1. Chapter 7 Strategic Marketing Planning Copyright © 2013 Pearson Canada Inc.

2. Visual Model Copyright © 2013 Pearson Canada Inc.7-2

3. Strategic Planning Copyright © 2013 Pearson Canada Inc.7-3 “The process of determining objectives, and identifying strategies and tactics within the framework of the business environment that will contribute to the achievement of objectives.”

4. Marketing Planning Copyright © 2013 Pearson Canada Inc.7-4 “The analysis, planning, implementation, evaluation, and control of marketing initiatives in order to satisfy target market needs and organizational objectives.” Short term and specific; combines both strategy and tactics.

5. Planning Variables 7-5Copyright © 2013 Pearson Canada Inc. Objectives Strategies Execution What is to be accomplished How objectives will be achieved (a plan with appropriate resources) Detailed action plan; the tactics.

6. Corporate Planning Copyright © 2013 Pearson Canada Inc.7-6 A corporate plan sets the direction for an organization and has an impact on functional plans like marketing plans. Mission: a statement of purpose and operating philosophy. Vision: A statement of what and where an organization would like to be in the future. Values: Statements reflecting an organization’s culture and priorities.

7. http://www.coca-colacompany.com/our-company/mission-vision-values

8. Our Vision Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

9. Since its beginnings, Coca-Cola has built its business using a universal strategy based on three timeless principles: acceptability - through effective marketing, ensuring Coca-Cola brands are an integral part of consumer's daily lives, making Coca-Cola the preferred beverage everywhere affordability - Coca-Cola guarantees it offers the best price in terms of value for money availability - making sure that Coca-Cola brands are available anywhere people want refreshment, a pervasive penetration of the marketplace.

10. Mission Statement Defines the present state or purpose of an organization; Answers three questions about why an organization exists - WHAT it does; WHO it does it for; and HOW it does what it does. Is written succinctly in the form of a sentence or two.

11. Vision Statement Defines the optimal desired future state - the mental picture - of what an organization wants to achieve over time; Provides guidance and inspiration as to what an organization is focused on achieving in five, ten, or more years; Functions as the "north star" - it is what all employees understand their work every day ultimately contributes towards accomplishing over the long term; and,

12. Corporate Objectives Copyright © 2013 Pearson Canada Inc.7-12 Objectives should be quantitative in nature, growth oriented, and measureable. Typical objectives include:  Sales  Profit  Return on Investment  Social Responsibility

13. Strategies Sell More Sell more to existing customers –Reformulate – revise uses Sell to new customers –Increase Market Share –Expand abroad – Penetrate new markets Sell new things to existing customers –Diversification Sell new things to new customers Enhance profitability –Reduce costs / Refine processes Build brand equity –Positioning and re-positioning –Social responsibility

14. Marketing Planning - Definition Copyright © 2013 Pearson Canada Inc.7-14 “The analysis, planning, implementation, evaluation, and control of marketing initiatives in order to satisfy target market needs and organizational objectives.”

15. Marketing Planning – The Process Collect Information and conduct a Situational Analysis Summarize with a SWOT Analysis Set Objectives based on issues and problems found in the Analysis Create Strategies and plans to accomplish those Objectives Execute the plan and Measure Results Take what you have learned and start again

16. Marketing Plan Model

17. Marketing Plan Elements Marketing Strategy ProductDistribution Price Marketing Mix Business Mission Statement Situational Analysis (SWOT) Issues and Objectives Target Market Strategy Implementation Evaluation Control Promotion Another example is on page 141 of textbook

18. Situation Analysis Copyright © 2013 Pearson Canada Inc.7-18 Essential information is compiled and analyzed. Analyze: Market Customer Brand Analysis Positioning Competitor Analysis Economy Technology Social Demographic Legal External influences that have an impact on the brand are analyzed. Past and present marketing strategies are assessed. How well is the brand doing?

19. Situational Analysis Collect and consider information related to 1)The external environment –Competition –Demographic Trends –Social Trends –Economic Trends –Legal and Regulatory –Technological Trends –Chapter 2

20. Pareto’s Theorem Vilfredo Pareto 16 th Century Italian engineer 80% of any phenomenon is caused by 20% of the agents that could cause the phenomenon Otherwise known as the 80/20 rule 80% of our sales come from 20% of our customers Examples are numerous – can you think of one?

