Transcript Marketing 2 - Texas Tech University

Marketing 2
Strategic Planning
Strategic Planning-2
Strategic planning for competitive
advantage
Planning marketing activities
Changing role of marketing
2.1
Strategic Planning
The managerial process of creating and
maintaining fit between the organization’s
objectives and resources and the evolving
market opportunities. (or threats)
Strategy vs. Tactics
Strategy
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Long term
Big picture
Designed to achieve
organizational goals
Tactics
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Short term
Details
Designed to achieve
strategy
Elements of the Marketing Plan
Must have
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Definition of Mission and Objectives
Situational Analysis
Identify Target Market (segment)
Positioning using Marketing Mix
Should have
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Budget
Timetable
Research needed
Marketing Plan I
Company mission
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Raison d’etre
Establishes boundaries for decisions,
objectives, and strategies.
Focus on markets rather than goods or
services; customer needs vs. technology.
(myopia)
Don’t be too broad. Say something useful.
(Scott Adams)
2.2
Marketing Plan II
Company goals and objectives
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Business portfolio and strategic business units
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Must be realistic, measurable, and time specific.
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Must be consistent with organizational priorities.
2.2
Meaningful Goals & Objectives
Are...
Supportive of the Organization’s
Mission
Challenging but Attainable
Measurable
Time sensitive
2.3
Marketing Plan III
Situation Analysis/SWOT
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Strengths
Weaknesses
Opportunities
Threats
Strengths and Weaknesses are INTERNAL
Opportunities and Threats are EXTERNAL
SWOT Analysis
External
OPPORTUNITIES
Internal
STRENGTHS
Strategy
THREATS
External
2.7
WEAKNESSES
Internal
Marketing Plan IV
Identify Target Market Segment
Positioning
Marketing Mix
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Product
Place
Price
Promotion
The Internal Marketing Strategy
Total Quality Management
Organizational Structure & Reengineering
Teamwork and Employee Empowerment
2.4
The External Marketing Strategy
Product Development and
Differentiation
Valuation and Pricing
Channel and Value-Chain Management
Integrated Marketing Communication
2.5
Marketing in business
organizations
Develop marketing plans
 Portfolio
SBU
 Product marketing plan
Identify market opportunities
 Strategic windows
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Factors that make markets attractive
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Environmental scanning
2.6
Environmental Scanning
The collection and interpretation of
information about forces, events, and
relationship in the external environment
that may affect the future of the
organization or the implementation of the
marketing plan.
Marketing Plan V
Implementation
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Monitor and Control
Adjust as necessary to reach objectives
Planning is everything. The plan is
nothing. Dwight D. Eisenhower
Competitive Advantage
Unique features of the company or product
that are significant and superior to the
competition
Sources of Competitive Advantage
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Better than competitors
Sustaining Competitive Advantage
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Cannot be copied, substituted for, or
surpassed by competition.
2.8
Resource Advantage Theory
Relative Resource-Produced Value
Relative
Resource
Cost
Lower
Parity
Superior
Lower
Indeterminate
Position
Competitive
Advantage
Competitive
Advantage
(Nirvana)
Parity
Competitive
Disadvantage
Parity
Position
Competitive
Advantage
Higher
Competitive
Disadvantage
(The Pits)
Competitive
Disadvantage
Indeterminate
Position
Competitive Position Matrix
Resource Advantage Theory (Hunt and Morgan 1996)
Porter’s Typology of Strategy
Low Cost
Differentiation
Niche
Middle-of-the-Road
=
Cost competitive advantages
Low cost competition
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Can offer lower prices while maintaining same
profit margins, or
Can make higher profits, with same or slightly
lower prices.
Sources of Cost Competitive Advantage
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Experience
Efficiency
Simpler market offerings
Government subsidies
Product design
Reengineering
Product innovation
Logistics
2.9
Product/service differentiation
Offer something unique and valuable
 Brand Names
 Dealer Network
 Product Reliability
 Image
 Service
2.10
Niche Competitive Advantage
Target and effectively serve a small segment
 Expertise
 Full service in market
 Significant share of niche
 Too small to be noticed/attractive
2.10
Selecting Marketing
Alternatives
CORPORATE AND SBU LEVEL
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BCG Portfolio Analysis
Star
Question mark/Problem child
Dog
Cash cows
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Allocation of Resources
2.12
BCG
Growth-share matrix
Market growth rate
Star
?
High
Low
Question Mark
Cash
Cow
High
Dog
Low
Relative
market share
2.13
Growth Strategies
Market Penetration
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Existing Products/Existing Customers
Market Development
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Existing Products/New Customers
Product Development
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New Products/Existing Markets
Diversification
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New Products/New Markets
Marketing Strategy
Target Market Strategy
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Market Opportunity Analysis
Size and potential of market segments
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One Marketing Mix to All Market Segments
One Marketing Mix to One Market Segment
Different Marketing Mixes to Multiple Market Segments
Marketing Mix Strategy
Must work together
Complementary and Synergistic
Details to follow in Chapters 9-18
2.14
Following Up Planning
Implementation
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Tactics and all the details.
Evaluation and Control
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Audit and Adjust
Marketing Audit
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Comprehensive
Systematic
Independent
Periodic
2.15
Customer Centered Company
Strategic Planning
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Customer value
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Customer satisfaction
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Employee creativity and commitment
2.16
Changing Role of Marketing
MARKETING MUST:
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Assess market attractiveness
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Promote customer orientation
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Determine the firm’s distinctive
competence
At corporate level
At SBU level
2.17
Basics of Relationship Marketing
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Relationships are based on open
communication.
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Relationships are built on reliability.
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Relationships are strengthened when the
parties stay in contact.
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Relationships depend on trust, honesty,
and ethical behavior.
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Partners in relationships show they care.
2.18