Account Planning CAD 201
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This 17 page Bundle was uploaded by Kathryn Cioffi on Tuesday February 10, 2015. The Bundle belongs to CAD 201 at University of Miami taught by Prof. Nelissen in Fall. Since its upload, it has received 170 views. For similar materials see Account Planning and Strategy Development in Advertising at University of Miami.
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Date Created: 02/10/15
Account Planning Advertising agencies realize that in order to help their clients the key solution became understanding people and audiences The purpose of planning is to create an idea that changes people s mind and hearts and can turn a brand into a Lovemark o Lovemark a brand that you are always loyal to The switch was made from o Figuring out ideas and translating them into advertisements o Translating what are people feeling and what do they care about into action Advertising ideas originate from the things that we don t know we don t know about people s mind The core of what they do is having consumer insight What makes a good Account Planner 0 Left brain and right brain thinkers Rational and emotional Pain in the ass Provocateurs Not afraid to argue for what s true Logical and analytical People person 0 Great storyteller What does an Account Planner do 0 Developing integrated marketing communications campaigns by linking a brand s positioning with communications 0 Representing the consumer point of view in marketing and advertising 0 An indepth knowledge of the company competitive landscape and business strategy to gauge how this consumer knowledge can be applied 0 Collaborative and integrated into the process together with account management creative media production partner agencies and clients Boiled Down guring out what makes people tick knowing a lot about the market and business supporting that knowledge with data and eventually coming up with a strategic idea that inspires and guides creative work Account Planning vs Research 0 Fundamental and creative part of advertising development 0 Involved on a continuous basis 0 Active before the creative team starts work strategy amp brief 0 Point of viewopinion vs objective results and conclusions OOOOOO 0 Consumers express opinions differently because of technology and the way in which we gather and apply that information is drastically different many new ways for consumers to interact with brands Account Planners must be in touch with all of these trends and changes a How we learn has not changed 0 QQQQQ lnterrogate a brand and its category Understand culture Have authentic conversations Listen deeply Participate and share experiences Find ways to learn what we know we don t know not just what we know we don t know 0 The Creative Brief QQQQQQ Q 0 Objective Contextsituation Target market Problem Strategyinsight Organizing idea not a creative or campaign idea a business transforming idea Creative and media execution Measurement of results Case Study jCPenney Regarded as old fashioned cheap poor quality poor costumer service dirty cluttered store 0 Pro le 0 O 0 00000 O Founded in 1902 byJames Cash Penney in Kemmerer Wyoming HQ in Plano Texas Currently approximately 1100 stores in all US states and Puerto Rico Located in suburban malls Sell clothing and home wares Low pricing for a reasonable quality Basics and back to school Leased departments such as Sephora optical centers portrait studios and jewelry repair wwwjcpcom New CEO in 2006 decides to reshape the brand image of cheap and wanted to bring emotion into their advertisements New CEO Ron johnson in 2012 decides to revamp the entire company Dream America s favorite store Fair and square mantra 0 Let people shop on their terms less black Friday door busters etc Monthly cadence in themes and merchandise Pricing system every day prices monthly value and best price rst and third Friday of the month payday everything is whole numbers 999 gt 10 No more coupons New brands added old brans disappear Store layout inviting a destination Storewithinastore concept Consumer pro le from older women in the Midwest to young stylish individuals Layoffs to super uous workers who previously spent night shifts changing price tags based on couponing rules 0 These changes alienated loyal customers and didn t attract new customers Current Situation 0 Strongly eroded share price Massive decline in nancial performance Confused employees Disappointed consumer base Need to reconnect with the core customer Back to the old business model coupons and pricing CO CO 00000 0 00000 Exercise When was the client company founded 1912 How many employees work there Where is it based Plano Texas Does it operate on a global or local level Local What products and services does your client produce Clothing anol Home Wares Is it a publically traded or privately owned company or charity Pubicaly What s the share price Did the client make a pro t last year No How does the client company make its money