The situation analysis consists of the background information that will be used to develop the campaign. The information should be structured, detailed and focused. Structure The situation analysis should be structured so that it is clear that the companys problems and opportunities are uppermost in the minds of the people who are performing the analysis. An inside perspective strives to understand the companys problems from its point of view while the outside perspective may provide different and valuable information. Detail The purpose of the situation analysis is to provide a research foundation that can be used to develop strategy and tactics. Research questions should be posed to elicit specific information. Focus It is important that the detail in the situation analysis focuses on identifying problems and opportunities. Otherwise, it is merely padding, or information without meaningful significance. The Company Analysis This analysis should consist of some basic ideas of what the company is concerned and what it represents. It will provide a benchmark to keep you from going off on a tangent, pursuing opportunities the company will never consider. 2 Issues Usually, money problems are symptomatic of more fundamental problems. Trend analyses often uncover problems that barely show up in a static time frame. Internal Information What is the companys mission? What is the companys culture like? What are the sales trends over the past ten years? Has the companys share of market gone up? Down? External Information What has been the industrys sales trend? What is the general economic climate? Are there any social, cultural, political conditions detrimental to the future of the company?
Consumer Analysis Who are the consumers? How do they use the product? What motivates them to buy? What do they look for in a product? How do they look at life?
Users are described according to the following characteristics: Demographic criteria Psychographic criteria Degree of product/brand usage Degree of brand loyalty
Demographic Criteria Describes the consumer in terms of variables such as age, gender, income, geographic location, marital status, education, race and family cycle Psychographic Criteria Includes information that is both psychological in nature (personality, motivation and attitude) and sociological (lifestyles, activities) Degree of Product/Brand Usage The standard way to classify usage is to categorize consumers into heavy, medium and light users Degree of Brand Loyalty The amount of brand loyalty displayed by consumers can have a strong influence on both advertising strategy and tactics. 4 Different Patterns of Brand Loyalty & Buying Strategies (Leo Burnett) Long loyals are committed to one brand regardless of price or any other factor. Rotators show regular patterns of shifting between preferred brands motivated by variety rather than price. Dealer sensitives show a pattern of shifting between preferred brands determined by availability of special offers or incentives. Price sensitives follow a decision rule to purchase the cheaper option, regardless of brand
What Motivates Consumers To Buy? One way to organize your understanding of buyer behavior is to examine what consumers think and feel about the product and how they use it. How consumers think about the product To what extent are they aware of the product, especially the brand name? Do they know about the brands special features? Do they understand how the product or brand works? Do they understand the brands superior qualities?
How consumers feel about the product
What is their attitude toward the product category? What is their attitude toward the specific brand? To what extent do they like or desire the product or brand? Do consumers trust the brand to deliver the promised benefits? Do consumers have a preference for this brand? What image or personality do consumers associate with the product or brand? What do consumers feel is this brands essence?
How consumers use the product How do consumers use the product? Where do consumers use the product? When do consumers use the product? Why do consumers use the product? Are there alternative uses to the product? Under what conditions would the consumer use more of the product?
