Marketing Communications Session 3 3. Marketing Communications Planning Marketing Communications Planning

Objectives To outline the planning process To understand the differences between marketing objectives and marketing communications objectives To be aware of the key issues in campaign management

Simple Planning Questions Where are we now? How did we get here? Where do we want to be? How will we get there? How will we know when we arrive?

Planning Questions

An outline plan Executive summary Situation/Context Analysis (see next slide) Target market profile Objectives –Marketing objectives –Communication objectives Marketing Communication Strategy –Advertising strategy Creative strategy and execution Media strategy –Sales promotions strategy –PR strategy –Other MC tools Campaign evaluation Budget Appendices Source: Pickton, Broderick, 2005, p.296

Context/Situational Analysis Company analysis –What are the sales & profits? –What is the mission? –What financial, technological & managerial resources are available? Competitor analysis –Who are direct & indirect competitors –What resources do they have? –What are the real and perceived distinctions between brands? Consumer analysis –Who are they? –What motivates them to buy? –What do they look for in the product? Market analysis –What geographical areas warrant specific attention? –What segments are most likely to respond? Product analysis –Does the product have the ability to give consumers what they want? –Does the product package deliver what consumers want? –Does the product delivery match or exceed expectations? Pickton & Broderick, 2005

Budgets Affordability Percentage of sales Competitive parity Objective and task

The term “target audience” distinguishes those to whom a particular advertising, promotions or any other communications campaign is directed, whereas the term “target market” refers to those to whom the entire marketing mix is directed. Target market or target audience?

Target Markets Which segments? Influencers? Decision Makers? Internal audiences? Distribution chain audience?

Target audience option The Awareness-Attitude-Behaviour Approach New category users (NCUs) Brand loyals (BLs) Favourable brand switchers (FBSs) Other-brand switchers (OBSs) Other-brand loyals (OBLs)

Profile of the target audience Demographic Geographic Psychographic Behavioural

A working man age 30 – 45, who lives in the city? He has a family? He belongs to middle socio- economic class …? Is it sufficient to define TA profile as: Is it sufficient to define TA profile as:

Who is the target audience/customer of WIUT? Demographic Geographic Psychographic Behavioural

SMART objectives S……. M……… A……… R……… R…….. T…….. T…..

Is this objective “SMART”? To increase market share by the end of this year To increase market share of the Kit Kat brand in Tashkent city from 30% to 40% by the end of the next 12 months.

Marketing objectives To double market share in the xyz market within 18 months To increase the purchase frequency of x to y To improve ROI by 5% p.a.

Objectives Marketing objectives To double market share in the xyz market within 18 months To increase the purchase frequency of x to y To improve ROI by 5% p.a. Marcoms Objectives To raise levels of prompted awareness from a to b To reposition x as a healthy product To persuade 50% of trade sales to stock x as their first choice

Communications objectives – five communications effects 1.Category need 2.Brand awareness 2.1 Brand recall 2.2 Brand recognition 3. Brand attitude 4. Brand purchase intention 5. Purchase facilitation

Brand awareness Brand awareness Which brand comes first into your mind when purchasing instant coffee? Brand recall (Top of the Mind) Or maybe

Brand awareness Brand awareness Which of the following brands of instant coffee are you aware of? Brand recognition

If consumers are equally aware of a number of brands in certain product category they will base their brand choice on an evaluation of certain brands. The result of this evaluation is called “brand attitude”. Brand attitude is a perceived value of brand to consumer. Brand attitude

Action objectivesTarget audience NCUsOBLsOBSsFBSsBLs Trial objectives Category trial X Brand trial XXX Brand retrial XX Repeat purchase objectives Maintain repeat rate X Increase repeat rate XXX Buy more per occasion XX Buy less per occasion XX Accelerate timing XX Delay timing XX

Examples of Campaign Objectives Marketing Objectives –Increase share of market –Increase sales per unit –Increase share of customers purse Marketing Communication Objectives –Reinforce position, brand image –Move prospects to trial –Motivate users to buy more –Reward customers for referrals IMC Functional Objectives –Advertising: awareness, brand image –Sales promo: encourage trial –Direct: loyalty –PR: deliver credible message –Events: associate product with lifestyle activities

Select MC mix Five primary tools –Advertising –Public Relations –Direct Marketing –Sales Promotion –Personal selling Other factors –Push v Pull strategy –Type of product –Stage of product life cycle stage –Buyer behaviour –Buyer readiness state

Push v Pull strategy Pulling the product through the distribution chain by creating demand amongst customers e.g. via heavy advertising Pushing the product through the distribution chain e.g. via dealer incentives Combination of push and pull

Push and Pull strategies in marketing communications Manufacturer Wholesaler Retailer Consumer Push e.g. Personal selling; Trade press; Mail shots; offers etc. e.g. Personal selling; Trade press; Mail shots; offers etc. e.g. Sales promotion; Point of sale offers; Advertising etc. Manufacturer Wholesaler Retailer Consumer Pull e.g. advertising, sales promotions etc. Flow of communication Flow of product

Product categories and marketing communication mix

Product Life Cycle stage Introduction –Heavy promotion to create awareness Growth –Increasing competition –Create differentiation Maturity –Maintain differentiation –Nurture segments e.g. heavy users Decline –Rejuvenate or re-position

Taking Nestle company (Uzbekistan) as an example identify the likely position for the given products of this company in the product life cycle curve. Products: Nestle Sutim, Nestle Pure Life Water, Kit Kat, Nescafe 3 in 1, Identify in what stage of the PLC each brand/product is located. What are the marketing communications objectives for each product depending on their position in PLC?

What to evaluate? Success of campaign? Promotion tools? Concept? Message? Media? Creative element?

“Plan is nothing. Planning is everything.” General Eisenhower

Any questions? Thank you! and Please do read

Reading Pickton, D. and Broderick, A. (2005) Integrated Marketing Communications Prentice Hal, Chapters 13, 17, 18, 19 De Pelsmacker, P. Geuens, M., and Van Den Bergh,J. (2004) Marketing Communications, Prentice Hall, London, Chapter 4, 5, 6 Fill, C. (2005) Marketing Communications Prentice Hall, London, chapters 11, 12, 13