Chapter 2 Strategic Planning Competitive Advantage 1 26 11 Why Write a Marketing Plan provide basis for comparison of actual expected provides clearly stated activities to work toward goals serves as reference for the success of future activities provides examination of marketing environment allows entry into marketplace with awareness Marketing Plan Elements 1 Situation Assessment Macrotrends Target Market Strategy Industry trends Competitive Analysis 2 SWOT Analysis Strengths Weaknesses Opportunities Threats Business Mission Statement Objectives Marketing Strategy Implementation Evaluation Control 3 Marketing Mix Product Promotion Price Distribution Guidelines for Designing Marketing Strategies Macro Trends social demographic economic technological political legal trends Competitive Analysis Target Market Strategy segment market based on groups w similar characteristics analyze market based on attractiveness of market segments select 1 more target markets appeal to entire market w one marketing mix OR concentrate on one marketing segment OR appeal to multiple markets w multiple marketing mixes SWOT Analysis Strengths things company does well Weaknesses things not done well Opportunities conditions in external environment that favor strengths Threats conditions in external environment that do not relate to existing strengths or favor areas of current weaknesses strength weaknesses examples production costs marketing skills financial resources image technology Opportunities Threats ex s target market expanding social media mobile technology competitive landscape Defining a Business Mission answers what business are we in focuses on markets rather than goods services 1 26 11 strategic business units SBU s may have a mission statement Marketing Objectives SMART Specific Measurable Attainable Realistic Timed Criteria for Good Marketing Objectives SMART 1 Communicate marketing management philosophy 2 Provide management direction 3 Motivate employees 4 Forces executives to think clearly 5 Allow for better evaluation of results Competitive Advantage set of unique features of a company its products that are perceived by target markets as significant superior unique to competition types cost product service differentiation niche strategies Cost Competitive Advantage obtain cheap raw material create efficient operations Sources of Cost Reduction experience curves product design reengineering efficient labor government subsidies Product Service Differentiations brand names product reliability strong dealer network image service Niche Competitive Advantage used by small companies used in limited geographic markets product line may be focused on specific product category Sources of Sustainable Competitive Advantage patents copyrights locations equipment technology customer service promotion Strategic Alternatives market penetration inc market share among existing customers market development attract new customers to existing products product development create new products for present markets diversification introduce new products into new markets Portfolio Matrix B G INVEST Stars large profits INEVEST HEAVY or DROP Problem Child need Cash Cash Cow Market dominance Dogs small market share low growth INVEST DROP Product 1 26 11 tangible goods ideas services physical unit package warranty Price what buyer must give up for a product most flexible of the 4 P s competitive advantage price x units sold total revenue Place product availability when where customers want them all activities from raw materials to finished products ensure products arrive in usable condition designated places Promotion role to bring exchanges via informing educating persuading reminding personal selling advertising sales promotions PR Following up on Marketing Plan implementation evaluation control marketing audit is comprehensive systematic independent and periodic Techniques of Effective Strategic Plan continual attention creativity management commitment
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