Chapter 2 Strategic Planning Principles

Slides:



Advertisements
Similar presentations
Strategic Planning and the Marketing Process
Advertisements

Management, Leadership, & Internal Organization………..
Planning: Processes and Techniques
Chapter Two Strategic Planning and the Marketing Process
Chapter 2 Copyright ©2010 Cengage Learning Inc. All rights reserved 1 MKTG 2 CHAPTER Strategic Planning for Competitive Advantage.
Planning and Strategic Management
Strategic Planning and the Marketing Process
Principles of Marketing
Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 Learning Outcomes – Chapter 2 1. Understand the importance.
Strategic Planning and the Marketing Process
Strategic Planning and the Marketing Process
Developing and Enacting Strategic Marketing Plans
An Introduction to Integrated Marketing Communications
BA 230 Marketing Communications
Chapter Two Marketing Strategy: Where Marketing Really Begins
Global Edition Chapter Two
Chapter Two Company and Marketing Strategy
Chapter Seven Marketing, Advertising, and IMC Planning
What is the purpose of Marketing?
Company and Marketing Strategy: Partnering to Build Customer Relationships Chapter 2.
An Introduction to Integrated Marketing Communications.
Copyright © 2007 Pearson Education Canada 7-1 Planning Variables Objec t ives Strategies Execution What is to be accomplished How objectives will be accomplished.
Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 2–1 Part 1: Marketing strategy and.
Introduction to marketing
Essentials of Management Chapter 4
1 2. Strategic Planning & The Marketing Process. 2 What Is Planning Establish objectives Determine how to accomplish them regardless of what happens in.
Company and marketing strategy: partning to build customer relationshp
Strategic Planning: Making Choices in a Dynamic Environment
Principles of Marketing
Chapter 10 Marketing communication and personal selling
1 Integrated Marketing Communications: An Overview.
©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 2-0 Chapter 2 Strategic Planning: Making Choices in a Wired World.
Strategic Marketing Planning Capturing the Big Picture.
© 2006 Pearson Education Canada Inc. 4.1 Canadian Advertising in Action Chapter 4 Strategic Planning Concepts for Marketing Communications.
The Marketing Process, Planning & The Marketing Plan.
Strategic Planning. Citizens Bank Case Marketing Challenges –Minimize customer attrition to under 10% –Build awareness of Citizen Bank –Reduce customers’
Strategic Marketing Planning Capturing the Big Picture.
Marketing, Advertising and IMC Planning Chapter 07 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Marketing & Strategy Chapter 2. Strategic Planning What is it? What is it? “The managerial process of creating and maintaining a fit between organizational.
© 2005 Pearson Education Canada Inc.1-1 Chapter 1 Integrated Marketing Communications: An Overview.
The Integrated Campaign
1 Chapter 19 The Integrated Campaign. 2 What is Integrated Marketing Communications (IMC)? Integrated Marketing Communications is the practice of unifying.
1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 2 Prepared by Deborah Baker Texas Christian University.
©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 14-0 Chapter 14 Conversing with the Customer: Promotional Strategy, Interactive.
4-1 Copyright © 2009 Pearson Education Canada CHAPTER 4 Strategic Planning Concepts for Marketing Communications.
CHAPTER 12 Integrated Marketing Communications M A R K E T I N G Real People, Real Choices Fourth Edition.
Copyright 2000 Prentice Hall2-1 Chapter 2 Strategic Planning: Making Choices in a Dynamic Environment.
Chapter 7 Strategic Marketing Planning Copyright © 2013 Pearson Canada Inc.
External Influences Affect All Levels of Planning External Influences Economic trends Competitor activity Social & demographic trends Technology Laws &
Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 7-1 Planning Variables Strategies Objectives Tactics What.
1 Chapter - 2 Sales Strategies. 3 Sales and Marketing Planning To be effective, sales activities need to take place within the context of an overall.
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
2-1 Visit UMT online at © UMT 2004 MKT100Version: PRINCIPLES OF MARKETING University of Management and Technology 1901 N. Fort.
©2005 Pearson Education Canada Inc.2-1 Chapter 2 Strategic Planning Principles.
Marketing Management 16 February Company and Marketing Strategy Current Situation, Opportunities, Objectives and Resources – Inputs of Strategic.
Marketing Plan.
Course Name: Principles of Marketing Code: MRK 152 Chapter: Nine Advertising and Public Relations.
Marketing II Chapter 2: Company and Marketing Strategy Partnering to Build Customer relationships
Chapter 2 Marketing Strategy: Partnering to Build Customer Relationships.
Integrated Marketing Communications Introduction (2) An Introduction (2) Sunarto Prayitno 1.
International Strategic Management
Company and Marketing Strategy: Partnering to Build Customer Relationships Chapter 2.
Dr. Laura Whitcomb BUS 4970 Fall 2016
Chapter 2 Marketing Plan. Chapter 2 Marketing Plan.
Global Edition Chapter Two
Chapter Two Company and Marketing Strategy
Global Edition Chapter Two
Strategic Marketing Planning
Presentation transcript:

Chapter 2 Strategic Planning Principles

Review from Chapter 1 What is IMC? Name 2 types of advertising – give examples Give 3 examples of Direct Response – What is the difference between advertising and direct response? What is fueling the growth in interactive communications? Explain and give an example What’s the difference between push and pull sales promotions? Give examples of each What are the four trends driving IMC? What is the Hierarchy of Needs? How do we use it? Give examples What is the difference between the “real self” and the “ideal self”? Give an example of an ad that targets one’s “ideal” self. Describe how perception affects advertising and promotion

Integrated Planning Integrated planning involves linking plans from various management levels of an organization together. Corporate Planning By Senior Executives By Brand Managers and Marketing Managers Marketing Planning By Communications Specialists IMC Planning

Strategic Planning Strategic planning includes three common variables. Statements about what is to be accomplished. Objectives Statements outlining how objectives will be achieved. Strategies Example – West Jet Execution Action-oriented details.

West Jet

Influences on Strategic Plans Corporate Plan External Influences Economy Competition Social / Demographic Technology Laws / Regulations Marketing Plan Economic Influences – The state of the economy often dictates how aggressive or conservative a company is with its plans. The state of the economy is determined by such factors as growth rates in GDP, inflation rates, levels of employment, and the value of the dollar in relation to foreign currencies. The relationship among these variables is dynamic. An economy tends to go through cycles (the outcome of these variables): recession, depression, recovery, and prosperity. Competitor Influences – The type of market a company operates in has an impact on the nature of planning. The various structures include monopolies, oligopolies, and monopolistically competitive markets. Competition is classified as being direct (competition from alternative products) or indirect (competition from substitute products). The lines between direct and indirect competition is less today than previously. For example, Loblaws and Wal-Mart once operated in separate markets. The addition of new product lines by each company now makes them direct competitors. Coca-Cola does not just compete against Pepsi-Cola. It competes against all other cold beverages. Social and Demographic Influences – Adjusting business strategies to fit with demographic trends is essential. The key trends include the following: The rate of population growth is slowing down The population is concentrated in urban areas Households are getting smaller and the structure of them is changing The population is becoming more ethnically diverse Gender equity is altering decision-making processes Generally speaking, the population is more environmentally conscious than before and this trend is affecting how companies market their products. Social responsibility marketing programs have come to the foreground. A population is targeted based on similar characteristics. Common population groupings included seniors, baby boomers, Generation X, Generation Y, and so on. Technology Influences – Technology embraces discoveries, inventions and innovations. New technologies present new opportunities for companies. Canadian society has been quick to embrace technology meaning that future marketing plans and marketing communications plans will have a technological focus. For example, the means of communicating with prospective customers will rely more on electronic communications and less on traditional mass media communications. Legal and Regulatory Influences – Laws and regulations govern business practice. The primary instrument that companies follow is the Competition Act. It cannot be assumed that all companies follow ethical practices. Numerous companies have made headline news for their corporate malaise in recent years. With regard to communications a company must be careful about claims made for products. They cannot misrepresent the product nor mislead the public. IMC Plan

Plans are Linked Together Plans from above provide guidance for IMC plans. Corporate Plan Strategic orientation Marketing Plan Strategic and tactical orientation IMC Plan

Corporate Plans A corporate plan is long-term and broad in scope. It includes an organization’s: Mission Statement Corporate Objectives Corporate Strategies

Mission Statement “A statement of an organization’s purpose that reflects the operating philosophy and the direction the company will take.”

Coke’s Mission Statement To refresh the world … in body, mind and spirit To inspire moments of optimism … through our brands and our actions To create value and make a difference … everywhere that we engage

Corporate Objectives Objectives are quantitative in nature, growth oriented, and measurable. Sales Profit Return on Investment Social Responsibility

Corporate Strategies Some Alternatives Strategic Penetration Direction New Product Development Acquisition Strategic Alliance The strategic direction a company takes varies but some common directions include: Penetration Strategies – A company decides to pursue the competition aggressively (e.g., they spend more or offer a wider package of marketing initiatives). New Product Development – Real growth often comes from new products (e.g., McDonald’s increased sales by adding salads to its menu). Acquisitions – A company buys another company or a group of brands from a company in order to enter profitable market segments (e.g., Pepsi-Cola acquired Quaker to get control of Gator Ade). Strategic Alliances – Two or more companies form an alliance to collaborate their efforts in pursuing a particular market (e.g., hotels, restaurants and airlines may work together to develop the travel market). $ for Marketing and Other Operations

Marketing Planning Marketing planning involves four essential steps: Analyzing market opportunities Developing marketing strategies Planning and implementing programs Measuring and evaluating programs

Marketing Planning & Control Implementation Modify Strategies Evaluation & Control Corrective Action Revise Objectives

Marketing Plan Background and SWOT Marketing Plan Positioning Strategy Target Market Profile Marketing Objectives Marketing Strategy Marketing Execution The following are key areas of the background section of the plan: External Influences – A review of economic trends, social and demographic trends, technology trends and regulatory trends. Market Analysis – An evaluation of market size and growth, regional market importance, market segment analysis, and seasonal trends. Target Market Analysis – The identification of the primary and secondary customer groups along with their characteristics, lifestyles, and habits. Other concerns include their degree of brand loyalty and understanding of what factors influence their buying decisions. Brand Analysis – A review of sales trends, market share trends, distribution trends, marketing communications programs, and any new product activity that has been recently undertaken. Competitor Analysis – Knowledge of key competitor’s sales volume, market share, and marketing strategies are analyzed for effectiveness. SWOT Analysis – An attempt is made to interpret the data collected in the above sections. In summary form what are the key issues that will influence the direction of marketing strategy. The goal is to match potential opportunities with the resources available. The marketing plan section includes the following information: Positioning Strategy Statement – A statement that reflects what the brand stands for. It is the desired image that the company wants to instill in the customer’s mind. Target Market Profile – A thorough description of the customer based on demographic, psychographic, and geographic characteristics. Marketing Objectives – Statements identifying quantifiable goals for a one-year period (e.g., sales, market share, product improvements, new product introductions, etc.). Marketing Strategies – The role and contribution of each element of the marketing mix are identified and resources are allocated to each element. These strategies provide guidance for the development of marketing communications plans. Marketing Tactics – The identification of specific marketing actions (the action plan). All details are mapped out according to type of activity, timing, and cost. Budget and Financial Summary – The financial implication of the plan must be communicated to senior management. Typically, a profit and loss statement for the product is included in the plan. The statement will compare previous year’s financial performance to the current year to date, and the plan year. Evaluation and Control – Marketing plans are reviewed while in progress to determine if changes are necessary. Marketing control is a process of measuring and evaluating results of actions taken and planning corrective action when necessary. Companies often build in contingency plans that can be quickly implemented should certain Evaluation & Control

Budget Determination Several methods are available for determining a budget: % of Sales Fixed Sum / Unit Industry Average Task (Objective)

Marketing Communications Planning External agents are often responsible for preparing plans. The contribution of each communications component must be determined. Some provide short-term benefit and some provide long-term benefit. The components must be integrated to present a unified message to the target.

Marketing Communications Objectives Marketing communications must satisfy a diverse list of objectives, hence the need for integration of various components. Build / Sustain Awareness Develop Image Alter Perceptions Differentiate Products

Marketing Communications Objectives Attract New Targets Encourage Greater Use Offer Incentives Create Goodwill Create Leads Motivate Distributors

Marketing Communications Strategies Advertising Direct Response Online Interactive Sales Promotion Personal Selling Public Relations Event Marketing Depending on the objectives to be achieved, competitive activity, and budget, the best combination of marketing communications components are recommended. Each situation is unique.