Chapter 8

&
Marketing
The Planning Process
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
Key Concepts
Key Concepts
■ The Single Biggest Thing
■ Campaigns
■ Objectives & Strategies
■ Advertising & Marketing
Key
The SingleConcepts
Biggest Thing:
■ Advertising dollars have great “elasticity”
● Planning and implementing the Right Advertising
is usually critical for success in the marketplace
● The Wrong Advertising is usually worthless

■ Advertising can be The Single Biggest Thing

● It can probably impact sales more than any other
element of the marketing mix.
■ And … it is the most fun!
Key
The SingleConcepts
■
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”
Key Concepts
Campaigns:
■ Origin of term
■ Military Campaigns
■ Political Campaigns
■ Advertising Campaigns
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.
Key Concepts
Campaigns:
■ Military Campaigns

“Victory is my objective.
War is my strategy.”
Winston Churchill
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…
 Key Concepts
Campaigns:
■ Political Campaigns

◆ Each single geographic or

statewide campaign may have
◆ In politics, as in war, you have its own objectives and
to pick your battles. National strategies which contribute
political campaigns focus on to the overall campaign.
key states and voter groups.
◆ The objective is a majority
in the Electoral College.
Key Concepts
Campaigns:
■ Advertising Campaigns

“Advertising
is a team sport!”
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
Key Concepts
Advertising Campaign:
■ Next, we’ll show you four billboard ads
for a telecom company in Kansas City -
Birch Telecom
■ Then, we’ll discuss some of the basic
common elements needed in an
advertising campaign
■ Here’s the first ad...
Key Concepts
Advertising Campaign:
Key Concepts
Advertising Campaign:
Key Concepts
Advertising Campaign:
Key Concepts
Advertising Campaign:
Key Concepts
Advertising Campaign:
■ What were the common elements?
1. ____________________________
graphic look
2. ____________________________
strategic message
3. ____________________________
benefit statement
4. ____________________________
brand personality
5. ____________________________
executional elements - the dog
6. ____________________________
anything else?
Key Concepts
Advertising Campaign:
■ Campaigns are built with…

Plans & Strategies

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
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.”
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.”
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.”
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”
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
Key Concepts
Plans & Strategies:
■ Here’s a graphic representation…
Marketing Objective
Sell one million of product

Market Strategy/Creative Market Strategy/Media

Establish brand as superior
Creative Objective
Establish brand as superior
Creative Strategy
To be determined
Target audience W 18-49
Media Objective
Deliver Advertising to
Target audience W 18-49
Media Strategy
To be determined
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
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
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!

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 is critical
■ Yes, it will be on the test!
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.)
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
Key Concepts
Vocabulary:
■ The Value
The ValueLadder
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
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
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
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
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
■ OK, now that we know how to talk about
advertising, let’s talk about how it works…
works
Advertising
How
How Advertising
AdvertisingWorks
Works
■ Let’s talk about 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”
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
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
Advertising
How Advertising Works
■ Some things we know about Advertising
■ An Advertising Communication Model
Advertising Communication Model
Feedback
Advertiser Audience
Sender Receiver
(Encoder) (Decoder)
MESSA GE
■ Note it is more difficult for the audience to
communicate back to the advertiser.
● Feedback is one purpose of Market Research
Advertising
How Advertising Works
■ The Lavidge-Steiner
Purchase
Learning Model
■ How people “learn” ads Conviction
■ Begins with Awareness
Preference
■ Moves to Conviction
and Purchase Liking
■ NOTE: Process may be
quite rapid and you Knowledge
may try before being
totally convinced Awareness
Advertising
How Advertising Works
■ “AIDA”
■ Attention
■ Interest
■ Desire
■ Action!
Advertising
How Advertising Works
■What we need to know:
●Target Audience
●Factors That Motivate Purchase
Behavior
●Unique Brand Characteristics
Advertising
How Advertising Works
■ More ways to think about Advertising
■ 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.
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 a Plan!
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.
Planning
Introduction
■ The Planning Process
■ This approach isn’t for everybody.
■ Generally, this approach is right for a
consumer-oriented marketer.
■ For example, a small industrial firm might
emphasize other things - such as:
● Trade Shows
● Their own Sales Force or Sales Reps
● Current Customer Relationships
● And also do some Trade Advertising
■ However, the underlying principles apply.
Planning
Introduction
■ The Planning Process
Planning
Introduction
■ A Ten Part Process
■ Evaluation
1. Situation Analysis
2. Research
3. Problems & Opportunities
■ Goal Setting
4. Marketing Objective
5. Budget
■ And then...
Planning
Introduction
■ A Ten Part Process
■ Building the Plan
6. Strategies
7. Advertising Creative
8. Media
9. Sales Promotion
+ Other appropriate “IMC” plans and strategies
10. Evaluation
■ Now let’s go step by step…
Planning
1. Situation Analysis
■ Also called Background Review
■ It’s a Summation of current knowledge:
● Current Users
● Seasonality
● Geography
● Creative Requirements
● Purchase Cycle
● Competitive Review
● And anything else that might help you understand
your situation.
Planning
2. Research
■ You do Secondary Research first
■ You do Primary Research second
■ Research is usually in these three areas:
● Target Audience
▲ Improve Understanding, Gain Insight
● Factors That Motivate Purchase Behavior
▲ Improve Effectiveness, Gain Insight
● Unique Brand Characteristics
▲ Look for key point of difference
Planning
2. Research
■ Research Techniques:
● Qualitative Research
▲ Focusgroups
▲ One-on-one interviews
● Quantitative Research
▲ Surveys
▲ Observation
▲ Experiments
■ When preparing The Research Plan
▲ Be sure to know what you’re looking for!
Planning
3. Problems & Opportunities
■ Also known as a “SWOT” Analysis
● Strengths, Weaknesses, Opportunities, Threats

