Chapter 7-COMSTRAT 380 8.24.13

Group Projects on Thursday~ Be there Quiz 4- Advertising Research in AdvertisingDid you know? Questions to Explore:

What are the basic types of strategic research and how are they used?

What is the most common research methods used in advertising?

What are the key challenges facing advertising research? How do you Find Consumer Insights? Research used in planning advertising Market Research Complies information about the product, the product category, competitors and other details of the marketing environment Consumer Research Research is used to identify people who are market for the product. Advertising Research

Focuses on all the elements of advertising-message, media, evaluation and competitors’ advertising.

IMC research Assembles information to plan the use of a variety of

marketing communication tools. Strategic research

Uncovers critical information that becomes the basis for strategic planning decisions.

Based on what the adverting has done for the brand Increasing brand awareness, trial, frequency of purchase Adobe Commercial- Example of the Advertising Research

What are the basic types of research? Secondary Research

Background research using available published information

Sources include: Government organizations Trade associations Secondary Research Suppliers Secondary information on the Internet

Primary Research Information collected for the first time from original

sources, such as primary research suppliers These include:

o AC Nielsen- Nielseno Simmons Market Research Bureau o Mediamark Research Inc.

Quantitative Research Delivers numerical data such as: numbers of users and purchases their attitudes and knowledge

their exposure to ads other market-related information Use large sample sizes (100-1,000) and random sampling

to conduct surveys and studies that track, count or measure things like sales and opinions.

Qualitative Research Explores underlying reasons for consumer behavior “The

how and why” Tools include: Observation Ethnographic studies In-Depth Interviews Case Studies

Qualitative research Is used to probe such question as What type of features do customers want? What are the motivations that lead product purchase? What do our customers think about our advertising? How do consumers relate to the brand? What are their emotional links to the brand?

Qualitative research (purpose) Used in early in the process of developing advertising

plans, message, and strategy. Exploratory in nature and designed for generating insights

as wells as questions and hypothesesExperimental research

Scientifically tests hypotheses by comparing different message treatments and how people respond.

Reactions may be electronically recorded using MRI or EEG machines, or eye-scan tracking devices to measure emotional responses

Used to test advertising appeals and executions in:Product features:

Design Price Various creative ideas

Why would we need this data? Experimental Research continues… Reactions may be electronically recorded using MRI or

EEG machines, or eye-scan tracking devices to measure emotional responses

The Uses of Research How is the research used in marketing communication planning?

Market information Consumer insight research Brand Information Media Research Message development research

Advertising or IMC plan Evaluation research Market Information Marketing research includes

Surveys In-depth interviews Observation Focus groups To use in developing a marketing plan and ultimately, a

brand communication plan Market Information cont.

Market information includes consumer perceptions of the brand, product category, and competitors’ brands.

Brand Information addresses the brand’s role and performance in the marketplace-leader, follower or challenger.

How do we gather information about a brand and the marketplace?

The brand experience Competitive analysis Marketing communication audit~ What you done in the

past Content analysis

Consumer insight research Both the creative team and media planners need to know

as much as they can about the people they are trying to reach

Researchers try to find out what motivates in a brand relationship.

The goal is to find a key consumer insight that will move the target audience to respond.

A full matter of Starbucks transactions are made via its popular loyalty- At Starbucks, Data Pours It Out

Media Research Media planners and account planners decide which media

formats will accomplish the objectives Media research gathers information about all the possible

media and marketing communication tools that might be used to deliver a message.

Researchers then match that information to what is known about the target audience.

Message development research Planners, account managers, media researchers, and the

creative team conduct their own informal and formal research.

Ex. Interviews on the street, public places, emails, online Concept testing is used during the creative process to

evaluate the relative power of various creative ideas. Market Development research

Writers and art directors often conduct their own informal research.

They may: o visit storeso talk to salespeopleo watch buyers o look at client’s past advertising o look at competitors’ past advertising

Evaluation research Evaluates an ad for effectiveness after it has been

developed and produced; before and after it runs as part of a campaign.

Pretesting is researching on a finished ad before it runs in the media. Evaluative research, also called copytesting (memory-remind you and stay with you), is done during and after a campaign Memory can be measured using:

Aided recognition (or recall) Unaided recognition (or recall)

What are the Most Common Research Methods?

