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225

10
The marketing
communications plan
LEARNING OBJECTIVES
By the end of this chapter you will be able to:
M Write an outline marketing communications plan
M Understand the importance of gathering intelligence and research for the situation
analysis before writing the rest of the plan
M Explore strategy, knowing that it is an area of weakness for most organizations
M Establish control systems

The SOSTAC® planning system 226 Strategy 235


The 3Ms 226
Tactics 237
Budget setting 227
Action 237
Situation analysis 229
Segmentation and target Control 240
marketing 229 Net promoter score, satisfaction score
Decision-making units 231 and recommendation score 242
Global segments 231 Reputation/social conversation scores
B2C (consumer) segments 231 (social media monitoring) 242
B2B (industrial) segments 232 Return on investment 243
Segmentation requires careful
References and further reading 244
analysis 232
Further information 244
Objectives 233
Marketing objectives 233
Communications objectives 234
226 Part 1 Communications Background and Theories

John Leftwick, Marketing Director,


Outline marketing M
Microsoft UK: ‘We use SOSTAC® within our
communications plan: the own marketing planning.’
M Peter Liney, BA Marketing Manager:
SOSTAC® planning system ‘I think SOSTAC® is very good in terms of
identifying, if you like, major component
There are many different approaches to building a parts of what you’re doing in marketing.’
marketing plan or, more specifically, a marketing
communications plan. There is no single common Philip Kotler acknowledged the simplicity and use-
approach, but there are essential elements that every fulness of this approach to planning when he said:
plan must have. SOSTAC® (P R Smith, 1998) is a ‘SOSTAC® is a system for going through the steps
simple aide-mémoire that helps managers to recall and building a marketing plan’ (Kotler, 2001; Smith,
the key components of a marketing communica- 2004).
tions plan. SOSTAC® can in fact be applied to any SOSTAC® provides an outline or a structure
kind of plan – a corporate plan, marketing plan, upon which a comprehensive plan can be built.
marketing communications plan, social media plan, A real plan requires much more detail, and the
direct mail plan or even personal plan. first component, the situation analysis, is often
considered so important that it can take up half of
S – Situation analysis (where are we now?). the total plan. Objectives and strategies should be
written in a concise manner, while the tactics and
O – Objectives (where do we want to go?).
action plans can require a lot of detailed planning.
S – Strategy (how do we get there?). Control, feedback and monitoring mechanisms
should be built into the plan so that managers know
T – Tactics (the details of the strategy).
if the plan is succeeding or failing early on rather
A – Action (or implementation – putting the than at the end of the year, when it is too late to
plans to work). change. So SOSTAC® and the 3Ms (the three key
resources) provide a simple approach for building
C – Control (measurement, monitoring,
a marketing plan (and marketing communications
reviewing and modifying).
plans in particular).
SOSTAC®’s simple structure is applicable at different
levels and in different situations. In each chapter in
Part Two, SOSTAC® is applied at a lower level for The 3Ms
each of the communications tools, an advertising Every plan must include the three key resources,
plan, a direct mail plan, etc. SOSTAC® can also be the 3Ms:
used to check other plans to see if they are compre-
hensive and cover the key items that every plan 1 men/women (the human resources);
needs. You don’t have to use the same terminology, 2 money (budgets);
or even the same sequence, but SOSTAC® should 3 minutes (time).
help the development of a logical structure combined
with the key elements of a plan. Men/women are the human resources: who is re-
SOSTAC® has been adopted as a planning sys- quired to do what? It means professional men and
tem by literally thousands of managers worldwide, women skilled and capable of handling specific ac-
including: tivities. Some can be drawn from within the organ-
ization; others have to be brought in from an agency
M Sam Howe, Director of CATV Marketing, or consultancy or recruited as full-time members of
Southwestern Bell: ‘SOSTAC® is a great staff. Many organizations may not have this calibre
approach for anyone going ahead and of person or, if they do, these people may be kept so
building a marketing plan.’ busy that they cannot do any additional tasks. Is it
M David Solomon, Marketing Director, TVX: worth asking over-busy people to give half their
‘It appears that we are following the attention to a project or asking under-qualified
principles of SOSTAC®.’ and underutilized people to have a go? Perhaps the
Chapter 10 The Marketing Communications Plan 227

marketing communications task is too important to Budget setting


be casual? There is no doubt about the importance
and limited supply of the human resource. Outlined below are the most common forms of
Minutes, the third M, is the most limited resource budgeting:
– time. Is there enough time to do the job, to carry
1 Objective and task – identifying the overall
out the research, to develop a new pack, to prepare
objectives and then breaking these down into
properly for a good mailshot, etc? Timescales are
specific tasks and calculating the budget
fundamental. Without them any plan becomes
accordingly. For example, to sell x million
uncontrollable, because there are no time-related
cans of Coke would require x per cent levels
milestones. Timescales for objectives, and deadlines
of awareness, which would require x number
for each activity (eg proposals, concept develop-
of impressions, which would require x
ment, concept testing, regional testing, national
amount of advertising, which would cost £x.
roll-out, European launch), are required. How much
This is sometimes called the ‘ideal’ or ‘task’
lead time do you need if you want to launch a
approach.
new toy at Christmas? When should the product
be ready? In February, if it is going to make the 2 Modelling involves the use of a variety of
New York Toy Show, when major US retailers econometric and simulation techniques to
place their orders. How long would a new pack determine how various budget levels may
take to create? Six to nine months. So, even if you affect performance (eg sales). An example of
allow four months to develop a mailshot and this is Unilever’s AMTES area market-testing
simultaneously four months for a TV advertise- model.
ment, you still need a total of 18 months for the 3 Profit optimization tries to find the optimum
pack and exhibitions. Managers have to manage marketing spend that would generate the
teams of people who have different attitudes to most profit. It is based on ensuring that the
deadlines. Time is a precious commodity and de- marginal revenue derived from each
serves careful attention. Some consider it now to be marketing communications activity exceeds
the currency of competitive advantage. the marginal cost.
4 Percentage of sales is a crude but quick way
of calculating a budget. For example, taking
5 per cent of £1 million forecasted sales
Whooshing deadlines means the marketing budget is £50,000. In
B2B markets, the percentage ranges from 0.5
‘I love deadlines. I like the whooshing sound they to 2 per cent, and in B2C markets it ranges
make as they fly by.’ from 5 to 20 per cent.
The late Douglas Adams 5 Competitive parity analyses competitors’
marketing communications spends. Basically,
it suggests that if an organization wants to
match a competitor it should spend the same
Money means budgets, and senior management amount as that competitor.
will tend to scan budgets first and foremost. There
are many different ways of setting marketing com- 6 Affordability is usually driven by
munications budgets, and there is not a generally accountants, who draw up business plans,
agreed methodology but rather a whole range of work out profitability and then allocate
approaches that can be described as either scientific some budget to marketing based on what
or heuristic. is left over or affordable. This is the opposite
Managers tasked with setting a budget ask them- of the objective and task method. It is
selves a series of ‘What if?’ questions about what based upon what is affordable after talking
would happen if a particular strategy and series of all costs and an amount of profit away
tactics are pursued. A combination of judgement, from sales.
experience and rational evaluation is applied to 7 Payback period is the time taken for an
develop an appropriate budgeting method for integrated campaign to pay back the costs
organizations. (or budget) of the marketing communications.
228 Part 1 Communications Background and Theories

