05. Marketing Communications Planning

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Planning: The Corporate,Planning: The Corporate,

Marketing, andMarketing, and

Communications Hierarchy Communications Hierarchy

Sunarto Prayitno



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The Overall Strategic PlanningThe Overall Strategic Planning

ProcessProcessMarketing Communications strategy cannot existMarketing Communications strategy cannot exist

in isolation from marketing strategy which in turnin isolation from marketing strategy which in turn

is directly linked to corporate strategy.is directly linked to corporate strategy.

So, let us start with consider the simple strongSo, let us start with consider the simple strong

relationships between the three levels of relationships between the three levels of

strategy, there are:strategy, there are: Corporate Strategy Corporate Strategy ,,marketing strategy marketing strategy , and, and marketing marketing

communications strategy communications strategy ..



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ProcessProcess

1

CORPORATE

STRATEGY

2

MARKETING

STRATEGY

3

MARKETING

COMMUNICATIONS STRATEGY



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ProcessProcessPlanning can be carried out using a topPlanning can be carried out using a top--down or down or bottombottom--up approach, or preferably using aup approach, or preferably using amixture of the processes at each of the threemixture of the processes at each of the threelevels.levels.

This involvement of the different organizationalThis involvement of the different organizationallevels implying a planning hierarchy immediatelylevels implying a planning hierarchy immediatelysuggests that there is an effective sequence of suggests that there is an effective sequence of

planning, in which the development of marketingplanning, in which the development of marketingcommunications strategy proceeds after acommunications strategy proceeds after aproper consideration of both corporate andproper consideration of both corporate andbusiness strategy.business strategy.



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ProcessProcessUndoubtedly, however, there are situationsUndoubtedly, however, there are situationswhere marketing managers and their agencieswhere marketing managers and their agenciesdo undertake some bottomdo undertake some bottom--up planning.up planning.

They are often called on to develop marketingThey are often called on to develop marketingcommunications strategies to a differentcommunications strategies to a differenttimescale from corporate planning.timescale from corporate planning.

In some cases their knowledge of corporateIn some cases their knowledge of corporatestrategy may be limited. They therefore have tostrategy may be limited. They therefore have todo their best in a given situation.do their best in a given situation.



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ProcessProcessH owever, in all situations marketing H owever, in all situations marketing

communications must be developed with ancommunications must be developed with an

awareness of its fit within the overall awareness of its fit within the overall

strategic planning framework.strategic planning framework.



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The SOSTAC PlanningThe SOSTAC Planning

FrameworkFrameworkWhatever the level of the planning hierarchy, theWhatever the level of the planning hierarchy, the

SOSTAC planning model can be applied easily.SOSTAC planning model can be applied easily.

It will immediately be obvious that it is possibleIt will immediately be obvious that it is possible

to apply the SOSTAC model at each level of theto apply the SOSTAC model at each level of the

planning hierarchy, that is SOSTAC appliesplanning hierarchy, that is SOSTAC applies

equally at the corporate level, the marketingequally at the corporate level, the marketinglevel, and the marketing communications level.level, and the marketing communications level.



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The SOSTAC PlanningThe SOSTAC Planning

FrameworkFrameworkStage:Stage: Strategic Question:Strategic Question:

1. Situation1. Situation Where are we now?Where are we now?

2. Objective2. Objective Where do we want to be?Where do we want to be?

3. Strategy3. Strategy How do we get there? (Broad direction)How do we get there? (Broad direction)

4. Tactics4. Tactics The detail of strategy. What communications toolsThe detail of strategy. What communications tools

should be used when?should be used when?

5. Action5. Action The detail of tactics. What steps are required to putThe detail of tactics. What steps are required to put

each tool into action?each tool into action?

6. Control6. Control How do we know when we have arrived?How do we know when we have arrived?

The SOSTAC Planning System



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The Planning Hierarchy The Planning Hierarchy

The µManagement by Objectives¶ (MBO) systemThe µManagement by Objectives¶ (MBO) system

became extremely popular and its in use todaybecame extremely popular and its in use today

since the 1960s.since the 1960s.

The principle of the system is that individualThe principle of the system is that individual

managers¶ objectives have to be linked intomanagers¶ objectives have to be linked into

corporate objectives in a direct and distinct way.corporate objectives in a direct and distinct way.