COMSTRAT 380 10.1.2013

Chapter 7

What is Strategic Planning? For marketing communication, strategic planning is the process of:

o identifying a problem that can be solved with marketing communications

o determining objectiveso deciding on strategieso implementing tactics

What is strategic planning? What do each of these terms mean?

o Objective: what you want to accomplish. (position a brand, increase brand awareness, boost brand loyalty, change product opinion)

o Strategy: how to accomplish the objectives. (means, design, or plan for accomplishing objectives.)

o Tactics: actions that make the plan come to life. (actions that execute the plan, such as how an ad is designed or written)

The Business Plan The business plan and marketing plan provide direction for advertising

planning and other areas of marketing communication. The business plan may cover an SBU (strategic business unit), which is a

line of products or all offerings of a brand.The Business Plan

Objectives focus on profit or return on investment (ROI). ROI is revenue earned above the amount invested. Business planning starts with a business mission statement; an

expression of broad goals and policies.The Marketing Plan

Developed for a brand or product line, usually annually.

Parallels the business strategic plan and contains many of the same components.

A market situation analysis assesses the environment affecting marketing.

The Marketing Plan Here, the “SWOTs” are also defined:

o Strengthso Weaknesseso Opportunitieso Threats

The Marketing Plan For marketing communication (marcom) managers, the marketing mix

strategy is key. It includes decisions about:

o Target marketo Brand positiono Product design and performanceo Pricingo Distributiono Marketing communication

The advertising or IMC plan o As with business and marketing plans, advertising and marketing

communication plans also includes objectives, strategies, and tactics.

o The focus is on the communication program supporting a brand Audience insight

Message Medium

…are at the heart of an advertising planWhat in a campaign plan?

A campaign plan is more tightly focused in solving a particular problem in a specified time.

It includes a variety of marcom messages carried in different media and sometimes targeting to different audiences.

Typical campaign plan outline Situation analysis

o Key strategic campaign decisions o Media strategy (or points of contact in a IMC plan)o Message strategy o Other Marcom tools used in support o Campaign Management

Situation Analysis Backgrounding

o Research and review the state of the business that is relevant to the brand and gather all pertinent information.

o In the situation analysis, the goal is to identify a problem that can be solved with communication.

SWOT Analysis o Finding ways to leverage the strengths and opportunities, address

the weakness and threats Strengths: positive traits, conditions and good situations Weaknesses: traits, conditions, and good situations

Opportunities: areas in which the company could develop an advantage over its competition

Threats: a trend or development in the environment that will erode business unless the company takes action.

Key Problems: o Analyze the market situation for communication problems that

hinder successful marketing. o Find opportunities advertising can crate or exploit. o Advertising can’t solve price, availability or quality problems, but

it can address the perception of these marketing mix factors. Objectives

o Formal goal statements outlining what the message is supposed to achieve and how it will be measured

o Main effects and objectives: Recall the six categories in the facets model of advertising effects:

Perception Emotion Cognition Persuasion Association Behavior

o Those can be used to identify common consumer-focused objectives.

o Some objectives are tightly focused on a single effect; other require a complex set of effects

o For example, a campaign to create brand loyalty must generate cognitive (rational) effects generate affective (emotional) effects move people to repeat buying (behavioral)

Measureable objectives o Every campaign is guided by specific clear and measure objectiveso Objectives must be measureable so advertisers know whether the

campaign or advertising is effective o Benchmarking: a similar product or prior brand campaign is used

to predict a logical goal. Five Requirements:

1. A specific effect that can be measured 2. A time frame 3. A baseline (where we are or where we begin) 4. The goal (a realistic estimate of change to be created 5. Percentage change (subtract the baseline from the goal; divide the

difference by the baseline)Targeting

Marketing communication strategy is based on accurately targeting an audience that will respond to a particular message

Targeting is identifying and profiling an audience. Targeting is also getting inside the leads and hearts of the audience to

find put what kinds of messages will motivate them. Positioning

A brand position is how consumers define the product or brand in comparison to its competitors

A position must be on a particular feature or attribute that is important to the customer.

