Textbook Notes (367,894)
Canada (161,478)
MCS 3620 (29)
Bharat Sud (21)
Chapter 2

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Marketing and Consumer Studies
MCS 3620
Bharat Sud

Chapter 2 Marketing Communications Strategic Planning Principles Factors influencing Strategic Planning Strategic Planning (Corporate Strategy): The process of determining objectives (setting goals) and identifying strategies and tactics (action plans) to help achieve objectives Objectives: Statements of what’s to be accomplished in terms of sales, profit, market share or other Strategies: Statements on how to achieve the objectives such as the allocation of resources Tactics: Action-oriented details including precise details about the cost and timing of specific activities  Strategic planning is cyclical in most companies occurring usually annually Economic Influences  The general state of the economy has direct impact on how aggressive or conservative a company is w/ their business plan  General state of the economy is determined by growth rates in the GDP, inflation rates, levels of employment, the value of Canadian dollar etc.  Country economies go through cycles (recession, depression, recovery & prosperity) Competitor Influence  Assessing the activities of competitors is the most analyzed aspect of marketing planning  Most Canadian markets are oligopoly (Only a few brands control the market) or monopolistically competitive (Many competitors usually each offering a unique marketing mix and consumers can assess the choices and chose) Competition comes from 2 forms… 1. Direct Competition: Competition from alternative products & services that satisfy the needs of a target market 2. Indirect Competition: Competition from substitute products that offer the same benefit as another type of product Demographic Influences  San organization must stay abreast demographic and lifestyle trends occurring in Canada in order to get a target market profile  This includes the ageing population, urban population (people moving to urban areas), changing household formations, ethnic diversity & spending power & wealth. Social Influences Lifestyles of Canadians are always changing & generally speaking Canadians are very concerned about the natural environment & what companies are doing for it Lifestyles  Canadians are living very hectic lifestyles & they are also trying to live healthier lifestyles  We are now a society that places greater value on quality of life rather than work but we need to work to sustain the lifestyle we desire  Being pressed for time = need for convenience  Obesity issues are prevalent Natural Environment  Today’s consumer for the natural environment & tend to favor companies that have strong reputation for protecting our environment/ natural resources Technology Influence  Consumers cant grasp all the new products that come to market so fast  New products, new packaging, and new forms of communications are the direct result of technological advancements  In marketing communications context, how people communicate & conduct business is also affected by technology  Internet ahs strong effect on commerce & communications as websites & web communications seem imperative for reaching the tech savvy public Legal & Regulatory Influence  Strategic plans are effected by new developments in the political & legal arenas  The competition Act has the purposes to: maintain & encourage competition, ensure small businesses have equal opportunity to participate, & provide consumers w/ competitive prices & product choice  Advertisers should follow the Canadian Code of Advertising Standards  Canadians also protected by PIPEDA Strategic Planning Process  Common approach is to start the planning process at the top or senior level of the organization and work downwards  The corporate plan developed by senior execs includes mostly financial objectives Corporate Plan: A strategic plan formulated at the executive level of an organization to guide the development of functional plans in the organization Marketing Plan: A short-term, specific plan of action that combines strategies & tactics  Determines how marketing mix will be employed  Once the role of marketing communications has been determined, specific plans are then developed for the various components of the marketing communications mix  Now will create a synergistic communications plan that will improve the well-being of the product or service The Corporate Plan  A missions statement is very important factor of strategic planning  Once mission is confirmed executives will look to set objectives, determine strategic direction, and allocating resources Corporate Objectives: A statement of a company’s overall goal: used to evaluate the effectiveness or ineffectiveness of a company’s strategic plan  Usually financial  At end of year actual financial results are compared to the objectives  When an org. determines its corporate strategy it considers several factors such as marketing strength, degree of competition in current or new markets under consideration, financial resources, R&D, & management commitment to goals. Several strategies that imply a desire for growth are applied… Divestment Strategy: Plan whereby a product line (or a product division of a business) is liquidated or sold so as to limit either real or anticipated losses and to redirect the resources behind that product line or division to other company products or divisions. Penetration Strategy: A plan of action for aggressive marketing of a company’s existing products  Goal is to take customers from competition or expand the entire market New product development strategy: A marketing strategy that calls for significant investment in research & development to develop innovate products  New products create new revenue streams at much greater rate then trying to expand existing products Acquisition Strategy: A plan of action for acquiring companies that represent attractive financial opportunities Strategic Alliance: The combo of separate companies resources for the purpose of satisfying their shared customers; the companies have strengths in different areas Marketing Planning Marketing Planning: The analysis, planning, implementing & controlling of marketing initiatives to satisfy target market needs & achieve organizational objectives  Marketing plans are short-term in nature (1 year), specific in scope & combine both strategy & tactics (they are action oriented)  Should include a contingency plan  The marketing plan revolves around the customer and has description of the target market Target market is typically described in terms of 4 different but related characteristics Demographics  Age, gender, income, occupation, education, marital status, household formation & ethnic background. Psychographics  Attitudes, interests, opinions & activities  Focus on lifestyle Geographic Characteristics  Marketers have the option of marketing nationally, regionally or in designated urban areas Behaviour Response  Focuses on “heavy users” and “light users”  Some customers are more loyal than others Market Background  SWOT analysis External Influences Economic Trends: The state of the economy. Stats are evaluated in this section Social/Demographic Trends: trends in age, income, household formation, immigration, migration & lifestyles etc. Technology Trends: Technology quickens the speed w/ which new products come to market and the way companies deliver messages about products to consumers Regulatory Trends: Company should stay aware of any new or changed laws affecting the marketing of products Market Analysis Market & Size Growth: A review of trends
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