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Each manager discusses and agrees with theEach manager discusses and agrees with thenext level of management above them over whatnext level of management above them over whataction they will take in the following 1year inaction they will take in the following 1year in

order to contribute to achievement of the overallorder to contribute to achievement of the overallcorporate objectives.corporate objectives.

This linkage into a hierarchy of objectivesThis linkage into a hierarchy of objectives

ensures that an organization¶s main resources,ensures that an organization¶s main resources,its staff, are involved, integrated, motivated and,its staff, are involved, integrated, motivated and,hopefully, rewarded.hopefully, rewarded.



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MISSION STATEMENTMISSION STATEMENT

CORPORATE OBJECTIVESCORPORATE OBJECTIVES

CORPORATE STRATEGIESCORPORATE STRATEGIES

MARKETING OBJECTIVESMARKETING OBJECTIVES

MARKETING STRATEGIESMARKETING STRATEGIES

MARKETING COMMUNICATIONS OBJECTIVESMARKETING COMMUNICATIONS OBJECTIVES

MARKETING COMMUNICATIONS STRATEGIESMARKETING COMMUNICATIONS STRATEGIES

MARKETING COMMUNICATIONS PROGRAMS AND BUDGETSMARKETING COMMUNICATIONS PROGRAMS AND BUDGETS



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At each level it is possible to consider the two elements At each level it is possible to consider the two elementsof objectives and strategy.of objectives and strategy.

Objectives are the end result, and strategies are theObjectives are the end result, and strategies are themeans of achieving the objectives.means of achieving the objectives.

The whole process can also be seen as an end andThe whole process can also be seen as an end andmeans hierarchy. The means (strategies) at one levelmeans hierarchy. The means (strategies) at one level

become the ends (objectives) at the next level down.become the ends (objectives) at the next level down.

Strategies cascade down to the next level of planning asStrategies cascade down to the next level of planning asan objective.an objective.



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The Strategic Planning StagesThe Strategic Planning Stages

of Marketing Communicationsof Marketing CommunicationsThe detail of the planning hierarchy have been redrawnThe detail of the planning hierarchy have been redrawnin the form of a flowchart showing how the objectives atin the form of a flowchart showing how the objectives atthe three planning levelsthe three planning levels ± ± corporate, marketing, andcorporate, marketing, andmarketing communicationsmarketing communications ± ± are directed and linked toare directed and linked to

each other. This flowchart has been extended to form aeach other. This flowchart has been extended to form atriad of triad of objectivesobjectives,, strategy strategy , and, and tacticstactics..

Tactics refers to a number of relatively shortTactics refers to a number of relatively short--termtermactions, but of course what is µshortactions, but of course what is µshort--term¶ is relative toterm¶ is relative tothe level of the organization being considered.the level of the organization being considered.



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of Marketing Communicationsof Marketing CommunicationsCorporate level planning could typically extend up to fiveCorporate level planning could typically extend up to fiveyears depending on the type of industry.years depending on the type of industry.

Marketing planning would extend two or three years, andMarketing planning would extend two or three years, and

Marketing communications planning usually only looks atMarketing communications planning usually only looks ata onea one--year timescale.year timescale.

However, it should be noted that an organization¶sHowever, it should be noted that an organization¶s

branding strategy may be planned over a longer periodbranding strategy may be planned over a longer periodof five years or more as this is of strategic importance.of five years or more as this is of strategic importance.



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of Marketing Communicationsof Marketing CommunicationsMission Statement

Corporate Objectives

Corporate Strategies

Marketing Objectives H. R.

Objectives

Operational

Objectives

Financial

Objectives

Marketing Strategies

Marketing Comm.

Objectives

Product

Objectives

Pricing

Objectives

Place

Objectives

Marketing Comm.

Strategies

MarCom Tactics

MarCom Action

Plans

MarCom Control

Corporate

Planning

Level

Marketing

Planning

Level

MarketingComm.

Planning

Level



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The Operational Planning StagesThe Operational Planning Stages

of Marketing Communicationsof Marketing Communications

At first sight in the operational planning may seem odd At first sight in the operational planning may seem oddthat marketing communications budget is estimatedthat marketing communications budget is estimatedbefore detailed operational plans are drawn up. This,before detailed operational plans are drawn up. This,however, represents many real situations for both largehowever, represents many real situations for both large

and small companies.and small companies.Small companies often budget to spend all they canSmall companies often budget to spend all they canafford, which is often too little. Large companiesafford, which is often too little. Large companiessometimes base their budgets on previous experience or sometimes base their budgets on previous experience or use a formula such as the advertising to sales ratio.use a formula such as the advertising to sales ratio.

