High performing terms from your search terms reports are promoted to be keywords.
The keyword planner is used to find keywords that are related to your highly performing terms.
You don't have to worry about creating ad groups, your new keywords are arlready structured.
Exact match is the default but you can add or remove match types.
If a keyword looks like it doesn't belong, send it to the negatives.
Ads and bids are automatically added to your new ad groups, you can edit them before publishing.