Marketing Communications Strategy & Planning PDF

Part 2 Managing marketing communications Part 2 is concerned with the management of marketing communications. The topics embrace strategy, goals and positioning, industry, evaluation and metrics, branding, and integration. Chapter 5 is concerned with the nature of communications strategy and the interrelation- ship between strategies and planning. The first section of this chapter considers ideas about strategy and four distinct approaches to marketing communications strategy. The second section of the chapter works through the marketing communications planning framework (MCPF), highlighting issues and linkages; it ends with an operational approach to devising, formulating and implementing a strategic marketing communications plan. Chapter 6 examines the nature of objectives and positioning in marketing communications and considers both academic and practitioner (IPA) approaches to the nature of communi- cations-based objectives. The nature and characteristics of the UK marketing communications industry is the focus of Chapter 7. This material specifically examines the strategic and operational issues of com- munications agencies and their interaction with client organisations, including the various budgeting and remuneration issues experienced by agencies and clients. Chapter 8 examines the ways in which the performance of marketing communications activities can be evaluated, and highlights the criticality of metrics in marketing commu- nications today. Chapter 9 focuses on branding and the role, approaches and methods of marketing com- munications that are used to help, develop and sustain brands. Chapter 10 is about integrated marketing communications. This chapter challenges ideas about the nature and validity of the ‘integrated’ view of marketing communications. Five separate interpretations about what integrated marketing communications might be are 148 PART 2 Managing Marketing coMMunications presented. This is a core chapter because it bridges the contextual elements and the appli- cation of the various disciplines. Chapter 5 Marketing communications: strategy and planning Chapter 6 Marketing communications: objectives and positioning Chapter 7 The communications industry: structure, operations and finance chapter 8 evaluation and metrics Chapter 9 Branding and marketing communications Chapter 10 Integrated marketing communications For readers with access to the companion website that accompanies this book, there are supplementary chapters, drawn from previous editions, available in PDF form: Marketing: relationships and communications employee branding Corporate branding and communications Financial resources for marketing communications Chapter 5 Marketing communications: strategy and planning Marketing communications strategy refers to a brand’s thematic platform, its overall positioning, and their customers and other stakeholders preferred approach to commu- nications. strategy should not be confused with objectives. tactics are concerned with the communications mix developed to deliver the strategy. Marketing communications strategies should at all times be aligned with the business and marketing strategies an organisation pursues. Marketing communications plans are concerned with the resources associated with the delivery of ongoing programmes and campaigns designed to articulate a brand’s marketing communications tactics and strategy. Aims and learning objectives The aims of this chapter are to develop understanding about the elements and concepts associated with marketing communications strategy and planning, and a planning framework within which to implement these strategies. The learning objectives are to enable readers to: 1. examine the meaning of strategy within a marketing communications context; 2. evaluate positioning as an interpretation of marketing communications strategy; 3. appraise the audience interpretation of marketing communications strategy; 4. discuss the use of various platforms as an interpretation of marketing communications strategy; 5. consider the value of the configuration interpretation of marketing communications strategy; 6. present a planning framework and consider the different elements and linkages involved in the development of marketing communications plans. 150 PART 2 Managing Marketing coMMunications the London olympics – a strategic success The success of any major sporting, religious or cul- travellers queued for hours and services were heav- tural event is partly dependant on the transport sys- ily delayed, while some events opened to near-empty tem and the movement of participants, organisers, stadia. In some cases competitors were unable to suppliers, audiences and, of course, the people who reach venues in time, resulting in rescheduling and live and work in the local environment. The Atlanta cancellations. 1996 olympic games are considered as an example of It was important, therefore, for the organisers of poor forecasting, planning and communication, which the London 2012 olympics to avoid this type of dis- resulted in the city grinding to an unceremonious aster. At the time the London transport network car- halt. The Atlanta transport system was overcrowded, ried over 25m journeys daily and was operating close Exhibit 5.1 Managing the volume and flow of people around London during the Olympic Games became a core activity for TfL Source: Alamy Images/Justin Kase z12z CHAPTER 5 Marketing coMMunications: strategy and pLanning 151 to capacity. even with a planned £6.5bn investment Audience 1: Background demand in infrastructure, modelling highlighted an extreme concentration of visitor flows likely at venues and This audience consisted of regular London travel- interchanges. While 65 per cent of public-transport lers making non-olympic journeys, whether by public and 70 per cent of roads would not be significantly transport or car. The goal required that 30 per cent affected, forecasting indicated that there would of them changed their travel habits on any given day. be over 3m incremental journeys per day and that research showed, however, that these people were 300 junctions and 187 public-transport ‘hotspots’ personally reluctant to adapt and were unmotivated would be affected. A solution was required to reduce to help the broader olympic effort, as most were demand and spread it across less congested routes ‘happy’ with their usual journey. They needed to be and times. encouraged to make alternative plans. The challenge was to develop a communications This was achieved this through the use of a three- strategy that would engage sufficient travellers and phased campaign. The goal of Phase one was to prompt them to modify their own journeys. research raise awareness of the disruption that the games showed that the risk of personal journey disruption would cause; phase two, outline the ‘Four ‘r’s’; and was a more effective message than contributing to three, encourage travellers to put their plans into the success of the games. this insight led to the core operation. message platform for the behavioural strategy, ‘get This was achieved through the use of advertising ahead of the games’. plus direct marketing and 106 million e-mails sent to Three core audiences were identified; people mak- the most at-risk customers. All activity was driven to ing non-olympic journeys (background demand), busi- www.getaheadofthegames.com, where information, nesses, and ticket holders. tips and travel planning tools were hosted. Travellers As everyone’s journey is unique, the strategy were also encouraged to subscribe via Twitter for focused on using marketing communications to ‘push’ real-time updates. travellers and businesses to various on-line planning tools. Individuals would then use these to assess for themselves the likely games impact and the options Audience 2: Businesses which would effectively ‘pull’ them into better journey It was necessary for businesses with London work- choices. forces to encourage their employees to change their The modelling revealed several options, referred to travel arrangements. This required them to adapt as the ‘Four ‘r’s’. working practises, travel times, and policies. Those Reduce – the number of journeys being made, and with road-based supply chains would be affected by encourage working from home. restrictions and potentially contribute to congestion, unless they made changes. Re-time – journeys to avoid peak hours, by stagger- To reach businesses face-to-face events and ing travel times. direct marketing (direct mail and e-crM) was used to Re-mode – by switching to less busy (potentially ‘reach the few to influence the many’, with activity quicker) modes, such as cycling, walking and bus. targeting key intermediaries and nominated olym- Re-route – on the same mode but take a different pic Liaison officers. the communication theme was route, and avoid the Jubilee and Central lines. based on ‘keep on running’, in line with the overall strategy. There was considerable overlap between the three awareness was raised via a conference in november audiences. Today’s ticket holder would be tomorrow’s 2010, followed by several high profile events, direct background demand, and either could be employees of mail, including a letter from Lord Coe, and paid-for a business. advertising in business environments. Particular communication mixes for each audience specific advertising and bulletins were targeted were developed around a common framework. at businesses making freight deliveries. At the same 152 PART 2 Managing Marketing coMMunications time, data released to satnavs and the freight indus- Outcomes try alerted drivers of congestion. The London Lorry control scheme was also relaxed to allow ‘out of Across all three audiences, awareness of likely disrup- hours’ deliveries. tion increased, which led to significant usage of the journey planning tools. Despite record demand, reliability was maintained or improved. over 99.5per cent of scheduled services Audience 3: Ticket holders ran during the games. Journey times were on-par or better than normal summer services. The surge was Visitors to London had little idea how to reach their limited to 1.7m extra journeys by a corresponding venue. Londoners had mistaken assumptions about 1.4m decrease in background demand. There were the best method. The car could not be the default 1.1m fewer road journeys at peak times, with 1.2m choice and the recommended journey was not neces- more taken instead before 7am. There were uplifts on sarily obvious. transport modes with ‘spare’ capacity; buses (+5 per The provision of relevant travel information for cent), walking (+9 per cent) and cycling (+25 per cent). Ticket Holders began early in the ticketing process. London’s preparations included pre-empting and the travel pages of the games web site ensured that preventing extreme transport overload and delays. potential purchasers could make informed decisions London coped with its unprecedented olympic surge before applying for tickets. Travel advice was subse- in part because underlying demand was managed and quently directed to successful purchasers via e-mail. marketing communications was effective. These reinforced the imperative that everyone should the total cost of the tdM campaign was £30m and use public transport, rather than cars. one-day travel the olympics passed without major disruption. in fact, Cards and travel information were despatched with media, competitors, spectators and other nations uni- each ticket. versally declared them a huge success. The first ever Spectator Journey Planner was cre- ated, providing nation-wide transport information in Sources: storey (2014); Hanley (2012); anon (2012); a single portal and directing spectators away from topham and gibson (2012); hotspots. on the day, signage, the use of games- Makers (volunteers) and an app were used to direct Questions relating to this case can be found at the spectators. end of this chapter. Introduction The word ‘strategy’ can conjure a number of diverse meanings and images. In a communications context, strategy can also be considered in various ways and at different levels. However, in order to explore and appreciate the role and nature of communications strategy it is useful first to appreciate the dimensions of the strategy concept. The management literature on strategy is extensive, yet there seems to be little agree- ment or consensus about what it is, what it means or how it should be developed. A discussion about this topic is beyond the scope of this book but interested readers should see Scholars’ paper 5.1. Strategy encompasses the design, implementation and evaluation of a course of action which leads to the satisfaction or achievement of previ- ously set objectives. Strategy, objectives, tactics and implementation are discrete activities but they are all an integral part of strategy. CHAPTER 5 Marketing coMMunications: strategy and pLanning 153 Scholars’ paper 5.1 What is strategy? These are classic publications from the ‘early’ strategy literature and they provide an insight into some of the principal ideas and approaches. Andrews, K. (1987) The Concept of Corporate Strategy, Homewood, IL: Richard D. Irwin. Ansoff, H.I. (1965) Corporate Strategy, New York: McGraw-Hill. Chaffee, E. (1985) Three models of strategy, Academy of Management Review, 10(1), 89–98. Kay, J. (1993) The structure of strategy, Business Strategy Review, 4(2), 17–37. Mintzberg, H. and Waters, J.A. (1985) Of strategies, deliberate and emergent, Strategic Management Journal, 6(3), 257–72. This chapter begins with a contextual and audience perspective on which to build marketing communications strategy. This is used in preference to a production orienta- tion, which is founded purely on a resource base. From this, four different interpreta- tions of marketing communications strategy are considered. The chapter closes with an exploration of a framework within which to plan, develop and implement marketing communications strategies. Marketing communications strategies The strategy adopted by TfL, as outlined in the case study, to engage London travel- lers and prompt them to modify their own journeys for a defined period of time was a planned, and complex, activity. It involved various audiences, consumed a large amount of resources, and required several messages, media and tools which had to be sequenced to maximise effectiveness. The prevailing approach to marketing communications strategy has traditionally been founded upon the configuration of the ‘promotional’ mix. Strategy was an interpretation of the tools in the mix and, hence, the resources an organisation deploys. This inside-out form of strategy is essentially resource-driven. Unfortunately this represents a production rather than a market orientation and as such is restricted and discredited. In addition, it cannot explain what it was that TfL did. A market orientation to strategy requires a consideration of the needs of the audience first and then a determination of the various messages, media and disciplines necessary to accomplish the strategy: an outside-in approach. This approach equates more closely to that undertaken by TfL. Many organisations do not develop and implement a communications strategy. They may develop brand strategies, advertising strategies, message strategies, and indeed some form of integrated marketing communications strategy, but there is little evidence of organisations developing overarching corporate-led communications strategies. 154 PART 2 Managing Marketing coMMunications Undoubtedly ideas concerning communications and strategy have not always been well articulated or taught together; they are often tactical and there is certainly little agreement on what constitutes corporate communications and marketing communica- tions strategies. Just as general strategy has been interpreted in different ways, so there are various explanations regarding what is marketing communications strategy. Broadly market- ing communications strategy concerns the overall approach used to realise marketing and communications objectives, within an audience-related context. However, this is a broad brush perspective, especially as the phrase ‘overall approach’ can be interpreted in different ways. Here, four main explanations are considered. They are drawn from the academic literature and practitioner experience and comment. These four are marketing communications as a position, as an audience, as a platform and as a configuration or pattern. These should not be considered to be discrete or exclusive interpretations, as aspects of each can be observed within the others. See Figure 5.1 and note that these strategic forms are loosely aligned with Mintzberg’s interpretation of strategy, featured at Scholars’ paper 5.1. MC strategy interpretation 1: Positioning strategies The process of market analysis and evaluation leading to planned strategies designed to meet prescribed and measurable goals is well established. It is argued that this enables finite resources to be used more efficiently as they can be directed towards markets that hold, potentially, greater value than other markets. This approach involves three main activities: market segmentation, target market selection, and positioning (otherwise referred to as STP). Market segmentation is the means by which organisations define the broad context within which their strategic business units (SBUs) and products are offered. Market segmentation is the division of a mass market into identifiable and distinct groups or segments, each of which has common characteristics and needs and displays similar Audience Platform Strategic interpretation Position Pattern Figure 5.1 Four interpretations of marketing communications strategy CHAPTER 5 Marketing coMMunications: strategy and pLanning 155 responses to marketing actions. Through this process specific target segments can be selected and marketing plans developed to satisfy the individual needs of the potential buyers in these chosen segments. The development, or rather identification, of segments can be perceived as opportunities and, as Beane and Ennis (1987) suggest, ‘a company with limited resources needs to pick only the best opportunities to pursue’. Viewpoint 5.1 Li Ning repositions against Chinese values Li ning is china’s largest sportswear brand but its commercial success has recently been challenged. With increasingly intense competition from both international brands such as nike and adidas, and domesti- cally from anta sports and peak sport, Li ning has reported considerable financial losses, and lost 80 per cent of its market value. chinese brand anta sports is popular among consumers in lower tier cities such as chengdu, Xian and nanjing. Here there has been rapid growth in disposable income and anta has positioned itself as affordable and durable. nike, adidas and other foreign sportswear brands have strong positions among sports-conscious consumers in the tier 1 cities, such as Beijing, shanghai, guangzhou, shenzhen. these consumers are willing to pay higher prices for equipment that is positioned on a high quality and technology platform. Li ning’s strategy involved targeting fashionable, fast-growing areas of sport in china, such as basketball. using Western sports stars such as nBa basketball superstar dwayne Wade, the goal was to attract younger consumers with a mid-range pricing strategy. The danger of this approach was that older, loyal customers would feel excluded. Li ning positioned itself as a high- quality brand, equivalent to the international brands, but did not support this with a suitable pricing strategy. as if in recognition of this flawed strategy Li ning shifted its positioning to one that embraced its roots in China and Chinese sports. This meant developing a different set of brand values to those introduced by the international brands. Three core values, sports legacy, Chinese health, and wisdom, were utilised. each of these are not capable of being copied or eroded by the international competitors. the brand’s sports legacy involves associating Li ning with what people can do with sports, which is to gain both physical and mental well-being. so, rather than using sport to win and be better than the competition, as exemplified by nike and their ‘i can do’ orientation, Li ning associates with inner and outer harmony through team sports, a ‘We’ orientation. instead of following nike and adidas down the technology and innovation positioning Li ning associ- ated itself with Chinese health, which incorporates traditional Chinese medicine, acupuncture, and an appreciation of how the body works. The advantage of this positioning is that it appeals to both the serious and fun sports enthusiast. to differentiate Li ning and divert attention away from the values associated with its international competitors, Li ning taps into ancient chinese wisdom, with china’s expertise in physical training and sports performance, particularly martial arts, being emphasised. Source: Fan and Murata (2015); Kwok (2014); Waldmeir (2011). Question: How might this positioning affect Li ning’s competitors? Task: Find two other sports brands and compare their approach to the Chinese market. 