ch02 strategic planning for competitive advantage
DESCRIPTION
planningTRANSCRIPT
Chapter Outline
• Definition-Strategy vs. Plan• Marketing Environment/Situation Analysis• Strategic Alternatives: Ansoff, BCG and GE
Model• Competitive Advantage• The Marketing Mix• Marketing Control
Strategic Planning and Marketing Plan
• 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.
• Marketing Plan: A written document that acts as a guidebook of marketing activities for the marketing manager.
• Marketing strategy/plan is a part of the overall company strategy/plan
• Strategic Business Unit (SBU) is a decentralized planning concept
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Appeal to the entire market with one marketing mix
Appeal to the entire market with one marketing mix
Concentrate on one marketing segment
Concentrate on one marketing segment
Appeal to multiple marketswith multiple marketing mixes
Appeal to multiple marketswith multiple marketing mixes
Target Market Definition and Strategy
Environmental and Situational Analysis
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.
EnvironmentalAnalysis/Scanning
EnvironmentalAnalysis/Scanning
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Marketing Mix
A plan begins with defining the business mission
Marketing Strategy
Product Distribution
Price
Marketing Mix
Business Mission Statement
Objectives
Situation or SWOT Analysis
Target Market Strategy
ImplementationEvaluation
Control
Promotion
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SWOT Analysis
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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
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Marketing Objectives
Realistic
Measurable
Time specific
Consistent with and indicating the priorities of the organization
“Our objective is to achieve 10 percent dollar market share in the cat food market within 12
months of product introduction.”
Ansoff’s Strategic Alternatives
Present Product New Product
New Market
MarketPenetration
MarketDevelopment
ProductDevelopment
Diversification
Present Market
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BCG Portfolio MatrixStrategies: Build, Hold, Harvest and Divest
Stars
Cash Cows
ProblemChildren
Dogs
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Competitive Advantage
CompetitiveAdvantage
CompetitiveAdvantage
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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Competitive Advantage
Focus/Niche Strategies
Focus/Niche 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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Sources 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
Differentiation
Product/ServiceDifferentiation Competitive Advantage
Product/ServiceDifferentiation Competitive Advantage
The provision of
something that is unique
and valuable to buyers
beyond simply offering a
lower price than the
competition’s.
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Examples of Product/Service Differentiators
Brand names
Strong dealer network
Product
reliability
Image
Service
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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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Sources of Sustainable Competitive Advantage
PatentsPatents
CopyrightsCopyrights
LocationsLocations
EquipmentEquipment
TechnologyTechnology
Customer ServiceCustomer Service
PromotionPromotion
Skills and AssetsSkills and Assets
of anof anOrganizationOrganization
Skills and AssetsSkills and Assets
of anof anOrganizationOrganization
Ch 2 Discussion Questions1. Define strategic marketing and marketing planning. How
can we develop a marketing plan with the help of environmental analysis/scanning?
2. What is a SWOT analysis? Does it help strategic planning?3. What is a competitive advantage? Explain the three generic
strategies of competition.4. Explain Ansoff’s Strategic Alternatives in marketing.5. What is BCG Portfolio Matrix? What role it plays in strategy
formulation?