Ch.

7: Strategic Planning Key Points

Differentiate between objectives, strategies, and tactics in strategic planning
Identify the six basic decisions in an advertising plan Explain how account planning works

Objectives, Strategies, and Tactics

Objectives: What you want to accomplish Strategies: How to accomplish the objectives Tactics: Make the plan come to life
** Example: Objectives: To increase baking soda consumption Strategy:??? Adding new target market Increase repeated purchase by loyal consumers Introducing new ways of using a product Tactics

Big Picture: a three-tiered process

Advertising Plan

Business Plan

Marketing Plan

Figure 7.1: Strategic Planning from Top to Bottom (p. 182)

Basic Strategic Planning Decisions

Annual advertising or IMC plan
Outlines all the advertising or marketing communication activities

Plansbook Campaign plan

More tightly focused on solving a particular marketing communication problem

Typical Plan Outline I. Situation analysis II. Key strategic decisions III. Media strategy IV. Message strategy V. Other tools VI. Evaluation of effectiveness

Outline of an Advertising Campaign

I. Situation Analysis

Background Research: Company and product history Product analysis and previous advertising analysis Consumer analysis Competitive analysis and their advertising analysis SWOT Analysis (Strengths, Weakness, Opportunities and Threats)

Identify Key Problems and Opportunities

II. Key Strategic Decisions Advertising/IMC Objectives and Strategies Target Audience Selection Brand Position: brands competitive advantage Brand Image and Personality Budget

Outline of an Advertising Campaign Budget: Total budget for the campaign:

Media placement cost Production cost, Research cost, Any other promotional cost Set aside 10% Contingency fund: for any unexpected situation

Several Ways of Setting Budget

1. Historical Method
based on last years advertising spending,

add some inflation or other factor.

Several Ways of Setting Several Ways ofBudget Setting Budget 2. Percentage-of-sales Method set advertising $ as certain portion of sales.(average

sales number/situation will determine how much people can spend on advertising. - Any problem with this method?
look at major competitors advertising budget and try to match its own advertising budget with it. share of voice concept: $ advertising spent by a brand in a medium vs. $ advertising spent by all brands in the product category.

3. Competitive Method

Several Ways of Setting Budget

4. Task-Objective Method

Several Ways of Setting Budget

Based on objectives set for the whole campaign, agencies come up with the cost to accomplish each objective, add them up, and set the total budget. Best method for agencies, however, can be too costly

5. All you can afford Method

worst method: Spend all necessary costs before you set aside $ for advertising,

then if they have extra $, take whatever left over and use them for advertising campaign

Account Planner: The Creative Brief/Platform

Explains the consumer insight and summarizes the basic strategy decisions Six major parts:
Marketing objective Product Target audience The promise and support Brand personality Strategy statement