8 Arbitration requires a senior member of e-mail marketing, social media and mobile market-
staff to arbitrate between different views ing). It is likely that search and mobile will take a
of the marketing team and the rest of the larger portion of the budget.
business.

Some academics categorize these different budget- Allocating budget between


ing approaches as scientific and heuristic. Scientific customer retention and customer
planning approaches include: objective and task;
modelling; payback period; and profit optimiza-
acquisition
tion. Heuristic planning approaches include: per- Another interesting question is how to split the
centage of sales; competitive parity; affordability; budget between customer retention and customer
and arbitration. acquisition. If selling to existing customers is sup-
Marketers inevitably have to justify to the finan- posed to be on average six times more profitable
cial director the actual return on investment (ROI) than selling to new customers, there is a school of
of the marketing communications investment. ROI thought that suggests that marketers should spend
calculates the profit (created from the extra sales at least equal resources on 1) keeping customers
generated from the integrated marketing communi- happy (eg CRM) and 2) acquiring new customers.
cations campaigns) as a percentage of the investment. Businesses like Amazon reportedly pay £50 to
This can be done for the whole mix or, more easily, acquire a customer, and Virgin pays up to £150
for a specific marketing communications tool such (a free laptop), while Reichfield (2006) estimated
as an advertising campaign or even a tool such as the Dell average customer to be worth $210 (five-
exhibitions (see ‘costs’ on page 408). The usefulness year net present value), with a detractor (someone
of ROI is debated in the section ‘Control’ below. speaking negatively about Dell) costing $57 and a
In reality several budgeting approaches are promoter generating $328. In the world of online
used. Although a manager might use the ideal task marketing it is increasingly easy to calculate the cost
approach, the review panel (of senior management) of customer acquisition. See the section ‘Control’
will immediately convert it into a percentage figure, at the end of the chapter.
compare it with the competition’s spend and ask
‘Can we really afford it?’ and ‘Does it deliver the Allocating budgets to social media
required level of profits?’ It is not unusual to find
the initial budget request cut back by senior man- A burning question emerging across all markets is
agement as other divisions and departments compete ‘How much resource should we allocate to social
internally for limited funds for the following year’s media?’ It really depends on the strategy and how
marketing. Few companies have sophisticated opti- active an organization wants to be. At a minimum,
mum profit models that attempt to identify the any marketer needs to have someone listening to
optimum spend. conversations, participating in discussions and
ultimately driving the discussions. Beth Kanter
(2008) suggests 55–75 hours per week for a non-
Allocating budget between online profit-making organization:
and offline marketing M Listen to Google alerts, Technorati,
The answer lies in where customers are spending Twitter, and RSS readers. The key skill
their time consuming media, interacting with is pattern analysis. (5 hours per week)
colleagues and engaging with particular types of M Participate. Join the conversation direct or
brands. This determines where the budget should via other bloggers. (10 hours per week)
be allocated, eg if a particular audience spends
50 per cent of its time on online then 50 per cent of M Generate buzz. Buzz tools include
that target market’s budget should go online. FriendFeed, Twitter, StumbleUpon and
However, Forrester Research (2009) forecasts Digg. (10–15 hours per week)
that by 2014 only approximately 21 per cent of total M Share your story – blog, podcast, Flickr,
marketing budgets will be allocated to interactive YouTube and social networks. (10–15 hours
marketing (search marketing, display advertising, per week)
Chapter 10 The Marketing Communications Plan 229

