media Words…

  • Reach - percentage of the audience exposed to an advertising message

  • Frequency - average number of times audience has had the opportunity to see the message

  • GRPs (Gross Rating Points) - the sum of the ratings points (a point is one percent of the audience)

  • TRPs (Target Rating Points) - this is a subset, measuring rating points for the target group


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Key Concepts

Vocabulary:

  • Some More Important Media Words…

  • CPM (Cost per thousand) - how much it costs to reach a thousand people (the “M” is the Roman numeral for a thousand)

  • CPP (Cost per point) - how much it costs to buy a “point” of the broadcast audience

  • Share - percentage of an audience tuned to a specific station or specific show

  • OK, now that we know how to talk about advertising, let’s talk about how it works…


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Advertising

How Advertising Works

How Advertising Works

How Advertising Works

How Advertising Works

How Advertising Works

  • Next, we’ll cover...

  • Some things we know about people

  • Some things we know about advertising messages

  • The Lavidge-Steiner Learning Model

  • “AIDA”


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Advertising

How Advertising Works

  • Some things we know about people.

  • “People read what interests them, sometimes it’s an ad.” (Gossage)

  • People are strategic - they look out for their own best interests.

  • People are bombarded with messages

    • A key concern is getting through clutter

  • People (and advertising) work from both logic and emotion


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Advertising

How Advertising Works

  • Some things we know about Advertising

  • Branding and Advertising

    • Branding = overall brand equity building

    • Advertising = specific messages and goals

  • Advertising contributes to Branding

  • Advertising is concerned with:

    • The Advertising Message

    • Media Planning and Placement


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Advertising Communication Model

Feedback

Advertiser

Sender

(Encoder)

Audience

Receiver

(Decoder)

MESSAGE

Advertising

How Advertising Works

  • An Advertising Communication Model

  • Note it is more difficult for the audience to communicate back to the advertiser.

    • Feedback is one purpose of Market Research


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Purchase

Preference

Conviction

Liking

Awareness

Knowledge

Advertising

How Advertising Works

  • The Lavidge-Steiner Learning Model

  • How people “learn” ads

  • Begins with Awareness

  • Moves to Conviction and Purchase

NOTE: Process may be quite rapid and you may try before being totally convinced


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Advertising

How Advertising Works

  • “AIDA”

  • Attention

  • Interest

  • Desire

  • Action!


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Advertising

How Advertising Works

  • What we need to know:

  • Target Audience

  • Factors That Motivate Purchase Behavior

  • Unique Brand Characteristics


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Advertising

How Advertising Works

  • More ways to think aboutAdvertising

  • Factors That Influence Purchase Behavior

    • Basis of competition

    • A critical decision

  • The Problem The Advertising Must Solve

    • From the Y&R Creative Work Plan - one of the key tasks is determining what you want the advertising to do.


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Advertising

How Advertising Works

  • More ways to think about Advertising

  • “Brand Contact Points”

  • Aperture and Personal Media Network

  • Unique Selling Proposition

  • “inherent drama”

  • Whatever and however you think about it, eventually you have to do it…

  • “You need aPlan!


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Planning

Introduction

  • The Planning Process

  • Generally, plans cover at least four areas:

    • Marketing Objective and Strategy (The 5 Ps)

    • Advertising Objective and Strategy

    • Creative Strategy (The Advertising Message)

    • Media Objective and Media Strategy

    • Other Plans and Strategies

      • Sales Promotion, PR, etc.


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Planning

Introduction

  • The Planning Process

  • Generally, this approach is right for a consumer-oriented marketer.

  • For example, a small industrial firm might emphasize other things - such as:

    • Trade Shows and Trade Advertising

    • Their own Sales Force or Sales Reps

    • Current Customer Relationships

  • However, the underlying principles apply.


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Planning

Introduction

  • The Planning Process


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Planning

Introduction

  • A Ten Part Process

  • Evaluation

    1. Situation Analysis

    2. Research

    3. Problems & Opportunities

  • Goal Setting

    4. Marketing Objective

    5. Budget

  • And then...


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Planning

Introduction

  • A Ten Part Process

  • Building the Plan

    6. Strategies

    7. Advertising Creative

    8. Media

    9. Sales Promotion

    + Other appropriate “IMC” plans and strategies

10. Evaluation

  • Now let’s go step by step…


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Planning

1.Situation Analysis

  • Also called Background Review

  • It’s a Summation of current knowledge:

    • Current Users

    • Seasonality

    • Geography

    • Creative Requirements

    • Purchase Cycle

    • Competitive Review

  • And anything else that might help you understand your situation.


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Planning

2.Research

  • You do Secondary Research first

  • You do Primary Research second

  • Research is usually in these three areas:

    • Target Audience

      • Improve Understanding, Gain Insight

    • Factors That Motivate Purchase Behavior

      • Improve Effectiveness, Gain Insight

    • Unique Brand Characteristics

      • Look for key point of difference


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Planning

2.Research

  • Research Techniques:

    • Qualitative Research

      • Focus groups

      • One-on-one interviews

    • Quantitative Research

      • Surveys

      • Observation

      • Experiments

  • When preparing The Research Plan

    • Be sure to know what you’re looking for!


