1. Prepared by Deborah Baker Texas Christian University Strategic Planning for Competitive Advantage 2
2. Learning Objectives 1. Understand the importance of strategic marketing and know a basic outline for a marketing plan 2. Develop an appropriate business mission statement 3. Describe the criteria for stating good marketing objectives
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4. Learning Objectives (continued) 8. Describe the elements of the marketing mix 9. Explain why implementation, evaluation, and control of the marketing plan are necessary 10. Identify several techniques that help make strategic planning effective
5. Learning Objective Understand the importance of strategic marketing and know a basic outline for a marketing plan On Line http://www.in-n-out.com http://www.mcdonalds.com http://www.burgerking.com 1 1
6. Strategic Planning Strategic Planning The managerial process of creating and maintaining a fit between the organization’s objectives and resources and evolving market opportunities. On Line http://www.coke.com http://www.pepsi.com 1
7. Strategic Planning Plus 1 RESOURCES & OBJECTIVES EVOLVING MARKET OPPORTUNITIES $ LONG RUN PROFITABILITY AND GROWTH
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9. Planning Planning The process of anticipating future events and determining strategies to achieve organizational objectives in the future. 1
10. The Marketing Plan Marketing Plan A written document that acts as a guidebook of marketing activities for the marketing manager. 1
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12. Marketing Plan Elements On Line http://www.dmusic.com Marketing Strategy Product Promotion Distribution Price Marketing Mix Business Mission Statement Objectives Situation or SWOT Analysis Implementation Evaluation Control Target Market Strategy 1
13. Review Learning Objective 1 On Line http://att.com 1 What Why How Strategic Planning Long-term profitability and growth Write a marketing plan
14. Learning Objective 2 Develop an appropriate business mission statement 2
18. Review Learning Objective 2 2 Q: What business are we in? A: Business mission statement Too narrow Too broad Just right marketing myopia no direction focus on markets served and benefits customers seek
19. Learning Objective Describe the criteria for stating good marketing objectives 3 3
23. Review Learning Objective 3 3 Clear and specific 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
27. Environmental Scanning Environmental Scanning 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. 4
31. Competitive Advantage Competitive Advantage 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. 5
32. Competitive Advantage On Line http://www.travelocity.com http://www.expedia.com 5 Niche Strategies Cost Product/Service Differentiation Types of Competitive Advantage
33. Cost Competitive Advantage Cost Competitive Advantage Being the low-cost competitor in an industry while maintaining satisfactory profit margins. 5
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35. Sources of Cost Reduction 5 Experience Curves Efficient Labor No-frills Products Government Subsidies Product Design Reengineering Production Innovations New Service Delivery Methods
36. Product/Service Differentiation Product/Service Differentiation Competitive Advantage Advantage achieved when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than the competition. 5
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38. Niche Competitive Advantage Niche Competitive Advantage Advantage achieved when a firm seeks to target and effectively serve a small segment of the market. 5
44. Strategic Alternatives 6 Video Click! Market Penetration Market Development Product Development Diversification Increase market share among existing customers Attract new customers to existing products Introduce new products into new markets Create new products for present markets
45. Ansoff’s Strategic Opportunity Matrix On Line http://www.pg.com 6 Present Product New Product New Market Market Penetration Market Development Product Development Diversification Present Market
49. Marketing Strategy Marketing Strategy The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets. 7
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51. Target Market Strategies Appeal to the entire market with one marketing mix Concentrate on one marketing segment Appeal to multiple markets with multiple marketing mixes 7
54. The Marketing Mix Marketing Mix A unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market. 8
55. Marketing Mix: The “Four Ps” 8 Price Promotion Place Product
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60. Learning Objective Explain why implementation, evaluation, and control of the marketing plan are necessary On Line http://www.youngbiz.com 9 9
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63. Learning Objective Identify several techniques that help make strategic planning effective 10 10