Product/Brand Analysis In product analysis, the basic questions address how the many aspects of the product match up with consumers needs, wants, problems and interests. It is always helpful to understand how many of a products want-satisfying qualities are tangible product attributes and how many are intangible. In analyzing a products more tangible qualities, consider the following: Product variety Special designs Differentiating features Qualities Packaging Sizes Services
Competitive Analysis To begin a competitive analysis, it is important to identify the options consumers consider in their purchasing decisions. To do a competitive analysis, rival companies and their brands should be understood in as much depth as the analysts company. Perceptual Mapping A perceptual map helps define a brands image by putting it into the context of how consumers perceive the brand with respect to competitive brands. This technique can help the analyst understand how a product is positioned in consumers minds. Why are we there? There are a number of ways to process the information you collect and the three most common are: the SWOT analysis brand audit problem and opportunities focus. SWOT acronym suggests that the analysis begins with an examination of the companys strengths and weaknesses
It examines the brands history, especially for national branded products. It suggests an attitude. A brand audit sometimes leads to a brand contact audit: an identification of the ways in which consumers come into contact with an impression of the brand. Problems and opportunities approach is used because it helps identify where the company is going to have a problem or an opportunity In marketing, a problem is any barrier or situation that makes it difficult to achieve an objective, whether past, present or future. An opportunity is a situation or a circumstance that can potentially give the company a marketing advantage. When seeking out opportunities, the focus generally should be on ways to increase sales. There are four basic ways to increase sales: Get current users to continue using the brand. Get current users of the brand to use more of the product Find new uses for the product. Find new users
Where do we want to be? Objectives are formal statements of the goals of the advertising or other marketing communication They outline what the message is designed to achieve in the long term and how it will be measured
Measurable Objectives A measurable objective includes five requirements: A specific effect that can be measured A time frame A baseline (where are we 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)
Main Effects and Objectives Perception Objectives Grab attention; create awareness; stimulate interest; stimulate recognition of the brand or the message; create brand reminder Emotional/Affective Objectives Touch emotions; cue psychological appeal; create brand or message liking; stimulate brand loyalty; stimulate desire
Cognition Objectives Establish brand identity; establish or cue the brand position; deliver information; aid in understanding features, benefits and brand differences; explain how to do or use something; stimulate recall of the brand message; stimulate brand loyalty; brand reminder Association Objectives Establish or cue the brand personality or image; create links to symbols and associations; connect to positive brand experiences
Persuasion Objectives Stimulate opinion or attitude formation; change or reinforce opinion or attitude; present argument and reasons; counter argue; create conviction or belief; stimulate brand preference or intent to try or buy; reward positive or desired response; stimulate brand loyalty; create buzz or word of mouth; create advocacy
Behavior Objectives Stimulate trial, sample or purchase; generate other types of response (coupon use, test drive, store visit, sign up, attend, participate)
How do we get there? Writing the Creative Strategy
Creative strategy is a simple written statement of the most important issues to consider in the development of an advertisement or campaign.
It includes the following elements:
The basic problem the advertising must address The objective of the advertising A definition of the target audience The key benefits to communicate Support for these benefits The brands personality The Role of Creativity in Advertising Creativity Helps Advertising Inform Advertisings responsibility to inform is greatly enhanced by creativity. Good creative work makes advertising more vivid, a quality that many researchers believe attracts attention, maintains interest, and stimulates consumers thinking. A common technique is to use plays on words and verbal or visual metaphor
Creativity Helps Advertising Persuade A creative story or persona can establish a unique identity for the product in the collective mindset, a key factor in helping a product beat the competition. To motivate people to some action or attitude, advertising copywriters have created new myths and heroes. To be persuasive, an ads verbal message must be reinforced by the creative use of non- verbal message elements (color, layout and illustration).
Creativity Helps Advertising Remind Only creativity can transform your boring reminders into interesting, entertaining advertisements.
Creativity Puts the Boom in Advertising Good punch lines come from taking an everyday situation, looking at it creatively, adding a bit of exaggeration, and then delivering it as a surprise.
The Creative Process The creative process is the step-by-step procedure used to discover original ideas and reorganize existing concepts in new ways.
Roger von Oech developed a four-step creative model used today by many companies.
The Explorer searches for new information, paying attention to unusual patterns The Artist experiments and plays with a variety of approaches, looking for an original idea. The Judge evaluates the results of experimentation and decides which approach is most practical. The Warrior overcomes excuses, idea killers, setbacks and obstacles to bring a creative concept to realization
The Explorer Role: Gathering Information Develop an Insight Outlook In advertising, it is important that when creative people play the Explorer role, they get off the beaten path to look in new and uncommon places for information to discover new ideas and to identify unusual patterns.
Von Oech suggests adopting an insight outlook (a conviction that good information is available and that you have the skills to find and use it)
Ideas are everywhere: a museum, an art gallery, a hardware store airport. The more diverse the sources, the greater your chance of uncovering an original concept.