In store anol online sales Do we have a history with the client How long has the client been with the agency What do we do for them No history What levels of awareness does the client s brand enjoy Everyone knows about it Is the client or its brands present on the web and social media Yes but not run propery When was the last time the client was in the news CEO change around 2013 What are bloggers saying about the client Probably nothing How healthy are the metrics of intention to repurchase Not very healthy depleted loyal customer base What other metrics are there to help you assess loyalty Sales by demographics onine feedback Where to look for answers Online Annual reports Industry analysis Desk research Store visits Executive interviews Company websites Competitor websites OOOOOOOO Business Analysis There are many ways to analyze a company or business Goals and objectives Performance its leadership employees Products or services pricing and distribution Consumerscustomersmarkets Processes and resources operational strength 0 Brandassets Why do a business analysis 0 To nd and resolve the disconnect between a brand promise and its delivery Macrofactors and competition still play a role The focus is on what these factors bring about for our client and how our client organizes itself to ful ll its goals Analysis should be viewed through 0 Business strategy 0 Goals and challenges 0 Marking and advertising goals OOOOO Exercise Drucker39s Five What business is your client in o Underlying bene t think of the company s value proposition Who are your client s customers 0 Go beyond the numbers and describe who these people really are What do those customers really care about With whom does the client compete What is your client really good at 0 Remember their key differentiating factor Drucker39s Five for CPenney What business is your client in 0 Saving you money so that you can survive 0 Providing for families Who are your client s customers 0 Mid30 s and 40 s mother 0 Has a few kids 0 Working too much or not enough 0 Stressed scraping along 0 Low style What do those customers really care about 0 Saving money 0 Convenience 0 Survival 0 Saving time o Theirfamily With whom does the client compete What is your client really good at o Staying a oat SWOT Analysis Combines an internal company assessment with an examination of external in uences Strengths weaknesses opportunities and threats Strengths and weaknesses are the internal components Opportunities and threats are the external components Consumer Segmentation Segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and priorities and then designing and implementing strategies to interest them 0 Who is buyingusing the brand 0 What do we know about them 0 How are they using the brand 0 Why are they using the brand 0 Descriptive characteristics based on demographics and personality traits Must make behavioral considerations 0 Objective the contract you enter into with your client what you want to achieve together with the current campaign increase sales brand awareness consumers etc 0 Issue the w thing stopping you from reaching the objective can be any roadblock to your objective a competitive issue a business issue or a consumer issue 0 Insight what we know about people that helps us get around the issue 0 Challenge what we need to do in order to meet the objective all about instilling behavior change Insights Not facts or universal truths 0 Looking for things that are subjective and that teach us things about human behavior 0 Best way to get insights is by talking to people stories memories dreams and fears Xploring Living the life of the people you are interested in o A guide to action inspired by real people in the real world 0 jump in and participate go where you think there are people related to your insights and strike up conversations o Participate in their everyday life do chores and run errands with consumers as though you are long time friends Xploring Assignment 0 A short description of your consumer segmentation 3 segments 0 Choose one segment and describe it in more detail and say why I think that segment is the most important for my brand 0 A number of questions about that segment that I want answers to 3 or 4 o How where and when to nd my answers both online and off CPenney s Business and Consumer Focus 0 What value does JCPenney intend to bring to consumers 0 Low prices for decent quality clothing 0 Market the clothing as trendy and fashionable o Dependable accessible fair company 0 What role does marketing and advertising play 0 Always make a point that they have sales and coupons quotWhen it ts you feel itquot Shows familiesyoung shoppers Friendly quotDoor Buster Dealsquot voice Show trendier clothes and scenes to try and change their image 0 Does JCPenney enjoy customer loyalty Why not 0 Yes but their loyal customer base is dying out and has been disenchanted by the change that occurred a few years ago 0 Those who are loyal have been shopping there for their entire lives 