Ch.7: Strategic Planning Key Points

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Ch.7 Strategic PlanningKey Points

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

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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
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Big Picture a three-tiered process
Business Plan
Marketing Plan
Advertising Plan
Figure 7.1 Strategic Planning from Top to Bottom
(p. 182)
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Basic Strategic Planning Decisions

• Typical Plan Outline
• Situation analysis
• Key strategic decisions
• Media strategy
• Message strategy
• Other tools
• Evaluation of effectiveness

• 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

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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

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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

• Historical Method
• based on last years advertising spending,
• add some inflation or other factor.

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Several Ways of Setting Budget
Several Ways of 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.

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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

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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