CHP 1

Marketing Plan
•Chapter 1
Copyright © 2005 Pearson Education Inc.
BUSINESS
PLAN
Principles of Marketing, Sixth Canadian Edition

2.2
Learning Outcomes
• 1.1 Examine the strategic marketing process and its key phases.
• 1.2 Examine the key elements of a marketing plan.
• 1.3 Explore how the mission and goals are important aspects of
an organization’s culture.
• 1.4 Identify the strengths and weaknesses as they pertain to marketing
decisions of the firm and its environments.
• 1.5 Examine opportunities and threats throughout the various marketing
functions
• 1.6 Incorporate principles of sustainability into marketing strategies.
• 1.7 Illustrate marketing solutions and incorporate them into a marketing plan.
• 1.8 Analyze the impact of economic, technological, competitive,
environmental, social, political, and cultural aspects of society and
incorporate them into a marketing plan.
• 1.9 Examine the principles of risk management in contributing to the
development of a marketing plan.

2.3
Strategic Planning
• Strategic planning:
– Developing a strategic fit between
– organizational goals and capabilities, and
– changing marketing opportunities
• Steps in strategic planning:

Figure 2.1

2.4
Mission Statements
• Mission statement:
– Statement of an organization’s purpose
– What it wants to accomplish in the larger environment
– Need to be specific, realistic, and motivating
Table 2.1
Company Product-oriented definition Market-oriented definition
M.A.C Cosmetics We make cosmetics We sell lifestyle and self-

expression; tolerance of
diversity, and a platform for the
outrageous
Canadian Tire We sell tools, home We provide advice and
improvement items, and solutions that transform ham-
automotive parts and handed people into Mr. and
accessories Mrs. Fixits

2.5
The Marketing Process
• The marketing process:

– Analyzing marketing Figure 2.4
opportunities
– Selecting target markets

– Developing the
marketing mix, and
– Managing the marketing
effort
• Market segmentation
• Target marketing
• Market positioning

2.6
The Four P’s of the Marketing Mix
• The marketing mix:

– Set of controllable, Figure 2.5
tactical marketing
tools
– Blended to
produce the
desired response in
the target market

2.7
The Four P’s Versus C’s
Product Customer solution

Price Customer cost
Place Convenience
Promotion Communication

2.8
Managing the Marketing Effort
• Four marketing management functions:

– Marketing analysis
– Marketing planning
– Implementation
– Control
Figure 2.6

2.9
Contents of a Marketing Plan
• Executive summary
• Current marketing situation
– Market description, product review, competition, and distribution
• Threat and opportunity analysis

• Objectives and issues
• Marketing strategy
• Action program
• Budgets
• Controls
Table 2.2

2.10
The Control Process
• Marketing control
• Marketing audit
Figure 2.7
Measure Evaluate Take corrective

Set goals
performance performance action
What do we
What is Why is it What should
want to achieve?
happening? happening? we do about it?

2-2
Inside the marketing environment
1. Macroenvironment
 Broad forces that can affect performance
2. Microenvironment
 Groups that more directly influence performance
Presentation © 2005 Marian Burk Wood - all rights reserved

2-3
Using environmental scanning

Exhibit source: Marian Burk Wood, Marketing Planning: Principles into Practice (Harlow, Essex, England: Pearson Education,
2004), 40.

2-4
SWOT analysis
Strengths Weaknesses
Internal capabilities that Internal factors that can

can help the organization prevent the organization
achieve its objectives from achieving its
objectives
Opportunities Threats
External circumstances External circumstances

that may be exploited for that might hinder
higher performance performance

2-5
Analyzing the internal environment
 Mission
 Resources
 Offerings
 Previous results
 Keys to success, warning signs
 Business relationships

2-6
Analyzing the external environment
 Demographic trends
 Economic trends
 Ecological trends
 Technological trends
 Political-legal trends
 Social-cultural trends
 Competitors
2-7
Judging strengths & weaknesses

Exhibit source: Mary K. Coulter, Strategic Management in Action (Upper Saddle River, NJ: Prentice Hall, 1998), 141.

2-8
Sample SWOT: FedEx

Strengths Weaknesses
 FedEx, Kinko’s brands  Possible labor actions

 Air, ground strength  Slower growth in package
 Stable workforce volume
Opportunities Threats
 New markets (China)  Intense competition

 Custom/special services  Technology
 More channels (Kinko’s)  Fuel costs

Chapter 4: Analyzing the Marketing Environment
Environmental Forces
• The Marketing Environment

 Factors and outside marketing
that affect marketing
management’s ability to build
and maintain successful
relationships with target
customers.
4-18 Copyright © 2017 Pearson Canada Inc.