M Community building and social networking. marketing communications plan must keep the focus
Nurture a community – Ning and LinkedIn. on communications aspects such as performance
(20 hours per week) (identifying which elements of the communications
mix work best), target markets and positioning.
So SOSTAC® + 3Ms works for any type of product It should certainly include an explanation of the
or service in both consumer and business-to-business product or service’s positioning – how the product
markets, as demonstrated in the short case studies is perceived in the minds of the target market.
used in this book. Although the case studies provide Lucozade was positioned as a sick child’s drink until
only an outline plan, they show how easily SOSTAC® the marketing people saw a bigger opportunity and
can be applied to either planning the overall mar- repositioned it as a healthy adult’s drink. Perceptual
keting communications or just planning a campaign maps plot where different brands and product
for a single communications tool such as direct types are positioned on certain criteria, as shown
mail. In reality, the plan would cover a lot more in Figure 10.1.
detail. Consider now each SOSTAC® component in The situation analysis can include a PEST analysis
more detail. specifically relevant to communications, eg political
(what new laws or regulations affect communica-
tions); how economic fluctuations might affect
media and messages; social trends and changes in
Situation analysis attitudes and media usage; and technology’s fast-
changing impact on communications.
The situation analysis needs to be comprehensive.
A vital part of any analysis is the market and its
Over 2,000 years ago Sun Tzu wrote The Art of
structure. How is it segmented? What are the most
War (Wing, 1989), which has become a classic read,
suitable segments that can become target markets?
particularly for some enlightened marketing man-
Are the target markets big enough? Are they profit-
agers. Here is an excerpt:
able enough? Are they vulnerable to competition?
Those who triumph, Do the existing distribution and communications
Compute at their headquarters channels serve them properly? Are customers satis-
A great number of factors fied in each target market? Do they intend to repur-
Prior to a challenge. chase? Who is involved in the decision-making unit
(DMU)? Do the key opinion leaders and opinion
Those who are defeated,
formers support the brand?
Compute at their headquarters
A small number of factors
Prior to a challenge.
Segmentation and target
Much computation brings triumph.
Little computation brings defeat.
marketing
How much more so with no computation at all. Segmentation and target marketing are so important
that they appear almost everywhere in a marketing
By observing only this,
plan: in the situation analysis in detail, in the objec-
I can see triumph or defeat.
tives briefly and in the strategy (as a fundamental
The analysis should include a review of the per- component); they are also referred to in all tactical
formance (sales, market share and profitability) campaigns and events.
during the most recent period. Comparisons with Target marketing involves the division of a large
previous years reveal any trends, and comparisons market into smaller market segments. Each segment
against competitors reveal relative performance. has its own distinct needs and/or its patterns of
The analysis should include a summary review of response to varying marketing mixes. The most
the overall marketing performance, the marketplace, attractive segments are targeted according to the
the competition, and strengths and weaknesses. The organization’s resources. Attractive target markets
marketing communications plan does not require are those that will generally be more profitable, eg
a full SWOT analysis, which is usually found in segments located closer to the organization, or loyal
the full marketing plan. The situation analysis in the customer groups, or heavy users of a particular
230 Part 1 Communications Background and Theories

F I G U R E 10.1 A perceptual map showing Lucozade’s classic repositioning from a sick


child’s drink (when the UK had a disproportionately large child population) to a ‘healthy
adult’s drink (when the UK demographic shifted to a disproportionately large young adult
population)
Adults

Sick Healthy

Children

product or service. Targeting reduces wastage of M Accessible. Can this group be contacted?
resources (eg money spent on mass advertising) and, Can they be isolated or separated from other
ultimately, it increases sales, since better-prospect non-targeted markets? Are there specific
customers are contacted. Segmentation and target media and distribution channels that provide
marketing are absolutely fundamental approaches access to them?
to marketing. Some communication channels are M Relevant. The benefits of the product or
more wasteful than others, eg TV, but the Target service being offered must be relevant to the
Group Index (TGI) (see Chapter 6) helps to identify target. There is no point picking measurable,
what kind of brands people buy, the papers they accessible and substantial segments if they
read, the programmes they watch, etc. As mass have no interest in what is being offered in
markets fragment and splinter into mini-markets or the first place. Know your own customers.
segments, and technology provides more tailored Knowing the ideal customer’s profile is
communications, there is less requirement for mass fundamental to success. Some database
marketing and mass communications. The ability companies actually carry out ‘profiling’
to segment a market accurately is a key skill that or an analysis of an organization’s own
marketers need to spend time on again and again, customers into groups with distinctive
revisiting their marketplace and thinking about how profiles. This helps in targeting the
it can be broken into segments. appropriate message through the
appropriate medium.
Segment criteria
Ideally, segments should satisfy the following criteria:
M Measurable. Is it quantifiable? Can buyers
who fall into this category or segment be £50 Rembrandt
identified?
M Substantial. How many buyers fall into A Rembrandt probably would not sell (even for £50)
this segment? Is there a sufficient number in the wrong target market, whereas in the right
of buyers in the segment to warrant special target market it would fetch several million pounds.
attention and targeting?
Chapter 10 The Marketing Communications Plan 231

Some segments are obvious. Cat food is bought Global segments


by cat owners, petrol is bought by motorists, and
heavy-duty cranes are bought by both large con- Segments do not always have to be localized or de-
struction companies and leasing companies. Other fined on a geographic basis. Values, attitudes and
segments are less obvious. Expensive cars are bought lifestyles (VALs) can be used to identify cross-
by high-income groups, while cheaper cars are cultural common characteristics. For example, the
bought by both high-income groups (as a second or advertising agency Euro RSCG identified the four
third car) and low-income groups. Who are the main European psychographic segments as follows:
heavy users, eg who are the 9 per cent of the UK
1 modern materialists: 117 million (acquire
adult population who drink 65 per cent of the lager
goods and services);
consumed? Who are the buyers? Gift boxes of cho-
colates are bought for women by men. Who are the 2 new radicals: 50 million (concerned with
deciders? Cola drinkers may tend to be young, but change and reform);
who does the buying, who makes the decision, who 3 get what you deserve: 110 million (more
influences and who pays? This is where segmenta- conservative and resistant to change);
tion focuses on the decision-making unit. 4 bygones: 83 million (oldest, most moralistic
group, threatened by consumerism).
Global idiosyncrasies complicate the supposedly
Decision-making units simple global segments. Chapter 9 looks at the
The DMU is made up of influencers, advisers, decid- international arena in more detail.
ers, users, buyers and payers. It applies to all types
of markets (industrial, consumer, products and
services). A baby’s pram may be used by mother and
child, bought by the mother and father, influenced Global convergence
by the grandmother, and decided on by the whole
family. Similarly, the purchase of a new photocopier ‘So tastes are converging and to discover that all
may have been instigated by a secretary who keeps you have to do is talk to my teenage son. I have
complaining to the boss about the old machine taken him with me on trips all over the world and
breaking down. The end user may be several secre- I keep introducing him to a local boy who he can
taries; the decider may be the financial director; the spend the day with to learn something about the
buyer may be the organization’s professional buyer life in those countries. And in every country he’s
or the managing director. In some organizations the visited, whether it is Jakarta, Indonesia; São Paulo,
DMU may be a committee. In other organizations Brazil; Manila in the Philippines or a small town in
there is a central decision maker, or there may be a The Netherlands, he has spent the day exactly the
decentralized approach with each branch or region same way. They have gone to a local shopping mall,
making its own decisions. The acronym SPADE played video games and eaten a McDonald’s
(starter, payer, adviser, decider, end user) helps to hamburger.’
identify some of the different members of the Kanter (2001)
decision-making unit.
The DMU can consist of several people or com-
mittees, or it can sometimes be just one person.
There is one other influential member of a business-
to-business or industrial DMU, and that is the
B2C (consumer) segments
‘gatekeeper’, who acts as a screen and sorts out Segmenting markets into groups of buyers and
unsolicited sales pitches from more important targeting those groups that are more likely to be
incoming communications. The gatekeeper is often the best customers are absolutely vital if marketing
a secretary or personal assistant, who may decide communications are to be both effective and effi-
whether to interrupt a manager with a phone call cient. Markets can be broken into segments using
or allow a direct mailshot to land on the manager’s many different criteria. Here are some typical con-
desk. sumer criteria:
232 Part 1 Communications Background and Theories

