ADVERTISING

MKT340
[LECTURE CONTENT: 07]

STRATEGIC PLANNING
 STRATEGIC PLANNING
Strategic planning—process of identifying a
problem that can be solved with marketing
communication, then determining objectives (what
you want to accomplish), deciding on strategies
(how to accomplish the objectives), and
implementing the tactics (actions that make the
plan come to life). This process occurs within a
specified time frame.

Advertising and all other communication campaigns happen

within this strategic framework

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
 STRATEGIC PLANNING:

Strategic planning
from top to bottom:

Strategic planning
reaches all levels of an
organization—from the
corporate level to tactical
daily operations.

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
BASIC STRATEGIC PLANNING DECISIONS

A campaign plan is
more tightly focused on
solving a particular
marketing
communication problem
in a specified time. Such a
plan typically includes a
variety of marketing
communication
(marcom) messages
carried in different media
and sometimes targeted to
different audiences.

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
BASIC STRATEGIC PLANNING DECISIONS:
Situation Analysis:
• Backgrounding—researching and reviewing the
current state of the business
• Planners try to make sense of the research findings,
a process sometimes referred to as a situation
analysis
• The primary tool used to make sense of the
information gathered and identify a key problem is a
SWOT analysis
• Key Problems and Opportunities: Analyzing the
SWOTs and identifying any problems that can be
solved with an advertising message are at the heart
of strategic planning

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
BASIC STRATEGIC PLANNING DECISIONS:
Objectives:
• Advertising can only solve message-related or perception
problems
• A rule of thumb for advertising is that it should be single-
minded
• Some ads may use an emotional strategy while others are
informational, but sometimes the message needs to speak to
both the head and the heart
• Objectives are formal statements of the goals of the
advertising, other marketing communication, design and
measurement criteria
• Some objectives are tightly focused on one particular effect, but
others, such as brand loyalty, call for a more complex set of effects. To
create brand loyalty, for example, an advertising campaign must have
both cognitive (rational) and affective (emotional) effects, and it must
move people to repeat buying

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
BASIC STRATEGIC PLANNING DECISIONS:
Measurable Objectives:
• Measurable objective is how the effectiveness of advertising is
determined
• Objective statement should be specific, quantified, and
benchmarked, which means using a comparable effort to predict
a logical goal
• A measurable objective includes five requirements:
✓ a specific effect that can be measured
✓ a time frame
✓ a baseline (where we are or where we begin)
✓ the goal (a realistic estimate of the change the campaign can create;
benchmarking is used to justify the projected goal)
✓ percentage change (subtract the baseline from the goal; divide the
difference by the baseline)
For Example:
“The goal of this campaign is to increase the customer awareness of X
corporation’s digital products from 20 to 25 percent within 12 months."

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
BASIC STRATEGIC PLANNING DECISIONS:
Segmenting and Targeting:
• Market segment—a group of customers having similar
characteristics
• Target audience—the segment panner selects
Positioning strategy:
• A place in consumers’ minds where the product or brand stands in
comparison to its competitors
• A position is usually based on a particular feature or attribute:
• Product features: tangible features (such as size, color, and ease of
use) and other intangible attributes (such as quality, status, value,
fashion, and safety)

• Feature analysis: make a chart of the product and competitors’

products, listing each product’s relevant features; then evaluate how
well the product and the competitors’ products perform on those
features; Next, evaluate how important each feature is to the target
audience.

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
BASIC STRATEGIC PLANNING DECISIONS:
• Competitive advantage: competitive advantage is found
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
• Differentiation:
• Product differentiation—focuses attention on product differences
that distinguish the company’s product from all others in the eyes of
consumers.
• Perceived differences may be tangible (design, price) or intangible
(quality, status)
• Products that really are the same (examples include milk, unleaded
gas, and over-the-counter drugs), are undifferentiated or parity
products

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
BASIC STRATEGIC PLANNING DECISIONS:
• Perceptual map: the
technique planners use to
compare positions
• Ad campaigns are
designed to position
brands with right clues
• Repositioning—is another
objective for advertising
strategy if market condition
changes
• i.e., Fair & Lovely; IBM as a
company that repositioned itself
from a computer manufacturer to
a provider of services.
• Ad shapes position and
personal experiences
anchor it in target
audiences’ mind through
creating associations

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
BASIC STRATEGIC PLANNING DECISIONS:
Budgeting
• Historical method: based on last year’s budget, with a percentage
increase for inflation or some other marketplace factor
• Objective-task method: it looks at the objectives for each activity
and determines the cost of accomplishing each objective
• For example, what will it cost to make 50 percent of the people in
the market aware of this product?
• Percentage-of-sales method: compares the total sales with the
total advertising budget during the previous year or the average
of several years to compute a percentage
• Competitive budgets: uses competitors’ budgets as benchmarks
and relates the amount invested in advertising to the product’s
share of market
• All you can afford: When a company allocates whatever is left
over to advertising,

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
 ACCOUNT PLANNING: WHAT IS IT?
• An advertising plan seeks to match the right audience
to the right message and present the message in the
right medium to reach that audience
• Three elements at the heart of advertising plan:
• Consumer insight (Who?): Who are you trying to reach
and what insight do you have about how they think, feel,
and act? How should they respond to your advertising
message?
• Message strategy (What?): What do you say to them?
What directions from the consumer research are useful to
the creative team?
• Media Strategy (Where?): How and where will you reach
them? What directions from the consumer research are
useful to the media team?

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
 ACCOUNT PLANNING: WHAT IS IT?
Communication brief or creative brief: explains the
consumer insight and summarizes the basic strategy decisions.
Typical creative brief outlines:
• Problem: What’s the problem that communication can solve?
(establish position, reposition, increase loyalty, get people
involved, increase liking, etc.)
• Target audience: To whom do we want to speak? (brand loyal,
heavy users, infrequent users, competition’s users, etc.)
• Consumer insights: What motivates the target? What are the
“major truths” about the target’s relationship to the product
category or brand?
• Brand imperatives: What are the important features? What’s the
point f competitive advantage? What’s the brand’s position
relative to the competition? Also, what’s the brand essence,
personality, and/or image.

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd
 ACCOUNT PLANNING: WHAT IS IT?

• Communication objectives: What do we want customers to

do in response to our messages? (perception, knowledge,
feelings, symbolic meanings, attitudes and conviction,
action)
• The proposition or selling idea: What is the single thought
that the communication will bring to life in a provocative
way?
• Support: What is the reason to believe the proposition?
• Creative direction: How can we best stimulate the desired
response? How can we best say it?
• Media imperatives: Where and when should we say it?

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Md Azzajur Rahman_Email: azzajur@iub.edu.bd