156 PART 2 Managing Marketing coMMunications Exhibit 5.2 Chinese gymnasts delivering the Li Ning salute Source: getty images/Jamie Mcdonald This process of segmentation is necessary because a single product is unlikely to meet the needs of all customers in a mass market. If it were, then a single type of toothpaste, chocolate bar or car would meet all of our needs. This is not so, and there are a host of products and brands seeking to satisfy particular buyer needs. Having identified a market’s various segments the next step is to select particular target markets. These represent the best marketing potential and, once selected, require that resources are concentrated on these and no others. Targeted segments, therefore, constitute the environment and the context for a marketing communications strategy and activities. It is the characteristics of the target segment and their perception that should shape an audience-centred marketing communications strategy. Edwards (2011) suggests that rather than refer to a target audience, a static interpretation of people, it is better to consider them on an emotional journey, and that we all fluctuate between four different emotional states. The actual self represents who we really are on a day-to-day basis, and perhaps this is the static person that the term ‘target audience’ refers to. There are times, however, when we move into a worry state, and times when we daydream and move into a fantasy self. Closest to our actual self is the idealised self, that person we would like to be, the person we strive to become. Marketing communications, as well as other elements of the marketing strategy, can be shaped to engage people according to their perceptions of themselves and their emotional states (see Figure 5.2). The final element in this process is positioning. Reference to the DRIP model empha- sises the importance of differentiation and the need to communicate a brand’s core point(s) of difference with its competitors (see Chapter 1). Positioning is about audiences understanding the claimed differences. CHAPTER 5 Marketing coMMunications: strategy and pLanning 157 Figure 5.2 A journey of four emotional stages Source: adapted from Work towards an ‘ideal self’ Marketing, 02/02/2011 (edwards, H.). reproduced from Marketing Magazine with the permission of the copyright owner, Haymarket Business Publications Limited. As noted in the earlier discussion about strategy, positioning is an integral concept, and for some the essence of strategy. Wind (1990) stated quite clearly that positioning is the key strategic framework for an organisation’s brand-based communications, as cited by Jewell (2007). All products and all organisations have a position in the minds of audiences. The task, therefore, is to manage actively the way in which audi- ences perceive brands. This means that marketing communications strategy should be concerned with achieving effective and viable positions so that the target audiences understand what the brand does, what it means (to them) and can ascribe value to it. This is particularly important in markets that are very competitive and where mobility barriers (ease of entry into and exit from a market, e.g. plant and production costs) are relatively low. Positioning is about visibility and recognition of what a product/service/organisation represents to a buyer. In markets where the intensity of rivalry and competition are increasing and buyers have greater choice, the fast identification and understanding of a product’s intrinsic values become critical. Channel members have limited capacities, whether this is the level or range of stock they can carry or, for retailers, the amount of available shelf space that can be allocated. An offering with a clear identity and orienta- tion to a particular target segment’s needs not only will be stocked and purchased, but can warrant a larger margin through increased added value. It is generally accepted that positioning is the natural conclusion to the sequence of activities that constitute a core part of strategy. Market segmentation and target mar- keting are prerequisites to successful positioning. Having established that marketing communications should be an audience-centred rather than product-centred activity, it can be concluded with some confidence that marketing communications strategy is essentially about positioning. For new products and services, marketing communica- tions needs to engage target audiences so that they can understand what the brand means, how it differs from similar offerings and, as a result, position it in their minds. For the vast majority of products and services that are already established, market- ing communications strategy should be concerned with either developing a strong position or repositioning it in the minds of the target audiences. Chapter 6 explores the positioning concept and the different strategies used by organisations to position their brands. 158 PART 2 Managing Marketing coMMunications Viewpoint 5.2 Changing the perceptions of Colombian coffee Coffee production and exporting has always been a critical element of the Colombian economy. Formed in 1927, the national Federation of coffee growers of colombia (Federacafe) is a not-for-profit cooperative business association mainly made up of small family businesses. Much of the Colombian coffee is high-quality beans but is used by roasters primarily as part of a blended coffee formula. In the late 1950s two environmental issues struck. First, the demand for coffee from the usa began to wane, as american consumers developed a preference for Brazilian coffee. the second issue concerned international prices for coffee, which were falling. To address this situation a brand strategy was developed. Part of this strategy required a change in the way international markets perceived Colombian coffee, and this required a strong, clear point of differen- tiation for the brand. The goal was to reposition Colombian coffee as a high-quality product, something that would warrant consumers and coffee roasters paying premium prices. In turn, these higher prices would enable the Colombian coffee growers to receive higher incomes. Federacafe developed a character called Juan Valdez. He was depicted with a sombrero, leather bag, poncho and his faithful mule ‘Conchita’. The character was designed to represent the thousands of cof- fee farmers that constitute the Colombian coffee industry, and be a means by which consumers could recognise and identify with the Colombian coffee brand. Juan Valdez was not just the face of Colombian coffee, he embodied the values of the coffee growers themselves: their pride, simplicity, dedication and knowledge. Juan Valdez was first presented to American consumers in January 1960 through a full-page ad in the New York Times. His picture was accompanied by the strapline ‘Colombian Coffee is drinking new york’. it was television, however, that established the character, as his task was to educate consumers about what it was that made Colombian coffee such high quality. This was achieved through a creative that showed him on his own farm, hand-picking coffee beans, with family and donkey, talking to camera and explaining how the various ingredients, such as soil components, altitude, varieties and harvesting methods, all combine to create rich flavour, contributing to the high quality of Colombian coffee. This informational message was conveyed using the Juan Valdez character in order to drive an emotional response and bond consumers with the brand. This proved highly effective to the point that consumer demand for Colombian coffee encouraged coffee roast- ers to included increasing amounts of Colombian coffee in their blends, before offering 100 per cent Colombian coffee. subsequent campaigns showed Juan Valdez demonstrating how to make coffee, and with his don- key he showed consumers where to find Colombian coffee in supermarkets. More recent campaigns have been targeted at younger adult audiences as a response to the surge in demand for coffee houses, espresso bars, and out-of-home coffee consumption, all of which attracted a new genera- tion of younger coffee drinkers. These campaigns featured Juan Valdez experiencing various diverse extreme sports, such as surfing, snowboarding and hang-gliding. the campaign was called ‘grab Life by the Beans’. in 2014 the brand began challenging starbucks by opening coffee houses in Florida. Source: kurata (2008); paajanen (2012); patton (2014); ramirez-Vallejo (2003). Question: What might be the limitations of a man and a donkey when attempting to change perceptions of a country/market? Task: Find another example of an attempt to change perceptions of a brand based on the use of an animal. CHAPTER 5 Marketing coMMunications: strategy and pLanning 159 Exhibit 5.3 Juan Valdez – the face of Colombian coffee Source: getty images/dario cantatore MC strategy interpretation 2: Audience strategies Consumer purchase decisions can be characterised, very generally, by a single-person buying centre, whereas organisational buying decisions can involve a large number of different people fulfilling different roles and all requiring different marketing communi- cations messages. In addition to this there are other stakeholders who have an interest in a brand’s development – for example, suppliers and the media. It follows from this that communications with these three very different audiences should be radically different, especially in terms of what, where, when and how a message is communicated. Three audience-focused marketing communications strategies emerge: Pull strategies – these are intended to influence end-user customers (consumers and B2B). Push strategies – these are intended to influence marketing (trade) channel buyers. Profile strategies – these are intended to influence a wide range of stakeholders, not just customers and intermediaries. These are referred to as the ‘3Ps’ of marketing communications strategy and can be considered to be generic strategies thanks to their breadth. Push and pull relate to the direction of communications in a marketing channel: pushing communications down through a marketing channel or pulling consumers/buyers into a channel via retailers, as a result of receiving communications. They do not relate to the intensity of commu- nications and only refer to the overall approach. Profile refers to the presentation of an 160 PART 2 Managing Marketing coMMunications Table 5.1 An audience interpretation of marketing communications strategy Target audience Message focus Communications goal Consumers Product/service Purchase end-user B2B customers Product/service Purchase Channel intermediaries Product/service Developing relationships and