Rachel Lissak BMGT350 D Whitney Fall 2011 Ch 2 1 2 1 The Nature of Strategic Planning Strategic Planning between the organization s objectives and resources and the evolving market opportunities managerial process of creating and maintaining a fit Goal long run profitability and growth Answers 2 questions What is the organization s main activity at a particular time How will it reach its goals o What is a Marketing Plan Planning achieve organizational objectives in the future changing the marketing environment Marketing Planning process of anticipating future events and determining strategies to designing activities relating to marketing objectives and Basis for all marketing strategies and decisions Marketing Plan activities for the marketing manager written document that acts as a guidebook of marketing o Why Write a Marketing Plan Basis to compare actual and expected performance Clearly states activities and helps employees and managers understand and work towards a common goal Reference point for success of future activities o Marketing Plan Elements Most businesses need a written marketing plan because it is large and complex Elements of a Marketing Plan Business Mission Statement SWOT Situation Analysis Objectives Marketing Strategy Target Market Strategy OR Marketing Mix Implementation Evaluation Control o Writing the Marketing Plan The marketing plan is only as good as the information it contains and the effort creativity and thought that went into it 2 2 Defining the Business Mission o Mission statement foundation of a firm s marketing plan Mission Statement analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions statement of the firm s business based on a careful Answers the question what business are we in o Should focus on the market or markets the organization is attempting to serve rather than the goods services being offered o If a business statement is too narrow it may have marketing myopia Rachel Lissak BMGT350 D Whitney Fall 2011 Ch 2 2 Marketing Myopia than in terms of the benefits that customers seek defining a business in terms of goods and services rather o Strategic Business Unit SBU related businesses within a larger organization a subgroup of a single business or collection of 2 3 Conducting a Situation Analysis o Marketers must understand the current and potential environment in which the product or service will be marketed o SWOT Analysis is used to identify Strengths internal Weaknesses internal Opportunities external Threats external focus on organizational resources o When looking at internal strengths and weakness the marketing manager should i e production costs marketing skills financial resources company or brand images employee capabilities and available technology Should also consider the background of the firm sales and profit history o When addressing external opportunities and threats aspects of the marketing environment need to be analyzed Environmental Scanning forces events and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan collection and interpretation of information about Helps to identify market opportunities and threats for the design of the marketing strategy 6 most studied macroenvironmental forces 1 Social 2 Demographic 3 Economic 4 Technological 5 Political and Legal 6 Competitive must be stated objectives activities Realistic Measurable been met To be useful it should be Time Specific Compared to a Benchmark 2 4 Setting Marketing Plan Objectives o Before the details of a marketing plan can be developed objectives for the plan No basis for measuring success of the marketing plan activities without o Marketing Objective a statement of what is to be accomplished through marketing Managers need to be able to quantitavely measure whether an objective has Rachel Lissak BMGT350 D Whitney Fall 2011 Ch 2 3 Be consistent with and indicate the priorities of the organization SPECIFICALLY the objectives flow from the business mission statement to the rest of the marketing plan o Functions of Specified Objectives Communicate marketing management philosophies and provide direction for lower level marketing managers so that everyone has one common goal Serve as motivators Forces executives to clarify their thinking Form a basis for control 2 5 Competitive Advantage Performing a SWOT analysis allows firms to identify their competitive advantage Competitive Advantage a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition 3 Types 1 Cost 2 Product Service Differentiation 3 Niche o Cost Competitive Advantage Cost can be reduced by Experience Curves rate as experience with a product increases curves that show cost declining at a predictable Includes manufacturing marketing and administrative costs Reflect learning by doing technological advances and Allow management to forecast costs and set prices based on Removing frills from goods or services allows for lower market economies of scale anticipated costs Efficient Labor No frills goods and services prices Government subsidies Product design Re engineering Production innovations New methods of service delivery Cost Competitive Advantage while maintaining satisfactory profit margins being the low cost competitor in an industry Enables a firm to deliver superior customer value o Product Service Differentiation Competitive Advantage Product Service Differentiation Competitive Advantage something that is unique and valuable to buyers beyond simply offering a lower price than the competition providing Its durability tends to make it more attractive to top management Rachel Lissak BMGT350 D Whitney Fall 2011 Ch 2 4 o Niche Competitive Advantage Niche Competitive Advantage targets and serves a smaller segment of the market the advantage that is achieved when a firm May be the only option for smaller companies with limited resources who are competing against huge companies Many companies use this strategy to serve a limited geographic market o Building Sustainable Competitive Advantage The key to a competitive advantage is sustaining it Sustainable Competitive Advantage copied by the competition an advantage that cannot be The sources of tomorrow s competitive advantage are the skills and assets of the organization Assets Include patents copyrights locations
View Full Document
Unlocking...