MKTG 350 1st Edition Lecture 2 Outline of Current Lecture Marketing strategysustainable competitive advantage marketing planCurrent Lecture – Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing Strategy- 1. Identify target market 2. Develop the marketing mix (4 Ps) that satisfies the target market3. Build a basis upon which your firm plans to build a sustainable competitive advantage Sustainable competitive Advantage- is an advantage over competition that is not easily copied, and thus can be maintained over a long period of time. Customer Value (sustainable competitive advantage)- 1. Customer excellence (service) – loyal customers Customer relationship management-CRM2. Operational excellence- (low price is not a sustainable competitive advantage but thereason that they can keep the price so low is) 3. Product excellence- (not necessarily the best product but well positioned one – clear distinctive brand image)4. Locational excellence- once location is acquired, no one else can take it away as long as you’re there The Marketing Plan- a written document with an analysis of the current situation, opportunities,threats, and objectives & strategy - Step 1: Business mission and objectives (Planning)- Step 2: Situation analysis (SWOT) (Planning)- Step 3: Identify opportunities (Implementation)- Step 4: implement marketing mix (implementation)- Step 5: Evaluate performance using marketing metrics (Control)Three Phases of a Strategic Plan --- Planning Phase  Implementing Phase Control Phase These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Step 1: Mission statement- a broad description of a firms objectives and the scope of activities itplans to undertake EXAMPLE: MADD strives to stop drunk driving, support the victims of this violent crime and prevent underage drinking. Step 2: Situational analysis – SWOT (Strengths, Weaknesses, Opportunities, Threats) SW=internal OT=external Step 3: STP – Segmentation (break heterogeneous population-market- and breaking it down intosmaller homogeneous subsets-segments) TargetingPositioning (to develop a clear, distinctive, desirable, understanding of our product compared to the competition—make them like our product best—the place the product occupies in the mind of the consumer EX: Volvo=safety, Cadillac= luxury for elders, Hyundai=cheap) Step 4: implement marketing mix – 4Ps 1. Product and value creation- successful products are services are those that costumers perceived as valuable enough to buy 2. Prince and Value Capture- price must allow for customers to perceive good value for the product they receive 3. Place and Value delivery- the product must me readily accessible—why is this retailer growing? 4. Promotion and Value Communication- television, radio, magazines, sales forces, new mediaStep 5: Evaluate Performance and Make adjustments- Growth I Market share HIGH LOWHIGH STARS A+ QUESTION MARKS ALOW CASH COWS C DOGSGrowth Strategies Markets I Products  Current NewCurrent Market Penetration (coke in morning)Product Development (coke with like)New Market Development (Coke in North Korea)Diversification (Coke selling