distribution network All relevant stakeholders The organisation Building reputation organisation as a whole and the reputation that it bestows on its brands. The identity is said to be ‘profiled’ to various other target stakeholder audiences, which may well include consumers, trade buyers, business-to-business customers and a range of other influential stakeholders. Normally, profile strategies do not contain or make reference to the specific products or services that the organisation offers. See Table 5.1 for a further explanation of each of these three dimensions. A pull strategy If messages designed to position a brand are to be directed at targeted, end-user customers, then the intention is invariably to generate increased levels of awareness, change and/or reinforce attitudes, reduce risk, encourage involvement and ultimately provoke a motiva- tion within the target group. This motivation is to stimulate action so that the target audi- ences expect the offering to be available to them when they decide to enquire, experiment or make a repeat purchase. This approach is a pull (positioning) strategy and is aimed at encouraging customers to ‘pull’ products through the channel network (see Figure 5.3). This usually means that consumers go into retail outlets (shops) to enquire about a par- ticular product and/or buy it, or to enter a similar transaction direct with the manufacturer or intermediary through direct mail or the Internet. B2B customers are encouraged to buy from dealers and distributors while both groups of consumers and B2B customers have opportunities to buy through direct marketing channels where there is no intermediary. Figure 5.3 The direction of a marketing communications pull strategy Source: From Essentials of Marketing Communications, pearson education (Fill, c. 2011) figure 4.2, p. 99. CHAPTER 5 Marketing coMMunications: strategy and pLanning 161 Figure 5.4 The direction of a marketing communications push strategy Source: From Essentials of Marketing Communications, pearson education (Fill, c. 2011) figure 4.3, p. 102. A push strategy A second group or type of target audience can be identified on the basis of their contri- bution to the marketing channel and because these organisations do not consume the products and services they buy, but add value before selling the product on to others in the demand chain. The previous strategy was targeted at customers who make purchase decisions related largely to their personal (or organisational) consumption of products and services. This second group buys products and services, performs some added-value activity and moves the product through the marketing channel network. The ‘trade’ channel has received increased attention in recent years as the strategic value of intermediaries has become both more visible and questioned in the light of the Internet. As the channel networks have developed, so has their complexity, which impacts upon the marketing communications strategies and tools used to help reach marketing goals. A push communications strategy concerns an attempt to influence other trade channel organisations and, as a result, encourage them to take stock, to allocate resources (e.g. shelf space) and to help them to become fully aware of the key attributes and benefits associated with each product with a view to adding value prior to further channel trans- actions. This strategy is designed to encourage resale to other members of the network and contribute to the achievement of their own objectives. This approach is known as a push strategy, as it is aimed at pushing the product down through the channel towards the end-users for consumption (see Figure 5.4). The example set out in Viewpoint 5.3 demonstrates how push and pull strategies very often work together, because audiences are not silos. This approach is quite common in FMCG markets. Viewpoint 5.3 Push–pull dog owners Pharmaceutical firm Bayer market a brand called Advocate. This is designed to prevent the onset of lung- worm, a potentially fatal parasitic infection in dogs. The disease is most often contracted by dogs licking or eating slugs and snails. As this is a pharmaceutical product it cannot be promoted or sold directly to the public, and has to be prescribed by vets. 162 PART 2 Managing Marketing coMMunications Bayer therefore need to communicate with two audiences. The first audience is dog owners where the primary tasks are to raise awareness of the problem (lungworm) and encourage the owners to talk to their vet about the issues in order to have a preventative treatment. This is a pull strategy. The second audience is vets and here the core tasks are to differentiate the brand and to persuade vets to prescribe Advocate. This is essentially a push strategy. Previous Bayer/Advocate awareness campaigns had showed dogs happily eating slugs and snails. The seriousness of the infection, however, was not understood by the audience so a new, harder campaign was required to alert dog owners and get them talking about the condition. A TV ad was developed which showed a young boy playing Frisbee with the family dog in a garden. The dog is shown to be lying still, lifeless, and the boy calls out in alarm to his parents in the house. The dog then springs back to be full of life. The message has a happy ending but depicts a potential tragedy had the dog been infected. The campaign was launched at the Crufts dog show, endorsed by the TV personality Amanda Holden, a self-confessed dog lover. Bayer launched Houndwaves, a radio station for the event, to stimulate conversations and fun stories among dog lovers. A photo campaign on Facebook was also launched as part of a Crufts competition. This ran the line that ‘I’m lungworm aware’. The push strategy involved a direct mail campaign informing vets of the consumer campaign and pre- paring them for an increase in the number of enquiries and to make sure they had sufficient stock of Advo- cate. Vets were also provided with leaflets, point-of-sale posters, and wall displays for their waiting areas. The campaign drove sales up by 41 per cent year on year, and there was a 78 per cent increase in the number of visits to vets to discuss lungworm. Following the press launch at Crufts, traffic to the Bayer Animal Health’s website spiked at 427 per cent, whilst various social media metrics grew substantially. Per- haps not intended, but 86 per cent of vets claim that they have added lungworm to their routine check-ups. Source: Bradley (2014); www.animalhealth.bayer.com/4910.0.html; www.lungworm.co.uk/. Question: Discuss the notion that the depiction of a pet’s death is unethical and should not be used in advertising. Task: Develop an outline plan concerning ways in which social media could be used to extend the reach of the Advocate brand. Exhibit 5.4 Bayer’s Advocate brand for the treatment of parasites Source: copyright of Bayer ag CHAPTER 5 Marketing coMMunications: strategy and pLanning 163 A profile strategy The strategies considered so far concern the need for dialogue with customer audiences (pull) and trade channel intermediaries (push). However, there is a whole range of other stakeholder audiences, many of whom need to know about and understand the organ- isation rather than actually purchase its products and services (see Figure 5.5). This group of stakeholders may include financial analysts, trade unions, government bodies, employees or the local community. It should be easy to understand that these different stakeholder groups can influence the organisation in different ways and, because of this, need to receive (and respond to) different types of messages. Thus, the financial analysts need to know about financial and trading performance and expectations, and the local community may be interested in employment and the impact of the organisation on the local environment, whereas the government may be interested in the way the organisa- tion applies health and safety regulations and pays corporation, VAT and other taxes. It should also be remembered that consumers and business-to-business customers may also be more interested in the organisation itself and so help initiate an umbrella branding strategy. Traditionally these organisation-oriented activities have been referred to as corpo- rate communications, as they deal more or less exclusively with the corporate entity or organisation. Products, services and other offerings are not normally the focus of these communications. It is the organisation and its role in the context of the particular stakeholders’ activities that are important. Communications used to satisfy this array of stakeholder needs and the organisation’s corporate promotional goals are developed through what is referred to as a profile strategy, a major element of which is corporate branding. A profile strategy focuses an organisation’s communications upon the development of stakeholder relationships, corporate image and reputation, whether that be just inter- nally, just externally or both. To accomplish and deliver a profile strategy, public rela- tions, including media relations, sponsorship and corporate advertising, become the pivotal tools of the marketing communications mix. Figure 5.5 The direction of a marketing communications profile strategy Source: From Essentials of Marketing Communications, pearson education (Fill, c. 2011) figure 4.4, p. 102. 