■ “For every problem there is an opportunity”

■ Understanding problems is a critical skill
■ Identify the right problem and you’re on the
road to the solution
■ And, whatever you do…
■ Don’t solve the wrong problem!
Planning
4. The Objective
■ The Marketing Objective is a number

■ It is the goal of your marketing activities

● Usually, it is a sales or volume goal
● It may be difficult to get to, but the final
answer is simple and measurable.
Planning
5. The Budget
■ Determining a budget usually involves
asking two very important questions:
● How much will it take?
● How much do we have?
■ Here are ways marketers work to develop
good answers to those questions.
Planning
5. The Budget
■ Budgeting Methods
■ Historical expenditures
● Often done as percent of sales
■ A to S ratio (Advertising to sales ratio)
■ Elements of the budget include:
● Advertising (Media and Production)
● Sales promotion (may include discounts)
● PR and Event marketing
● All other
Planning
6. Strategies
■ Marketing Strategies state how you will
fulfill the Objective
■ The Marketing Strategies become
discipline-specific objectives for…
● Advertising Creative
● Advertising Media
● Sales Promotion and Public Relations
Planning
7. Advertising Creative
■ Creating The Advertising Message:
● Target Audience
● Objective
● Strategy
● Considerations
● Support
● Tone
Planning
7. Advertising Creative
■ Creating The Advertising Message:
■ A Sample Creative Strategy Template:
■ To convince: ___________________
Target Audience
■ To use: ___________________
Brand/Product
■ Instead of: ___________________
Competition
■ Because: Factors that influence
___________________
purchase behavior +
(Target Audience Insight)
Planning
7. Advertising Creative
■ Creating The Advertising Message:
■ A Sample Creative Strategy:
■ To convince: ___________________
Adults 35-54
■ To buy: ___________________
Volkswagen
■ Instead of: ___________________
Other cars
■ Because: Volkswagen will last
___________________
a long time
Planning
7. Advertising Creative
■ Creating The Advertising Message:
■
■ To convince: ___________________
Adults 35-54
■ To buy: ___________________
Volkswagen
■ Instead of: ___________________
Other cars
■ Because: Volkswagen will last
___________________
a long time
Planning
8. Advertising Media
■ Media Objectives usually include:
● Target Audience
● Geography
● Seasonality
● Reach or Frequency objective
■ The Media Plan will work to achieve
those objectives in the most efficient
way.
Planning
8. Advertising Media
■ A good Media Plan considers these
important factors:
■ Media Cost-Effectiveness:
● GRP (TRP) - Gross & Total Rating Points
● Reach
● Frequency
■ Media Cost-Efficiency:
● CPM - Cost per thousand
● CPP - Cost per point
Planning
8. Advertising Media
■ A Media Flow Chart can help you
visualize the Media Plan:
■ Put a calendar time-line across the top

■ Place
the
media
down
the
side
Planning
8. Advertising Media
■A Media Flow Chart can help you
visualize the Media Plan:
■ Put a calendar time-line across the top

■ Place
the
media
down
the
side
Planning
9. Sales Promotion & PR
■ Sales Promotion =
● Tangible motivation to buy
● An incentive or small bribe
● To both consumers and the trade
■ Public Relations =
● Non-paid media coverage
● 3rd party endorsement (reviews, etc.)
● Marketing PR (MPR)
● Not Corporate PR (CPR)
Planning
9. Sales Promotion & PR
■ Sales Promotion
■ Consumer Promotion = Win/Free/Save
● Sweepstakes & Contests
● Added Value Extras/Bonus Packs
● Coupons/Savings/Rebates
■ Trade Promotion =
● Allowances
● Other Payments/Incentives
● Events/Sales Contests
Planning
9. Sales Promotion & PR
■ Public Relations =
● Product Publicity Opportunities
● 3rd Party Endorsements & “Influencers”
(columnists, talk show hosts, etc.)
● Press Relations
● Other Strategic Publicity
■ May also include…
■ Event Marketing
Planning
10. Evaluation
■ It starts and ends with Research
■ Methods for evaluating the plan.
■ Input/learning for next year’s plan
■ Methods include:
● Tracking studies
● Attitude, usage, and awareness studies
■ Creative
● Recall
● Persuasion
Planning
In Conclusion
■ Putting plans and strategies together is
a lot of work.
■ It’s worth it, because this is the way to
build sales and make the most of a
business’s potential.
■ If you go to work in The Business of
Brands, chances are, you’ll have to
play a part creating a winning plan.