1/26/11Chapter 2 – Strategic Planning & Competitive AdvantageWhy 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 awarenessMarketing Plan Elements1. Situation Assessment-Macrotrends-Target Market Strategy-Industry trends-Competitive Analysis2. SWOT Analysis(Strengths, Weaknesses, Opportunities, Threats)-Business Mission Statement-Objectives-Marketing Strategy -Marketing Mix (Product, Promotion, Price, Distribution)3. Implementation Evaluation ControlGuidelines 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 mixOR-concentrate on one marketing segmentOR-appeal to multiple markets w/ multiple marketing mixesSWOT 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 areasof 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 landscapeDefining a Business Mission-answers “what business are we in?”-focuses on markets rather than goods/services1/26/11-strategic business units (SBU’s) may have a mission statementMarketing Objectives (SMART)-Specific-Measurable-Attainable-Realistic-TimedCriteria for Good Marketing Objectives = SMART1. Communicate marketing & management philosophy2. Provide management direction3. Motivate employees4. Forces executives to think clearly5. Allow for better evaluation of resultsCompetitive 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 strategiesCost Competitive Advantage-obtain cheap raw material-create efficient operationsSources of Cost Reduction-experience curves, product design, reengineering, efficient labor, government subsidiesProduct/Service Differentiations-brand names-product reliability-strong dealer network-image-serviceNiche Competitive Advantage-used by small companies-used in limited geographic markets-product line may be focused on specific product categorySources of Sustainable Competitive Advantage-patents, copyrights, locations, equipment, technology, customer service, promotionStrategic 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 marketsPortfolio Matrix (B.G)INVEST INEVEST HEAVY or DROPStars: large profits Problem Child: need CashCash Cow: Market dominanceDogs: small market share & low growthINVEST DROPProduct1/26/11-tangible goods, ideas, services-physical unit, package, warrantyPrice-what buyer must give up for a product-most flexible of the 4 P’s-competitive advantage-price x units sold = total revenuePlace-product availability; when & where customers want them-all activities from raw materials to finished products-ensure products arrive in usable condition @ designated placesPromotion-role to bring exchanges via informing, educating, persuading & reminding-personal selling, advertising, sales promotions, PRFollowing up on Marketing Plan-implementation, evaluation, control-marketing audit is … comprehensive, systematic, independent, and periodicTechniques of Effective Strategic Plan-continual attention, creativity, management