CHAPTER TOPICS

I. Introduction to Marketing Planning

· Understand the eight key steps in the marketing planning process (see pages 78-79).

· Understand how marketing planning is conducted in various sectors of the tourism industry in Canada.

· A marketing plan refers to a short-term plan for two years or less. This chapter is devoted to the development of such plans. A systematic marketing planning process consists of eight logical steps. Each step feeds into the next one, with feedback loops built into the process.

· The first stage involves examining the goals and objectives of the organization as a whole and then developing a marketing plan that will support the company’s mission statement, corporate philosophy, and corporate goals. This is referred to as the corporate connection.

· The next stage involves defining the current situation, reviewing the effectiveness of current activities, and identifying opportunities. This is the “analysis and forecasting” stage.

· The third stage involves defining marketing goals and objectives derived logically from the previous stages of the planning process.

· The fourth stage involves determining a target market (from the list of available segments) and selecting a positioning strategy.

· The fifth stage involves selecting and developing a series of strategies that effectively bring about the required results. This part of the plan shows how the organization intends to use the 7 Ps.

· The sixth stage focuses on the resources required to support the strategies and meet the objectives.

· The seventh stage involves marketing control and how objectives will be achieved in the required time, using the funds and resources requested.

· Finally, at the eighth stage, the marketing plan should be communicated both internally and externally so as to achieve maximum impact.

II. The Corporate Connection

· Understand the importance of the corporate connection (see page 80).

· Marketing planning should reflect the goals and objectives of the organization as a whole. Goals are the primary aims of the organization, whereas objectives are the specific activities that will accomplish the goals.

· Organizations also have vision statements and mission statements. Mission statements should be developed using the “smart” rule. This rule ensures that the mission statement is specific, measurable, attainable, relevant, and trackable.

· Strategic and marketing planning can be hindered by challenges such as unique management and ownership structures.

III. Analysis and Forecasting

· Understand analysis and forecasting (see pages 82-91).

· Several models have been developed for reviewing effectiveness and identifying business opportunities. This section highlights those which have been proven by time and practical application.

· Portfolio analysis is an approach to evaluating a very diverse group of goods and services, based on long-term planning and economic forecasts. The model developed by the Boston Consulting Group has been one of the most popular

Approaches. Also, the CTC has developed a market portfolio analysis (MPA) model to help evaluate the potential and performance of markets and establish priorities based on the results.

· Competitor analysis divides competitors into four broad categories: direct competitors offer similar goods and services to the same consumer at a similar price; product category competitors make the same product or class of products; general competitors provide the same service; and budget competitors compete for the same tourism dollars.

· Michael Porter suggests three generic strategies for dealing with competition: low-cost leadership, differentiation, and focus.

· Segmentation analysis is the practice of dividing total markets up into subgroups that have similar characteristics. Two broad approaches exist for analyzing customer segments: segmentation by trip descriptors and segmentation by tourist descriptors.

· Common criteria for market segmentation are demographic segmentation, psychographic segmentation, geographic segmentation, benefit segmentation, and behaviour segmentation.

· For gathering information about market segments, marketers can use two sources: internal data and external data.

· A SWOT analysis is a tool that provides scope for an organization to list all its strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internally focused, whereas opportunities are externally focused. Threats can be internal or external since they are any elements that could have a detrimental effect on a business.

· Forecasting is market research–based but future-oriented, and relies on expectations, vision, judgment, and projections for factors such as sales volume and revenue trends, consumer profiles, product profiles, price trends, and trends in the external environment.

· There are two main sets of forecasting techniques: qualitative and quantitative. Qualitative techniques are based on detailed subjective analysis, whereas quantitative techniques are based on past and current data.

IV. Setting Marketing Goals and Objectives

· Understand setting goals and objectives (see pages 91-92).

· Goals are the primary aims of the organization, and objectives the specific aims that managers accomplish to achieve organizational goals. Goals can be defined in terms of sales growth, increased profitability, and market leadership.

· The more thorough the previous stages of the marketing plan, the easier the task of specifying precise objectives.

V. Marketing Strategy: Targeting and Positioning

· Understand targeting and positioning (see pages 92-98).

· A target market is a clearly defined group of customers whose needs the company plans to satisfy.

· Target marketing offers several advantages, such as higher sales levels, development of a competitive advantage, and the creation of customer loyalty.

· Evaluation of potential target markets involves examining the segment’s size and growth, the segment’s structural attractiveness, and the firm’s own objectives and resources.

· Positioning is the establishment of an image for a product or service in relation to others in the marketplace, used to develop an effective competitive advantage over competitors.

· Effective positioning within the target market segment involves three steps: product differentiation, prioritizing and selecting the competitive advantage, and communicating and delivering the position.

VI. Tactics and Action Plans

· Understand how to select and develop tactics and action plans (see page 98).

· Market planning provides the opportunity to choose options that will meet the organization’s goals and objectives. Planning involves selecting and developing a series of strategies that will bring about the required results.

· The following types of strategies (among others) can be considered: making good investment decisions, diversifying, planning for the long term, seizing new opportunities, and developing strategic partnerships.

VII. Resource Requirements

· Understand the importance of addressing resource requirements (see pages 98-99).

· A marketing plan must address the resources required to support the marketing strategies and meet the objectives. Resources include personnel, equipment and space, budgets, intra-organizational support, research, consulting, and training.

· Budgetary resources are extremely important, since a budget provides the marketing department with sufficient resources to deliver its plan.

VIII. Marketing Control

· Understand how marketing control ensures that objectives and requirements are met (see pages 99-100).

· Marketing control ensures that objectives will be achieved in the required time, using the funds and resources requested.

· Effectiveness is measured using evaluation programs and regular monitoring. When precise objectives are set early on in the planning process, it is easy to measure results.

· Contingency plans can be executed if problems occur.

IX. Communicating the Plan

· Understand the importance of effective communication of the marketing plan (see page 100-105).

· In order to motivate staff, when setting objectives and drawing up plans that communicate well, it is important to involve as many staff as possible.

· A secondary benefit of market planning is that it provides a means of internal participation and communication, which creates and sustains a high level of organizational morale.

Date: 2015-01-12; view: 888