Environmental Forces
• Microenvironment:
 Forces with direct impact to the company
 Internal & external
• Macroenvironment:
 External forces with direct impact across industries

The Microenvironment

• Marketing Intermediaries
 Resellers
 Physical distribution firms
 Marketing service agencies

• Publics
 Financial publics
 Media publics
 Government publics
 Citizen-action publics
 Legal publics
 General public

The Macroenvironment

The Demographic Environment

• Demography:
 Study of human populations
 Strategic decisions often based upon shifts in demographics
• Changing age demographics of the Canadian population is both an
opportunity and a threat


Three Largest Generational Groups
Baby Boomers Generation X Millennials

(Gen Y)
• 1947–1966 • 1967–1976
• 9.8 million • 7 million • 1977–2000
• Wealthy but • Highly educated • 10.4 million
hard hit by • Experientially • Tech savvy
recession driven • Personally
centered

Targeting Gen Xers and Millennials

Targeting Gen Xers: Targeting Millennials:
Dairy Queen Ad The Kia Soul

Generation z
 Born after 2000

 Make up important kid,
tween, and teen markets
 5.6 million
 Fluent with digital
technology

• Canadian family/households are changing:

 Growing market of “non-traditional” households
 Growing “crowded nest” syndrome
 Fewer families have children
 More dual-income families


• Geographic Shifts in Population
 Growth rates across Canada are not uniform
 Rural to urban migration continues
 Buying habits differ by region
 Growth in telecommuting market

• Better Educated, White-Collar

Population:
 Increased demand for higher quality
 Increased understanding of value
 Creates demand in different products

• Increasing Diversity:
 Large and growing visible minority
market
 Growth in recognized
disabilities

The Economic Environment
• Nations vary greatly in their levels

and distribution of income
 Industrial economies
 Developing economies

The Economic Environment

• Factors that affect spending
1. Changes in income
• Consumption frenzy, record personal debt
• Economic crisis leading to consumer frugality
• Value marketing is key to success
2. Changes in spending patterns
• Engel’s laws note that consumers at different income levels have
different spending patterns

Natural Environment
• Natural resources used to produce goods
 Shortage of raw materials
 Increased pollution
 Increased government intervention
• Strategic decisions around creating
environmentally-sustainable products

Technological Environment
• Technology Advances
 Creating new markets and opportunities
 Increasing obsolescence
 Accelerating customer needs
 Resulting in constantly evolving regulations

Political Environment
• Regulatory Trends - Evolving laws influence organizations
• Business legislation:
 Protects companies from each other
 Protects consumers from unfair business practices
 Protects the interests of society
• Increased emphasis on ethics and socially responsible behaviour.

Cause-Related Marketing
• Companies linking themselves with worthwhile causes

The Cultural Environment

• Standard acceptable belief system that affects a society’s basic
values
 Core beliefs slow to change
 Secondary beliefs are more open to change
Secondary
CORE

The Cultural Environment

• Society’s major cultural views are
expressed in people’s views of:
 Themselves
 Others
 Organizations
 Society
 Nature
 The Universe

Responding to the Marketing Environment
Reactive Proactive
• Wait for change; then react • Anticipate change; act now
• Missed opportunities • Seized opportunities
• Damage from threats • Mitigate impact of threats

Responding to the Marketing Environment

• Examples of Proactive Responses:
 Hiring lobbyists
 Running ”advertorials”
 Initiating lawsuits
 Filing complaints with regulators
 Forming agreements to control channels

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Marketing Plan

Principles of Marketing, Sixth Canadian Edition

Principles of Marketing, Sixth Canadian Edition

– changing marketing opportunities

• Steps in strategic planning:

Principles of Marketing, Sixth Canadian Edition

– Need to be specific, realistic, and motivating

Company Product-oriented definition Market-oriented definition

M.A.C Cosmetics We make cosmetics We sell lifestyle and self-

Principles of Marketing, Sixth Canadian Edition

• The marketing process:

– Selecting target markets

Principles of Marketing, Sixth Canadian Edition

• The marketing mix:

Principles of Marketing, Sixth Canadian Edition

Product Customer solution

Price Customer cost

Principles of Marketing, Sixth Canadian Edition

• Four marketing management functions:

Principles of Marketing, Sixth Canadian Edition

• Threat and opportunity analysis

Principles of Marketing, Sixth Canadian Edition

Measure Evaluate Take corrective

Principles of Marketing, Sixth Canadian Edition

Inside the marketing environment

 Broad forces that can affect performance

Presentation © 2005 Marian Burk Wood - all rights reserved

Using environmental scanning

Presentation © 2005 Marian Burk Wood - all rights reserved

Internal capabilities that Internal factors that can

External circumstances External circumstances

Presentation © 2005 Marian Burk Wood - all rights reserved

Analyzing the internal environment

Presentation © 2005 Marian Burk Wood - all rights reserved

Analyzing the external environment

Judging strengths & weaknesses

Presentation © 2005 Marian Burk Wood - all rights reserved

Sample SWOT: FedEx

 FedEx, Kinko’s brands  Possible labor actions

 New markets (China)  Intense competition

Presentation © 2005 Marian Burk Wood - all rights reserved

• The Marketing Environment

4-18 Copyright © 2017 Pearson Canada Inc.

4-19 Copyright © 2017 Pearson Canada Inc.

4-20 Copyright © 2017 Pearson Canada Inc.

4-21 Copyright © 2017 Pearson Canada Inc.

4-22 Copyright © 2017 Pearson Canada Inc.

4-23 Copyright © 2017 Pearson Canada Inc.

The Demographic Environment

4-24 Copyright © 2017 Pearson Canada Inc.

The Demographic Environment

Baby Boomers Generation X Millennials

4-25 Copyright © 2017 Pearson Canada Inc.

Targeting Gen Xers and Millennials

4-26 Copyright © 2017 Pearson Canada Inc.

The Demographic Environment

 Born after 2000

4-27 Copyright © 2017 Pearson Canada Inc.

The Demographic Environment

• Canadian family/households are changing:

4-28 Copyright © 2017 Pearson Canada Inc.

The Demographic Environment

4-29 Copyright © 2017 Pearson Canada Inc.

The Demographic Environment