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Planning

3.Problems & Opportunities

  • Also known as a “SWOT” Analysis

    • Strengths, Weaknesses, Opportunities, Threats

  • “For every problem there is an opportunity”

  • Understanding problems is a critical skill

  • Identify the right problem and you’re on the road to the solution

  • And, whatever you do…

  • Don’t solve the wrong problem!


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Planning

4.The Objective

  • The Marketing Objective is a number

  • It is thegoalof your marketing activities

    • Usually, it is a sales or volume goal

    • It may be difficult to get to, but the final answer is simple and measurable.


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Planning

5.The Budget

  • Determining a budget usually involves asking two very important questions:

  • How much will it take?

  • How much do we have?

  • Here are ways marketers work to develop good answers to those questions.


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    Planning

    5.The Budget

    • Budgeting Methods

    • Historical expenditures

      • Often done as percent of sales

    • A to S ratio (Advertising to sales ratio)

    • Elements of the budget include:

      • Advertising (Media and Production)

      • Sales promotion (may include discounts)

      • PR and Event marketing

      • All other


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    Planning

    6.Strategies

    • Marketing Strategies state how you will fulfill the Objective

    • The Marketing Strategies become discipline-specific objectives for…

      • Advertising Creative

      • Advertising Media

      • Sales Promotion and Public Relations


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    Planning

    7.Advertising Creative

    • Creating The Advertising Message:

    • Target Audience

    • Objective

    • Strategy

    • Considerations

    • Support

    • Tone


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    Planning

    7.Advertising Creative

    • Creating The Advertising Message:

    • A Sample Creative Strategy Template:

      • To convince: ___________________

      • To use: ___________________

      • Instead of: ___________________

      • Because: ___________________

    Target Audience

    Brand/Product

    Competition

    Factors that influence purchase behavior +

    (Target Audience Insight)


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    Planning

    7.Advertising Creative

    • Creating The Advertising Message:

    • A Sample Creative Strategy:

      • To convince: ___________________

      • To buy: ___________________

      • Instead of: ___________________

      • Because: ___________________

    Adults 35-54

    Volkswagen

    Other cars

    Volkswagen will last a long time


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    Planning

    7.Advertising Creative

    • To convince: ___________________

    • To buy: ___________________

    • Instead of: ___________________

    • Because: ___________________

    • Creating The Advertising Message:

    Adults 35-54

    Volkswagen

    Other cars

    Volkswagen will last a long time


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    Planning

    8.Advertising Media

    • Media Objectives usually include:

      • Target Audience

      • Geography

      • Seasonality

      • Reach or Frequency objective

    • The Media Plan will work to achieve those objectives in the most efficient way.


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    Planning

    8.Advertising Media

    • A good Media Plan considers these important factors:

    • Media Cost-Effectiveness:

      • GRP (TRP) - Gross & Total Rating Points

      • Reach

      • Frequency

    • Media Cost-Efficiency:

      • CPM - Cost per thousand

      • CPP - Cost per point


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    Planning

    8.Advertising Media

    • A Media Flow Chart can help you visualize the Media Plan:

    • Put a calendar time-line across the top

    • Place the media down the side


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    Planning

    8.Advertising Media

    • A Media Flow Chart can help you visualize the Media Plan:

    • Put a calendar time-line across the top

    • Place the media down the side


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    Planning

    9.Sales Promotion & PR

    • Sales Promotion =

      • Tangible motivation to buy

      • An incentive or small bribe

      • To both consumers and the trade

    • Public Relations =

      • Non-paid media coverage

      • 3rd party endorsement (reviews, etc.)

      • Marketing PR (MPR)

      • Not Corporate PR (CPR)


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    Planning

    9.Sales Promotion & PR

    • Sales Promotion

    • Consumer Promotion = Win/Free/Save

      • Sweepstakes & Contests

      • Added Value Extras/Bonus Packs

      • Coupons/Savings/Rebates

    • Trade Promotion =

      • Allowances

      • Other Payments/Incentives

      • Events/Sales Contests


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    Planning

    9.Sales Promotion & PR

    • Public Relations =

    • Product Publicity Opportunities

    • 3rd Party Endorsements & “Influencers” (columnists, talk show hosts, etc.)

    • Press Relations

    • Other Strategic Publicity

  • May also include…

  • Event Marketing


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    Planning

    10.Evaluation

    • It starts and ends with Research

    • Methods for evaluating the plan.

    • Input/learning for next year’s plan

    • Methods include:

      • Tracking studies

      • Attitude, usage, and awareness studies

    • Creative

      • Recall

      • Persuasion


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    Planning

    In Conclusion

    • Putting plans and strategies together is a lot of work.

    • It’s worth it, because this is the way to build sales and make the most of a business’s potential.

    • If you go to work in The Business of Brands, chances are, you’ll have to play a part creating a winning plan.