plan de mk

1Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 2

Prepared byPrepared byDeborah BakerDeborah Baker

Texas Christian UniversityTexas Christian University

2

Strategic Planning for Strategic Planning for

Competitive Competitive AdvantageAdvantage


Learning ObjectivesLearning Objectives

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

2. Develop an appropriate business mission statement

3. Describe the criteria for stating good marketing objectives


Learning Objectives (continued)Learning Objectives (continued)

4. Explain the components of a situation analysis

5. Identify sources of competitive advantage

6. Identify strategic alternatives

7. Discuss target market strategies


Learning Objectives (continued)Learning Objectives (continued)

8. Describe the elements of the marketing mix

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

10. Identify several techniques that help make strategic planning effective


Learning Objective Learning Objective

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

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1


Strategic PlanningStrategic Planning

Strategic Planning

The managerial process of creating and

maintaining a fit between the

organization’s objectives and resources

and evolving market opportunities.

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Strategic PlanningStrategic Planning

RESOURCES &

OBJECTIVES

EVOLVING MARKET

OPPORTUNITIES

LONG RUN LONG RUN PROFITABILITY PROFITABILITY AND GROWTHAND GROWTH

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What is the organization’s main activity?

How will it reach its goals?

What is the organization’s main activity?

How will it reach its goals?

Strategic Marketing PlanningStrategic Marketing Planning

The Marketing PlanThe Marketing PlanThe Marketing PlanThe Marketing Plan

1


PlanningPlanning

PlanningPlanning

The process of anticipating future events

and determining strategies to achieve

organizational objectives in the future.

1


The Marketing PlanThe Marketing Plan

Marketing PlanMarketing Plan

A written document that acts as a

guidebook of marketing activities

for the marketing manager.

1


Why Write a Marketing Plan?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

Allows entry into the marketplace with awareness

1


Marketing Plan Marketing Plan ElementsElements

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Marketing Strategy

Product

Promotion

Distribution

Price

Marketing Mix

Business Mission Statement

Objectives

Situation or SWOT Analysis

ImplementationEvaluation

Control

Target Market Strategy

1


Review Learning Objective 1Review Learning Objective 1

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WhatWhatWhatWhat

WhyWhyWhyWhy

HowHowHowHow

Strategic PlanningStrategic PlanningStrategic PlanningStrategic Planning

Long-term profitability Long-term profitability and growthand growth

Long-term profitability Long-term profitability and growthand growth

Write a marketing planWrite a marketing planWrite a marketing planWrite a marketing plan



2

Develop an appropriate business mission statement22


Defining the Business MissionDefining the Business Mission

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

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

Strategic Business Units may also have a mission statement

2


AMA’s Mission StatementAMA’s Mission Statement

2


Strategic Business Units (SBUs)Strategic Business Units (SBUs)

1. A distinct mission and specific target market

2. Control over their resources

3. Their own competitors

4. Plans independent of other SBUs

CharacteristicsCharacteristics

2



2

Q: What business are we in?

A: Business mission statement

Too narrowToo broadJust right

marketing myopiano directionfocus on marketsserved and benefitscustomers seek



Describe the criteria for stating good marketing objectives

3

33


Marketing ObjectiveMarketing Objective

Marketing ObjectiveMarketing Objective

A statement of what is to be

accomplished through

marketing activities.

3


Marketing ObjectivesMarketing Objectives

3

Marketing Objectives Must Be:Marketing Objectives Must Be:

Realistic

Measurable

Time specific

Consistent with and indicate the organization’s priorities

“Our objective is to achieve 10 percent dollar

market share in the specialty pet food market

within 12 months of product introduction.”


Examples of Marketing ObjectivesExamples of Marketing Objectives

3



3

Clear and specific objectives:Clear and specific objectives:Clear and specific objectives:Clear and specific objectives:

1. Communicate marketing management philosophy1. Communicate marketing management philosophy

2. Provide management direction2. Provide management direction

3. Motivate employees3. Motivate employees

4. Force executives to think clearly4. Force executives to think clearly

5. Allow for better evaluation of results5. Allow for better evaluation of results



Explain the components of a situation analysis

4

44


SWOT AnalysisSWOT Analysis


Identifying internal strengths (S)

and weaknesses (W)

and also examining

external opportunities (O)

and threats (T)

4



©South-Western College Publishing

SS

WW

OO

TT

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.

InternalInternal

ExternalExternal

4


Environmental ScanningEnvironmental Scanning

Environmental ScanningEnvironmental ScanningThe 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.

4



4

production costs

marketing skills

financial resources

image

technology

Strengths

Weaknesses

INT

ER

NA

LIN

TE

RN

AL

OP

PO

RT

UN

ITIE

SO

PP

OR

TU

NIT

IES



4

social

demographic

economic

technological

political/legal

competitive

Opportunities

Threats

EX

TE

RN

AL

E

XT

ER

NA

L

EN

VIR

ON

ME

NT

EN

VIR

ON

ME

NT



Identify sources of competitive advantage

5

55


Competitive AdvantageCompetitive 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.

5



Niche StrategiesNiche Strategies

CostCost

Product/Service Differentiation

Product/Service Differentiation

Types of Types of Competitive Competitive AdvantageAdvantage

Types of Types of Competitive Competitive AdvantageAdvantage

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Cost Competitive AdvantageCost Competitive Advantage


Being the low-cost competitor

in an industry while maintaining

satisfactory profit margins.

