Strategic Planning Strategic Planning For marketing communication strategic planning is the process of identifying a problem that can be solved with marketing communication determining objectives deciding on strategies and implementing tactics Objectives a goal you want to accomplish Strategy means design or plan by which the objective is accomplished Tactics actions that execute the plan such as how an ad is designed or written Prentice Hall 2009 7 1 Strategic Strategic Planning from Planning from Top to Bottom Top to Bottom The business plan and marketing plan provide direction for advertising planning and other areas Prentice Hall 2009 7 5 Step 1 Step 1 Strategic Planning the Business Plan Strategic Planning the Business Plan May cover an SBU strategic business unit which is a line of products or all offerings of a brand The objective is profit or Return on Investment ROI ROI is revenue earned above the amount invested Business planning starts with a a mission statement an expression of goals and policies Prentice Hall 2009 7 6 Step 2 Step 2 Strategic Planning the Marketing Plan Strategic Planning the Marketing Plan Developed for a brand or product line usually annually Parallels the business strategic plan and contains many of A market situation analysis assesses the environment the same components affecting marketing Objectives are focused on sales levels and share of market Prentice Hall 2009 7 8 Step 3 Step 3 Strategic Planning the Strategic Planning the Advertising or IMC Plan Advertising or IMC Plan Advertising or IMC plan also includes objectives strategies and tactics like business and marketing plan The focus is on the communication program supporting a brand Prentice Hall 2009 7 5 A Campaign Plan A Campaign Plan More tightly focused on solving a particular problem in a particular time frame Includes a variety of messages carried in different media and sometimes targeted to different audiences Prentice Hall 2009 7 6 Campaign Plan Campaign Plan Situation Analysis Situation Analysis Backgrounding Communication information Research and review the state of the business that is relevant to the brand and gather all pertinent information A problem statement identifies the problem to be solved SWOT Analysis Strengths weaknesses opportunities threats Principle Analysis of SWOT means finding ways to address the weaknesses and threats and leverage the strengths and opportunities Prentice Hall 2009 7 7 Campaign Plan Campaign Plan Situation Analysis Situation Analysis Key problems and opportunities Analyze the market situation for communication problems that hinder successful marketing and find opportunities the advertising can create or exploit Advertising can t solve problems related to price availability or quality but it can address the perception of high prices or portray limited distribution as exclusivity Principle Advertising can only solve message related or perceptional problems Prentice Hall 2009 7 8 Campaign Plan Objectives Campaign Plan Objectives Objective formal goal statement outlining what the message is supposed to achieve and how it will be measured The six categories of effects or facets can serve as a basis for common consumer focused objectives They are Perception emotion cognition persuasion association behavior facet effects Prentice Hall 2009 7 9 Campaign Plan Objectives Campaign Plan Objectives Some objectives are tightly focused on a single effect others require a complex set of effects A campaign to create brand loyalty must have both cognitive rational and affective emotional effects and it must move people to repeat buying behavioral Advertising is effective if it creates an impression influences people to respond and separates the brand from the competition Prentice Hall 2009 7 10 Campaign Plan Objectives Campaign Plan Objectives Objectives must be measurable so advertisers know if the campaign or advertising is effective Five requirements of a measurable objective A specific effect that can be measured A time frame A baseline where we are where we begin The goal realistic estimate of change to be created A percentage change subtract the baseline from the goal divide the difference by the baseline Sample Objective The goal of this campaign is to increase customer awareness of Kodak s digital products from 20 to 25 in 12 months Prentice Hall 2009 7 11 Campaign Plan Targeting Campaign Plan Targeting Marketing communications strategy is based on accurately targeting an audience that will respond to a particular message Targeting is identifying and profiling an audience Targeting is also getting inside the heads and hearts of the audience to find out what kind of message will motivate them Prentice Hall 2009 7 12 Campaign Plan Positioning Campaign Plan Positioning A brand s position is its place in the competitive marketplace where the product or brand stands in comparison to the competition Factors that define the competitive situation Product features and attributes both tangible and intangible Position is used to assess features relative to competitors products Competitive advantage is where 1 the product has a strong feature 2 in an area that is important to the target and 3 where the competition is weaker Product Differentiation is a strategy that focuses attention to product differences that distinguish the company s product from all others in the eyes of consumers Prentice Hall 2009 7 13 Campaign Plan Positioning Campaign Plan Positioning Two factors used to locate the brand position Volvo safety Coke authentic Hallmark quality Avis Psychological Factors underdog Consumer Decision Factors Features or attributes such as Consumers decide to make a decision such as fashion high low or price high low Planners use a technique called perceptional map that plot competitors on a matrix based on two important consumer decision factors Principle The goal of positioning is to establish a product in the consumer s mind based on its features and advantages relative to its competition Prentice Hall 2009 7 14 Campaign Plan Repositioning Campaign Plan Repositioning Repositioning can only work if the new position is related to the brand s core concept Although advertising shapes the position the position is anchored in the target audience s minds by their personal experiences The role of advertising in repositioning is to relate the new position to the target market s life experience and associations Prentice Hall 2009 7 15 Brand Communication Strategy Brand