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

Business Plan

Marketing Plan

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

Advertising
Plan

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.

SeveralSeveral
Ways ofWays
Setting
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?

3. Competitive 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.

Several Ways of Setting Budget

Several Ways of Setting Budget

4. Task-Objective Method

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