M demographics: Most airlines target at least two different segments


– age; on each plane: the business traveller and the leisure
traveller. These segments can be further segmented,
– job type (socio-economic groupings);
eg the business traveller may be divided into club
M geodemographics: geographical location, type class, executive class and so on. These can be fur-
of neighbourhood and demographic data; ther divided into different benefit segments, eg those
M psychographics; who want a fast check-in, those who want frequent
M lifestyle: see Chapter 6, ‘The Target Group flights, those who want top-class in-flight service,
Index’; those who want a reasonable price, and those who
want ‘seamless travel’ (connections for the next
M attitudes, beliefs and intentions (as above);
flight, cars and hotels all booked for them). Most
M benefits sought: see Chapter 4, travellers want all of these benefits, but usually con-
‘The toothpaste test’. sider some more important than others, so much so
that they choose one airline over another because of
a particular key benefit. If this type of flier proves to
Floating targets be significant in number, then it is a valid segment.
The organization then decides if it has the resources
Many markets have a floating percentage who move and sustainable advantages suitable to target this
in and out of the market. Take insurance. Like most segment.
financial services, it is considered to be so dull and To continue the airline example, Transavia
off-putting that most people rather not think about it. Airlines segmented various companies that might
So, if customers reluctantly review, say, their insurance have had some connection with the Netherlands
suppliers every 4 years, then you have only got (and therefore might have had a need for its ser-
25 per cent of the market active each year. Divide vices) into five different target groups of business
this by 12 months and you have only got approximately
fliers and travel agents. As shown in Figure 10.2,
a different communications strategy was developed
2 per cent of the market active in any particular month.
for each segment. A gift/food hamper and a boxed
That’s why there is no point advertising specific
presentation were delivered personally by the sales
product benefits when the ‘active’ market is so
manager to those accounts (customers) that war-
small. Instead, many brands just want to maintain
ranted this kind of attention (resources). Lighter
awareness levels, so that they are at least considered users had a smaller mailing. Top travel agents got
when the customer becomes ready to buy. a boxed mailing, while other travel agents just got a
mailing.

B2B (industrial) segments Segmentation requires


In industrial markets and business-to-business
markets, segmentation criteria are different but
careful analysis
nonetheless vital. Here are some commonly used In reality, all the target customers rarely fall neatly
segmentation criteria for industrial markets: into one single segment, eg 67 per cent of the Sun’s
customers might be C2DEs and 33 per cent ABC1s.
M type of company (Standard Industrial
As mentioned, not all buyers of small cars are in
Code – SIC);
lower- to middle-income groups. Many small cars
M size of company; are bought by mid- to higher-income groups as a
M structure of company (autocratic vs centralized); second or third car in the family. There is, however,
M location or geographical area; usually a core target made up of heavy users or easily
M heavy or light users; convertible prospects, eg Lyons Tetley’s Quickbrew
tea is targeted at women aged 35+ (core C1C2D).
M existing suppliers;
Some markets have several people involved in the
M benefits sought; decision making (DMUs). For example, the adver-
M title or position of key decision makers. tising campaign promoting Shell’s free miniature
Chapter 10 The Marketing Communications Plan 233

F I G U R E 10 .2 Business traveller segments and communications mixes

50+ trips 5–50 trips <5 trips Top travel Other travel
per annum per annum per annum agents agents

Hamper
Boxed Boxed
and boxed Mailing Mailing
mailing mailing
mailing

Telephone Telephone Telephone


Telephone Telephone
and reps and reps and reps
follow-up follow-up
visit visit visit

classic sports car collection was aimed at ABC1 to go?’ Ideally objectives should be quantified in terms
fathers aged between 25 and 64 with children aged of success or failure criteria. Timescales should also
three to nine; within this they also had to ensure be set. Clearly defined objectives make the manage-
high coverage of high-mileage drivers (heavy users). ment task of control much easier. Drawing up ob-
Other markets have customers who drift into the jectives for the first time is a difficult task. In future
marketplace and then out again, as in the case of years, the previous year’s objectives and correspond-
financial services. ing results will help to make the planning job a little
However, sophisticated technology can help the easier, as everyone has a better idea of what is real-
marketer today by adding new segmentation variables istic and what is not. Establishing clear objectives
on top of the traditional variables. For example, it is necessary to give a focus to the organization or
will be possible to segment buyers by their brand division. Clear objectives also give direction to sub-
purchases and their stockholding (in the fridge) as sequent creative efforts. Some marketing managers
well as the usual age, income and geographic crite- and agencies break objectives into many different
ria. Infomediaries (owners of information), such as types; other marketers use just one set of objectives
manufacturers of fridge-freezers with inbuilt online (and sometimes without quantification or numbers
capacity to reorder automatically when products attached). As a discipline it is useful to break up
are taken out of the fridge, hold valuable data about objectives so that performance can be measured
customers’ stock levels. If consumers agree to share more accurately. Objectives should be SMART:
this information with other third parties, this opens
up interesting segmentation opportunities. For ex- S – specific
ample, Pepsi might like to make a special offer to a M – measurable
ripe segment like Coca-Cola consumers who are out
A – actionable
of stock. It’s worth considering how this might apply
in the B2B sector, eg office stationery or software R – realistic
supplied by an intermediary. T – time specific

