Textbook Notes (368,552)
Canada (161,962)
MCS 3620 (29)
Bharat Sud (21)
Chapter 2

Chapter 2

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Marketing and Consumer Studies
MCS 3620
Bharat Sud

September 30, 2013 Marketing Communications - Chapter 2 Notes  Business planning is an integrated process that involves planning at three levels of an organization: ◦ Corporate Planning (planning conducted by senior executives) ◦ Marketing Planning (planning conducted by brand and marketing managers) ◦ Marketing communications planning (plans designed by communications specialists based on guidelines provided by brand and marketing managers  Corporate plans provide guidance and direction for marketing plans, and marketing plans provide direction for marketing communications plans Factors Influencing Strategic Planning  Strategic Planning (Corporate Strategy): The process of determining objectives (Setting goals) and identifying strategies (ways to achieve the goals) and tactics (specific action plans) to help achieve objectives  Strategic plan includes three common variables: ◦ Objectives: Statements of what is to be accomplished in terms of sales, profit, market share or other measures ◦ Strategies: Statements that outline how the objectives will be achieved, such as the direction to be taken and the allocation of resources needed to proceed ◦ Tactics: Action-oriented details, including precise details about the cost and timing of specific activities  Acompany's strategic plan is influenced by changes in the economy, among customers, in technology, in laws and regulations governing business practices, in competitor activities and in environmental issues Economic Influence  State of economy is determined by growth rates in ◦ GDP ◦ Inflation rates ◦ Employment levels ◦ Canadian dollar valuation ◦ Consumer income distribution  Economic go through cycles ◦ Recession ◦ Depression ◦ Recovery ◦ Prosperity  Sudden market changes can also affect the economy  September 30, 2013 Competitor Influence  External influence → Corporate Plan → Marketing Plan → Marketing Communications Plan ◦ External Environment ◦ Economic Conditions ◦ Competitor Activity ◦ Demographic Trends ◦ Social Change ◦ Technology ◦ Laws and Regulations  Oligopoly: Amarket situation in which only a few brands control the market  Monopolistic Competition: Amarket in which there are many competitors, each offering a unique marketing mix; consumers can assess these choices prior to making a buying decisions  Two forms of competition are: ◦ Direct Competition: Competition from alternative products and services that satisfy the needs of a target market ◦ Indirect Competition: Competition from substitute products that offer the same benefit as another type of product Demographic Influences  The population is aging  Urban populations ◦ With the population so clustered, companies now devise plans that are regional in nature or dwell specifically on key urban areas ◦ Abrand may be available nationally in terms of geography, but the way it is presented (nature of message) could be very different from one area to another  Changing household formations ◦ Canadian households are also shrinking in size ◦ Average size is 2.6  Ethnic diversity ◦ Subcultures: Subgroups within the larger cultural context that have distinctive lifestyles based on religious, racial and geographical differences ◦ Asian immigrants have been increasing over the past decade and now comprise 58 % of immigrants entering Canada ◦ Canadian ofAsians ancestry comprise the largest visible minority in Canada, at 11% of the population ◦ Companies that embrace ethnic marketing will profit the most in the future ◦ Unique groups tend to cluster in urban areas make them a reachable target for Canadian brands ◦ The key to an organization's success is to spend time learning more about the target – their customs, beliefs, mores and so on – and then formulate appropriate communication strategies  Spending power and health  Social Influences September 30, 2013  Lifestyles  Natural Environment Technology Influence  Change too fast for consumers ◦ Discoveries, inventions, and innovations  Harnessing virtual reality  Adoption of ATMs, debit cards and banking e-services  Internets as a preferred communication channel Legal and Regulatory Influence  Strategic plans are affected by new developments in the political and legal areas  Many industries establish and abide by their own self-regulation policies and practices  Industry Canada regulates Canadian businesses through the Competition Act ◦ The act has three purposes: ▪ To maintain and encourage competition ▪ To ensure small businesses have equal opportunity to participate in trade ▪ To provide consumers with product choice and competitive prices Strategic Planning Process  Corporate Plan: Astrategic plan formulated at the executive level of an organization to guide the development of functional plans in the organization ◦ Provides guidance for the marketing plan ◦ Strategic in nature  Marketing Plan: Ashort-term, specific plan of action that combines strategy and tactics ◦ Provides guidance for the marketing communications plan ◦ All plans are based on the same background information and any analysis stemming from that information The Corporate Plan  Mission Statement: Astatement of an organization's purpose and operating philosophy; provides guide and direction for the operations of the company ◦ Agood mission statement is customer and marketing orientated, considers the competition, and looks to the long term  Corporate Objective: Astatement of a company's overall goal; used to evaluate effectiveness or ineffectiveness of a company's strategic plan ◦ Usually financial in nature ◦ Can be qualitative which are more difficult to measure immediately ◦ Example of quantitative and qualitative corporate objectives ▪ To increase company sales revenue from $50 000 000 to $60 000 000 in 20XX (quantitative) ▪ To increase category market share from 25% to 30% in 20XX (quantitative) ▪ To increase return on investment from 10% to 15% in 20XX(quantitative) September 30, 2013 ▪ To exhibit constructive social responsibility by investing in research and development to discover environmentally friendly new products (qualitative) ◦ Examples include: sales revenue, market share, return on investment and social responsibility  Corporate strategy, it considers several factors: ◦ Marketi
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