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John
Wigram, Planning Director, IMP
Firstly
some definitions: media-neutral planning concerns the optimal deployment
of advertising budgets through the five media channels, to meet communications'
objectives typically focusing on desired attitudinal changes. Channel
neutral planning concerns the optimal deployment of marketing budgets
to meet business objectives, focusing as much on desired behavioural as
attitudinal changes. A 'channel' delivers brand experiences as well as
communications. This second, broader definition seems more likely to probe
issues at the heart of the integrated communications debate.
A channel-neutral
approach to strategic planning
Our belief
is that this can currently happen only if the process is owned by the
client. Client organisations should own the necessary expertise and information
to generate a marketing plan, setting out objectives and support budgets
by audience and/or channel, which would collectively realise the overall
business objectives. The client can brief alternative 'specialist' agencies
(advertising, SP, DM etc). If the process is owned by agencies, there
is an incentive to cheat: agencies cannot deliver channel neutrality,
because of the inherent bias created by differing reward structures of
different channels.
The depth
of individual agency experience and knowledge
Alternatively
one agency, incorporating all specialisms, could own the process, and
be rewarded irrespective of channel(s) chosen. Essentially the agency
would be rewarded for 'problem solving'; and could be incentivised by
taking a percentage of future client revenues. No agency currently has
the depth of experience and knowledge to deliver true channel-neutral
solutions. Crucially they are not incentivised to do this. Currently a
client's best choice of partner to deliver against a marketing plan will
be a compromise choice. The agency with the most experience is probably
the best, assuming they understand the client's business, processes and
customers. This should be the agency the client is already working with.
Proving the effectiveness of the strategy is easy in theory: have the
objectives been met? In most cases, objectives will broadly look to generating
long-term, incremental, profitable volume; the issue lies in being able
to identify a realistic benchmark to measure truly 'incremental' volume.
The above
suggests sticking with the status quo, a rather self-satisfied solution.
The alternative - of a new sort of agency incorporating all specialisms
and indifferent to channel solution because of a new form of reward system
- suggests a 'vision' which would fundamentally change the nature of the
business we are in. To achieve it may necessitate separating the planning
and implementation tasks. A 'channel consultancy' could take on the strategic
challenge - developing a communications' plan to best realise a client's
objectives - and respond with a series of briefs incorporating the rationale
for channels chosen, the emphasis given to each channel and the likely
results of the activity undertaken in each. Information analysis (of research
and/or data) and channel expertise will be the core competencies of this
new breed of consultancy. 'Implementation agencies', with experience in
producing work for alternative channels, could then deliver the necessary
material, or creative work, against these briefs.
Why is
channel-neutrality such a debating point now?
Several
major trends are making the task of influencing consumer attitudes and
behaviour increasingly difficult, putting more pressure on marketeers
and their budgets. Media (and audience) fragmentation; commoditisation
in many markets; the growing sophistication and cynicism of consumers
to commercial communication (and an increasing tendency to disguise real
thoughts and actions); shortening product life-cycles which put increasing
pressure on brands to be dynamic; a growing focus on existing customer
value. As information on brand performance and consumers becomes more
perfect, so the inefficiencies of reaching key audiences become more apparent.
As the pressure on companies to become more efficient grows, so the marketing
budget comes under tighter scrutiny.
These trends
make channel neutrality, or brand optimisation, more compelling. At the
heart of the issue is the desire to make 1 + 1 = 3: is the whole of the
brand experience greater than the sum of its parts? And how do we prove
this?
Brand Optimisation
We believe
the solution lies in a two-fold process called 'Brand Optimisation'. Firstly
the brand must be placed at the heart of the organisation. Secondly, every
point of contact between brand and consumer, whether direct or through
intermediaries, must be identified and 'optimised'. The aim of this process
is to build brand leaders: brands which have anticipated future audience
needs and captured a dominant position in their hearts and minds.
A brand-centric
organisation has 'one voice but many tongues': it speaks in many more
ways than simply through media. Every brand spokesperson, from company
chairman to shop-floor salesperson, understands the brand vision and how
to interpret it to their particular role - so the brand experience is
consistent through every channel. We have identified three stages to this
process:
Create:
the process of taking the brand vision and identifying all the ways the
brand is seen or experienced by the outside world, by mapping out all
points of contact. These contact points should be prioritised by timing
or weight of influence; and the resulting channel needs agreed.
Educate:
the process of bringing to life this vision (any number of tools exist
to do this) to create a common understanding among all those charged with
executing it. Guidelines would cover all the 'what we mean by' aspects
of the vision, and explain how each brand evangelist should interpret
the thinking, given the nature of their interface with consumers.
Cultivate:
the appearance of an optimised campaign, running in the chosen communications'
channels - from DM to viral marketing, TV ads to in-store POS, staff handbooks
to interactive banner ads. Properly followed, this process delivers optimised,
channel-neutral solutions i.e. messages and experiences which are relevant
to different audiences; which are sensitive to alternative channels and
environment; and which collectively deliver the brand vision.
Our view
in sum: channel neutral strategic planning stems from a philosophy called
Brand Optimisation. If consumers hear and experience different things
about a brand from a number of different sources, the chances of brand
success are much less.
(c) Account
Planning Group 1995-2002
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