Two types of objectives are examined here: market-


ing objectives and communications objectives.
Objectives
After analysing the situation through secondary and
primary sources (see Chapter 6), a clear picture of
Marketing objectives
‘where we are now’ emerges. The next step is to Typical marketing objectives refer to sales, market
define as specifically as possible ‘Where do we want share, distribution penetration, launching a number
234 Part 1 Communications Background and Theories

of new products, and so on. For example, marketing DAGMAR AIDA


objectives might be: Unawareness –
Awareness Attention
M to increase unit sales of product/brand Comprehension Interest
X by 10 per cent over the next Conviction Desire
12 months; Action Action
M to increase market share by 5 per cent
over the next 12 months; Here are some examples of communications
M to generate 500 new enquiries each objectives:
month;
M to increase awareness from 35 per cent
M to increase distribution penetration to 50 per cent within eight weeks of the
from 25 per cent to 50 per cent within campaign launch among 25- to 45-year-old
12 months; ABC1 women;
M to establish a network of distributors M to position the service as the friendliest
covering Germany, France, The on the market within a 12-month period
Netherlands and Italy during the first among 70 per cent of heavy chocolate
six months, followed by Switzerland, users;
Austria, Belgium and Luxembourg in the
second six months. M to reposition Guinness from an old,
unfashionable, older man’s drink to a
It is worth noting that not all marketing objectives fashionable younger person’s drink over
are growth oriented. In Denmark, electricity boards two years among all 25- to 45-year-old
no longer pride themselves on how much electricity male drinkers;
they sell but on how little. Product withdrawals are M to maintain brand X as the preferred brand
another example where objectives are not attached (or number one brand) of photocopiers
to year-on-year growth. In very competitive mature among at least 50 per cent of current
markets, with new entrants appearing on the mar- UK buyers in companies with 1,000-plus
ket, maintaining market share and consolidating employees;
sales might be more appropriate than expecting big
growth. Given that marketing is shifting towards M to include Bulgarian wines in the
retention of profitable customers and deselection of repertoire of possible wine purchases
unprofitable customers (see page 63), the emphasis among 20 per cent of ABC1 wine buyers
in some companies has moved from growth in turn- within 12 months;
over or sales to growth in profit or ROI. M to support the launch of a new shop by
generating 50 per cent awareness in the
immediate community one week before
Communications objectives the launch;
These typically refer to how the communications M to announce a sale and create 70 per cent
should affect the mind of the target audience, awareness one day before the sale starts;
eg generate awareness, attitudes, interest or trial. M to reposition the European as an upmarket
Again, these tend to be most useful when quantified. business paper (from a general mid-market
DAGMAR (defining advertising goals for measur- newspaper) (see Figure 10.3).
ing advertising responses) and AIDA (attention,
interest, desire, action) provide yardsticks for com- The European newspaper positioned itself in new
munications objectives by trying to separate the market space, where the management saw a gap in
various mental stages a buyer goes through before the market. But was there a market in the gap? No
buying. (The response hierarchy models are discussed other paper was offering a high-quality, European
in Chapter 4.) business newspaper. Was there a real need for a
The mental stages suggested by DAGMAR and weekly European newspaper at that time? The
AIDA are as follows: European has now ceased publication.
Chapter 10 The Marketing Communications Plan 235

F I G U R E 10 .3 Repositioning the European newspaper from a medium-quality newspaper


to an upmarket European business newspaper
European business news

Low-quality High-quality
mass market upmarket


General European news

Objectives can cover a variety of goals. It is useful Marketing communications strategies are hard to
to separate marketing objectives from marketing find. Often the strategy is retrospective in so far as
communications objectives. Detailed, specific objec- the tactics are planned and then a strategy is created
tives ensure that the subsequent choice of strategy is to make sense of the tactics. This is far from ideal.
clearly focused. One aide-mémoire for the components of marketing
communications strategy is STOP & SIT:
Segmentation (how is the market broken up?)
Strategy Target markets (what target markets are chosen
plus who is the ‘ideal customer’?)
Strategy summarizes ‘how we get there’ – how the
objectives will be achieved. Strategy drives tactics Objectives (strategy must fulfil objectives)
in the same direction. Strategy summarizes tactics. Positioning (of the product or service, which
Communications strategy helps to harmonize and also drives the overall proposition)
integrate all of the tactical communications tools.
Communications strategy can include selection of and
target markets, positioning, selection of communi- Stages (is there a sequence or series of stages?)
cations tools, sequence of communications tools
(are different tools used at different stages?), and Integration (does it all integrate smoothly,
more. perhaps through a database?)
Tools (TV, opt-in e-mail, PPC or social media,
etc? Or, if you are considering using a social
Most of us are afraid of strategy... media strategy, you should state clearly
whether you build your own network or
‘. . . because we don’t feel confident outlining one use someone else’s)
unless we’re sure it’s going to work.’ Ideally the communications strategy should succinctly
Godin (2009) answer all of these questions. Objectives, by the
way, don’t have to be regurgitated, but do keep an
236 Part 1 Communications Background and Theories