164 PART 2 Managing Marketing coMMunications Within each of these overall strategies, individual approaches should be formulated to reflect the needs of each particular case. So, for example, the launch of a new shampoo product will involve a push strategy to get the product on the shelves of the appropriate retailers. The strategy would be to gain retailer acceptance of the new brand and to posi- tion it as a profitable new brand to gain consumer interest. Personal selling supported by trade promotions will be the main marketing communications tool. A pull strategy to develop awareness about the brand will need to be created, accompanied by appropri- ate public relations work. The next step will be to create particular brand associations and thereby position the brand in the minds of the target audience. Messages may be primarily functional or expressive, but they will endeavour to convey a brand promise. This may be accompanied or followed by the use of incentives to encourage consumers to trial the product. To support the brand, care lines and a website will need to be put in place to provide credibility as well as a buyer reference point and an opportunity to interact with the brand. The 3Ps provide a generic approach to marketing communications strategy. To pro- vide more precision and utility it is possible to combine the positioning approach con- sidered previously with each of these 3Ps. Scholars’ paper 5.2 The benefits of keeping the ivories clean Haley, R.I. (1968) Benefit segmentation: a decision-oriented research tool, Journal of Marketing, 32 (July), 30–5. russell Haley’s paper is a classic as it demonstrates some pioneering research through which he identifies four distinct types of customer: those who bought toothpaste for white teeth (sociables); those who wished to prevent decay (worriers); those who liked the taste and refreshment properties (sensors); and, finally, those who bought on a price basis (independents). each of these groups has particular demographic, behaviouristic and psychographic characteristics from which different brands have developed, all of which require audience-focused brand communications. MC strategy interpretation 3: Platform strategies A brand’s communications should express its promise, and much of this is achieved through a brand’s values and differential claims. In order to maintain brand author- ity and legitimacy, it is critical to maintain consistency in these communications. This requires a brand to be anchored, to have a set of grounded principles through which the brand is presented at all times. This anchoring has a central role in developing the core images stakeholders have of a brand. Many organisations, in conjunction with their agencies, determine a strategic theme or platform to anchor their brands. These platforms concern the essence of the promise a brand makes to its customers. For example, this promise may be that the brand delivers happiness (Coca-Cola), safety (Volvo – cars), whiteness (Persil – washing powder), win- ning mentality (Nike), extra-long life (Duracell – batteries), value (Aldi and Lidl – super- markets), reliability (Kia – cars), adrenalin rush (Red Bull), or any number of things. Marketing communications strategy should be developed thematically and consist- ently around an agreed core theme, or a platform. If stakeholders do not discern any core messages then the brand will not be positioned clearly and the resultant diffused or confused messages might lead to underperformance. CHAPTER 5 Marketing coMMunications: strategy and pLanning 165 Strategy and the Institute of Practitioners in Advertising Utilising some of the findings of the IPA’s research into successful campaigns, three main platforms can be identified. These are based on an advertising-led creative plat- form, a brand concept or need-state platform, and platforms based on conversation and participation. Creative platforms are strategies based on a big, core advertising-led idea that enables audiences to recognise the idea across different media and touchpoints. These campaigns might share the same ‘look and feel’, response mechanic, competition, brand icon across channels, or central idea that is disseminated through the most appropriate media. P&O Ferries uses a flag as its visual identity across all channels, including on-board communi- cations, advertising and customer communications. The Hovis (bread) revival campaign, the Still Red Hot campaign by Virgin Atlantic, and the 118 118 directory service all serve to illustrate the advertising-led platform. Brand concept platforms are characterised by their root within the brand. This means they can be communicated using a variety of different creative expressions over time, something an advertising-led idea cannot accomplish. These types of campaigns can be disaggregated into those based on tangible product attributes and those founded on more intangible conceptual ideas. Tangible campaigns identify a specific occasion (e.g. a birthday celebration), a tightly defined target audience (e.g. first-time mothers) or a specific ‘point of market entry’ (e.g. a new product). Intangible campaigns are developed from emotional concepts which allow them a high degree of creative inconsistency, are used across a range of tools and, unlike the advertising-led platforms, last a long time. Honda’s ‘The Power of Dreams’ (2004) and Johnnie Walker’s global campaign in 2009 are cited by the IPA as great examples of the use of this type of strategic platform (IPA, 2011). Participation platforms represent a more recent strategic approach, thanks mainly to the interactive properties of digital media. This enables brands and audiences to interact, engage in dialogue, conversations and participation in a range of events, actions and communities. This platform aims to integrate a brand into people’s life patterns in a way that is significant and relevant to them. Audiences are invited to participate in a centrally driven brand idea, which is then played back through public media in order to involve others. BT (telecoms) invited audiences to suggest storylines for the relationship that was devel- oping, and later sagging, between its ad-brand couple. Viewpoint 5.4 Crisp user participation the super Bowl is more than a game of football, it is an advertising spectacular. the annual event attracts not only die hard football fans but also those drawn by the entertainment staged during time outs. The cleverly styled ads have become an integral part of the viewing experience. In 2014 over 111 million people in the usa tuned in, and that ignores the world-wide audience, to watch the nFL final and the ads that each cost approximately us$4 million for a 30-second spot. this event is seen as a fantastic vehicle to showcase brands, generate vast brand awareness and achieve a positive impact on sales. Doritos use the opportunity to reach and influence a highly engaged audience and their brand users in 46 countries. With advertising clutter becoming more intense companies are constantly looking for inno- vative ways to break through the noise. In the light of the ever increasing use of digital technology and the growth of social media, Doritos decided to run a major user-generated campaign called ‘Crash the super Bowl’. consumers are invited to make and submit an ad for the brand. in 2015, 29 semi-finalists 166 PART 2 Managing Marketing coMMunications were selected, from which a panel found the top 10, which were presented for an online vote. The win- ner not only has the prestige of winning but also receives a substantial money prize – us$1 million – and the opportunity to work as a creative contractor at Universal Pictures in Hollywood for a year. Doritos also win because they optimise their interaction with amateur filmmakers through the creation of an ad, who then seek support and votes from all their contacts. This results in a highly engaged audi- ence with plenty of brand exposure, even before the game starts. Add to this the publicity that the event and Doritos generate, the savings the brand makes in not hiring an agency, and the wealth of creative ideas that are unleashed, the end result is a resounding user-generated success. Handing all power over to consumers is a huge risk but can result in a massive pay-out and, in fact, it has proven so successful that doritos have repeated their ‘crash the super Bowl’ campaign in subsequent years. Source: Anon (2014a, 2014b); Baumgarten (2012); Cassinelli (2014); Faeth (2014); Jarboe (2015); Power (2014). This Viewpoint was written by Ellie Harris when she was a Marketing and Advertising student at Leeds Beckett University. Question: To what extent might the co-creation theme adopted by Doritos be disadvantaged against an agency-managed campaign run by Budweiser and others? Task: Make notes about the social media performance of any two brands at the super Bowl. MC strategy interpretation 4: Configuration strategies The configuration approach to marketing communications strategy gives emphasis to the structural aspects associated with the design of a message, and the way it is conveyed and received. This approach seeks to maximise the effectiveness of a communications activity by matching goals and resources with an audience’s needs. This might involve varying the frequency with which a message is received by the target audience, continuity issues; others involve managing the formality, permanence or direction of a message. Com- munications strategies designed to get the attention of the audiences are commonplace, while others seek to be immersed or provide continual presence. This approach to com- munications strategy involves the configuration of four facets of communications: the frequency, direction, modality and content of communications (Mohr and Nevin, 1990). Frequency The amount of contact between members of a communications network can impact on effectiveness. Too much information (too frequent, aggregate volume or pure repeti- tion) can overload people and have a dysfunctional effect and affect learning. Too little information can undermine the opportunities for favourable performance outcomes by failing to provide the necessary operational information, motivation and support. As a consequence, it is important to identify the current volume of information being pro- vided and to make a judgement about the desired levels of communications and optimise learning opportunities. Direction This refers to the horizontal and vertical movement of communications within a net- work. Each network consists of people who are dependent on others, but the level of dependence will vary, so that the distribution of power and influence is unequal. CHAPTER 5 Marketing coMMunications: strategy and pLanning 167 Communications can be unidirectional in that they flow in one direction only. For example, information from a major food retailer, such as Aeon in Japan, Pão de Acucar in Brazil, or Metro in Canada, to small food manufacturers might be considered to be unidirectional because the small food manufacturers perceive little reason to respond, as these supermarkets represent a source of power. Communications can also be bidi- rectional: that is, to and from organisations and influential opinion leaders and formers. Modality Modality refers to the method used to transmit information and there is a wide variety of interpretations of the methods used to convey information. Modality can be seen as communications that is formal, planned and regulated, or informal, unplanned and spontaneous, such as word-of-mouth communications and water-cooler conversations. Content This refers to what is said. Frazier and Summers (1984) distinguish between direct and indirect influence strategies. Direct strategies are designed to change behaviour by specific request (recommendations, promises and appeals to legal obligations). Indirect strategies attempt to change another person’s beliefs and attitudes about the desirability of the intended