0 They are a company who delivers on their promise for low prices which keeps certain customers loyal o Other stores are doing it better so many customers are leaving 0000 mm 0 Competition is o Rivalry among sellers trying to achieve such goals as increasing pro ts market share and sales volume by varying the elements of the marketing mix price product distribution and promotion 0 The effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms 0 Allocating productive resources to their most highlyvalued uses and encouraging ef ciency 0 Factors in competition 0 Price value quality innovation geographic market online or of ine market consumer segments brand strengths productionprocess talent loverespect axis 0 Competitive landscape 0 Competitive set Competitor s current strategy Objectives and current performance Assumptions about the industry Resources and capabilities of competitors o Firstmover advantage vs followers 0 Category leader vs challengers 0 Current vs future competition Porter39s Five Forces Model TECHNDLOGY KNOW 3 amp lINNOVAiIlIDN mamas GDVERNMENT SFDClIEIT 3i 8 REGUILATIDNS TRENDS Clients and Direct Competitors 0 Direct Competition companies that offer similar products or services 0 Indirect Competition other industries that compete with your consumers timemoney 0 Does the consumer spend their extra 2000 on a new TV or on a vacation Suppliers amp Buyers 0 Distribution chain has competition dependent on the position the company has opposite their suppliers and buyers 0 Ex JCPenney is dependent on their suppliers in China Potential Entrants New players in the industry 0 Do they offer something new Something valuable for consumers Substitutes 0 Do something completely new that makes your product obsolete Porter s Five Fmes for Advertising 0 Industry Rivalry o Intense 0 Heavy discounting 0 Pressure on margins Supplier Power 0 Creative talent which is a scarce resource 0 Made scarcer by tradition of working in teams 0 Buyer Power clients 0 Client promiscuity abundant No long term contracts hired on a projectbyproject basis 0 Still over 10 major global networks for clients to choose from 0 Hundreds of local 39hot shops Small start ups lower prices Substitutes o Other communication disciplines in the creativity business are trying to take over advertising functions 0 Other advisors usurping agencies client authority 0 Potential Entrants 0 Anyone can start an agency CPenney39s Five Forces 0 Industry Rivalry 0 Any department store Macy s Dillard s Lord and Taylor 0 One stop shops Target Sears WalMart 0 Discount Stores Marshall s TJMaxx Ross Dress for Less 0 Goodwill and Salvation Army Supplier Power 0 Multitude of random brands o Dependent on overseas manufacturing 0 Prices dependent on ability of manufacturers to produce 0 Share these manufacturers with many of their competitors 0 Buyer Power 0 Success dependent on consumer spending 0 Consumers given abundant choices for shopping 0 Expecting good quality for low price o Expecting a good shopping experience and good customer service Substitutes o Onlineonly retailers Amazon eBay etsy Potential Entrants 0 Any store in close proximity to JCPenney that could potentially stea customers Strategy Basics 0 Strategy planning how an organization will achieve its goals Not in itself the plan Consistency of direction based on o A clear understanding of quotthe gamequot 0 A clear understanding of how to maneuver into a position of advantage Strategy puts you in a better position to win Successful strategies 0 Goals that are simple consistent and long term Keeps oyaty with customers 0 Profound understanding of the competitive environment Objective appraisal of resources 0 Effective implementation Where plans and tangible actions come into play A basic framework 0 The Firm the company Goals and values Resources and capabilities Structure and systems 0 The Environment Competitors Customers Suppliers Where strategy comes into play 0 Goal to ensure the survival and prosperity of the rm 0 Requirement to earn a return on capital that exceeds the cost 0 Corporate strategy which industries should we be in Industry attractiveness 0 Business strategy how should we compete Competitive advantage What strategy provides 0 Decision support strategic principles make for simpler and better decision making 0 o Coordinating device allows you to communicate those decisions 0 Target provides a vision Strate9m What is JCPenney s current business strategy 0 Sales and promotions on at all times 0 Bring everyday low prices 0 The return to oldschool department store retailing principles with an infusion of are in key departmentsquot 0 Price strategy and not a marketing strategy 0 How does it differ from the business strategy before the change 0 They changed the way they hold sales and promotions 0 Changed advertising slightly modernized o Popup shops and in store experience has survived from the change 0 What is your opinion on improving or changing strategy Stress other factors beyond the sales Loyalty points on