eye on them, as any strategy that ignores objectives sales, generate revenues and justify their existence.
is a waste of time. Razor-sharp strategies are re- So seemingly self-indulgent navel gazing such as
quired now more than ever before. A lot of people strategic contemplation may not always appear
work very long hours, and they are very loyal and worthwhile – in the immediate term. But, beyond
committed people, but if the strategy is wrong all the immediate term, a good strategy will reap
that hard tactical work is wasted. many benefits.
Smith, Berry and Pulford (1999)
Here are five examples of marketing communica-
‘There’s no point rowing harder if you’re rowing in tions strategy taken from Smith, Berry and Pulford’s
the wrong direction.’ Strategic Marketing Communications (1999), each
Ohmae (2000) demonstrating a very different approach:
M Tupperware marketing communications
strategy. ‘A multimillion-dollar direct-
Positioning is strategic. Careful analysis is required response campaign… the company
to find a positioning that is actually needed by maintained its personal selling approach but
customers, that is not delivered by the competition modified its party format to accommodate
and ideally that the organization can genuinely the increasing limitations for working
deliver better than competitors. Some brands may women… installed a toll-free number to link
be strategically positioned to fill different gaps in customers to a local dealer… catalogues were
the marketplace. Getting it wrong can destroy a originally available only for dealers, hosts
business, and getting it right can save a business. and hostesses, they were made accessible
to everyone and reached 30 million people’
(adapted from Engel, Warshaw and
Kinnear, 1994).
Radical repositioning strategy: Reebok M IBM insurance marketing communications
reposition from fashion to action strategy. Position the business as a solution
provider that fully understands client needs
Adidas repositioned Reebok from ‘fashion’ to and is easily able to provide complete and
‘action’. It’s previous positioning as street-cred successful solutions. All communications
fashion with endorsements by rappers like Jay-Z reinforce the company’s unique capability,
and 50 Cent is being changed to ‘sports which combines marketing and IT in an
performance’.
integrated manner. The key target group is
‘European insurers with medium to large
WARC (2006)
customer bases (usually over 1 million)’.
All communications are below the line,
editorially driven, and drawn from sound
Developing good marketing communications strat- research into leading-edge solutions. The
egies requires careful consideration. Although occa- published papers are used across a series
sionally frustrating, it is worthwhile because: of public conferences, own conferences
and training awareness days, along with
developing marketing communications strategies a constant media relations campaign.
delivers many benefits. It is important to remember
this because developing and agreeing strategic M ETC human resource company’s marketing
decisions costs time, money and energy. Many communications strategy. A client
marketers have an inner urge to get on with the relationship strategy focusing on a few key
job, get creative, develop wonderful advertising sectors (industry, health, local government
campaigns, wacky sales promotions, delightful and financial services) instead of the previous
new sales literature, sensational exhibition stands machine-gun (broad advertising) approach.
and more. Other marketers are under pressure Direct mailings and seminar events aimed
to get out and talk to customers, bring in some at key opinion formers developed through
Chapter 10 The Marketing Communications Plan 237

targeted mailings create a tightly focused


database for future presentations and Few social media strategies
high-value mailings.
M Daewoo marketing communications MarketingSherpa’s US study (December 2008)
strategy. Position Daewoo as the most found that the vast majority of those surveyed rated
customer-focused car company in the UK. social media marketing effective at influencing
Car buyers are happy with the cars but brand reputation, increasing awareness and
unhappy with the dealers. Daewoo must improving search rankings and site traffic. Although
own customer service. This differentiates many organizations have a corporate blog or
Daewoo. Facebook page, few have strategies in place and
– Stage 1: Build corporate credibility even fewer have written social media policies.
through TV and motoring press. In fact, only 33 per cent of larger firms had a written
– Stage 2: Develop Daewoo dialogue, policy to manage brand communications, and
collecting information about likes and a mere 13 per cent of smaller businesses had
dislikes about car ownership. a written policy.
– Stage 3: Launch brand. eMarketer.com (2009)
This necessitates integration throughout the
marketing communications and operational
implementation. Advertising will build brand
awareness and direct people into Daewoo’s
telemarketing database. The complete mix
includes retail design, interactive point-of- Tactics
sale, sales promotion, direct marketing, data-
base construction and management, PR and Tactics are the details of strategy. In marketing,
advertising. communications tactics are the communications
tools such as advertising, PR, direct mail, etc. The
M Telewest communications strategy. Create/
tactics in the marketing communications plan list
educate the market (get consumers to a point
what happens when and for how much. They are
where they are predisposed to consider cable
often best expressed as a Gantt chart, as shown in
from Telewest Communications); build the
Figure 10.4.
brand (by teaching customers to value most
what Telewest does best); stimulate
acquisition (through three big sales
promotion ideas); build and manage
relationships (through good service and
Action
constant database dialogue).
The action stage reveals the details of tactics.
There is no one single approach to building market- Detailed project plans are required in order to im-
ing communications strategies. In fact many com- plement the tactics. Detailed action plans bring the
panies do not put them together at all. A good tactics to life. Actions implement the tactics. This is
communications strategy helps to keep all the sub- the not-so-glossy side of marketing, which requires
sequent tactical communications tools integrated attention to detail, good project planning skills,
and moving in the same direction, delivering bigger time management, prioritizing, people management
impacts and reducing costs. A simple way to practise skills, and an ability to handle pressure and to get
writing marketing communications strategies is things done. In reality the action/implementation
to generate several alternative strategies, so that of the marketing communications tactics requires
strategic options can be considered. Try generating an ability to get other people (staff, agencies,
a bad strategic option so that you can begin to see, printers, etc) to deliver on time and within budget.
first, that there is always more than one strategy It also requires an ability to plan for contingencies,
available to choose from and, second, that some because things do go wrong (eg advertisements
strategies are better than others. fall down).
238 Part 1 Communications Background and Theories

F I G U R E 10.4 Tactical timings of different communication tools

Jan Feb Mar Apr May Jun Jul Aug £

Advertising
– TV
– Press
– PPC

Social media
– Blog
– YouTube
– Facebook

Website
– SEO
– Inbound links

Sales promotion
– Sample drop
– Competition
– Collection

Direct marketing
– Mailshot
– Telesales

Publicity (and
public relations)

Sponsorship

Exhibitions

Packaging

Point-of-sale and
merchandising

Internet

Word of mouth
– Viral marketing
– CRM NGN

         


  

Any kind of project planning can be used here, systems (see Chapter 17), the responses can be
whether critical path or just a Gantt chart. A detailed routed to an inbound telesales team, who filter
project plan is required for each tactical communi- respondents, rank them in terms of urgency, size
cations tool. For example, the production of a and location, and pass the enquiry to a relevant
mailshot can be as shown in Figure 10.5. salesperson or dispatch further information and
This is just for one mailing. More detailed update the database for future activities. All of this
planning is required if there is a series of mailings. requires careful planning to ensure sufficient re-
The response handling also needs to be planned sources are available to make the strategies and
carefully. With hybrid and automated marketing tactics actually happen.
Chapter 10 The Marketing Communications Plan 239

F I G U R E 10 .5 An action plan for one communication tool – a mailshot

Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk
1 2 3 4 5 6 7 8 9 10 11 12