behaviour. This may take the form of an information exchange, where the source uses discussions about general business issues to influence the attitudes of the receiver. Social networks and online communities serve to influence consumer attitudes and change behaviour. Exchange relationship Communications strategies work within particular contexts, often characterised by the nature of the prevailing relationships and associated exchanges, the level of trust and support experienced by those in the communications network, and aspects of power as perceived by organisations in a B2B environment. According to Stern and El-Ansary (1988), the nature of the exchange relationship structures the way communications should be used. Collaborative exchanges have a long-term perspective and high interdependence and involve joint decision-making. By contrast, market exchanges are ad hoc and hence have a short-term orientation where interdependence is low. Climate Climate refers to the degree of mutual supportiveness that exists between participants. Anderson et al. (1987) used measures of trust and goal compatibility in defining com- munications climate. Power Dwyer and Walker (1981) showed that power conditions within a marketing channel can be symmetrical (with power balanced between members) or asymmetrical (with a power imbalance). Two specific forms of communications strategy can be identified. The first is a combination referred to as a ‘collaborative communications strategy’ and includes higher-frequency, more bidirectional flows, informal modes and indirect content. This combination is likely to occur where there are collaborative structures, supportive cli- mates or symmetrical power. The second combination is referred to as an ‘autonomous 168 PART 2 Managing Marketing coMMunications communications strategy’ and includes lower-frequency, more unidirectional communi- cations, formal modes and direct content. This combination is likely to occur in channel conditions of market structures, unsupportive climates and asymmetrical power. Communications strategy should, therefore, be built upon the characteristics of the sit- uation facing each communications episode. Not all audiences share the same conditions, nor do they all possess the same degree of closeness or collaborative expectations. By considering the nature of the channel conditions and then developing communications strategies that complement them, the performance of the focus organisation and other members can be considerably improved, and conflict and tension substantially reduced. Although the configuration approach is often associated with marketing-channel- based communications, the principles can be observed in consumer markets. Stern and El-Ansary (1992) stress consideration of information flows and movement, and, in particular, the timing and permanence of the communications flows. In addition, work by Mohr and Nevin (1990) takes into account the various facets of commu- nications and the particular channel structures through which communications are intended to move. Scholars’ paper 5.3 Configuration and communications Mohr, J. and Nevin, J.R. (1990) Communication strategies in marketing channels, Journal of Marketing, October, 36–51. Written at a time when there was little published material on marketing communica- tions strategy, this paper shed new light on strategy within marketing channels. now the contingency principles presented by Mohr and nevin have relevance in terms of the configuration approach to marketing communications strategy. All marketing communications students should read this paper. Planning marketing communications The context in which a communications event occurs not only shapes what and how messages are developed and conveyed, but also influences the interpretation and meaning ascribed to communications. In other words, the goals can be missed if the marketing communications is not entirely effective. The development of marketing communications plans helps to minimise errors and provide for efficiency and effectiveness. There are a number of contexts that influence or shape marketing communications. All marketing managers (and others) should understand these contextual elements and appreciate how they contribute and influence the development of marketing communica- tions programmes. In addition, there are a number of other elements and activities that need to be built into a programme in order that it can be implemented. These elements concern the goals, the resources, the communications tools to be used and measures of control and evaluation. Just like the cogs in a clock, these elements need to be linked together if the plan is to work. Planning frameworks aim to bring together the various elements into a logical sequence of activities. The rationale for decisions is built on information generated at previous levels in the framework. It also provides a checklist of activities that need to be considered. CHAPTER 5 Marketing coMMunications: strategy and pLanning 169 However, there needs to be a word of caution as sometimes unforeseen events can lead to serious disruption of marketing communications plans. For example, compa- nies working in the holiday industry set out detailed marketing communications plans accounting for economic conditions and forecasts. Unfortunately these plans can be disrupted by a number of different crises, such as terrorism and outbreaks of civilian unrest or even war, extreme weather conditions such as volcanic ash clouds, hurricanes, heavy rain and snow, or health issues such as illness and disease. To help students and managers comprehend the linkages between the elements and to understand how these different components complement each other, the rest of this chapter deals with the development of marketing communications plans. To that extent it will be of direct benefit to managers seeking to build plans for the first time or for those familiar with the activity to reconsider current practices. Second, the material should also be of direct benefit to students who are required to understand and perhaps prepare such plans as part-fulfilment of an assessment or examination in this subject area. The marketing communications planning framework The principal tasks facing those managing marketing communications are to decide: Who should receive the brand’s messages. What is to be achieved. What the messages should say. How the messages are to be delivered. What actions the receivers should take. What image of the organisation/brand receivers are expected to retain. How much is to be spent establishing this new image. How to control the whole process once it has been implemented. What was achieved. Note that more than one message is transmitted and that there is more than one target audience. This is important, as recognition of the need to communicate with multiple audiences and their different information requirements, often simultaneously, lies at the heart of marketing communications. The aim is to generate and transmit messages which present the organisations and their offerings to their various target audiences, encouraging them to enter into a dialogue. These messages must be presented consist- ently and they must address the points stated above. It is the skill and responsibility of the marketing communications planner to blend the communications tools and to create a mix that satisfies these elements. The marketing communications planning framework (MCPF) (presented in Figure 5.6), represents a sequence of decisions that marketing managers undertake when preparing, implementing and evaluating communications strategies and plans. It does not mean that this sequence reflects reality; indeed, many marketing decisions are made outside any recognisable framework. However, as a means of understanding the differ- ent components, appreciating the way in which they relate to one another and bringing together various aspects for work or for answering examination questions leading to a qualification, both academic and professional, this approach has many advantages and has been used by a number of local, national and international organisations. 170 PART 2 Managing Marketing coMMunications Context analysis Corporate goals Marketing research Marketing goals Agencies Tools Implementation Media Scheduling Resources Content Evaluation Figure 5.6 A marketing communications planning framework (MCPF) Marketing communications activities should seek to satisfy particular objectives through the explicit and deliberate development of a communications strategy. The MCPF will be used to show, first, the key elements, second, some of the linkages and, third, the integrated approach that is considered good practice. This framework reflects the deliberate or planned approach to strategic marketing communications. The processes associated with marketing communications, however, are not linear, as depicted in this framework, but integrative and interdependent. To that extent, this approach recognises the value of stakeholder theory and the require- ment to build partnerships with buyers and other organisations networked with an organisation. Other ‘decision sequences’ have been advanced, in particular one by Rothschild (1987) and another by Engel et al. (1994). One of the difficulties associated with these frame- works is that they fail to bring strategy into the development of the promotional mix. These frameworks rely on the objective and task approach, whereby plans are developed for each of the individual communications tools, and then aggregated to form strategy. Viewpoint 5.5 Pringles plan a Chinese crunch The snack brand Pringles had a small share of the highly competitive market in China. Additionally, their 50 per cent price premium made life even more challenging. In 2009 the product was made ‘crunchier’ than earlier offerings. An integrated campaign was launched aimed at promoting the functional product benefit – ‘crunchiness’ – fun and engaging. Following the model, the campaign consisted of the following stages: 1. Campaign responsibilities agency, grey advertising in Hong kong, was appointed to develop the campaign for pringles. 2. Target audience this was termed generation (g) y – single males and females 18–24 years old. in most other markets, the target audience is primarily mothers with children. CHAPTER 5 Marketing coMMunications: strategy and pLanning 171 3. Campaign objectives engage target audience. strengthen brand equity attributes (crunchiness). Drive sales and profit. 4. Budget Media budget was less than us$1 million. 