Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 7-1 Planning Variables Strategies Objectives Tactics What is to be accomplished How objectives will be accomplished Detailed action plan

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 7-2 Strategic Planning A process that: 1.Determines objectives 2.Identifies strategies 3.Provides tactical details Planning is a continuous and cyclical process in most organizations.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 7-3 Business Planning Process Corporate Plan Marketing Plan Product Price Distribution Mkt. Comm.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 7-4 Corporate Planning Corporate plans are long term and broad in scope. They include the organization’s: Vision Mission Corporate Objectives Corporate Strategies

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 7-5 Mission Statement “A statement of an organization’s purpose that reflects the operating philosophy and the direction the company will take.”

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 7-6 Vision and Mission A vision statement defines plans for the future, defines what the company is and does, and where it is headed. If a vision statement is used, the mission statement tends to focus on the present condition of the company.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 7-7 Sample Mission Statement Our Vision To be the best transportation company in Canada Our Mission To provide high quality, low cost passenger rail service. VIA Rail

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 7-8 Corporate Objectives Typical objectives include:  Sales  Profit  Return on Investment Objectives should be quantitative in nature, growth oriented, and measurable.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 7-9 Corporate Strategies The company must allocate the resources needed to achieve the objectives. Financial Commitment Adequate Time R&D Commitment

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Corporate Strategies Penetration Acquisition New Products Vertical Integration Strategic Alliance Divestment Cross-Marketing Penetration Acquisition New Products Vertical Integration Strategic Alliance Divestment Cross-Marketing The strategic direction taken varies from one company to another. More than one strategy can be employed by the same company.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Penetration Strategy Aggressive action is taken to build current businesses and brands. Coca-Cola Diet Coke Fruitopia Dasani PowerAde Coca-Cola Diet Coke Fruitopia Dasani PowerAde Coca-Cola wants to be the leading beverage company worldwide.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Acquisition Strategy Many organizations find it cheaper to buy their way in to a market. Nestle Ralston Purina Haagan-Dazs Dreyers Nestle Ralston Purina Haagan-Dazs Dreyers PepsiCo Quaker Oats (Gatorade) PepsiCo Quaker Oats (Gatorade)

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Vertical Integration Strategy An organization owns and operates organizations in other levels of the channel of distribution George Weston Ltd. Loblaws Provigo Zehrs Wholesaler Retailers

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Strategic Alliance A relationship between two or more companies who decide to work cooperatively to achieve goals. Tim Hortons Imperial Oil Tim Hortons will set up kiosks in 300 Esso outlets coast to coast.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Divestment Strategy Reversification has been popular since the mid-1990s. Molson sells Molson Centre & Montreal Canadiens A company retreats to its core business by selling unprofitable divisions or divisions that don’t fit strategically.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Cross-Marketing Two or more independent organizations share facilities and/or resources to market their goods and services to similar types of customers. Wendy’s & Tim Hortons Wendy’s & Tim Hortons KFC & Taco Bell KFC & Taco Bell

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Marketing Planning A continuous and cyclical process that: 1.Analyzes target needs 2.Considers market situations 3.Develops objectives 4.Identifies marketing strategies and tactics 5.Evaluates strategies for effectiveness.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Marketing Planning Process Situation Analysis Situation Analysis SWOT Analysis SWOT Analysis Marketing Plan Marketing Plan Evaluation and Control Evaluation and Control Implementation of Plan Implementation of Plan

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Situation Analysis Essential information is compiled and analyzed. External Influences Market Analysis Brand Analysis Competitive Analysis External Influences Market Analysis Brand Analysis Competitive Analysis The impact of past marketing strategies are analyzed.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc SWOT Analysis Identifying critical factors that will influence direction of marketing strategy. Strengths & Weaknesses Strengths & Weaknesses Opportunities & Threats Opportunities & Threats Internal FactorsExternal Factors

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Marketing Plan Marketing Objectives Sales, Market Share, Profit Marketing Strategies Positioning Statement Target Market Marketing Mix Budget Marketing Execution

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Marketing Objectives Quantifiable statements identifying what a brand will accomplish in one year. Sales:  To increase sales from 10,000 units to…… Market Share:  To increase market share from 20% to…… Profit:  To generate a net profit of $100,000.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Common Marketing Strategies Market Penetration Market Penetration Product Development Product Development Market Development Market Development Diversification Existing Product New Product Existing Market New Market

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Control and Evaluation Measuring results and taking corrective action when necessary. Activity Review Financial Review Actual versus plan for sales, market share and profit. Sales forecasts, costs, and budgets are evaluated.

Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc Contingency Plan The identification of alternative courses of action that can be used to modify an original plan if and when new circumstances arise.