Creative brief X

List brief X

List proposal X

Visual concepts X

Visuals approved X

List order X

Final copy/design X

Artwork brief X

Print quotes X

Set artwork proofs X

Receive lists X

Data preparation X

Finished artwork X

Printer brief X

Printer proofs X

Merge purge lists X

Print X

Computer bureau output files X

Live laser proofs X

Mail house brief X

Print delivery X

Laser print letter X

Mail house delivery X

Mail house sort/enclose X

Mail X
240 Part 1 Communications Background and Theories

at some level, eg interaction on a website or


Control Facebook page (posting a comment or voting),
registering for a newsletter, taking a trial or making
Plans should include control systems – how per-
a purchase. The web analytics reveal where visitors
formance will be monitored, measured and control-
are coming from, and telesales, reception and sales
led. Managers need to know at an early stage (rather
staff should also always log where new enquiries are
than when it’s too late) how a campaign is running
coming from (how visitors heard about the business
and whether it is an advertising campaign or a
and what key phrases they used to find the website).
mailshot. If it is not working, it should be stopped.
Cost per order, cost per enquiry and cost per
Control systems need to be in place to help monitor
visitor can be easily calculated. Other variables need
any campaigns or activities (see Figure 10.6). This is
to be closely monitored, including:
where clear objectives can once again help, since the
objectives can usually be broken down into more M cost per order and cost per customer
detailed objectives covering shorter periods of time. acquisition;
Once marketers are armed with clearly defined, pre- M net promoter score, satisfaction score and
cise objectives, money can be spent on measuring recommendation score;
performance against the objectives (whether defined M reputation/social conversation scores (social
as sales, enquiries, awareness, enquiries, sales, or re- media monitoring);
turn on investment, etc).
M return on investment.
Marketers can now measure and compare all
activities: inbound (social media campaigns) and Note that the figures in Figure 10.7 are not real.
outbound marketing (ad campaigns), online and Over time, professional marketers learn what are
offline. If a campaign is focused on boosting brand realistic conversion ratios of enquirers or website
awareness or repositioning a brand in the mind of visitors to customers. For example, in Figure 10.7,
the target audience, this can be measured separately 1 per cent of visitors generated by search engine
through surveys. If the campaign is focused on optimization (SEO) convert to customers, while
engagement and/or sales, this can be easily measured only half of 1 per cent of visitors from a viral mar-
by identifying if visitors, enquirers or customers are keting campaign convert to customers. The figure
emerging from each communications tool – assuming would probably be higher for visitors generated
the campaign is focused on generating engagement from PPC campaigns.

F I G U R E 10.6 Control systems

Quantified Means of Frequency of Accountability Cost Action?


objectives measuring measurement Who does it? How much Who needs
State each Sales analysis; Daily; weekly; does it cost to be alerted
quantified number of monthly; to measure? if significant
objective and responses; quarterly; variances are
its time period surveys annually? found?
241

F I G U R E 10. 7 Cost per order/cost per customer acquisition

Volume of Total CPT/CPM Percentage Unique Cost Conversion Number Cost


people/ cost (cost per CTR (click- visitors per rate of of orders/ per
size of thousand through visitor/ visitors to customers order
audience people rate/visit lead customers
reached) website/
enquiry)

SEO n/a £20,000 n/a n/a 20,000 £1.00 1% 200 £100

Viral A 20,000,000 £30,000 £1.50 10% 2,000,000 £0.15 0.5 of 1% 10,000 £3

Blog n/a £20,000 n/a n/a 10,000

Banner ad 100,000 £1,000 £10 1% 1,000

PPC ad n/a n/a n/a n/a n/a

Opt-in e-mail 10,000 £2,000 £200 2%

Online sponsorship 50,000 £5,000 £1,000 1%

E-zine/e-newsletter 1,000 £10,000 £10,000 5%

Press ad 1,000,000 £5,000 £5.00 1/100th of 1%

Direct mail List A 10,000 £5,000 £500 2%

Telemarketing 5,000 £20,000 £4,000 10%


– outbound

Exhibition B 6,000 £18,000 £3,000 n/a


242 Part 1 Communications Background and Theories

Consider SEO. In Figure 10.7, it generates 20,000 to keep a simple system monitoring just what
visitors and costs £20,000. This gives a cost per percentage of customers would recommend the
visitor of £1 (£20,000 divided by 20,000 visitors). organization. Other marketers take advocacy and
If the site converts 1 per cent of these visitors into ‘detractors’ (customers who feel negatively about
customers, then the SEO generates 200 new cus- the organization or brand) and develop reporting
tomers (1 per cent of 20,000 visitors). The cost per systems that combine both variables to highlight a
order (CPO) generated by SEO is £100 (£20,000 net promoter score (Reichheld, 2006).
divided by 200 orders).
If a viral marketing piece costs £30,000 (to
create and seed) and it generates 20 million players Reputation/social conversation
of which 10 per cent click through to the website,
this generates 2 million visitors. Say only half of
scores (social media monitoring)
1 per cent convert, because many of them are from Marketers need to keep abreast of what is being
international markets not relevant to this service. said about their brands, their organizations and
This generates 10,000 customer ‘uniques’ (unique their staff (as well as the competition) in the vast
visitors). Feel free to fill in the rest of the figures array of conversations in social media platforms
yourself. around the world. Marketers need to know about
The table in Figure 10.7 can be extended. You the quantity and intensity of commentary about
can create your own, more accurate, analysis by brand or product. In addition to the free services of
adding another column for percentage of visitors Google Alert, there are other social monitoring
that convert to enquirers (and a percentage of them
eventually convert to customers, and a percentage
of them convert to repeat customers, at which point
the costs decline significantly and large profit margins Social media control myth
emerge). A longer list of tactical communications
tools can be added, including different exhibition ‘One of the most common fears I focus on defeating
events, different e-mail campaigns, different virals, among executives and brand managers is that in
etc, so that the marketer can see what works best new media brands lose control by publishing
and ultimately do more of what works and stop content and engaging in social networks. The
what doesn’t. general sentiment is that by sharing information
The lifetime value of potential repeat sales of a and creating presences within public communities
customer can give a truer picture of the real value of that they, by the nature of democratized
a customer. Remember, lifetime value can include participation, invite negative responses in addition
‘share of wallet’: other products or services that a to potentially positive and neutral interaction. By
customer might be prepared to buy from the same not fully embracing the social Web, many believe
organization. that they retain a semblance of control. The idea is
You also need a rigorous structured approach to that if brands abstain from providing a forum for
measuring relative satisfaction (compared to com-
hosting potentially disparaging commentary, it will
petitors) for each stage of the online experience –
prevent it from earning an audience – in this case,
product search, evaluation, enquiring, purchases,
an audience that can impact the business and the
post-purchase communications, after-sales support,
reputation of the brand. However, retaining control,
etc. You need this more than once a year.
following the socialization of the Web, is nothing
more than pure legend. While many companies
Net promoter score, satisfaction retain control during the stages of defining and
shaping messages, control is relinquished at the
score and recommendation score point of distribution. Once messages are published,
It is important to monitor satisfaction scores they are at the mercy of consumers, peers, and
(though remember that the satisfaction criteria can influencers online and offline.’
change and leave an old system irrelevant if not Solis (2010)
updated). Some blue-chip marketing directors like
Chapter 10 The Marketing Communications Plan 243

