Transcript Ch07

Planning Variables
Objectives
What is to be accomplished
Strategies
How objectives will be
accomplished
Tactics
Detailed action plan
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-1
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, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
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Business Planning Process
Corporate Plan
Marketing Plan
Product
Distribution
Price
Mkt. Comm.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-3
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, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-4
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, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-5
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, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-6
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, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-7
Corporate Objectives
Typical objectives include:

Sales

Profit

Return on Investment
Objectives should be quantitative in nature,
growth oriented, and measurable.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-8
Corporate Strategies
The company must allocate the resources
needed to achieve the objectives.



Financial Commitment
Adequate Time
R&D Commitment
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-9
Corporate Strategies
• 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, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-10
Penetration Strategy
Aggressive action is taken to build current
businesses and brands.
Coca-Cola
Coca-Cola wants to be
the leading beverage
company worldwide.
Coca-Cola
Diet Coke
Fruitopia
Dasani
PowerAde
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-11
Acquisition Strategy
Many organizations find it cheaper to buy
their way in to a market.
Nestle
Ralston Purina
Haagan-Dazs
Dreyers
PepsiCo
Quaker Oats
(Gatorade)
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-12
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, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-13
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, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-14
Divestment Strategy
Reversification has been popular since the
mid-1990s.
A company retreats to its
core business by selling
unprofitable divisions or
divisions that don’t fit
strategically.
Molson
sells
Molson Centre &
Montreal Canadiens
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-15
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
KFC &
Taco Bell
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-16
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, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-17
Marketing Planning Process
Evaluation and
Control
Situation
Analysis
SWOT
Analysis
Implementation
of Plan
Marketing
Plan
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-18
Situation Analysis
Essential information is compiled and analyzed.
•
•
•
•
External Influences
Market Analysis
Brand Analysis
Competitive Analysis
The impact of past
marketing strategies
are analyzed.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-19
SWOT Analysis
Identifying critical factors that will influence
direction of marketing strategy.
Strengths &
Weaknesses
Opportunities &
Threats
Internal Factors
External Factors
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-20
Marketing Plan

Marketing Objectives
Sales, Market Share, Profit

Marketing Strategies
•
•
•
•

Positioning Statement
Target Market
Marketing Mix
Budget
Marketing Execution
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-21
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, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-22
Common Marketing Strategies
Existing Market
New Market
Existing Product
New Product
Market
Penetration
Product
Development
Market
Development
Diversification
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-23
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, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-24
Contingency Plan
The identification of alternative courses of
action that can be used to modify an original
plan if and when new circumstances arise.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
7-25