5. Media selection and planning online videos. Application game and social networking site. Bulletin Board system (BBs) programme – internet forum. Flash mobbing video in Beijing – used top video-sharing sites. online press releases. Instore activity. 6. Advertising development and testing consumer insights were gained via visits to gen y homes, accompanied store visits and social interac- tion. this identified that gen y spend little time watching tV compared to online sources of entertain- ment. other information was gathered from published market research, magazines, blogs and websites. Qualitative product research was carried out on the crunchiness – ‘kacha’ – concept. Positive results were followed up using quantitative techniques. 7. Implementation and scheduling Three branded online videos were launched at the end of July 2009. Two weeks later, three unbrand- ed videos with a twist were released. game and brand zone went live in mid-august 2009. end of august – BBs programme launched. Flash mobbing, one month after online videos. august–september in-store activities, point of sale and tastings. 8. Campaign evaluation sales outperformed category average annualised growth. online videos achieved excellent impact on brand metrics and significantly increased all pringles brand equity attributes (Millward Brown). over 10 million hits in eight weeks. Brand zone and application game performed much better than most site campaigns (Millward Brown). Flash mobbing video generated over 1.1 million views. Source: Based on www.warc.com/prize. Question: Why were the media chosen by pringles effective in this case? Task: Prepare an outline advertising campaign plan for a consumer brand in a market of your choice. Another framework, the SOSTAC® approach (situation, objectives, strategy, tactics, action, control), was developed by Smith (2003). This is essentially a sound system, and moves closer than most of the others to help formulate suitable marketing communica- tions plans. However, as SOSTAC is multi-purpose and is intended for application to a variety of planning situations, there is a danger that the communications focus is lost at the situation analysis phase when used for developing marketing communications plans. This can lead to a reiteration of a SWOT (strengths, weaknesses, opportunities, 172 PART 2 Managing Marketing coMMunications threats) and/or a general marketing plan, with subsequent problems further down the line in terms of the justification and understanding of the communications strategy and mixes that need to be deployed. In addition, the SOSTAC model does not give sufficient emphasis to the need to identify and understand the characteristics of the target audi- ence, which is so important for the development of coherent marketing communications. The MCPF approach presented here is not intended to solve all the problems associ- ated with the formulation of such plans, but it is sufficiently robust to meet the needs of employers and examiners, and is recommended. Elements of the plan Marketing communications plans should consist of the following elements. These elements are now considered in turn. Context analysis (developed from a communications perspective) Communications objectives Marketing communications strategy Coordinated communications mix (tools, media and content) Resources (human and financial) Scheduling and implementation Evaluation and control Feedback. Context analysis Analysing the context in which marketing communications events occur is a necessary, indeed vital, first step in the planning process. Bloxham and Sylvester (2013) stress the importance of a context analysis within a media context, and state that an understanding of the context in which media are used and messages consumed is necessary in order to optimise the impact of marketing communications. This can be seen clearly in the TfL case at the beginning of this chapter. Bosiljevac (2015) argues that an understanding of context helps bridge the work of strategists, creatives and the media team, in order to create customer relevancy. This might be in terms of really understanding the audience and saying something insightful, or finding a point of connection that complements the audience’s pattern of media usage. The purpose of a context analysis is to understand the key market and communica- tions drivers that are likely to influence (or are already influencing) a brand (or organi- sation) and either help or hinder its progress towards meeting its long-term objectives. This is different from a situation analysis, because the situation analysis considers a range of wider organisational factors, most of which are normally considered in the develop- ment of marketing plans (while the communications focus is lost). Duplication is to be avoided, as it is both inefficient and confusing. The compilation of a context analysis (CA) is very important, as it presents informa- tion and clues about what the promotional plan needs to achieve. Information and mar- ket research data about target audiences (their needs, perception, motivation, attitudes and decision-making characteristics), the media and the people they use for information about offerings, the marketing objectives and time scales, the overall level of financial and other resources that are available, the quality and suitability of agency and other out- sourced activities, and the environment in terms of societal, technological, political and economic conditions, both now and at some point in the future, all need to be considered. CHAPTER 5 Marketing coMMunications: strategy and pLanning 173 Table 5.2 The main elements of the context analysis Context element Dimensions The customer context segment characteristics Levels of awareness, perception and attitudes towards the brand/ organisation Levels of involvement and types of perceived risk DMU characteristics and issues Media usage The business Corporate and marketing strategy and plans context Brand/organisation analysis Competitor analysis The internal Financial constraints context organisation identity Culture, values and beliefs Marketing expertise Agency availability and suitability The external Who are the key stakeholders and why are they important? context What are their communications needs? social, political, economic and technological restraints and opportunities At the root of the CA is the marketing plan. This will already have been prepared and contains important information about the target segment, the business and marketing goals, competitors and the time scales in which the goals are to be achieved. The rest of the CA seeks to elaborate and build upon this information so as to provide the detail in order that the plan can be developed and justified. The CA provides the rationale for the communications plan. It is from the CA that the marketing objectives (from the marketing plan) and the marketing communications objectives are derived. The type, form and style of the message are rooted in the charac- teristics of the target audience, and the media selected to convey messages will be based on the nature of the tasks, the media habits of the audience and the resources available. The main components of the CA are set out in Table 5.2. Communications objectives The role of communications objectives in the planning process is important for a number of reasons. First, they provide a balance to the plan and take away the sole emphasis on sales that inevitably arises. Second, they indicate positioning issues, third, they highlight the required balance of the mix, fourth, they provide time parameters for campaigns and, finally, they provide a crucial means by which particular marketing communica- tions activities are evaluated. Ideally, communications objectives should consist of three main elements: 1. Corporate objectives. These are derived from the business or marketing plan. They refer to the mission and the business area that the organisation believes it should be in. 2. Marketing objectives. 174 PART 2 Managing Marketing coMMunications These are derived from the marketing plan and are output-oriented. Normally these can be considered as sales-related objectives, such as market share, sales revenues, volumes, ROI and profitability indicators. 3. Marketing communications objectives. These are derived from an understanding of the current context in which a brand exists and the future context in the form of where the brand is expected to be at some point in the future. These will be presented as awareness levels, perception, comprehension/knowledge, attitudes towards and overall degree of preference for the brand. The choice of communications goal depends on the tasks that need to be accomplished. In addition, most brands need either to maintain their current brand position or to reposition themselves in the light of changing contextual conditions. These three elements constitute the communications objectives and they all need to be set out in SMART terminology (see Chapter 6). What also emerges is a refinement of the positioning that managers see as important for success. Obviously, not all plans require express attention to positioning (e.g. government information campaigns) but most commercial and brand-oriented communications programmes need to communi- cate a clear position in their market. Thus, at this point the positioning intentions are developed and these will be related to the market, the customers or some other dimen- sion. The justification for this will arise from the CA. Marketing communications strategy As noted earlier, the communications strategy can take many different forms, but should always be customer-, not method/media-oriented. Therefore, the strategy depends on whether the target audience is a customer segment, a distributor or dealer network or whether other stakeholders need to be reached. In addition, it is imperative that the strategy be geared to the communications needs of the target audience that is revealed during the customer and business context analyses. This will show what the task is that marketing communications needs to fulfil. Having established who the audience is, push-, pull- or profile-dominated strategies can be identified. The next step is to determine the task that needs to be accomplished. This will have been articulated previ- ously in the marketing communications objectives, but the approach at this stage is less quantitative and softer. The DRIP tasks of marketing communications can be used to suggest the strategy being pursued. For example, if a new brand is being launched, the first task will be to inform and differentiate the brand for members of the trade before using a pull strategy to inform and differentiate the brand for the target, end-user customers. An