JCPenney card Consolidate sales and make things consistent Restructure the coupons that are too complicated Strategic placement of stores in better areas for target audience 0 Implement changes more gradually Does what you now know about JCPenney t with its strategy 0 Yes they have the coupons and the sales O 0000 ngenney Framework 0 Goals and Values Strengthen customer loyalty Become more competitive Sell practical clothing at good prices Be fair to customers the golden rule True American brand 0 Resources and Capabilities 0 Sub brands o Partnerships o Popup shops in store 0 Structure and Systems 0 Departments within store Corporate headquarters and then physical store locations Coupons daily specials sales promotions Online store Mobile App O 0000 0000 Competitors o Macy s Marshall s TJ Maxx Lord amp Taylor Old Navy Sears Customers 0 Old people 0 Families 0 Low income to middle class 0 People who like to bargain buy Suppliers 0 Levi s Sephora Nike Liz Claiborne Sports Merchandise Disney Joe Fresh etc 0 Sub brands cheaper versions of well known brands Free People Face the Facts When was the client company founded How many employees work there Where is it based Does it operate on a global or local level What products and services does your client produce Is it a publically traded or privately owned company or charity What s the share price Did the client make a pro t last year How does the client company make its money In store and online sales Do we have a history with the client How long has the client been with the agency What do we do for them No history What levels of awareness does the client s brand enjoy Everyone knows about it Is the client or its brands present on the web and social media Yes When was the last time the client was in the news What are bloggers saying about the client How healthy are the metrics of intention to repurchase What other metrics are there to help you assess loyalty Sales by demographics onine feedback Where to look for answers Online Annual reports Industry analysis Desk research Store visits OOOOO 0 Executive interviews 0 Company websites 0 Competitor websites The Branol What is a brand 0 A name term sign symbol or design or a combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those competitors 0 A promise rendered credible by law and by experience 0 Brands and branding help consumers organize their knowledge about products and services in a way that clari es their decision making and provides value for the rm or organization 0 In the past brands symbolized 3 things identity legitimacy and quality 0 Now every product has base quality and there is a lack of meaningful differentiation 0 Brand Positioning 0 Understand the target market 0 Translate a brand s attributes into consumer bene ts take away compelling and unique that connect emotionally 0 Understand the brand personality against the competition 0 Reasons to believerationale 0 Framework 0 To target market brand is the brand of competitive framework that bene t because reason why 0 To American families JCPenney is the brand of clothing retail that offers everyday low prices because of their pricing system The Role of Marketing and Advertising 0 Every advertising problem comes from a business problem but not every business problem is solved with advertising Ourjob is to help clients grow and achieve the goals they have set for themselves 0 Monetary gains or building a fan base etc 0 When a company is maturing there are many times when they must make choices 0 Do we change consumers pricing inventory strategy etc o This can either result in you reaching your goals or in the company going into decline prematurely 0 Agencies are involved during these choices 0 We can only help our clients grow if we deeply understand their world and know what their consumers care about 0 Advertisers allow companies and clients to make informed choices about the resources they have 0 A business operational choice 0 Production concept quantity economies of scale 0 Product concept quality 0 Selling concept sales regardless of consumer quottrust us buy our productquot 0 Marketing concept consumers needs and wants quotwe ve listened to what you want and now we are selling itquot 0 Holistic marketing concept everything matters 0 Traditional Marketing Mix 0 Product 0 Price 0 Place Distribution 0 Promotion Integrated Marketing Communication 0 Marketing Mix through Consumers Eyes 0 The product offers a solution 0 The price offers a value 0 The distribution offers access 0 The promotion offers information 0 Successful Marketing Management 0 Capturing marketing insights what is going on in society that we can use to inform our client about decisions 0 Connecting with customers what do they care about and what do we know about them 0 Building strong brands how can we take an existing brand and make it more relevant to consumers o Shaping the market offerings inform our clients on how to position or promote their products and services 0 Delivering and communicating