Know the Objective
Philosopher John Dewey said, A problem well-stated is a problem half-solved. Brainstorm A process in which two or more people team up to generate new ideas. It is often a source of sudden inspiration. It must follow a couple of rules: All ideas are above criticism (no idea is wrong) And all ideas are written down for later review Free association allows each new idea to stimulate another
Von Oech suggests other techniques for Explorers: Leave your own turf (look in outside fields and industries for ideas that could be transferred). Shift your focus (pay attention to a variety of information) Look at the big picture (stand back and see what it all means) Dont overlook the obvious (the best ideas are right in front your nose) Dont be afraid to stray (you might find something you werent looking for)
The Artist Role: Developing and Implementing the Big Idea
The Artist must accomplish two major tasks: searching for the big idea and; then implementing it.
Task 1: Develop the Big Idea The big idea is a bold, creative initiative that builds on the strategy, joins the product benefit with consumer desire in fresh, involving way, brings the subject to life, and makes the audience stop, look, and listen.
It means creating a mental picture of the ad or commercial before any copy is written or artwork is begun. This step ( also called visualization or conceptualization) is the most important in creating the advertisement.
It is where the search for the big idea that flash of insight - takes place
A strategy describes the direction the message should take. A big idea gives it life.
Transforming a Concept: Do something to it
Creative ideas come from manipulating and transforming resources. Artists have to change patterns and experiment with various approaches.
Von Oech suggests several techniques for manipulating ideas: 1. Adapt. Change contexts. Think what else the product might be besides the obvious. 2. Imagine. Ask what if? Let your imagination fly. 3. Reverse. Look at it backward. Sometimes the opposite of what you expect has great impact and memorability.
4. Connect. Join two unrelated ideas together. 5. Compare. Take one idea and use it to describe another. 6. Eliminate. Subtract something. Or break the rules. 7. Parody. Fool around. Have some fun.
Task 2: Implement the Big Idea
In advertising, art shapes the message into a complete communication that appeals to the senses as well as the mind. Once the creative people latch onto the big idea, they must focus on how to implement it. In advertising, balance, proportion, and movement are guides for uniting words, images, sounds, and colors into a single communication so they relate to and enhance each other.
The Judge Role: Decision Time The role of the Judge is to evaluate the quality of the creatives big ideas and decide whether to implement, modify, or discard them. When playing the Judge, creative people need to ask certain questions: Is this idea an aha! Or an uh-oh?
The Warrior Role: Overcoming Setbacks and Obstacles
The Warrior carries the concept into action. This means getting the big idea approved, produced, and placed in the media.
Bruce Bendinger suggests five key components to give a presentation maximum selling power.
1. Strategic precision. The selling idea must be on strategy. The presenting team must be able to prove it, and the strategy should be discussed first, before the big selling idea is presented. 2. Savvy psychology. The presentation, like advertising, should be receiver-driven. The idea has to meet the clients needs, thinking style, and personality.
3. Polished presentation. The presentation must be prepared and rehearsed; it should use compelling visuals and emotional appeals. 4. Structural persuasion. The presentation should be well structured, since the clients value organized thinking. 5. Solve the problem. Solve the clients problem and youll sell the big idea and do it with style.
Segmentation Strategies By using a segmentation strategy, a company can more precisely match the needs and wants of the customer with its products
Types of Segmentation 1. Demographic Segmentation Gender Ethnicity Religion Income Education Household size
2. Life-Stage Segmentation Age Living situation Discretionary income
3. Geographic Segmentation International National State City Climate Urban/rural
4. Psychographic Segmentation Social class Lifestyle Personality 5. Behavioral Segmentation Usage rates User status Brand loyalty
6. Values and Benefits-based Segmentation Specific problems solved by product Specific benefits offered
Positioning
It is locking the brand in consumers minds based on some quality relevant to them where the brand stands out.
The goal of positioning is to locate a product in the consumers mind based on its features and advantages relative to its competition
Positioning identifies the features that make a brand different from its competitors and relevant to consumers
Product Features and Attributes An initial step in crafting a position is to identify the features of the brand, as well as those of the competition, to determine where the brand has an advantage over its competitors
Locating the Brand Position Superiority Position Jack Trout suggests that positioning is always easy if something is newer, fancier, safer
Preemptive Position Being first in the category often creates category leadership and dominance
Value Position Value for money
Psychological Position Some brands are designed around non- product differences
The Media Plan The media plan is a written document that summarizes the objectives and strategies that guide how media budget will be spent.