21. Situational Analysis Collect and consider information related to 2) The Customer Profile them using »Demographics »Psychographics »Behaviour in buying (usage and attitudes) –Consider their lifestyles and family make up –Consider their needs and the benefits they seek –Consider the way they buy – “Buying Process” –Chapters 6 and 4

22. Segmentation Variables Usage Rate Benefits Sought Psychographics Demographics Geography

23. Maslow’s Hierarchy of Needs

24. The Buying Process Postpurchase Behaviour Postpurchase Behaviour Purchase Evaluation of Alternatives Evaluation of Alternatives Information Search Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps Cultural, Social, Individual and Psychological Factors affect all steps

25. Situational Analysis Collect and consider information related to –3) The Market Market size in $ / units / customers Market Share of the competitors Competitors’ products Positioning New products coming out Geographic issues Demographic trends Technological trends –Chapter 3 - Research

26. Evoked Set Group of brands, resulting from an information search, from which a buyer can choose Evoked Set

27. Product Differentiation A positioning strategy that some firms use to distinguish their products from those of competitors. Distinctions can be real or perceived. Eat Fresh!

28. Positioning Developing a specific marketing mix to influence potential customers’ overall perception of a brand or product – as it relates to the meaningful attributes of the competitive set. Positioning takes place in the mind of the customer.

29. Position your product with a positioning statement

30. Situational Analysis Summarize your findings in a detailed… –SWOT Analysis Strengths - –internal – about us – makes us “better” Weaknesses – –internal – about us – makes us “weaker” Opportunities – –external – about trends and changes – mistakes competitors make - technology Threats – –external – about changes in market or competitors that puts us at a disadvantage

31. SWOT Analysis Copyright © 2013 Pearson Canada Inc.7-31 Critical factors from the situation analysis that will influence the direction of future marketing direction are identified. Strengths and Weaknesses Opportunities and Threats Internal Factors External Factors

32. Marketing Planning Establish Objectives Create Plans to achieve Objectives using the four main strategies: Product Price Promotion (IMC) »Advertising »Sales promotion »Public relations »Personal Selling Place (Distribution)

33. Marketing Mix: The “Four Ps” Price Promotion Place Product

34. Marketing Planning Copyright © 2013 Pearson Canada Inc.7-34 Marketing Objectives Marketing Strategies Marketing Execution Sales Market Share Profit Product Launch Positioning Strategy Target Market Profile Marketing Mix Budget Tactical Details Market Evaluation Strategy Review Financial Review

35. Marketing Objectives – the SMART Criteria  S pecific  M easurable  A ttributable  R ealistic  T ime specific  Consistent with and indicating the priorities of the organization “Our objective is to achieve 10 percent dollar market share in the cat food market within 12 months of product introduction.”

36. Product Life Cycles Marketing Approach Time INTRODUCTION GROWTH MATURITYDECLINE Product Strategy Distribution Strategy Promotion Strategy Pricing Strategy Limited models Frequent changes More models Frequent changes. Large number of models. Eliminate unprofitable models Limited Wholesale/ retail distributors Expanded dealers. Long- term relations Extensive. Margins drop. Shelf space Phase out unprofitable outlets Awareness. Stimulate demand. Sampling Aggressive ads. Stimulate demand Advertise. Promote heavily Phase out promotion High to recoup development costs Fall as result of competition & efficient production. Prices fall (usually). Prices stabilize at low level. Sales

37. Hierarchy of Effects & Role of IMC Unawareness Awareness Knowledge Liking Conviction/Intention Purchase Repurchase/Loyalty IMC AIDA (attention/awareness, interest, desire, action) ACCA (awareness, comprehension, conviction, action) Preference Behavioural Objectives: Trial – Category Trial – Brand Trial – Brand Retrial – Brand Switching Repeat Purchase Purchase Related Behaviour Repeat Consumption Brand Attitude Objectives  Top of mind  Share of mind

38. Positioning Statement Copyright © 2013 Pearson Canada Inc.7-38 A clearly worded positioning strategy statement is a crucial component of the plan. 1.Positioning attempts to place a desirable image about the product in the customer’s mind. 2.The statement it s the focal point for devising marketing strategies. Example: Visa gives you the confidence that you are able to do anything.

39. Position your product with a positioning statement

40. Marketing Control and Evaluation Copyright © 2013 Pearson Canada Inc.7-40 Control and evaluation embrace three basic elements: Establishing standards of performance (marketing objectives) Measuring performance (results) against objectives Taking corrective action (modifying strategies when necessary) The Think Marketing box on p. 148 outlines how Hyundai markets to middle- class Canadian families.

41. Visual Model Copyright © 2013 Pearson Canada Inc.7-41