Whatever the situation, the budget level is indeed aWhatever the situation, the budget level is indeed abroad starting point for making decisions on the mostbroad starting point for making decisions on the mostappropriate communications elements. After detailedappropriate communications elements. After detailedplanning it is then possible to submit a revised budget.planning it is then possible to submit a revised budget.



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Linking Marketing andLinking Marketing and

Communications Strategy Communications Strategy

The previous sections have asserted that marketingThe previous sections have asserted that marketingcommunications strategy should derive directly fromcommunications strategy should derive directly frommarketing strategy which in turn derives directly frommarketing strategy which in turn derives directly fromcorporate strategy.corporate strategy.

This suggests that there is a strong body of knowledgeThis suggests that there is a strong body of knowledgeand practice which provides a framework for makingand practice which provides a framework for makingthese linked decisions.these linked decisions.

In reality, although marketing theories and concepts areIn reality, although marketing theories and concepts arewell developed across specific planning levels, their well developed across specific planning levels, their vertical integration is rather less developed. This isvertical integration is rather less developed. This isperhaps understandable on two counts.perhaps understandable on two counts.



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Firstly, individuals tend to specialize in certain areas of Firstly, individuals tend to specialize in certain areas of marketing. For example, those who specialize inmarketing. For example, those who specialize instrategic marketing are not necessarily experts instrategic marketing are not necessarily experts inmarketing communications and this inhibits the verticalmarketing communications and this inhibits the vertical

linkages.linkages.

Secondly, the marketing communications strategy areaSecondly, the marketing communications strategy areais a complex one in which many factors play a part. Thisis a complex one in which many factors play a part. Thismakes the development of the models more difficult.makes the development of the models more difficult.

The communications models that are develop are either The communications models that are develop are either simple as the AIDA models, they considerably moresimple as the AIDA models, they considerably morecomplex such as the FCB Grid.complex such as the FCB Grid.



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Model of the Response ProcessModel of the Response ProcessStage AIDA Model Hierarchy of

EffectsModel

InnovationAdoption

Model

InformationProcessing

Model

Cognitive

Stage

Attention Awareness

Knowledge

Awareness Presentation

Attention

Comprehension

AffectiveStage

Interest

Desire

Liking

Preference

Conviction

Interest

Evaluation

Yielding

Retention

BehavioralStage

Action PurchaseTrial

AdoptionBehavior



2020

The Foote, Cone & Belding (FCB)The Foote, Cone & Belding (FCB)

GridGrid

ThinkingThinking FeelingFeeling

HighHighInvolvementInvolvement

1. Informative (thinker)1. Informative (thinker)

Car Car--househouse--furnishingsfurnishings--

new productsnew products

Model:Model: LearnLearn--feelfeel--dodo

(Economic?)(Economic?)

2. Affective (feeler)2. Affective (feeler)

J ewelry J ewelry--cosmeticscosmetics--

fashion apparel fashion apparel--

motorcyclesmotorcycles

Model:Model: FeelFeel--learnlearn--dodo

(Psychological?)(Psychological?)

Low InvolvementLow Involvement 3. Habit formation3. Habit formation(doer)(doer)

F ood F ood--household itemshousehold items

Model:Model: DoDo--learnlearn--feelfeel

(Responsive?)(Responsive?)

4. Self 4. Self--satisfactionsatisfaction(reactor)(reactor)

CigarettesCigarettes--liquor liquor--candy candy

Model:Model: DoDo--feelfeel--learnlearn

(Social?)(Social?)



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At the simplest level marketing communications can be At the simplest level marketing communications can beseen as one of the seven Ps: product, price, place,seen as one of the seven Ps: product, price, place,promotion, people, process, and physical,promotion, people, process, and physical, ieie marketingmarketingcommunications is the promotional element.communications is the promotional element.

Each of these Ps should be considered when planningEach of these Ps should be considered when planningmarketing communications strategy.marketing communications strategy.

The communications strategy is a complex andThe communications strategy is a complex andchallenging task. Marketing communications strategychallenging task. Marketing communications strategyintegrates all these Ps since every P communicates.integrates all these Ps since every P communicates.



