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Chapter 7 Planning for IMC Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-1 Learning objectives 1. To understand the role of planning in an organisation’s IMC program. 2. To understand the role of target marketing, segmentation and positioning in planning for an IMC program. 3. To explore the concepts and models of IMC planning. 4. To demonstrate the strategic importance of account planning in advertising. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-2 Marketing plan Situation analysis IMC audit Planning process Future of planning Role of planner Data for planning Consumer insight Planning for IMC Identifying markets IMC strategic decisions Account planning Market segmentation Selecting target market Positioning IMC planning Outside-in Zero-based Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-3 The best job in the world Source: Courtesy of Tourism Queensland Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-4 The best job in the world (cont.) Source: Courtesy of Tourism Queensland Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-5 IMC defined By definition, IMC involves the process of: planning, executing, evaluating and controlling the use of the various communications tools to effectively communicate with target audiences. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-6 Review of the marketing plan Situation Situation analysis analysis Marketing Marketing objectives objectives Marketing Marketing strategy strategy and and program program Implementation Implementation program program Performance Performance evaluation evaluation Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-7 IMC situation analysis Internal Internal factors factors 1. 1. Promotional Promotional capabilities capabilities 2. 2. Prior Prior promotional promotional programs programs 3. 3. Brand Brand image image 4. 4. Strengths Strengths and and weaknesses weaknesses of of product product or or service service External External factors factors 1. 1. Customer Customer analysis analysis 2. 2. Competitive Competitive analysis analysis 3. 3. Environmental Environmental analysis analysis Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-8 David Jones Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-9 The IMC audit Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-10 IMC Audit Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-11 Marketing plan Situation analysis IMC audit Planning process Future of planning Role of planner Data for planning Consumer insight Planning for IMC Identifying markets IMC strategic decisions Account planning Market segmentation Selecting target market Positioning IMC planning Outside-in Zero-based Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-12 Market segmentation and targeting Market segmentation is the process of dividing up a total market into distinct groups that: 1) have common needs 2) will respond similarly to a marketing action. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-13 The target marketing process Identifying Identifying markets markets with with unfulfilled unfulfilled needs needs Determining Determining market market segmentation segmentation Selecting Selecting market market to to target target Positioning Positioning through through marketing marketing strategies strategies Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-14 Market segmentation and targeting (cont.) Narrow markets results in fewer customers and may be too small to be viable. A broad market means more customers, but presents a challenge for identifying common needs. Marketserved served Market keyquestion questionis ishow howfar farto togo go AAkey inthe thesegmentation segmentationprocess process in Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-15 IMC strategic decisions Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-16 Beer is beer? Popular Popular Imports Imports Domesticspecialties specialties Domestic Premium Premium Light Light Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-17 Bases for segmentation Psychographic Psychographic Demographic Demographic Customer Customer characteristics characteristics Socioeconomic Socioeconomic Geographic Geographic Behaviour Behaviour Usage Usage Outlets Outlets Buying Buying situation situation Awareness Awareness Awareness Awareness Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Benefits Benefits 7-18 Market segmentation Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-19 Demographic segments Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-20 Behaviouristic segmentation Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-21 Benefit segmentation Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-22 Selecting a target market Target Target market market selection selection Two Two key key questions questions Which Which segments segments offer offer greatest greatest potential? potential? How How many many segments segments to to enter? enter? (coverage (coverage strategy) strategy) Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-23 Market coverage strategy Undifferentiated marketing Single product or service offered to the whole market; no segmentation P1 Differentiated marketing Develop different products for different segments; segmentation, no targeting Concentrated marketing Focus on single market or a few markets; segmentation and targeting P 2 P3 P4 P1 P1 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-24 Developing a positioning strategy What What position position do do we we have have now? now? Does Does our our creative creative strategy strategy match match it? it? Do Do we we have have the the tenacity tenacity to to stay stay with with it? it? The The position position Do Do we we have have the the money money to to do do the the job? job? Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell What What position position do do we we want want to to own? own? From From whom whom must must we we win win this this position? position? 7-25 Positioning strategies How should we position? By By attributes attributes and and benefits? benefits? By By price price or or quality? quality? By By use use or or application? application? By By product product class? class? By By product product user? user? By By competitor? competitor? By By cultural cultural symbols? symbols? Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-26 Positioning by product user Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-27 Positioning by competitor Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-28 Developing a positioning platform 1. 1. Identify Identify the the competitors competitors 2. 2. Assess Assess consumers’ consumers’ perceptions perceptions of of competitors competitors 3. 3. Determine Determine competitors’ competitors’ current current positions positions 4. 4. Analyse Analyse consumer consumer preferences preferences 5. 5. Make Make the the positioning positioning decision decision 6. 6. Monitor Monitor the the position position Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-29 Positioning decisions Is Is the the current current position position strategy strategy working? working? Is Is the the segmentation segmentation strategy strategy appropriate? appropriate? The The checklist checklist How How strong strong is is the the competition? competition? Are Are there there sufficient sufficient resources resources to to communicate communicate the the position? position? Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-30 Positioning strategy Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-31 Marketing plan Situation analysis IMC audit Planning process Future of planning Role of planner Data for planning Consumer insight Planning for IMC Identifying markets IMC strategic decisions Account planning Market segmentation Selecting target market Positioning IMC planning Outside-in Zero-based Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-32 Outside-in planning Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-33 Zero-based planning Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-34 IMC strategy Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-35 IMC planning Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-36 Account planning Account planning is ‘the marketing services agency discipline that researches and defines the client’s offering in the marketplace; applies strategic thinking, grounded in intelligence and insights, to campaign planning.' Role Role of of account account planner planner Strategy Strategy development development Researcher Researcher Link Link between between service service staff staff && creative creative (inspire (inspire creative creative insights) insights) Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-37 Big ideas Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-38 Data for planning a d a Re e or St Talk to customers Ask des ign Use ers , en the g in pro eer duc s t s sit vi W or cli k fo en r t Background Background research research it t u bo Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-39 Developing the consumer insight Is Is the the insight insight fresh? fresh? New? New? Innovative? Innovative? Is Is itit relevant? relevant? Does Does itit resonate resonate with with consumers? consumers? The The consumer consumer insight insight Is Is itit enduring? enduring? Is Is itit built built on on aa deep deep understanding understanding of of consumers’ consumers’ beliefs beliefs and and needs needs so so that that itit will will endure? endure? Is Is itit inspiring? inspiring? Does Does itit excite excite the the team team and and inspire inspire different different applications? applications? Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-40 Future of account planning  Increasing recognition of consumers’ emotional attachment to products and brands  Sustainability—embedding in strategy and operations  Extensions to boundaries of planning  communications across non-traditional channels  alignment of media strategy and planning  integration of account planning and IMC planning  rise of super planners Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-41 Sustainability Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-42 Summary and conclusions  Great ideas begin with clever planning.  Key strategic decisions include:  segmentation and targeting  positioning  developing the customer insight  creative strategy.  Strategic planning should lead to a deep consumer insight that inspires great creative ideas. Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 7-43