MC - Chapter 2.docx - MARKETING COMMUNICATIONS CHAPTER 2 STRATEGIC PLANNING PRINCIPLES \u2022 FACTORS INFLUENCING STRATEGIC PLANNING \u2022 Strategic

MC - Chapter 2.docx - MARKETING COMMUNICATIONS CHAPTER 2...

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MARKETING COMMUNICATIONSCHAPTER 2STRATEGIC PLANNING PRINCIPLESFACTORS INFLUENCING STRATEGIC PLANNINGStrategic Planning (Corporate Strategy):The process of determining objectives and identifying strategiesand tactics to help achieve objectivesObjectives:Statements if what is to be accomplished in terms of sales, profit, market share, or other measuresStrategies:Statements that outline how the objectives will be achieved, such as the direction to be taken and the allocation of resources needed to proceedTactics (Execution):Action-oriented details that outline how a strategic plan will be implementedECONOMIC INFLUENCESThe economy can dictate how aggressive or conservative a company will be with its plansThe general state of the economy is dictated by growth in GDP, inflation, employment, currency, and income distribution and consumer spendingCOMPETITOR INFLUENCESBranding to differentiate amongst substitutes and alternatives is vital to marketingOligopoly:A market situation in which only a few brand control the marketMonopolistic Competition:A market in which there are many competitors, each offering a unique marketing mix; consumers can assess these options before making a decisionDirect Competition:Competition from alternative products and services that satisfy the needs of a target marketIndirect Competition:Competition from substitute products and services that offer the same benefit as another type of productDEMOGRAPHIC INFLUENCESUtilizing the target market profile is essential to staying ahead of demographic trendsAn aging population means more attention to helpful products and medical services is imminentPopulation density is of extreme importance when planning production and marketing effortsHouseholds cannot be targeted as a unit, each member must be targeted individuallySubcultures:Subgroups within the larger cultural context that have distinctive lifestyles based on religious, racial, and geographical differencesThere is a trend that the cost of necessities is growing faster than people’s disposable incomeoSmaller disposable budgets means more effort must be placed on the ‘why’ of marketingCORPORATE PLANMARKETING PLANMARKETING COMMUNICATIONS PLAN
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MARKETING COMMUNICATIONSCHAPTER 2SOCIAL INFLUENCESCanadians lead hectic lives, want to be healthy, and focus more on life than on workUnderstanding social realities and where they are heading are keyTECHNOLOGY INFLUENCESThe availability of information from the internet and an obsession with smartphones are trendsConsumer-Generated Content:Online content, often brand oriented, that is created by consumers for consumersAdvancing social technologies are forcing companies to re-examine their marketing mixLEGAL AND REGULATORY INFLUENCES
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