1. Strategic IMC Planning
Part 2: Planning and Strategy
Chapter 7
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

2. ADVERTISING Principles and Effective IMC Practice
Key Points
Differentiate between objectives, strategies, and tactics in strategic planning
Identify the basic decisions in an advertising plan
Outline the key features in an IMC plan
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

3. ADVERTISING Principles and Effective IMC Practice
Strategic Planning
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

4. ADVERTISING Principles and Effective IMC Practice
Strategic Planning
The process of determining objectives, deciding on strategies, and implementing the tactics
Objectives
What you want to accomplish
Strategies
How to accomplish the objectives
Tactics
Make the plan come to life
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

5. Basic Strategic Planning Decisions
It is important for advertisers to know what to expect from a campaign or an ad
Measurable objectives
Specific effect that can be measured
A time frame
A baseline
The goal
Percentage change
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

6. Basic Strategic Planning Decisions
Typical Plan Outline
Situation analysis
Key strategic decisions
Media strategy
Message strategy
Other tools
Evaluation of effectiveness
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

7. Basic Strategic Planning Decisions
Situation analysis
Researching and reviewing the current state of the business that is relevant to the brand and gathering all relevant information
After the research is compiled, analysis begins
SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
Key problems and opportunities
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

8. ADVERTISING Principles and Effective IMC Practice
SWOT analysis
Internal environment analysis
Strengths: positive traits, conditions, and good situation of something
Weaknesses: traits, conditions, and situation of something that are perceived as negative
External environment analysis
Opportunities: an area in which we could develop an advantage over its.
Threats : a trend or development in the environment that will erode business unless we take action.
internal
Strengths
Weaknesses
external
Opportunities
Threats
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

9. Basic Strategic Planning Decisions
Getting deeper insight into consumers is the responsibility of the account planning function
Segmenting and targeting
Market segment: a group of consumers having similar characteristics
The segments the planner selects becomes the target audience
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

10. Basic Strategic Planning Decisions
Positioning Strategy
Determining what place a product should occupy in a given market
To establish a location in the consumer’s mind based on what the product offers and how that compares with the competition
Product features
Feature analysis
Competitive advantage
Importance/performance
Differentiation
Branding
Locating the brand position
Perceptual mapping
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

11. A Perceptual Map for Automobiles
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

12. Basic Strategic Planning Decisions
Media strategy
Media objectives
Vehicle selection
Message strategy (what & how)
Selling Premise
Big Idea
Execution
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

13. Basic Strategic Planning Decisions
Budgeting
Determines how many targets and multiple campaign plans a company or brand can support and the length of time the campaign can run
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

14. ADVERTISING Principles and Effective IMC Practice
Budgeting Methods
Historical method
history’s spending+ inflation+ market situation
Objective-task method
develop budget from the ground up ,
by determining the cost of accomplishing each objective’s activities
Percentage-of-sales method
Combine historical and “sales performance
Step1: Past ads. Spending / past sales = % of sales
Step 2: % of sales performance * next year sales forecast
Competitive budgets
All you can afford
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice

15. ADVERTISING Principles and Effective IMC Practice
Summary
Advertising (Campaign) Objective
Situation Analysis
Consumer Analysis
Message Analysis
Media Analysis
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice