marketing 2 strategic planning. 2.1 strategic planning for competitive advantage planning marketing...

Marketing 2Marketing 2

Strategic PlanningStrategic Planning

2.12.1

Strategic planning for competitive Strategic planning for competitive advantageadvantage

Planning marketing activitiesPlanning marketing activities

Changing role of marketingChanging role of marketing

Strategic Planning-2

Strategic PlanningStrategic Planning

The managerial process of creating and The managerial process of creating and maintaining fit between the organization’s maintaining fit between the organization’s objectives and resources and the evolving objectives and resources and the evolving market opportunities. (or threats)market opportunities. (or threats)

Strategy vs. TacticsStrategy vs. Tactics

StrategyStrategy Long termLong term Big pictureBig picture Designed to achieve Designed to achieve

organizational goalsorganizational goals

TacticsTactics Short termShort term DetailsDetails Designed to achieve Designed to achieve

strategystrategy

Elements of the Marketing PlanElements of the Marketing PlanMust haveMust have Definition of Mission and ObjectivesDefinition of Mission and Objectives Situational AnalysisSituational Analysis Identify Target Market (segment)Identify Target Market (segment) Positioning using Marketing MixPositioning using Marketing Mix

Should haveShould have BudgetBudget TimetableTimetable Research neededResearch needed

2.22.2

Marketing Plan IMarketing Plan I

Company missionCompany mission Raison d’etreRaison d’etre Establishes boundaries for decisions, Establishes boundaries for decisions,

objectives, and strategies.objectives, and strategies. Focus on markets rather than goods or Focus on markets rather than goods or

services; customer needs vs. technology. services; customer needs vs. technology. (myopia)(myopia)

Don’t be too broad. Say something useful. Don’t be too broad. Say something useful. (Scott Adams)(Scott Adams)

2.22.2

Marketing Plan IIMarketing Plan II

Company goals and objectives Company goals and objectives

Business portfolio and strategic business unitsBusiness portfolio and strategic business units

Must be realistic, measurable, and time specific.Must be realistic, measurable, and time specific.

Must be consistent with organizational priorities.Must be consistent with organizational priorities.

2.32.3

Meaningful Goals & Objectives Meaningful Goals & Objectives Are...Are...

SupportiveSupportive of the Organization’s of the Organization’s MissionMission

ChallengingChallenging but Attainable but Attainable

MeasurableMeasurable

TimeTime sensitive sensitive

Marketing Plan IIIMarketing Plan III

Situation Analysis/SWOTSituation Analysis/SWOT

StrengthsStrengths WeaknessesWeaknesses OpportunitiesOpportunities ThreatsThreats

Strengths and Weaknesses are INTERNALStrengths and Weaknesses are INTERNAL

Opportunities and Threats are EXTERNALOpportunities and Threats are EXTERNAL

2.72.7

SWOT AnalysisSWOT Analysis

OPPORTUNITIES

THREATS

STRENGTHS WEAKNESSESStrategy

External

External

InternalInternal

Marketing Plan IVMarketing Plan IV

Identify Target Market SegmentIdentify Target Market Segment

PositioningPositioning

Marketing MixMarketing Mix ProductProduct PlacePlace PricePrice PromotionPromotion

2.42.4

The The Internal Internal Marketing StrategyMarketing Strategy

Total Quality ManagementTotal Quality Management

Organizational Structure & Re-Organizational Structure & Re-engineeringengineering

Teamwork and Employee Teamwork and Employee EmpowermentEmpowerment

2.52.5

The The ExternalExternal Marketing Strategy Marketing Strategy

Product Development and DifferentiationProduct Development and Differentiation

Valuation and PricingValuation and Pricing

Channel and Value-Chain ManagementChannel and Value-Chain Management

Integrated Marketing CommunicationIntegrated Marketing Communication

2.62.6

Marketing in business Marketing in business organizationsorganizations

Develop marketing plansDevelop marketing plans PortfolioPortfolio

SBUSBU Product marketing planProduct marketing plan

Identify market opportunitiesIdentify market opportunities Strategic windowsStrategic windows

Factors that make markets attractiveFactors that make markets attractive

Environmental scanning Environmental scanning

Environmental ScanningEnvironmental Scanning

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

Marketing Plan VMarketing Plan V

ImplementationImplementation Monitor and ControlMonitor and Control Adjust as necessary to reach objectivesAdjust as necessary to reach objectives Planning is everything. The plan is Planning is everything. The plan is

nothing. nothing. Dwight D. EisenhowerDwight D. Eisenhower

2.82.8

Competitive AdvantageCompetitive Advantage

Unique features of the company or product Unique features of the company or product that are significant and superior to the that are significant and superior to the competitioncompetition

Sources of Competitive Advantage Sources of Competitive Advantage Better than competitorsBetter than competitors

Sustaining Competitive AdvantageSustaining Competitive Advantage Cannot be copied, substituted for, or Cannot be copied, substituted for, or

surpassed by competition. surpassed by competition.

Resource Advantage TheoryResource Advantage Theory

Relative Resource-Produced Value

Lower Parity Superior

Lower Indeterminate Position

CompetitiveAdvantage

CompetitiveAdvantage(Nirvana)

Relative Resource Cost

Parity CompetitiveDisadvantage

ParityPosition

CompetitiveAdvantage

Higher CompetitiveDisadvantage(The Pits)

CompetitiveDisadvantage

Indeterminate Position

Resource Advantage Theory (Hunt and Morgan 1996)

Competitive Position Matrix

Porter’s Typology of StrategyPorter’s Typology of Strategy

Low CostLow Cost

DifferentiationDifferentiation

NicheNiche

Middle-of-the-RoadMiddle-of-the-Road=

2.92.9

Cost competitive advantagesCost competitive advantagesLow cost competitionLow cost competition Can offer lower prices while maintaining same Can offer lower prices while maintaining same

profit margins, orprofit margins, or Can make higher profits, with same or slightly Can make higher profits, with same or slightly

lower prices.lower prices.

Sources of Cost Competitive AdvantageSources of Cost Competitive Advantage ExperienceExperience EfficiencyEfficiency Simpler market offeringsSimpler market offerings Government subsidiesGovernment subsidies Product designProduct design ReengineeringReengineering Product innovationProduct innovation LogisticsLogistics

2.102.10

Product/service differentiationProduct/service differentiation

Offer something unique and valuableOffer something unique and valuable Brand NamesBrand Names Dealer NetworkDealer Network Product ReliabilityProduct Reliability ImageImage ServiceService

2.102.10

Niche Competitive AdvantageNiche Competitive Advantage

Target and effectively serve a small segmentTarget and effectively serve a small segment ExpertiseExpertise Full service in marketFull service in market Significant share of nicheSignificant share of niche Too small to be noticed/attractiveToo small to be noticed/attractive

2.122.12

Selecting MarketingSelecting Marketing AlternativesAlternatives

CORPORATE AND SBU LEVELCORPORATE AND SBU LEVEL BCG Portfolio AnalysisBCG Portfolio Analysis

StarStar

Question mark/Problem childQuestion mark/Problem child

DogDog

Cash cows Cash cows

Allocation of ResourcesAllocation of Resources

2.132.13

BCGGrowth-share matrix

High Low

High

Low

Market growth rate

?Star Question Mark

CashCow

Dog

Relative market share

Growth StrategiesGrowth Strategies

Market PenetrationMarket Penetration Existing Products/Existing CustomersExisting Products/Existing Customers

Market DevelopmentMarket Development Existing Products/New CustomersExisting Products/New Customers

Product DevelopmentProduct Development New Products/Existing MarketsNew Products/Existing Markets

DiversificationDiversification New Products/New MarketsNew Products/New Markets

2.142.14

Marketing StrategyMarketing Strategy

Target Market StrategyTarget Market Strategy Market Opportunity AnalysisMarket Opportunity Analysis

Size and potential of market segmentsSize and potential of market segments One Marketing Mix to All Market SegmentsOne Marketing Mix to All Market Segments One Marketing Mix to One Market SegmentOne Marketing Mix to One Market Segment Different Marketing Mixes to Multiple Market SegmentsDifferent Marketing Mixes to Multiple Market Segments

Marketing Mix StrategyMarketing Mix StrategyMust work togetherMust work together

Complementary and SynergisticComplementary and Synergistic

Details to follow in Chapters 9-18Details to follow in Chapters 9-18

2.152.15

Following Up PlanningFollowing Up Planning

ImplementationImplementation Tactics and all the details.Tactics and all the details.

Evaluation and ControlEvaluation and Control Audit and AdjustAudit and Adjust

Marketing AuditMarketing Audit ComprehensiveComprehensive SystematicSystematic IndependentIndependent PeriodicPeriodic

2.162.16

Customer Centered Company Strategic Planning

Customer value

Customer satisfaction

Employee creativity and commitment

2.172.17

Changing Role of MarketingChanging Role of Marketing

MARKETING MUST:MARKETING MUST: Assess market attractivenessAssess market attractiveness

Promote customer orientationPromote customer orientation

Determine the firm’s distinctive Determine the firm’s distinctive competencecompetence

At corporate levelAt corporate level

At SBU levelAt SBU level

2.182.18

Basics of Relationship Marketing

Relationships are based on open communication.

Relationships are built on reliability. Relationships are strengthened when the

parties stay in contact. Relationships depend on trust, honesty,

and ethical behavior. Partners in relationships show they care.