Chapter Copyright © 2009 by Nelson Education Limited. DEVELOPING A MARKETING PLAN Prepared by Simon Hudson, Haskayne School of Business University of Calgary and Marion Joppe, University of Guelph

Chapter Copyright © 2009 by Nelson Education Limited. Topics Eight key steps of marketing planning Corporate connections Analysis and forecasting Setting goals and objectives Targeting and positioning Tactics and action plans Marketing planning in various sectors 3 Developing a Marketing Plan 3-2

Chapter Copyright © 2009 by Nelson Education Limited. Marketing plan a written, short-term plan that details how an organization will use its marketing mix to achieve its marketing objectives Strategic marketing plan a written plan for an organization covering a period of three or more years into the future Developing a Marketing Plan 3

Chapter Copyright © 2009 by Nelson Education Limited. 3 Developing a Marketing Plan 3-4 Marketing Planning – Eight Step Process

Chapter Copyright © 2009 by Nelson Education Limited. Step 1: Corporate Connection The corporate mission should define the competitive scopes within which the company will operate. mission statement should be more than a page in the employee handbook company’s best tool for holding itself accountable to employees, customers and investors. majority of mission statements don’t reflect reality Enron’s mission statement noted that the company prided itself on it four key values: respect, integrity, communication and excellence. 3 Developing a Marketing Plan 3-5

Chapter Copyright © 2009 by Nelson Education Limited. Mission Statements The Canadian Tourism Commission “to increase awareness of and interest in Canada as a four- season tourist destination.” Zip Air “committed to providing…the kind of friendly, efficient service that maybe you’ve been missing with other airlines.” G.A.P. Adventures “Our priority is to satisfy every customer, every time, through outstanding, personalized service! We are dedicated to the customer experience and are constantly evaluating how we can improve this experience.” 3 Developing a Marketing Plan 3-6

Chapter Copyright © 2009 by Nelson Education Limited. Step 2: Analyzing and Forecasting Portfolio analysis Competitor analysis Segmentation analysis SWOT analysis Forecasting 3 Developing a Marketing Plan 3-7

Chapter Copyright © 2009 by Nelson Education Limited. Portfolio Analysis first became popular in the 1960s organizations sought to improve profitability by diversifying their activities Boston Consulting Group (BCG) model –popular approach –based on long-term planning and economic forecasts –two-by-two matrix identifies those offering high potential and those that drain on the organization’s resources Developing a Marketing Plan 3

Chapter Copyright © 2009 by Nelson Education Limited. The Boston Consulting Group (BCG) Model 3 Developing a Marketing Plan 3-9 Figure 3.2

Chapter Copyright © 2009 by Nelson Education Limited. Cash cow generates a high volume of income in relation to the cost of maintaining its market shareDog provides neither cash flow nor long-term opportunities holds little promise for improved performanceStars have a dominant share of a fast-growing market Question marks potentially high-risk products or services that may be profitable and, because of their small market share, may be vulnerable to competition Boston Consulting Group Model 3 Developing a Marketing Plan

Chapter Copyright © 2009 by Nelson Education Limited. Segmentation Analysis Developing a Marketing Plan SegmentationSegmentation –how organizations identify and categorize customers into clearly defined groups with similar characteristics, needs, or desires Five types:Five types: Demographic Psychographic Geographic Benefit Behaviour

Chapter Copyright © 2009 by Nelson Education Limited. SWOT Analysis StrengthsWeaknessesStrengths and Weaknesses –internally focused –those things an organization does best and positive features of its products and services) and weaknesses (problems that affect its success) OpportunitiesOpportunities –events that can affect a business, either through its reaction to external forces or through its addressing of its own weaknesses. –Example: Four Seasons Hotels and Resorts private charters and general cruises ThreatsThreats –internal and external elements that could have a detrimental effect on a business –Example: September 11, 2001 and SARS 3 Developing a Marketing Plan 3-12

Chapter Copyright © 2009 by Nelson Education Limited Developing a Marketing Plan SWOT Analysis of Canada as a Destination from Australia Table 3.1

Chapter Copyright © 2009 by Nelson Education Limited Developing a Marketing Plan Weaknesses Table 3.1

Chapter Copyright © 2009 by Nelson Education Limited. Opportunities 3-15 Developing a Marketing Plan 3 Table 3.1

Chapter Copyright © 2009 by Nelson Education Limited Developing a Marketing Plan Threats Table 3.1

Chapter Copyright © 2009 by Nelson Education Limited. GoalsGoals –primary aims of the organization –can be defined in terms of sales growth, increased profitability and market leadership ObjectivesObjectives –specific aims that managers accomplish to achieve organizational goals –activities that will accomplish the goals –For example, the goal of sales growth for a hotel could become an objective of 20 percent increase in accommodation sales and 30 percent increases in food and beverage sales. Step 3: Setting Marketing Goals and Objectives Developing a Marketing Plan

Chapter Copyright © 2009 by Nelson Education Limited. Step 4: Targeting and Positioning 3 Developing a Marketing Plan 3-18 Target MarketTarget Market –clearly defined market whose needs the company plans to satisfy PositioningPositioning –establishing an image for a product or service in relation to others in the marketplace Product DifferentiationProduct Differentiation –technique that enables organizations to gain competitive advantage by offering a product that has features not available in offerings of competitors

Chapter Copyright © 2009 by Nelson Education Limited. Step 4: Targeting and Positioning 3 Developing a Marketing Plan 3-19 Unique selling proposition (USP)Unique selling proposition (USP) –unique feature of a product or service that distinguishes it from all other products and services BrandingBranding –a method of establishing a distinctive identity for a product or service based on competitive differentiation from other products –name ideally conjures up positive images in consumers’ minds

Chapter Copyright © 2009 by Nelson Education Limited. The marketing plan for Superior North included strategies of: –Creative branding –Partnership development –Integrated communications –Stakeholder outreach –Tourism package development –Regional/community team building –Eco-tourism development –Festival/theme events –Aboriginal tourism development Developing a Marketing Plan Step 5: Tactics and Action Plans

Chapter Copyright © 2009 by Nelson Education Limited. Final Three Stages 3 Developing a Marketing Plan 3-21 Step 6: Resource Requirements –address the resources required to support the strategies and meet the plan Step 7: Marketing Control –ensure that objectives will be achieved in the required time Step 8: Communicating the Plan –important aspect of motivating staff at all levels and securing participation in the implementation process