organisation wishing to signal a change of strategy and/or a change of name following a merger or acquisition may choose to use a profile strategy and the primary task will be to inform of the name change. An organisation experiencing declining sales may choose to remind customers of a need or it may choose to improve sales through persuasion. Coordinated communications mix Having formulated, stated and justified the required position, the next step is to present the basic form and style of the key message that is to be conveyed. Is there to be a lot of copy or just a little? Is there to be a rational or emotional approach or some weight- ing between the two? What should be the tone of the visual messages? Is there to be a media blitz? It is at this point that those responsible for the development of these plans can be imaginative and try some new ideas. Trying to tie in the message to the strategic orientation is the important part, as the advertising agency will refine and redefine the message and the positioning. CHAPTER 5 Marketing coMMunications: strategy and pLanning 175 From this the communications mixes need to be considered for each of the strategies proposed: that is, a mix for the consumer strategy, a mix for the trade strategy and a distinct mix for the communications to reach the wider array of stakeholders. The choice of methods should clearly state the tools and the media to be used. A short paragraph justifying the selection is very important, as the use of media in particular is to a large extent dependent upon the nature of the goals, the target audi- ence and the resources. The key is to provide message consistency and a measure of integration. Resources This is a vitally important part of the plan, one that is often avoided or forgotten about. The resources necessary to support the plan need to be determined and these refer not only to the financial issues but to the quality of available marketing expertise and the time that is available to achieve the required outcomes. Project management software such as Prince2, and Gantt charts and other planning aids, are best used to support this part of the plan. Preferably, actual costs should be assigned, although percentages can be allocated if being written for examination purposes. What is important is the relative weighting of the costs, and a recognition and understanding of the general costs associated with the proposed communications activities. It must be understood that the overall cost of the strategy should be in proportion to the size of the client organisation, its (probable) level of profitability and the size and dynamics of the market in which it operates. Scheduling and implementation The next step is to schedule the deployment of the methods and the media. Events should be scheduled according to the goals and the strategic thrust. So, if it is necessary to communicate with the trade prior to a public launch, those activities tied into the push-positioning strategy should be scheduled prior to those calculated to support the pull strategy. Similarly, if awareness is a goal then, if funds permit, it may be best to use television and posters first before sales promotions (unless sampling is used), direct marketing, point of purchase and personal selling. Evaluation and control Unless there is some form of evaluation, there will be no dialogue and no true mar- keting communications. There are numerous methods to evaluate the individual performance of the tools and the media used, and for examination purposes these should be stated. In addition, and perhaps more meaningfully, the most important measures are the communications objectives set in the first place. The success of a promotional strategy and the associated plan is the degree to which the objectives set are achieved. Feedback The planning process is completed when feedback is provided. Not only should infor- mation regarding the overall outcome of a campaign be considered, but so should individual aspects of the activity. For example, the performance of the individual tools used within the campaign, whether sufficient resources were invested, the appropriate- ness of the strategy in the first place, any problems encountered during implementation 176 PART 2 Managing Marketing coMMunications and the relative ease with which the objectives were accomplished are all aspects that need to be fed back to all internal and external parties associated with the planning process. This feedback is vitally important because it provides information for the CA that anchors the next campaign. Information fed back in a formal and systematic man- ner constitutes an opportunity for organisations to learn from their previous campaign activities, a point often overlooked and neglected. Links and essential points It was mentioned earlier that there are a number of linkages associated with different parts of the marketing communications plan. It is important to understand the nature of these links as they represent the interconnections between different parts of the plan and the rationale for undertaking the CA in particular. The CA feeds the items shown in Table 5.3. For example, research undertaken by Interbrand for Intercontinental Hotels, to find out what influenced the brand experience of hotel guests, discovered that one of the key factors was the hotel concierge. As a result, the role of the concierge became a central element in the communications strategy, influencing the campaign goals, posi- tioning and message strategy (Gustafson, 2007). The objectives derived from the CA feed decisions concerning strategy, tools and media, content, scheduling and evaluation. The marketing communications strategy is derived from an overall appreciation of the needs of the target audience (and stakeholders) regarding the brand and its com- petitive position in the market. The communications mix is influenced by the previous elements and the budget that follows. However, the nature of the tools and the capacity and characteristics of the media influence scheduling, implementation and evaluation activities. Table 5.3 Linkages within the MCPF MCPF Elements explanation objectives From the marketing plan, from the customer, stakeholder network and competitor analysis and from an internal marketing review strategic balance between From an understanding of the brand, the needs of the target push, pull and profile audiences, including employees and all other stakeholders, and the marketing goals Brand positioning From users’ and non-users’ perceptions, motivations, attitudes and understanding about the brand and its direct and indirect competitors Message content and style From an understanding about the level of involvement, perceived risk, DMU analysis, information-processing styles and the positioning intentions Promotional stools and From the target audience analysis of media habits, involvement media and preferences, from knowledge about product suitability and media compatibility, from a competitor analysis and from the resource analysis CHAPTER 5 Marketing coMMunications: strategy and pLanning 177 Scholars’ paper 5.4 Planning Renault’s expansion Caemmerer, B. (2009) The planning and implementation of integrated marketing communications, Marketing Intelligence & Planning, 27(4), 524–38. students of marketing communications should read this paper, simply because it illus- trates the tasks involved in the planning and implementation of integrated marketing communications. using a case study approach based on renault’s attempt to expand their market share in germany, the paper considers the range of tasks involved in plan- ning an integrated marketing communications campaign. These include the context analysis and the identification of marketing communications opportunities; choosing the right marketing communications agency; campaign development and implemen- tation, including the selection of the marketing communications mix, creative execu- tion and media planning; campaign evaluation; planning of follow-up campaigns; and managerial coordination between all tasks and parties involved to ensure integration of marketing communications initiatives throughout the campaign. Key points There are many different views of what constitutes strategy. The planning and emergent perspectives have gained most agreement. Marketing communications strategy is not just about the mix, and should start with an audience-centred orientation. Marketing communications strategy should be concerned with the overall direction of the programme and target audiences, the fit with marketing and corporate strategy, the key message and desired positioning the brand is to occupy in the market, plus the resources necessary to deliver the position and accomplish the goals. There are four core ways of interpreting marketing communications strategy. These are the positioning, audience, platform and configuration approaches. Each of these emphasises particular elements and issues but they are not mutually discrete. Aspects of each can be found in the others. The positioning approach is derived from the STP process. The audience approach is referred to as the ‘3Ps’ of marketing communications strategy. The platform approach can be advertising-led (around a creative idea), brand-led (around a core brand characteristic) or take the form of a participatory platform. The configuration approach requires managing the structural elements of an intended communications event, within the prevailing relationship, climate and power context, where appropriate. To manage efficiently and perhaps more effectively, marketing communications should be implemented through the use of a planning framework. The framework consists of a number of elements which are presented sequentially, but in reality often happen simultaneously. Key to understanding the planning framework are the linkages between the various elements. 178 PART 2 Managing Marketing coMMunications Review questions TfL case question 1. explain the role strategy plays in marketing communications, using the tfL case to illustrate your points. 2. evaluate which of the four interpretations of strategy presented in this chapter might best be used to explain the success of the TfL campaign, described at the beginning of this chapter. 3. Draw two diagrams depicting the direction of communications in both the push and the pull strategies when applied to the TfL campaign. 4. Which type of engagement best explains the TfL approach to marketing communications? 5. Identify the elements of the marketing communications mix used by TfL to implement their strategy. General questions

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