value what value should people perceive from our clients products and services 0 Creating longterm growth 0 Help the client develop marketing strategies and plans 0 Advertising Timeline 0 Innovation for the passive consumer 1950 s New products and technology every day Enough to sway purchases 0 Single Universal Model Series of steps Awareness of Brand gt Product Value gt Promotion gt Purchase 0 From passive purchase to choice 1960 s 0 Persuasion vs Involvement From here is a great product buy it To here is why this is a great product 0 Brand commitment 1960 s1980 s 0 Value based twoway conversations now 0 What advertising can do 0 Build brand awareness Inform and educate consumers Promote trial rst purchase Change attitudes towards brands and products Create a brand image 0000 ngenney39s Lifecycle How would you describe the current position ofJCPenney in its lifecycle 0 Increasing towards maturity after their decline but they will not reach their peak maturity again 0 What choices have been made that might have had an effect on growth or decline 0 Changing the business plan ownership advertising strategy store layouts logo pricing strategy 0 Need to make a remodeling in their staff and marketing image 0 How does their business strategy allow JCPenney to achieve their objectives 0 They are bringing back their old customer base to make enough money to stay a oat Value Generation 0 The task of any business is to deliver customer value at a pro t 0 Value is 0 Monetary value gt value for money 0 Delivery on a need product performance or service quality What I am getting from the product or service is valuable for me if I need to travel a car provides value 0 lntrinsic value satisfaction emotion The value it gives to me in terms of my personality and tting into my life lifestyle brands like apple and fashion retailers o Dependent on a consumer s needs and wants 0 From massmarkets to micromarkets Value used to always be about reasonable quality for reasonable price People looked for practicality and all products suited all people Now we have niche markets with speci c identities and desires which makes value more speci c and unique 0 Business strategy tells us why and how that customer value is delivered 0 Companies make decisions that determine which industry they want to play in how they will ful ll value for consumers in that space and how they deliver that value to consumers Marketing communicates the value to consumers Value Creation and Delivery 1 Choose the 2 Provide the Value 3 Communicate the Value Value 0 Customer 0 Product 0 Sales force segmentati development 0 Sales on 0 Service promotion 0 Market development 0 Advertising selection 0 Pricing 0 Value Sourcingmaking positioning Distributingservici n9 1 Choose the Value which space do we play in and how do we segment our target audience 2 Provide the Value creating the product or service so that there is a consumer value equation with a price point that delivers the company s goal value 3 Communicate the Value marketing the product effectively to consumers and make sure that the buying experience supports intent for repurchase Core Competencies Source of competitive advantage 0 Application to a wide variety of markets 0 Dif cult to imitate Customer Perceived Vang The key determinant of perceived value and consumer decisions is choice Brands LoveMarks Generate respect Generate love and respect Are owned by companies Are owned by people Sustain performance Accelerate performance Generate loyalty for a reason Generate loyalty beyond reason o More expensive brands with better quality vs affordability The difference between the bene ts and cost of an offering to the consumer and the perceived alternatives The difference between what you get and what you have to put in relative to other options We aim to communicate increased value for decreased cost Value Proposition 0 The whole cluster of bene ts a company promises to deHver 0 Well beyond the product service or tangible assets More than just the core positioning of the offer 0 Brand and image play a key role Customer Loyalty is built on a combination of factors 0 Satisfaction a consumer s feeling of pleasure or disappointment resulting from a business delivery on its brand promise vs consumer expectations 0 Relationships between consumers and brands are built on trust satisfaction and shared experience 0 Loyalty is a key driver of business success increased revenue decreased cost increased asset value Changing Landscape Three things brands used to do 0 Brands protect an identity a name that you could trust 0 Brands communicated legitimacy 0 Brands symbolized quality 0 Quality is now abundant in products and brands o If you see it in a store you know it is made to quality standards making the decision about which product to choose much harder Lead to commoditization of brands and a lack of meaningful differentiations We make choices based on the emotional realm of love and respect
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