Chapter 7 Strategic Marketing Planning Copyright © 2013 Pearson Canada Inc

Chapter 7Strategic Marketing Planning

Copyright © 2013 Pearson Canada Inc.

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Copyright © 2013 Pearson Canada Inc. 7-2

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.”

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.

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.

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.

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

Our VisionOur 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; andHOW 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

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.”

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

ElementsMarketing Strategy

Product Distribution

Price

Marketing Mix

Business Mission Statement

Situational Analysis (SWOT)

Issues and

Objectives

Target Market Strategy

ImplementationEvaluation

Control

Promotion

Another example is on page 141 of textbook

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?

Situational Analysis

• Collect and consider information related to1)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

Usage RateUsage Rate

Benefits SoughtBenefits Sought

PsychographicsPsychographics

DemographicsDemographics

GeographyGeography

Maslow’s Hierarchy of Needs

The Buying Process

Postpurchase Behaviour

Postpurchase Behaviour

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

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

Group of brands, resulting from

an information search, from

which a buyer can choose

Evoked SetEvoked Set

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

Opportunities and Threats

Internal Factors

External Factors

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


MarketingObjectives

MarketingStrategies

MarketingExecution

• Sales• Market Share• Profit• Product Launch

• Positioning Strategy • Target Market Profile• Marketing Mix• Budget

• Tactical Details

MarketEvaluation

• Strategy Review• Financial Review

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 CyclesMarketing Approach

Time

INTRODUCTION GROWTH MATURITY DECLINE

ProductStrategy

Distribution

Strategy

PromotionStrategy

PricingStrategy

Limited modelsFrequent changes

More modelsFrequent changes.

Large number of models.

Eliminate unprofitable

models

LimitedWholesale/

retail distributors

Expanded dealers. Long-term relations

Extensive.Margins drop.Shelf space

Phase out unprofitable

outlets

Awareness. Stimulate

demand. Sampling

Aggressive ads.Stimulatedemand

Advertise. Promote heavily

Phase outpromotion

High to recoupdevelopment

costs

Fall as result ofcompetition &

efficient production.

Prices fall (usually).

Prices stabilize at low level.

Sa

les

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)

PreferenceBehavioural Objectives:• Trial

– Category Trial– Brand Trial– Brand Retrial– Brand Switching

• Repeat Purchase• Purchase Related

Behaviour• Repeat Consumption

Brand Attitude Objectives

Top of mindShare of mind

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.

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)

The Think Marketing box on p. 148 outlines how Hyundai markets to middle-class Canadian families.

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Chapter 7 Strategic Marketing Planning Copyright © 2013 Pearson Canada Inc