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 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 2 LO2 Defining the Business Mission Develop an appropriate business mission statement Chapter 2 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 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 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 4 Chapter 2 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 5 LO3 Setting Marketing Plan Objectives Describe the criteria for stating good marketing objectives Chapter 2 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 6 LO3 Marketing Objective Marketing Objective A statement of what is to be accomplished through marketing activities. Chapter 2 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 7 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 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 8 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 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 9 LO5 Competitive Advantage Identify sources of competitive advantage Chapter 2 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 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. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 11 LO5 Competitive Advantage Cost Types of Competitive Advantage Product/Service Differentiation Niche Strategies Chapter 2 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 12 LO5 Cost Competitive Advantage Cost Competitive Advantage Chapter 2 Being the low-cost competitor in an industry while maintaining satisfactory profit margins. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 13 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 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 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 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 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. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 16 LO5 Examples of Product/Service Differentiation Brand names Strong dealer network Product reliability Image Service Chapter 2 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 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. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 18 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 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 19 LO5 Sources of Sustainable Competitive Advantage Patents Copyrights Locations Equipment Technology Skills and Assets of an Organization Chapter 2 Customer Service Promotion Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 20