The goal is to find the most effective and efficient ways to deliver messages to a targeted audience.
Media plans are designed to answer the following questions:
Who (target audience) What for (objectives) Where (the media vehicles used) When (time frame) How big (media weight) At what cost (cost efficiency)
Challenges of Media Planning
Increasing Media Options Increasing Fragmentation of the Audience Increasing Costs Increasing Complexity in Media Buying and Selling Increasing Competition
Increasing Media Options There are many more media to choose from today, and each offers more choices. TV is now fragmented into network , syndicated, spot and local television, as well as network and local cable. Specialized magazines now aim at every population and business segment. The incredible growth of the Internet has brought with it a host of new media options. Many companies spend a considerable portion of their marketing budgets on specialized communications like direct marketing, sales promotion, public relations and personal selling Increasing Fragmentation of the Audience
Readers and viewers have scattered across the new media options, selectively reading only parts of magazines or newspapers, watching only segments of programs, and listening to many different radio stations. Consumers spend on average 3,530 hours with media but an increasing proportion of that time is spent with less traditional media vehicles.
Increasing Costs
People can cope with only so many messages, so media restrict the number of advertisements they sell. As a result, the costs are increasing for almost all media.
*To run a 30-second spot on American Idol now costs $750,000.
Increasing Complexity in Media Buying and Selling In the battle for additional sales, many print and broadcast media companies developed value-added programs to provide extra benefits. Value-added packages often employ communications vehicles outside traditional media planning, such as public relations activities, sales promotions and direct marketing. To get a bigger share of the advertisers budget, larger media companies bundle the various stations, publications, or properties they own and offer them in integrated combinations as further incentives.
Increasing Competition The competitive environment completely changed the structure of the advertising business.
Media Strategy
The Strategy Elements
(Pangilinan in Ong, 2000)
Media Mix
The use of two or more media will deliver a wider reach of the target It will allow delivery of the message in different psychological contexts It will address audience segmentation
Selecting the Media Mix
1. The Characteristics of Each Medium 2. The Media Objective 3. The target Audience Definition 4. Scheduling 5. Reach and Frequency Goal 6. Competitive activities 7. Geographic Split 8. Creative Considerations 9. Budget
Media Weights In advertising, how much advertising you will need is quantified in terms of reach and frequency
Reach vs. rating Rating is the size of the audience tuned in to a given station or the readership of a newspaper or magazine. The summation of all the ratings of all programs in a media plan is called Gross Rating Points Reach is the measure of how many households or people were exposed to the ad at least once over a period of time, expressed as a percentage (%) of the universe.
Frequency is a measure of how many times each of the target audience actually saw or heard the advertising message over a period of time Effective Frequency is the amount of frequency, or repetition, necessary for the message to have some effect on the target audience over a given period of time. Effective Reach is the percentage of the audience reached at the defined effective frequency.
Continuity Dominant brands within the fast-moving consumer goods segment advertise year-round. Certain categories, however, prefer to limit their advertising to seasons or occasions. Methods for Scheduling Media To build continuity in campaign, planners use three principal scheduling tactics: Continuous Flighting Pulsing
Continuous schedule -Advertising runs steadily and varies little over the campaign period. Advertisers use this scheduling pattern for products consumers purchase regularly.
Flighting -Alternates periods of advertising with periods of no advertising. -makes sense for products and services that experience large fluctuations in demand throughout the year. - often used by products and services to stretch limited budgets.
Pulsing -This scheduling strategy mixes continuous and flighting strategies. The advertiser maintains a low level of advertising all year but uses periodic pulses to heavy up during peak selling periods. -appropriate for products like soft drinks.
Additional Scheduling Patterns
Bursting Running the same commercial every half hour on the same network during prime time.
Road-blocking Buying airtime on all three networks simultaneously.
Blinking It is used to stretch a slim advertising budget. To reach business executives, Digital Equipment flooded the airwaves on Sundays to make it virtually impossible for them to miss the advertisements.
Geographic Coverage
Principle: Put your money where your business is, or where you want it to be.
Creative Considerations
The brands creative strategy will direct a media planner to choose between visual vs. audio, color vs. black and white, image vs. hard sell, as well as commercial lengths and number of executions,
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