MARK 3321 1st Edition Lecture 2Outline of Last Lecture I. Overview of MarketingA. Definition of marketingII. Five Necessary Conditions for ExchangeIII. Four Marketing Management PhilosophiesIV. Video Case – Wahoo Fish TacoOutline of Current Lecture I. Ansoff’s Strategic Opportunity MatrixA. Marketing penetrationB. Product developmentC. Market developmentD. DiversificationII. Strategic Business Units (SBU)III. Boston Consulting Group Matrixa. Starsb. Question Marksc. Cash Cowsd. DogsIV. Marketing Plana. Definitionb. Elements of Marketing Plani. Business mission statementii. Situation or SWOT analysisiii. Objectivesiv. Marketing Strategyv. Implementation, Evaluation, ControlV. Situational (SWOT) AnalysisVI. Environmental ScanningVII. Competitive AdvantageCurrent LectureCH 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 producto Product development Introduce new products to existing customerso Market development Serving new markets with existing products Ex: opening new stores in different locationso 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) Matrixo Stars High growth industry, high demando Question Marks Could have lots of growth and market shareo Cash cows Have a product that generates lots of profits Can use those profits for new productso Dogs Not much growth or profitso 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 shareo Only industry leaders can be considered in the High category for relative market share- Marketing Plano A written document that acts as a guidebook of marketing activities for the marketing manager- Elements of a marketing plano 1. Business mission statemento 2. Situation or SWOT analysiso 3. Objectiveso 4. Marketing Strategy Target market strategy- Marketing mixo Producto Promotiono Distributiono Priceo 5. Implementation, Evaluation, Control- Defining the Business Missiono 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 transportationbusiness”- Situation of SWOT analysiso Internal Strengths – things the company does well Weaknesses – things the company does not do wello 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 scanningo 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 advantageo The set of unique features of a company and its products that are perceivedby the targetmarket as significant and superior to competitiono 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 advantageo Cannot be copied by competitiono Can be used for number of