tools, including Google Blog Search, Icerocket,


Twitter Search, Yahoo Pipes, BlogPulse, BoardReader ROI is not the only measure
and BoardTracker. There are also some more com-
prehensive licence fee systems with their own scor-
‘Despite all evidence to the contrary, the belief that
ing systems, which include Radian6, Market Sentinel
a single number can be used to assess marketing
and Precise Media.
performance is persistent. Some say that top
So I continue to ask: if a conversation takes place
management can only handle a single number, or
online and you’re not there to hear it, did it actually
silver metric, so we must choose the least bad one.
happen?
Others believe that ROI is so standard as not to be
worth challenging. Others again claim modernity
Return on investment for customer concepts such as customer equity,
customer lifetime value and Peppers and Rogers’
As mentioned in Chapter 1, marketers must learn to new ‘Return on Customer’. Yes, they are new and,
speak the language of the boardroom. This includes yes, they have value, but these measures are not
ROI on marketing expenditure. Can marketers
the silver metrics their promoters claim them to be.’
demonstrate rigorous professional discipline and
Ambler (2006)
track what communications campaigns deliver a
better ROI than others? Can marketers convince the
board that the return from investment in marketing
is better than the return generated by investing manager revises the plan in the light of the resources
the money elsewhere (eg in a high-interest deposit available. The plan is then rolled out, results watched
account)? It is possible to calculate the cost per carefully and action taken to change the plan if nec-
order, profit per order and cumulative profit from a essary (ie if it is not working). If something is not
campaign. Ambler (2006) explored four measure- right, it is better to find out why, make corrections
ment mechanisms – return on investment (ROI), or and move on – hence the importance of control
return on marketing investment (ROMI), or return mechanisms. They provide a manager with useful
on marketing expenditure (ROME), discounted cash feedback as to whether the plan is working or not.
flow (DCF), return on customer, and net advocates Everything a manager does is a learning process
(Reichheld, 2006) – and concluded that no single since, assuming the desire for constant improve-
metric does it all. In fact, a combination of metrics ment, a manager is monitoring what works best and
is required. what doesn’t. Each year, as experience is gained,
Control includes various areas of market re- improvements can be made through this longer-
search and testing, so measurement systems need to term iterative process. Procter & Gamble asks its
be built into the plan. managers to build on their ‘learnings’ (what they
Planning is really an iterative process. A manager have learnt from the marketplace). They constantly
puts together a plan and a budget. Senior manage- learn from the marketplace and then incorporate
ment agree it or reduce it by way of budgets. The those ‘learnings’ in their next marketing plan.

Key points from Chapter 10


M SOSTAC® provides a very effective structure M STOP and SIT are the key components for
for any plan. writing a strategy. Write several options before
M Market research and intelligence create a choosing the best one.
winning platform. It is essential to gather key M Build control systems into the plan.
information before making any decisions about
strategy or tactics.
244 Part 1 Communications Background and Theories

References and further reading


Ambler, T (2006) Use a dashboard when driving your Kotler, P (2001) In conversation with Paul Smith
marketing, Market Leader, 33, Summer Kotler, P et al (2000) Marketing CD 3: Marketing
Doyle, P (2001) Marketing Management Strategy, planning, www.prsmith.org
3rd edn, FT Prentice Hall, Hemel Hempstead Ohmae, K (2000) Marketing CD 2:
Doyle, P, Saunders, J and Wright, L (1987) A Segmentation, positioning and the marketing mix,
comparative study of US and Japanese marketing www.prsmith.org
strategies in the British market, Warwick Reichheld, F (2006) The Ultimate Question: Driving
University report good profits and true growth, Harvard Business
eMarketer.com (2009) Social media best practices, School Publishing, Boston, MA
29 July Smith, P R (1998) Marketing Communication: an
Engel, J, Warshaw, M and Kinnear, T (1994) integrated approach, 2nd edition, Kogan Page,
Promotional Strategy: Managing the marketing London
communications process, Irwin, Boston, MA Smith, P R (2003) Marketing Planning Toolkit,
Forrester Research (2009) US Interactive Marketing www.prsmith.org
Forecast, 2009 to 2014, Forrester Research, Smith, P R (2004) SOSTAC Marketing Plans (CD)
Cambridge, MA Smith, P, Berry, C and Pulford, A (1999)
Godin, S (2009) When tactics drown out strategy, Strategic Marketing Communications,
Seth Godin’s Blog, 7 August Kogan Page, London
Kanter, B (2008) How much time does it take to do Solis, B (2010) The myth of control in new media,
social media?, Beth’s Blog, 1 October Brian Solis, 25 January
Kanter, R M (2000) Marketing CD 2: Segmentation, WARC (2006) Adidas to reposition Reebok from
positioning and the marketing mix, fashion to action, 26 January
www.prsmith.org Wing, R L (1989) The Art of Strategy (translation of
Kanter, R M (2001) On-line Marketing Course 2: Sun Tzu, The Art of War), Aquarian Press,
Segmentation, positioning and the marketing mix, Wellingborough
2nd edn, www.prsmith.org

Further information
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