Class 6: IMC Planning

Contents

How does IMC planning work?

6 steps in IMC planning process
Internal marketing and why is it
important in the IMC plan?
 IMC

IMC is like an orchestra...

 Why do we need a plan?

1
To provide a rational process for identifying the most important
communication issues

2 To inform everyone involved with marketing communication

3To help ensure that IMC is integrated and focused to issues

4 To create a benchmark for measuring results

5To help identify budget and expected return

 Planning throughout organization

Corporate level Business plan

- Focus on maximizing profit and shareholders value
- (Key organizations objective)
- Profit, brand equity, companys share price (public company)

Department level individual department plan

- Production/ operation, human resources, financial, marketing and sales
- Focus on sales and market shares
- Related to strategies of launching new product, line extension and
expanding market

Advertising department
- IMC planning
- Focus on customer relationship (acquisition & retention), brand
awareness, brand knowledge, trial, repeat purchase and custo
mer satisfaction
- Larger company set budget for each IMC functions
 Planning throughout organization

Functions within
department:
i.e. marketing dpt.
(sales promotion, PR,
ad, direct
marketing

Department level:
i.e. Marketing Plan,
Financial Plan, etc

Corporate Level:
Business Plan
 Zero-based planning
Zero-based planning: a process that determines marketing
objectives and strategies based on current brand and current
market place conditions.

starting from zero.

 Zero-based planning

Because.
competitors and distribution channels are
constantly changing;
as are consumers' wants and needs
 IMC Plan: 6 Steps
Step 1: Identify Target Audiences

Step 2: Analyze SWOT

Step 3: Determine Marketing Communication Objectives

Step 4: Develop Strategies & Tactics

Step 5: Set the budget

Step 6: Evaluate effectiveness

 Step 1: Identify Target
punk girls
Who are you selling to?
What do they like?
Where do they go?
What do they do?

K-pop
K-pop girls
kiku girls
1
suayPretty
suay pretty
SEGMENTING girls
girls
key: grouping
2. TARGETING
key: selecting

3. analyze demographics, psychographics, lifestyle, needs & wants

 Step 2: Analyze SWOT
SWOT: The analysis of marketplace situation.
structured evaluation of...
internal strengths and weaknesses & external opportunities and threats

Strengths Weaknesses

brands innovativeness, convenience, brand image, positioning, financial

strength, product, etc

Opportunities Threats

social, market, economic conditions that alter customers attitudes about a

company and its products
SWOT Analysis Example
 SWOT Analysis lead to problem recognition..

Problems How to solve?

- Low brand/ product - Increase brand/ product
awareness awareness

- Low brand preference - Enhance brand

preference

What you want to solve will become

your Communication Objectives
 Step 3: Determine IMC Objectives
Based on your SWOT analysis, you can form objectives... things youd like to
achieve for the brand.

Objective = goal (what marketers want to accomplish with IMC)

S M A R T
Specific Measurable Attainable/ Relevant Timely
Achievable (Challenging)
 Step 4: Develop Strategies &
Tactics
Strategy
Tactic
 Strategy Development

Determine what message & which media

youre going to use?
Message strategy + media strategy

How each Message & Medium will be used

Form creative ideas &Message
Mood, tone, manner
 Step 5: Budgeting
How would you allocate the budget?
 Zero-based planning
Zero-based planning: a process that determines marketing
objectives and strategies based on current brand and current
market place conditions.

starting from zero.

 Zero-base budgeting

Zero-based budgeting an approach to plan and determines the strategy

that reverse the traditional budgeting by mainly focus on current situation
of brand and market conditions.
ESTABLISHING A BUDGET
 BUDGET ADJUSTMENTS

Increase If the cost is less than the

Spending marginal return

Hold If the cost is equal to the

Spending incremental return

Decrease If the cost is more than the

Spending incremental return
BUDGETING APPROACHES

Top-down budgeting

Bottom-up budgeting
TOP-DOWN BUDGETING
Top Management Sets the
Spending Limit

The Promotion Budget Is Set to Stay Within

the Spending Limit
TOP-DOWN BUDGETING
Arbitrary allocation

The affordable method

Percentage of Sales

Competitive parity

Return on investment (ROI)

Arbitrary Allocation The Affordable Method
-Allocates on whatever is left over to
-Solely based on managers judgment, advertising
intuition -Common among small firms and
-No rule or rationality certain non-marketing-driven large
-No systematic thinking
Return on Investment firms (ROI)
-No objective setting -Companies who use this do not value
-Advertising and Promotionsadvertising
are considered as
as a strategic move
Investments
-Uses Sales as basis for evaluation
Percentage of Sales -Formula: Competitive Parity
(Gain from investment Cost of investment)
-Uses competitors budgets as benchmark
Cost of investment.
-Compares total sales with the advertising -Relates advertising budget to products
budget (Uses previous year or average of market share
several years) -Share of Market (SOM)
-Two (2) Methods -Share of Voice (SOV)
>Straight Percentage of Sales
>Percentage of Unit Cost
Bottom-Up Budgeting

Total Budget is Approved by Top Management

Promotional Objectives are Set

Activities to Achieve Objectives are Planned

Cost of Activities are Budgeted

Objective and Payout Quantitative
Task Method Planning Models
Most sensible and Project the Uses computer
defendable revenues as well simulation models
method as its costs involving statistical
Objectives are set Based on techniques
then budgets Expected Rate of Limited success in
Return actual practice
 Step 6: Evaluate
Effectiveness
Did you meet your objectives?
Some ways to measure effectiveness...

surveys
market testing
sales
market share

brand awareness
brand recognition tests
so many other tools!

role of feedback
Internal Marketing
 Internal Marketing

internal marketing: an ongoing effort to involve employees in the planning process,

communicate the plan to them and receive their support

encourage everyone to suggest

better way deal with consumer

listen

empower
authorize employees to make
inform decision to help consumer
Ex: intranet/ extranet
 Final Note:
In order to create a truly
focused marketing campaign,
everyone must be on the
same page!