©2005 Pearson Education Canada Inc.2-1 Chapter 2 Strategic Planning Principles

©2005 Pearson Education Canada Inc.2-2 Integrated Planning Integrated planning involves linking plans from various management levels of an organization together. Corporate Planning Corporate Planning Marketing Planning Marketing Planning IMC Planning IMC Planning By Senior Executives By Brand Managers and Marketing Managers By Communications Specialists

©2005 Pearson Education Canada Inc.2-3 Strategic Planning Strategic planning includes three common variables. Objectives Strategies Execution Statements about what is to be accomplished. Statements outlining how objectives will be achieved. Action-oriented details.

©2005 Pearson Education Canada Inc.2-4 Influences on Strategic Plans Strategic plans at all levels are influenced by numerous external trends. Economic Trends Social and Demographic Trends Technology Trends Competitor Activities Laws and Regulations

©2005 Pearson Education Canada Inc.2-5 Influences on Strategic Plans External Influences Economy Competition Social / Demographic Technology Laws / Regulations External Influences Economy Competition Social / Demographic Technology Laws / Regulations Corporate Plan Marketing Plan IMC Plan

©2005 Pearson Education Canada Inc.2-6 Plans are Linked Together Plans from above provide guidance for IMC plans. Corporate Plan Corporate Plan Marketing Plan Marketing Plan IMC Plan Strategic orientation Strategic and tactical orientation

©2005 Pearson Education Canada Inc.2-7 Corporate Plans A corporate plan is long-term and broad in scope. It includes an organization’s: Mission Statement Corporate Objectives Corporate Strategies

©2005 Pearson Education Canada Inc.2-8 Mission Statement “A statement of an organization’s purpose that reflects the operating philosophy and the direction the company will take.”

©2005 Pearson Education Canada Inc.2-9 Corporate Objectives Objectives are quantitative in nature, growth oriented, and measurable. Sales Profit Return on Investment Social Responsibility

©2005 Pearson Education Canada Inc.2-10 Corporate Strategies Strategic Direction Strategic Direction Some Alternatives Penetration New Product Development Acquisition Strategic Alliance Some Alternatives Penetration New Product Development Acquisition Strategic Alliance $ for Marketing and Other Operations $ for Marketing and Other Operations

©2005 Pearson Education Canada Inc.2-11 Marketing Planning Marketing planning involves four essential steps: 1.Analyzing market opportunities 2.Developing marketing strategies 3.Planning and implementing programs 4.Measuring and evaluating programs

©2005 Pearson Education Canada Inc.2-12 Marketing Planning & Control Marketing Plan Implementation Evaluation & Control Corrective Action Revise Objectives Modify Strategies

©2005 Pearson Education Canada Inc.2-13 Marketing Plan Background and SWOT Background and SWOT Marketing Plan Marketing Plan Positioning Strategy Target Market Profile Marketing Objectives Marketing Strategy Marketing Execution Positioning Strategy Target Market Profile Marketing Objectives Marketing Strategy Marketing Execution Evaluation & Control Evaluation & Control

©2005 Pearson Education Canada Inc.2-14 Budget Determination Several methods are available for determining a budget: % of Sales Fixed Sum / Unit Industry Average Task (Objective)

©2005 Pearson Education Canada Inc.2-15 Marketing Communications Planning 1.External agents are often responsible for preparing plans. 2.The contribution of each communications component must be determined. Some provide short-term benefit and some provide long-term benefit. 3.The components must be integrated to present a unified message to the target.

©2005 Pearson Education Canada Inc.2-16 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

©2005 Pearson Education Canada Inc.2-17 Marketing Communications Objectives Attract New Targets Encourage Greater Use Offer Incentives Create Goodwill Create Leads Motivate Distributors

©2005 Pearson Education Canada Inc.2-18 Marketing Communications Strategies Advertising Direct Response Online Interactive Sales Promotion Personal Selling Public Relations Event Marketing 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.