Transcript Chapter 1
Lamb, Hair, McDaniel
MKTG2007-2008
2
CHAPTER
Designed by
Amy McGuire, B-books, Ltd.
Chapter 2
Strategic Planning for
Competitive Advantage
Prepared by
Deborah Baker, Texas Christian University
Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved
1
LO1 The Nature of Strategic Planning
Understand the
importance of strategic
marketing and know a
basic outline for a
marketing plan
Chapter 2
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2
LO2
Defining the Business Mission
Develop an
appropriate business
mission statement
Chapter 2
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3
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
LO2
Chapter 2
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4
Chapter 2
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5
LO3
Setting Marketing
Plan Objectives
Describe the criteria
for stating good
marketing objectives
Chapter 2
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6
LO3 Marketing Objective
Marketing
Objective
A statement of what is to
be accomplished through
marketing activities.
Chapter 2
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LO3 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.”
Chapter 2
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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
5. Allow for better evaluation of results
Chapter 2
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9
LO5
Competitive Advantage
Identify sources
of competitive
advantage
Chapter 2
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10
LO5 Competitive Advantage
Competitive
Advantage
Chapter 2
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
Chapter 2
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LO5
Cost Competitive
Advantage
Cost
Competitive
Advantage
Chapter 2
Being the low-cost
competitor in an industry
while maintaining
satisfactory profit
margins.
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LO5
Cost Competitive
Advantage
Obtain inexpensive raw
materials
Create efficient plant
operations
Design products for ease
of manufacture
Control overhead costs
Avoid marginal customers
Chapter 2
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14
LO5 Sources of Cost Reduction
Experience Curves
Product Design
Efficient Labor
Reengineering
No-frills Products
Production Innovations
Government Subsidies
New Service
Delivery Methods
Chapter 2
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15
LO5 Product/Service Differentiation
Product/Service
Differentiation
Competitive
Advantage
Chapter 2
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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LO5
Examples of
Product/Service Differentiation
Brand names
Strong dealer network
Product reliability
Image
Service
Chapter 2
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17
LO5
Niche Competitive
Advantage
Niche
Competitive
Advantage
Chapter 2
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
Chapter 2
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19
LO5
Sources of Sustainable
Competitive Advantage
Patents
Copyrights
Locations
Equipment
Technology
Skills and Assets
of an
Organization
Chapter 2
Customer Service
Promotion
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