Strategic Planning for Competitive Advantage Strategic planning the managerial process of creating and maintaining a fit between the organization s objectives and resources and the evolving market opportunities Planning anticipating future events and determining strategies to achieve objectives in the future Marketing planning designing activities relating to marketing objectives and the changing marketing environment o Market plan a written document that acts as a guidebook of marketing activities for the marketing manager Mission statement the foundation of a business marketing plan Should focus on the market the organization is trying to service rather than the service Marketing myopia when mission statements are too narrow and they define a business in terms of goods instead of the benefits Strategic business unit SBU a subgroup of a single business or collection of related businesses within a larger organization SWOT Analysis recognizing the company s internal strengths S strength things the company does well W weaknesses things the company does not do well O opportunities conditions in environment that favor strengths T threats have a negative impact on the company Environmental Scanning collection and interpretation of information about forces events and relationships in the external environment that may affect the future of the organization of the implementation of a marketing plan Marketing objective a statement of what is to be accomplished through marketing activities They need to be realistic measurable time specific and compared to a benchmark USE SWOT TO GET Competitive advantage a set of unique features of a company and its products that are perceived by the market as superior to the competition Cost competitive advantage being a low cost competitor in an industry while still managing profits o Experience curve tells us that costs decline at predictable rates Efficient labor product design product innovation government subsidies Product service differentiation competitive advantage a firm provides something that is unique and valuable to buyers beyond just offering a lower price Niche competitive advantage seeks to target and effectively serve a single segment of the market Sustainable competitive advantage one that cannot be copied by the competition AFTER SWOT strategic planning Market penetration increase market shares among existing customers Market development attracting new customers to existing Product development creation of new products for present products markets Diversification increasing sales by introducing new products into new markets How to select the best strategic alternative Portfolio matrix classify each strategic business unit by its present of forecasted growth and market share o Stars a fast growing market leader o Cash cow an SBU that generates more cash than it needs to maintain market shares o Problem child shows rapid growth but poor profit margins o Dog has low growth potential and small market share
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