Strategic Planning Competitive Insert for Chapter Picture Here Advantage

CHAPTER

2 Introduction to Marketing McDaniel, Lamb, Hair

Strategic Marketing

Marketing Plan

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1

Learning Outcomes LOI

Understand the importance of strategic marketing and know a basic outline for a marketing plan

LO2

Develop an appropriate business mission statement

LO3

Describe the criteria for stating good marketing objectives

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2

Learning Outcomes LO4

Explain the components of a situation analysis

LO5

Identify sources of competitive advantage

LO6

Identify strategic alternatives

LO7

Discuss target market strategies

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Learning Outcomes LO8

Describe the elements of the marketing mix

LO9

Explain why implementation, evaluation, and control of the marketing plan are necessary

LOIO

Identify several techniques that help make strategic planning effective

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LOI

The Nature of Strategic Planning

Understand the importance of strategic marketing and know a basic outline for a marketing plan

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LOI

Strategic Planning Strategic Planning

The managerial process of creating and maintaining a fit between the organization’s objectives and resources and evolving market opportunities.

The goal is long-term profitability and growth.

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LOI

Strategic Marketing Management What is the organization’s main activity? How will it reach its goals?

THE ANSWER IS A MARKETING PLAN.

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LOI

Strategic Planning

Marketing Plan

A written document that acts as a guidebook of marketing activities for the marketing manager.

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Why Write a Marketing Plan?  Provides a basis for comparison of actual and expected performance  Provides clearly stated activities to work toward common goals

 Serves as a reference for the success of future activities  Provides an examination of the marketing environment  Allows entry into the marketplace with awareness

LOI

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Business Mission Statement

Objectives

Marketing Plan Elements

Situation or SWOT Analysis

Marketing Strategy Target Market Strategy

Marketing Mix Product

Distribution

Promotion

Price

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LOI 10

LOI

REVIEW LEARNING OUTCOME The Importance of Strategic Marketing What

Strategic Planning

Why

Long-term profitability and growth

How

Write a marketing plan

http://www.dmusic.com

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LO2

Defining the Business Mission

Develop an appropriate business mission statement

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LO2

Defining the Business Mission 

Answers the question, “What business are we in?”



Focuses on the market(s) rather than the good or service



Strategic Business Units (SBUs) may also have a mission statement

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LO2

AMA’s Mission Statement

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Strategic Business Units (SBUs) Characteristics: [SBU HAS…]  A distinct mission and specific target market  Control over its resources  Its own competitors  Plans independent of other SBUs

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LO2

LO2

REVIEW LEARNING OUTCOME Business Mission Statement

Q: What business are we in? A: Business mission statement

Too narrow Too broad Just right

marketing myopia no direction focus on markets served and benefits customers seek

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LO3 Setting Marketing Plan Objectives

Describe the criteria for stating good marketing objectives

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LO3

Marketing Objective

Marketing Objective

A statement of what is to be accomplished through marketing activities.

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Marketing Objectives



Realistic



Measurable



Time specific



Consistent with and indicate the organization’s priorities

“Our objective is to achieve 10 percent dollar market share in the cat food market within 12 months of product introduction.”

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LO3

LO3

REVIEW LEARNING OUTCOME Criteria for Good Marketing Objectives

Realistic, measurable, and time-specific objectives consistent with the firm’s objectives:

1. Communicate marketing management philosophy 2. Provide management direction

3. Motivate employees 4. Force executives to think clearly

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LO4

Conducting a Situation Analysis

Explain the components of a situation analysis

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LO4

SWOT Analysis

SWOT Analysis

Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

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SWOT Analysis

S W O T

Things the company does well.

Internal

External

Things the company does not do well.

Conditions in the external environment that favor strengths. Conditions in the external environment that do not relate to existing strengths or favor areas©South-Western of currentCollege weakness. Publishing

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LO4 23

LO4

Environmental Scanning

Environmental Scanning

The collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

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REVIEW LEARNING OUTCOME Components of a Situation Analysis



production costs



marketing skills



financial resources



image



technology

ENVIRONMENT

Strengths

INTERNAL

LO4

Weaknesses Chapter 2 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved

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REVIEW LEARNING OUTCOME Components of a Situation Analysis



social



demographic



economic



technological



political / legal



competitive

ENVIRONMENT

Opportunities

EXTERNAL

LO4

Threats Chapter 2 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved

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LO5

Competitive Advantage

Identify sources of competitive advantage

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LO5

Competitive Advantage

Competitive Advantage

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.

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LO5

Competitive Advantage

Cost Types of Competitive Advantage

Product/Service Differentiation

Niche Strategies

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LO5

Cost Competitive Advantage Cost Competitive Advantage

Being the low-cost competitor in an industry while maintaining satisfactory profit margins.

