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Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)
- 2. Definitions of Strategy and Tactics
Strategy:
• An explicit statement of the firm’s vision of its
future, objectives, and purpose
• Provides long-term direction for decisions
• Includes corporate policies, resource
allocations, customer markets, and
competitive environment
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3–2
- 3. Definitions of Strategy and Tactics (cont’d)
Tactics:
• Serve as guidelines for implementing the
intent of the strategic plan
• Are the basis for day-to-day operating
decisions (including the marketing mix)
• Have a shorter-term planning horizon than
strategic planning
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3–3
- 4. Dimensions That Define Strategy
• The product market in which the business will
compete
• The level of investment in a strategic business
unit
• The functional area strategies required for
competing in the chosen market
• The underlying strategic assets and skills (core
competencies) that give the firm a sustainable
competitive advantage
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3–4
- 6. The Strategic Planning Process
Mission
Feedback
Set Performance Objectives
Environmental and Self Analyses
Strategic Objectives & Strategy Definition
Implementation and Tactics
Execution
Evaluation and Control
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3–6
- 7. Strategic Perspectives
• Strategic readiness
– Ability to take advantage of unexpected market opportunities
by having a long-term strategic plan and vision in place
• Strategic vision
– Longer-term, futuristic perspective, requires patience and
determination
• Strategic opportunism
– Focus on present, and seizing market opportunities in a
dynamic, uncertain environment
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3–7
- 8. External Environmental Analysis
• Customers
– Who are most desirable? Should the market be segmented?
– What are their characteristics, preferences, and behaviors?
• Competitor Assessment
– Who are our present and potential competitors?
– How well matched are their strategies and strengths to
–
the market’s key success factors?
– What are their weaknesses?
– How much of a threat are they?
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3–8
- 9. External Environmental Analysis
(cont’d)
• Market
– What are the market segment characteristics?
– What market trends are occurring?
– What is the current and future size, growth rate,
and direction of the market?
• Environmental scanning and forecasting
– What trends and events are apparent in both the
micro- and macro-environments?
– What will be their impact on us?
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3–9
- 10. Internal Organizational Analysis
• Financial resources
– Self-assessment of present financial assets
– Sources of funds (sales, interest, loans) and uses
(inventories, interest) of assets
• Physical resources
– Assets presently available and those needed to
implement strategy in the short - and long-run
– Property, plant, equipment, other assets
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3–10
- 11. Internal Organizational Analysis
(cont’d)
• Human resources
– Talents, skills, and abilities of managers and other personnel
– Outside specialists, suppliers, or others
• Technological resources
– In the form of products and processes
• Organizational resources
– Firm’s structure, systems, and procedures that support the
strategy
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3–11
- 12. Figure 3.3: Five-Factor
Model of Profitability
Source: Model adapted from Michael Porter, “Industry Structure and Competitive Strategy: Keys to Profitability,” Financial Analysis Journal (July-August 1980) p. 33.
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3–12
- 13. Strategic Inflection Point:
A Six Forces Adaptation of the Five Forces Model
Imbalance of Environmental Forces (Substitutes)
Existing
Competitors
Complementors*
Customers
The Business Change The Business
Suppliers
Substitutes
Potential
Competitors
*Significance: Complementors counteract substitution.
Source: Adapted from Andrew Grove, “Navigating Strategic Inflection Points,” Business Strategy Review (Autumn, 1997), pp.12-13.
Copyright London Business School. Reprinted by permission of Blackwell Publishers.
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3–13
- 14. Strategic Inflection Point
“During a
Strategic
Inflection Point,
the way a
business
operates, the
very structure
and concept of
the business,
undergoes a
change. But the
irony is that at
this point itself
nothing much
happens.”
Source: Adapted from Andrew Grove, “Navigating Strategic Inflection Points,”
Business Strategy Review (Autumn, 1997), pp.12-13. Copyright London Business
School. Reprinted by permission of Blackwell Publishers.
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3–14
- 15. What Are the Basic Strategies for Sustainable
Competitive Advantage?
Differentiation
Distinguishing one company’s products from
competitors on the basis of greater perceived
benefits and/or more value
Low
Cost
Marketer achieves cost advantage by controlling
costs of production, inputs, marketing programs, etc.
Focus
Concentration of the business on specific
market segment(s) and/or product group(s)
Preemptive
Move
First-mover advantage from being first to enter
market with a new product, innovation, etc.; creates
barriers to entry for follow-on competitors
Synergy
Combining the assets and skills of two or more units
by sharing business functions, customers,
marketing, personnel, etc.
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3–15
- 16. Strategic Planning and the
Challenge of Change
• Changes in approaches to strategy development
• Complexity and uncertainty
• Poverty of time
• Need for flexibility and adaptability
• Stakeholder involvement
• Integration of ethics and social responsibility
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3–16
- 17. Complexity and Uncertainty in
Strategic Market Planning
• Complexity
– The intricacies and relationships of the company
and its industry partners make it difficult to
analyze, understand, or solve complicated
strategic problems.
• Uncertainty
– The vagueness and doubt about a company’s
industry and general operating environment; not
being sure of what is happening now or what to
expect in the future.
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3–17
- 18. Strategic Planning and
Customer Orientation
• Develop outstanding approaches to delivering
customer satisfaction.
• Plan for value creation from the customer’s
perspective.
• Pursue continuous quality improvement in
products and processes.
• Develop the ability and willingness to re-engineer
(or redesign) goods or services as indicated by
the marketing environment or internal conditions.
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3–18
- 19. Figure 3.5: Integration of Ethical and Socially
Responsible Plans into Strategic Decision Making
Source: Adapted from Donald Robin and R. Eric Reidenbach, “Social Responsibility, Ethics, and Marketing Strategy: Closing the Gap Between Concept and
Application,” Journal of Marketing 51(1) (January), pp.44-58.Reprinted by permission.
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3–19
- 20. American Marketing Association
Code of Ethics
• Responsibilities of the marketer to all relevant
publics (consumers, organizations, and society)
• Honesty and fairness; uphold integrity, honor,
and dignity of the marketing profession
• Rights and duties of participants in the marketing
exchange process (including 4P’s and marketing
research)
• Ethical behavior in organizational relationships
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3–20
- 21. Figure 3.7: The Value Chain
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3–21
- 22. The Marketing Value Chain
Value = Benefit – Price
Choose
the Value
Communicate
the Value
Provide the Value
Promotion and
Public Relations
Selling
Advertising
Application
Engineering
Pricing
Service
Distribution
Sourcing and
Making
Product/Service
Development
Value Positioning
Select Target(s)
Customer Value
Need Assessment
Source: Redrawn from Anterasian and Phillips in Webster, Market-Driven Management (1994).
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3–22