Transcript Lecture #3

Chapter 7
Strategic Marketing Planning
Copyright © 2013 Pearson Canada Inc.
Visual Model
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Strategic Planning
“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.”
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Marketing Planning
“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.
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Planning Variables
Objectives
What is to be accomplished
Strategies
How objectives will be achieved
(a plan with appropriate
resources)
Execution
Detailed action plan; the
tactics.
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Corporate Planning
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.
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http://www.coca-colacompany.com/our-company/mission-vision-values
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.
• 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.
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.
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,
Corporate Objectives
Objectives should be quantitative in nature,
growth oriented, and measureable. Typical
objectives include:
 Sales
 Profit
 Return on Investment
 Social Responsibility
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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
Marketing Planning - Definition
“The analysis, planning, implementation,
evaluation, and control of marketing initiatives
in order to satisfy target market needs and
organizational objectives.”
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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
Marketing Plan Model
Marketing
Plan
Elements
Business Mission
Statement
Situational
Analysis (SWOT)
Issues
and
Objectives
Marketing Strategy
Target Market
Strategy
Marketing Mix
Another example
is on page 141 of
textbook
Product
Distribution
Promotion
Price
Implementation
Evaluation
Control
Situation Analysis
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?
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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
Pareto’s Theorem
• Vilfredo Pareto
• 16th 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?
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
Segmentation Variables
Geography
Demographics
Psychographics
Benefits Sought
Usage Rate
Maslow’s Hierarchy of Needs
The Buying Process
Need Recognition
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps
Information Search
Evaluation
of Alternatives
Purchase
Postpurchase
Behaviour
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
Evoked Set
Evoked Set
Group of brands, resulting from
an information search, from
which a buyer can choose
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!
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.
Position your product with a positioning statement
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
SWOT Analysis
Critical factors from the situation analysis that
will influence the direction of future marketing
direction are identified.
Strengths and
Weaknesses
Internal Factors
Opportunities
and
Threats
External Factors
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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)
Marketing Mix: The “Four Ps”
Price
Promotion
Place
Product
Marketing Planning
Marketing
Objectives
Marketing
Strategies
• Sales
• Market Share
• Profit
• Product Launch
• Positioning Strategy
• Target Market Profile
• Marketing Mix
• Budget
Marketing
Execution
• Tactical Details
Market
Evaluation
• Strategy Review
• Financial Review
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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.”
Product Life Cycles
Marketing Approach
INTRODUCTION
Sales
Product
Strategy
Limited models
Frequent
changes
GROWTH
More models
Frequent
changes.
Distribution
Strategy
Limited
Expanded
Wholesale/
dealers. Longretail distributors term relations
Promotion
Strategy
Awareness.
Aggressive ads.
Stimulate
Stimulate
demand. Sampling
demand
Pricing
Strategy
High to recoup
development
costs
Fall as result of
competition &
efficient
production.
Time
MATURITY
DECLINE
Eliminate
Large number
unprofitable
of models.
models
Extensive.
Margins drop.
Shelf space
Phase out
unprofitable
outlets
Advertise.
Promote
heavily
Phase out
promotion
Prices fall
(usually).
Prices
stabilize at
low level.
Hierarchy of Effects & Role of IMC
Repurchase/Loyalty
Purchase
Conviction/Intention
Preference
Liking
Knowledge
Awareness
Unawareness
Top of mind
Share of mind
AIDA (attention/awareness, interest, desire, action)
ACCA (awareness, comprehension, conviction, action)
Behavioural Objectives:
• Trial
– Category Trial
– Brand Trial
– Brand Retrial
– Brand Switching
• Repeat Purchase
• Purchase Related
Behaviour
• Repeat Consumption
Positioning Statement
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.
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Position your product with a positioning statement
Marketing Control and
Evaluation
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)
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The Think Marketing box
on p. 148 outlines how
Hyundai markets to middleclass Canadian families.
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Visual Model
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