Building the Communications Plan

Mktg 340

Maureen O’Connor

Building Blocks of the IMC Plan – The Promotional Opportunity Analysis

Situation Analysis Objectives Creative Brief Strategies Budget Evaluation

Promotional Opportunity Analysis

The process of identifying consumers in the marketplace and targeting messages that fit their needs

Steps:– Conduct a communication market analysis– Establish communication objectives– Create the brief– Prepare strategies and tactics– Create the communications budget– Evaluate the effectiveness

STEP 1: Communication Market Analysis

What are our competitors doing?– Use secondary research (web sites, annual

report, news articles) and primary research (visit stores, talk to wholesalers and retailers) to discover the competition’s promotional activity.

What opportunities exist for us?– To serve new markets– To better communicate our benefits to consumers– To better differentiate our products

STEP 1 – What’s going on in the external environment?

Cultural and social trends Technological factors Legal issues

STEP 1: Communication Market Analysis (continued)

Identify target markets– Segmentation: group consumers (existing,

competitors and potential) by common characteristics

Demographics Psychographics Geographics Benefits Usage

STEP 1: Communication Market Analysis (continued)

Targeting– Target the segment that has

The greatest need and match with the product That is large enough to return value/profit to the

company That is reachable through media channels

STEP 1: Communication Market Analysis (continued)

Positioning– The perception of the product compared to the

competition. For a toothpaste, position by: Attributes (whitens teeth) Competitors (better than Colgate) Price (cheaper than Colgate) Use (after smoking) User (for children) Product class (better than mouthwash) Cultural symbol (fresh as peony)

Step 2: Establish Communication Objectives

Objectives outline the specific goals of the communication plan. They may include:

– Develop brand awareness– Increase demand– Change attitudes– Build store traffic– Build sales– Encourage repeat purchases– Increase market share– Reinforce purchase decisions

Step 2: Establish Communication Objectives (continued)

Characteristics of good objectives:– Measureable (i.e. raise awareness by 10%)– Directed to a target market (i.e. among males 15-

25)– Within a time frame (i.e. within one year)

STEP 3 – Create the Brief

Articulates and communicates the relevant consumer understanding and insights in relationship to the overall objectives of the communications

Created by the account/research team for the creatives – sparks the inspiration

Step 4: Develop Strategies and Tactics

Strategies direct marketing communication decisions– Message strategy: what do we need to say?– Media strategy: where will we say it?

Tactics are the tools used to deliver messages:– Advertising (TV, radio, newspaper, outdoor, alternative,

online)– Promotions (coupons, sales, contests)– Events (concerts, programs)– Direct and e-marketing

Step 5: Establishing Budgets

Percentage of salesPercentage of sales Meet-the-competitionMeet-the-competition ““What What we can afford” can afford” Objective and taskObjective and task Payout planningPayout planning Quantitative modelsQuantitative models

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall4-15

F I G U R E 4 . 6

A Decay Effects Model

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall4-16

Restaurant ChainsU.S. Market Share vs Media Ad Spending

(Thousands)

RankRank BrandBrand Market ShareMarket Share Media Ad Media Ad Spend (Mil)Spend (Mil)

Cost Per Share Cost Per Share Pt. (Mil)Pt. (Mil)

11 McDonald’sMcDonald’s 7.7%7.7% $ 727.7$ 727.7 $ 93.9$ 93.9

22 Burger KingBurger King 2.4%2.4% $ 268.8$ 268.8 $ 113.2$ 113.2

33 Wendy’sWendy’s 2.3%2.3% $ 374.7$ 374.7 $161.5$161.5

44 SubwaySubway 2.2%2.2% $ 325.2$ 325.2 $150.1$150.1

55 Taco BellTaco Bell 1.9%1.9% $ 231.7$ 231.7 $125.1$125.1

Source: “Top 10 Restaurant Chains,” www.adage.com, accessed October 1, 2008

STEP 6: Evaluate Results

Evaluate against objectives Determine what will be measured

– Awareness– Brand loyalty– Attitude change– Behavior (click through, inquiries, redemption

rates)

Evaluation challenges

Factors other than advertising affect metrics Delayed impact Purchase decisions made in the store Level of brand equity