Product features and attributes o Product differentiation is a strategy that focuses attention to

product differences that distinguish the company’s product from others in the eyes of consumers

o Competitive advantage is found: where the product has a strong feature

in an area that is important to the target where the competition is weaker

Repositioning Repositioning can only work if the new position is related to the brand’s

core concept. The Old Spice Although advertising shapes the position, the position is anchored in the

target audience’s minds by their personal experiences. The role of the brand communication strategy is to relate the product’s

new position to the target market’s life experience and associations. Brand communication strategy

Brand Identityo Must be distinctive and familiar in terms of name, logo, colors,

type face, design, and slogan. Brand personality and liking

o It should have human characteristics like loving, trustworthy, sophisticated.

Brand position and understandingo The soul or essence of the brand; it stands for something that

matters to consumers Brand image

o The mental impression customers construct for a product based on symbols and associations that customer link to a brand

Brand promise and brand preference o Believing the promise that a brand will meet your expectations

leads to brand preference. Brand loyalty

o A connection built over time that leads to repeat purchases. Campaigns strategies and management

Determining how to achieve objectives requires a general strategy statement

Strategies may focus on: o focusing o positioning o countering the completion o creating category dominance

Budgeting o Five common methods:

Historical Method: Last year’s budget plus inflation; not based on goals

Objective Task Method: What do we want to do and will it cost? Based on goals.

Percentage of Sales Method: Compares total sales with total advertising to get ratio

Competitive Budgets: Use competitors’’ budgets as benchmarks and relates to the product’s share of market.

All you can afford: Whatever is left over, not a strategic approach.

Evaluation determining effectiveness o Evaluation is the process of determining the effectiveness of a

campaign. o Its impossible without established, measurable objectiveso In effect, evaluation is a research proposal.

Account Planning: What is it?Account Planning

The research and analysis process gain knowledge of the consumer uncover key insights about how people relate to a brand or product

An account planner is an agency person who uses a disciplined system to research a brand and its consumer relationships to devise message strategies to effectively address consumer needs and wants.

The account manager is seen as the voice of the client while the account planner is seen as the voice of the consumer.

An account planner: o Who: agency person o Role: uses a disciplined system to research a brand and it’s

consumer relationships o Purpose: devise message strategies to effectively address

consumer needs and wants The account planner’s mission is to discover:

o 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?

o What? What do you say to them? What directions from consumer research are useful to the creative team?

o Where? How and where will you reach them? What directions from research are useful to the media team?

The account manager is seen as the voice of the client The account planner is seen as the voice of the consumer

The research foundation Understanding begins with consumer research, which is at the core of

account planning Account planners:

o Information integrators who bring it altogether o synthesizes who express what it all means in one simple

statement. Consumer insight the fuel of big ideas

Insight mining o Finding the “a-ha” in a stack of research reports, data, and

transcripts is the greatest challenge for an account planner. o Account planners are looking for clues about the brand meaning,

usually phrased in terms of: Brand essence

Brand personality Brand image

The communication brief The outcome of research is the communication brief or creative brief is

a document that explains the consumer insight and summarizes the basic strategy decisions

The first step in the creative process it is designed to spark creativity and serve as a springboard for ideas.

Tom’s Shoes Creative Brief Problem: What’s the problem that communication can solve? (establish

position, increase loyalty, 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 motives the target? What are the “major

truths” about the target’s relationship to the product? Brand imperatives: What are the important features and competitive

advantage? What’s the brand position, essence, personality and/or image?

IMC campaign planning Integrated Marketing Communications (IMC) planning is similar to

advertising planning but is broader in scope and involves more marketing communication areas.

The objective is to most effectively use all marketing communications tools and functions and to control the impact of other communication elements.

Effective IMC leads to profitable long-term brand relationships. Objectives

o IMC objectives are tied to the effects created by the various forms of marketing communication.

The main areas of IMC: o Public Relationso Consumer sales promotiono Trade sales promotiono Point of purchase

o Direct marketingo Sponsorship and eventso Packagingo Specialties

Stakeholderso Any group who has a stake in the success of a company or brand

(employees, shareholders). Contact points

o IMC maximizes all contacts stakeholders have with the brand; where a message is delivered.

A defining principle of IMC:o All contact points deliver brand messages.

IMC planning involves many messages delivered through multiple media at different contact points.

Synergy: the brand impact of all messages together is greater than what any one message could deliver.

o Another principle of IMC: Consistency drives synergy. Synergy requires cross-functional planning.

o Everyone involved in creating and delivering messages should be involved in planning to ensure consistency.