Chapter 2 Strategic Planning for Competitive Advantage.
-
date post
20-Dec-2015 -
Category
Documents
-
view
233 -
download
3
Transcript of Chapter 2 Strategic Planning for Competitive Advantage.
Strategic PlanningThe process of maintaining a “fit” between an
organization’s resources and objectives AND evolving market opportunities
The goal is LONG-TERM profitability and growth
The Marketing Plan is the blueprint for implementing the long-term goals of the company.
The Market PlanInvolves designing
marketing activities to meet marketing objectives
Considers changing marketing environment
Contains decisions for all elements of the marketing strategy AND the basis for those decisions
4
Marketing Plan Elements
Marketing Strategy
Product Distribution
Price
Marketing Mix
Business Mission Statement
Objectives
Situation or SWOT Analysis
ImplementationEvaluationControl
Target Market Strategy
ImplementationEvaluation
Control
Promotion
Writing the Marketing PlanStep 1
Define the Business Mission What business are we in? Focus on the market rather than the good or service May need to be defined by strategic business unit
(SBU)
A mission that is too narrow may be the result of marketing myopia
A mission that is too broad doesn’t provide direction
Writing the Marketing PlanStep 2 – Setting the marketing plan objectives
Must be:RealisticMeasureableTime specificConsistent with the organizational mission and
priorities
Writing the Marketing PlanStep 3 – Conduct a situation analysis (SWOT)
©South-Western College Publishing
SSWWOOTT
Things the company does well.Things the company does well.
Things the company does not do well.Things the company does not do well.
Conditions in the external environment that favor strengths.
Conditions in the external environment that favor strengths.Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.
Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.
Internal
External
Writing the Marketing PlanStep 4 – Identify the firm’s competitive
advantage
Competitive advantage is the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.
Sources of Cost ReductionExperience CurvesEfficient laborNo frills goods and
servicesGovernment subsidiesDesign technologyReengineeringProduction innovationsNew product delivery
methods
Product/Service Differentiation to Create Competitive AdvantageExists when a
firm provides something unique to buyers other than low price.
E.g. Maytag offers innovative designs and product reliability
Niche Competitive AdvantageThe organization
targets and effectively serves a single segment of the market.
The Scooter Store
Writing the Marketing PlanStep 5 – Select a strategic alternative
Tools to help include:
Strategic opportunity matrix (Product/Market matrix)
Portfolio matrix (BCG matrix)
Strategic Opportunity Matrix (Market/Product Matrix)
Strategic Opportunity Matrix (Market/Product Matrix)
Old/ExistingMarkets
NewMarkets
Old/ExistingProducts
NewProducts
MARKETPENETRATION
MARKETDEVELOPMENT
PRODUCTDEVELOPMENT
DIVERSIFI-CATION
Writing the Marketing PlanStep 6 – Select and describe one or more
target markets
Segment the market based on groups with similar characteristics
Analyze the market based on groups with similar characteristics
Select one or more target markets
Writing the Marketing PlanStep 7 – Develop and state the marketing mix (4 Ps) strategies.
ProductPricePlace (Distribution)Promotion
Step 8 - Implementation of the Marketing PlanImplementation
activities include job assignments, activity descriptions, timelines, budgets, etc.
Turns the written marketing plan into actions.