1 chapter 2 strategic planning principles. 2 review from chapter 1 what is imc? name 2 types of...

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Chapter 2Strategic Planning Principles

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Review from Chapter 1

What is IMC? Name 2 types of advertising – give examples Give 3 examples of Direct Response – What is the difference

between advertising and direct response? What is fueling the growth in interactive communications? Explain

and give an example What’s the difference between push and pull sales promotions?

Give examples of each What are the four trends driving IMC? What is the Hierarchy of Needs? How do we use it? Give

examples What is the difference between the “real self” and the “ideal self”?

Give an example of an ad that targets one’s “ideal” self. Describe how perception affects advertising and promotion

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Integrated Planning

Integrated planning involves linking plans from various management levels of an organization together.

CorporatePlanningCorporatePlanning

MarketingPlanningMarketingPlanning

IMCPlanning

IMCPlanning

By Senior Executives

By Brand Managers and Marketing Managers

By Communications Specialists

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Strategic Planning

Strategic planning includes three common variables.

ObjectivesObjectives

StrategiesStrategies

ExecutionExecution

Statements about what is to be accomplished.

Statements outlining how objectives will be achieved.

Action-oriented details.

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West Jet

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Influences on Strategic Plans

External Influences• Economy• Competition• Social / Demographic• Technology• Laws / Regulations

External Influences• Economy• Competition• Social / Demographic• Technology• Laws / Regulations

Corporate PlanCorporate Plan

Marketing PlanMarketing Plan

IMC Plan IMC Plan

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Plans are Linked Together

Plans from above provide guidance for IMC plans.

CorporatePlan

CorporatePlan

MarketingPlan

MarketingPlan

IMC PlanIMC Plan

Strategic orientation

Strategic and tactical orientation

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Corporate Plans

A corporate plan is long-term and broad in scope. It includes an organization’s:

• Mission Statement

• Corporate Objectives

• Corporate Strategies

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Mission Statement

“A statement of an organization’s purpose that reflects the operating philosophy and the direction the company will take.”

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Coke’s Mission Statement

To refresh the world … in body, mind and spirit

To inspire moments of optimism … through our brands and our actions

To create value and make a difference … everywhere that we engage

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Corporate Objectives

Objectives are quantitative in nature, growth oriented, and measurable.

• Sales

• Profit

• Return on Investment

• Social Responsibility

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Corporate Strategies

Strategic DirectionStrategic Direction

Some Alternatives• Penetration• New Product Development• Acquisition• Strategic Alliance

Some Alternatives• Penetration• New Product Development• Acquisition• Strategic Alliance

$ for Marketingand Other Operations

$ for Marketingand Other Operations

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Marketing Planning

Marketing planning involves four essential steps:

1. Analyzing market opportunities

2. Developing marketing strategies

3. Planning and implementing programs

4. Measuring and evaluating programs

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Marketing Planning & Control

Marketing PlanMarketing Plan

ImplementationImplementation

Evaluation & ControlEvaluation & Control

Corrective ActionCorrective Action Revise ObjectivesRevise Objectives

Modify StrategiesModify Strategies

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Marketing Plan

Background and SWOT

Background and SWOT

MarketingPlan

MarketingPlan

• Positioning Strategy• Target Market Profile• Marketing Objectives• Marketing Strategy• Marketing Execution

• Positioning Strategy• Target Market Profile• Marketing Objectives• Marketing Strategy• Marketing Execution

Evaluation &Control

Evaluation &Control

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Budget Determination

Several methods are available for determining a budget:

• % of Sales

• Fixed Sum / Unit

•Industry Average

• Task (Objective)

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Marketing Communications Planning

1. External agents are often responsible for preparing plans.

2. The contribution of each communications component must be determined. Some provide short-term benefit and some provide long-term benefit.

3. The components must be integrated to present a unified message to the target.

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Marketing Communications Objectives

Marketing communications must satisfy a diverse list of objectives, hence the need for integration of various components.

• Build / Sustain Awareness

• Develop Image

• Alter Perceptions

• Differentiate Products

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Marketing Communications Objectives

• Attract New Targets

• Encourage Greater Use

• Offer Incentives

• Create Goodwill

• Create Leads

• Motivate Distributors

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Marketing Communications Strategies

• Advertising• Direct Response• Online Interactive• Sales Promotion• Personal Selling• Public Relations• Event Marketing

• Advertising• Direct Response• Online Interactive• Sales Promotion• Personal Selling• Public Relations• Event Marketing

Depending on the objectives to be achieved, competitive activity, and budget, the best combination of marketing communications components are recommended. Each situation is unique.