MARK 3321 1st Edition Lecture 2 Outline of Last Lecture I Overview of Marketing A Definition of marketing II Five Necessary Conditions for Exchange III Four Marketing Management Philosophies IV Video Case Wahoo Fish Taco Outline of Current Lecture I Ansoff s Strategic Opportunity Matrix A Marketing penetration B Product development C Market development D Diversification II Strategic Business Units SBU III Boston Consulting Group Matrix a Stars b Question Marks c Cash Cows d Dogs IV Marketing Plan a Definition b Elements of Marketing Plan i Business mission statement ii Situation or SWOT analysis iii Objectives iv Marketing Strategy v Implementation Evaluation Control V Situational SWOT Analysis VI Environmental Scanning VII Competitive Advantage Current Lecture CH 2 Strategic Planning for Competitive Advantage Ansoff s Strategic Opportunity Matrix will be on exam 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 o Market penetration Doesn t change the market or product Trying to get existing customers to buy more of the product o Product development Introduce new products to existing customers o Market development Serving new markets with existing products Ex opening new stores in different locations o Diversification Create new products to sell to new target groups Maybe selling products from different industries Strategic business units SBU o SBU has A distinct mission and specific target market Control over its resources Its own competitors Plans independent of other SBU s Boston Consulting Group BCG Matrix o Stars High growth industry high demand o Question Marks Could have lots of growth and market share o Cash cows Have a product that generates lots of profits Can use those profits for new products o Dogs Not much growth or profits o Example of relative market share Firm A 60 Has 2 1 market share High market share Firm B 30 Has 5 1 market share Low market share Firm C 10 17 to 1 market share Low market share o Only industry leaders can be considered in the High category for relative market share Marketing Plan o A written document that acts as a guidebook of marketing activities for the marketing manager Elements of a marketing plan o 1 Business mission statement o 2 Situation or SWOT analysis o 3 Objectives o 4 Marketing Strategy Target market strategy Marketing mix o Product o Promotion o Distribution o Price o 5 Implementation Evaluation Control Defining the Business Mission o A firm s mission statement is answers the question What business are we in o Should avoid marketing myopia which is defining a business in terms of goods and services rather in terms of the benefits customers seek Examples of myopic statements we are a telephone company we are in the airline business Better ways we are a communications company we are in the transportation business Situation of SWOT analysis o Internal Strengths things the company does well Weaknesses things the company does not do well o External Opportunities conditions in the external environment that favor strengths Threats conditions in the external environment that do not relate to existing strengths or favor areas of current weakness Environmental scanning o 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 Competitive advantage o The set of unique features of a company and its products that are perceivedby the target market as significant and superior to competition o Types Cost Can offer products at a cheaper price than the competition Walmart with low prices Product service differentiation Tom thumb with in store experience Niche strategies Associating products with a different group Whole foods with health food movement Building sustainable competitive advantage o Cannot be copied by competition o Can be used for number of years