Chapter 8

1. Chapter 8 & Marketing The Planning Process

2. 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

3. Key Concepts Key Concepts • The Single Biggest Thing • Campaigns • Objectives & Strategies • Advertising & Marketing

4. 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!

5. 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”

6. Key Concepts Campaigns: • Origin of term • Military Campaigns • Political Campaigns • Advertising Campaigns

7. 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.

8. Key Concepts Campaigns: • Military Campaigns “Victory is my objective. War is my strategy.” WinstonChurchill

9. 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…

10. 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.

11. Key Concepts Campaigns: • Advertising Campaigns “Advertising is a team sport!”

12. 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

13. 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...

14. Key Concepts Advertising Campaign:

15. Key Concepts Advertising Campaign:

16. Key Concepts Advertising Campaign:

17. Key Concepts Advertising Campaign:

18. 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?

19. Key Concepts Advertising Campaign: • Campaigns are built with… Plans & Strategies

20. 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

21. 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.”

22. 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.”

23. 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.”

24. 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”

25. 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

26. 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:

27. 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

28. 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

29. 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!

30. 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!

31. 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.)

32. 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

33. 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

34. 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

35. 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

36. 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

37. 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…

38. 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”

39. 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

40. 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

41. 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

42. 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

43. Advertising How Advertising Works • “AIDA” • Attention • Interest • Desire • Action!

44. Advertising How Advertising Works • What we need to know: • Target Audience • Factors That Motivate Purchase Behavior • Unique Brand Characteristics

45. 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.

46. 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!

47. 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.

48. 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.

49. Planning Introduction • The Planning Process

50. Planning Introduction • A Ten Part Process • Evaluation 1. Situation Analysis 2. Research 3. Problems & Opportunities • Goal Setting 4. Marketing Objective 5. Budget • And then...