5


Obtain inexpensive raw materials

Create efficient operations

Design products for ease of manufacture

Control overhead costs

Avoid marginal customers

Obtain inexpensive raw materials

Create efficient operations

Design products for ease of manufacture

Control overhead costs

Avoid marginal customers


5


Sources of Cost ReductionSources of Cost Reduction

Experience CurvesExperience Curves

Efficient LaborEfficient Labor

No-frills ProductsNo-frills Products

Government SubsidiesGovernment Subsidies

Product DesignProduct Design

ReengineeringReengineering

Production InnovationsProduction Innovations

New Service Delivery Methods

New Service Delivery Methods

5


Product/Service DifferentiationProduct/Service Differentiation

Product/Service Differentiation Product/Service Differentiation


Advantage achieved when a firm

provides something that is unique

and valuable to buyers beyond simply

offering a lower price than the competition.

5


Examples of Examples of Product/Service DifferentiationProduct/Service Differentiation

Brand names

Strong dealer network

Product reliability

Image

Service

5


Niche Competitive AdvantageNiche Competitive Advantage


Advantage achieved when a firm

seeks to target and effectively serve a

small segment of the market.

5



Used by small companies with limited resources

May be used in a limited geographic market

Product line may be focused on a specific product line

5


SustainableSustainableCompetitive AdvantageCompetitive Advantage

Sustainable Competitive AdvantageSustainable Competitive Advantage

An advantage that cannot be copied

by the competition.

5


Sources of Sustainable Sources of Sustainable Competitive AdvantageCompetitive Advantage

PatentsPatents

CopyrightsCopyrights

LocationsLocations

EquipmentEquipment

TechnologyTechnology

Customer ServiceCustomer Service

PromotionPromotion

Organization’sOrganization’s Skills and Assets Skills and Assets

Organization’sOrganization’s Skills and Assets Skills and Assets

5



5

Sources ofSources ofCompetitive AdvantageCompetitive Advantage

Sources ofSources ofCompetitive AdvantageCompetitive Advantage

Cost$

Cost$

Product/ServiceDifferentiationA vs. B vs. C

Product/ServiceDifferentiationA vs. B vs. C

NicheStrategies

NicheStrategies



Identify strategic alternatives

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66


Strategic AlternativesStrategic Alternatives

MarketPenetration

MarketPenetration

MarketDevelopment

MarketDevelopment

Product Development

Product Development

DiversificationDiversification

Increase market share among existing customers

Attract new customers to existing products

Introduce new products into new markets

Create new products for present markets

6

Video Click!


Ansoff’s Strategic Opportunity Ansoff’s Strategic Opportunity MatrixMatrix

Present Product New Product

New Market

MarketPenetration

MarketDevelopment

ProductDevelopment

Diversification

Present Market

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Selecting a Strategic AlternativeSelecting a Strategic Alternative

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Profitability

PhilosophiesPhilosophiesPhilosophiesPhilosophies

Market Share



6

Identify strategic alternativesIdentify strategic alternatives

Diversification =

Product development = products

Market development = customers

Market penetration = share

new productsnew markets



Discuss target market strategies

7

77


Marketing StrategyMarketing 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.

Marketing StrategyMarketing Strategy

7


Target Market StrategyTarget 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

7


Appeal to the entire market with one marketing mix

Appeal to the entire market with one marketing mix

Target Market StrategiesTarget Market Strategies

Concentrate on one marketing segment

Concentrate on one marketing segment

Appeal to multiple marketswith multiple marketing mixes

Appeal to multiple marketswith multiple marketing mixes

7



Entire Market

Single Market

Multiple Markets

7



Describe elements of the marketing mix

8

88


Marketing MixMarketing Mix

A unique blend of product, distribution,

promotion, and pricing strategies

designed to produce mutually satisfying

exchanges with a target market.

The Marketing MixThe Marketing Mix

8


Marketing Mix: The “Four Ps”Marketing Mix: The “Four Ps”

PricePrice

PromotionPromotion

PlacePlace

ProductProduct

8


Product StrategiesProduct Strategies

The starting point of the “4 Ps”

Includes physical unit, package, warranty, service, brand, image, and value

ProductProduct

8


Distribution (Place) StrategiesDistribution (Place) Strategies

PlacePlace

Product availability where and when customers want them.

Involves all activities from raw materials to finished products

8


Promotion StrategiesPromotion Strategies

PromotionPromotion Role is to bring about

exchanges with target markets

Includes integration of personal selling, advertising, sales promotion, and public relations

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Pricing StrategiesPricing Strategies

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

Competitive weapon

Price x Units Sold = Total Revenue

PricePrice

8



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

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99


Following Up the Marketing PlanFollowing Up the Marketing Plan

Implementation

Evaluation

Control Marketing Audit is…

Comprehensive Systematic Independent Periodic

9



9

Product PlacePromotionPrice

Product PlacePromotionPrice

Met objectives?Met objectives?

Implementation Evaluation

Audits• comprehensive• systematic• independent• periodic

Audits• comprehensive• systematic• independent• periodic



Identify several techniques that help make strategic planning effective

10

1010


Effective Strategic PlanningEffective Strategic Planning

10

Effective Strategic Planning

Effective Strategic Planning

Continualattention

Continualattention CreativityCreativity Management

commitment

Managementcommitment

plan de mk

Education

marketing plan marketing

strategic marketing

marketing planelements

good marketing objectives

marketing manager

marketing objective

learning objectives

right marketing myopia