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Cost Competitive Advantage

LO5



Obtain inexpensive raw materials



Create efficient plant operations



Design products for ease of manufacture



Control overhead costs



Avoid marginal customers

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LO5 Sources of Cost Reduction

Experience Curves

Product Design

Efficient Labor

Reengineering

No-frills Products

Production Innovations

Government Subsidies

New Service Delivery Methods

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LO5

Product/Service Differentiation Product / Service The provision of something Differentiation Competitive that is unique and valuable Advantage to buyers beyond simply offering a lower price than the competition’s.

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Examples of Product/Service Differentiation

LO5



Brand names



Strong dealer network



Product reliability



Image



Service

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LO5

Niche Competitive Advantage

Niche Competitive Advantage

The advantage achieved when a firm seeks to target and effectively serve a small segment of the market.

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LO5

Niche Competitive Advantage

 Used by small companies with limited resources  May be used in a limited geographic market  Product line may be focused on a specific product category

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LO5

Sources of Sustainable Competitive Advantage Patents Copyrights Locations Equipment

Technology Skills and Assets of an Organization

Customer Service

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Promotion 37

LO5

REVIEW LEARNING OUTCOME Sources of Competitive Advantage

Sources of Competitive Advantage

Cost $

Product/Service Differentiation A vs. B vs. C

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Niche Strategies

38

LO6

Strategic Directions

Identify strategic alternatives

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Strategic Alternatives

LO6 Market Penetration

Increase market share among existing customers

Market Development

Attract new customers to existing products

Product Development

Create new products for present markets

Diversification

Introduce new products into new markets

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Ansoff’s Strategic Opportunity Matrix Present Product

New Product

Present Market

Market Penetration

Product Development

New Market

Market Development

Diversification

http://www.pg.com

LO6

Online

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LO6

Portfolio Matrix

Stars

Cash Cows

Problem Children

Dogs

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LO6

Portfolio Matrix Strategies Build

Hold

Harvest

Divest

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LO6

REVIEW LEARNING OUTCOME Strategic Alternatives

Identify strategic alternatives Market development

=

customers

Market penetration

=

share

Product development

=

products

=

new products + new markets

Diversification

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LO7

Describing the Target Market

Discuss target market strategies

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LO7

Marketing Strategy

Marketing Strategy

The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets.

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LO7

Target Market Strategy  Segment the market based on groups with similar characteristics  Analyze the market based on attractiveness of market segments  Select one or more target markets

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LO7

Target Market Strategy Appeal to the entire market with one marketing mix

Concentrate on one marketing segment

Appeal to multiple markets with multiple marketing mixes

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LO7

REVIEW LEARNING OUTCOME Target Market Strategies

Target Market Options

Entire Market

Multiple Markets

Single Market

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LO8

The Marketing Mix

Describe the elements of the marketing mix

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LO8

The Marketing Mix

Marketing Mix

A unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.

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LO8

Marketing Mix: The “Four Ps” Price Promotion

Place Product

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LO8

Marketing Mix: The “Four Ps”  The starting point of the “4 Ps”  Includes  Physical unit  Package  Warranty  Service  Brand  Image  Value

Product  Products can be…  Tangible goods  Ideas  Services

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LO8

Marketing Mix: The “Four Ps”  Product availability where and when customers want them

Place

 All activities from raw materials to finished products  Ensure products arrive in usable condition at designated places when needed

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Marketing Mix: The “Four Ps”

LO8

 Role is to bring about exchanges with target markets by:    

Informing Educating Persuading Reminding

Promotion Includes integration of: Personal selling Advertising Sales promotion

http://www.paramount.com http://www.warnerbros.com http://www.universalstudios.com

Public relations

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LO8

Marketing Mix: The “Four Ps”  Price is what a buyer must give up to obtain a product.

Price  The most flexible of the “4 Ps”-- quickest to change

 Competitive weapon

 Price x Units Sold = Total Revenue

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LO8

REVIEW LEARNING OUTCOME Elements of the Marketing Mix

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LO9

Following Up on the Marketing Plan

Explain why implementation, evaluation, and control of the marketing plan are necessary

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Following Up the Marketing Plan

LO9

 Implementation  Evaluation  Control  Marketing audit is… • Comprehensive • Systematic • Independent • Periodic

http://www.youngbiz.com Online

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LO9 REVIEW LEARNING OUTCOME Implementation, Evaluation, and Control Implementation

Evaluation

Product Place Promotion Price

Met objectives?

Audits • • • •

comprehensive systematic independent periodic

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LOIO

Effective Strategic Planning

Identify several techniques that help make strategic planning effective

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LOIO REVIEW LEARNING OUTCOME Techniques for Effective Strategic Planning

Continual attention

Creativity

Management commitment

Effective Strategic Planning

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Sesi diskusi dan pertanyaan

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