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PRODUCT ELEMENT:

Product objectives

Positioning Strategy

Product Life Cycle

New product development

Marketing testing

Organizational aspects

PRICING ELEMENT:

Pricing objectives

Determining demand

Estimating costs

Pricing methods

Adapting the price

Responding to competition

CHANNEL ELEMENTS:

Channel objectives

Channel level

Evaluating Alternatives

Selecting channels

Motivating Channel Members

Evaluating members

PROMOTIONAL

ELEMENTS:

Promotional objectives

STP strategy

Advertising

Sales promotion

Public relations

Personal selling

OTHER Ps IN THE

MARKETING MIX:

People

Process

Physical aspects

MARKETING

ELEMENT S



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ADVERTISING:

Advertising objectives

Target audiences

Choosing the message

Deciding the media

Evaluating advertising

efectiveness

PUBLIC RELATIONS:

Public Retains objectives

The role of public relations

Corporate identity andimage

Defining of public

Media relations

Internal marketing

Crisis management

SALES PROMOTION:

Sales promotion objectives

Sales literature

Customer incentives

Merchandising

Point of Purchase Advertising

PERSONAL SELLING:

Personal selling objectives

Salesforce structure

Salesforce size

Motivating the salesforce

Compensating the salesforce

Training the salesforce

Evaluating and controllingb

salesforce

OTHER

COMMUNICATIONS

TOOLS:

Direct marketing

Packaging

Exhibitions

Corporate identity

The internet

MARKETING

CO MMUNI C ATI O N S

ELEMENT S



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Using the PLC Concept for MarketingUsing the PLC Concept for Marketing

and Communications Strategy and Communications Strategy

Though criticized because of its simplistic natureThough criticized because of its simplistic nature

and because real business situations are moreand because real business situations are more

complex, the product life cycle (PLC) concept iscomplex, the product life cycle (PLC) concept is

a useful tool in planning both marketing anda useful tool in planning both marketing andcommunications strategy.communications strategy.



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T he PLC can also be used to link the other three conceptsT he PLC can also be used to link the other three conceptsadopted in marketing planning, namely:adopted in marketing planning, namely:

TheThe Diffusions of I nnovation CurveDiffusions of I nnovation Curve, which indicate the, which indicate thespeed at which potential buyers will accept new ideas.speed at which potential buyers will accept new ideas.

TheThe Ansoff Ansoff G rowth M atrix G rowth M atrix , which sets out alternative, which sets out alternativestrategies based on existing and new products andstrategies based on existing and new products andmarkets.markets.

TheThe Boston Consulting G roup Portfolio M atrix Boston Consulting G roup Portfolio M atrix , which, whichdistinguishes a company¶s product by market share anddistinguishes a company¶s product by market share andgrowth rate.growth rate.



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CONCEPTS PHASE 1 PHASE 2 PHASE 3 PHASE 4

Product Life Cycle Introduction Growth Maturity Decline

Diffusion of Innovation

Innovation Early adoptersmajority

Late majority Laggards

Ansoff Growth

Matrix

Product

development

Market

development

Market

penetration

Diversification and

alliances

Boston Consulting

Group Portfolio

Matrix

Problem Child Stars Cash Cows Dogs



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Product Life CycleProduct Life Cycle

A graphic depiction of a product¶s sales history fromA graphic depiction of a product¶s sales history from

inception to withdrawalinception to withdrawal

Introduction Growth Maturity Decline

Brandestablishment

Brand

reinforcement

Brand

revitalization

Brand

harvesting



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BCG Product Portfolio MatrixBCG Product Portfolio Matrix

Marketgrowth

rate

HIGH

LOW

HIGH LOW

Relative market share

Star Problem

Child

Cash cow Dog

Theimagecannot bedisplayed. Your computer may nothaveenough memory toopen theimage,ortheimagemay havebeen corrupted.Restartyour computer,and then open thefileagain.If theredx stillappears,you may havetodeletetheimage and then insertitagain.



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Growing Your MarketGrowing Your Market ²² Ansoff Ansoff

MatrixMatrixM A R K E T

P

R

O

D

U

C

T

Existing New

Existing

New

Low Risk

Higher risk

Medium risk

Very

High Risk

Market

Share

growth

New

Product

developmentDiversification



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Using the Marketing MixUsing the Marketing Mix

Target

Customers

Positioning

strategies

Products &

ServicesPricing

People

Process Physical

evidence

PromotionPlacement

Customer

Needs & Wants

Customer

Price sensitivity

Convenience

& control

Communication

& education

Credence

qualities

Reliability

& assurance

Responsiveness

& empathy

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05. Marketing Communications Planning

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