Chapter 2 Strategic Planning I Strategic Planning between the organization s objective and resources and the evolving market opportunities The Goal is long term profitability and growth is the managerial process of creating and maintaining a fit a Plamning achieve organizational objectives in the future the process of anticipating events and determining strategies to designing activities relating to marketing i Marketing Planning objectives and the changing marketing environment marketing activities for the marketing manager ii Marketing Plan a written document that acts as a guidebook of b Mission Statement analysis of benefits sought to present and potential customers and an analysis of existing and anticipated environmental conditions a statement of the firms buisiness based on careful defininf a business in terms of goods and sevies i Market Myopia rather than what benefits customers seek 1 BAD THING SWOT analysis c Situational Analysis d Environmental Scanning the collection and interpretation of information about forces events and relationships in the external environment that may effect the future of the organization or implemenatioin of the marketing plan i Social ii Demographic iii Econominc iv Technological v Political vi Legal II Setting Marketing Objectives statement which is accomplished through marketing activities a Characteristics i Realistic ii Measurable iii Time Specific iv Compared to a Benchmark III Competitive Advantage are perceived by the target market as significant and superior to the competition a set of unique features of a company and its products that a Cost Competitive Advantage while mainting satisfactory profit margins being the low cost competitor in an industry i Experience Curves rate as experience with a product increases curves that show cost declining at a predictable b Product Service Differentiation Competitive Advantage the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of competitors IV Strategic Directions c Nice Competitive Advantage the advantage when a firm seeks to achieved when a firm seeks to target and effectively serve a small segment of the market the competition an advantage that cannot be copied by d Sustainable Competitive Advantage i Market Penetration ii Market Development a Strategic Alternatives customers new customers to existing products products for present markets new markets iii Product Development iv Diversification seeks to increase market share among existing a marketing strategy that entails attracting a strategy that entails the ceation of new increasing sales by introducing new products into b Portfolio Matrix allocating resources among products or strategic businesses units on the basis of relative market share and market growth rate That Market Share and Profitability are strongly linked business unit that is a fast growing leader business unit that generates more cash that it needs to i Star ii Cash Cow maintain its market share iii Problem Child iv Dog v Strategies to keep shows rapid growth but poor profits low growth potential and low market share 1 Build 2 Hold 3 Harvest 4 Divest V Target Market Strategy a 3 Strategies for selecting i Appealing to one market with one marketing mix ii Concentrating on one segment iii Appeling to multiple markets using multiple marketing mixes VI Marketing Mix designed to produce mutually satisfying exchanges with a target market a unique blend of product place promotion and pricing strategies a Product Strategies b Place distribution c Promotion Strategies d Price VII Follow Up on Marketing Plan a process that turns marketing plan into action assignments Implementation and ensures that these assignments are executed in a way that accomplishes the plans objective b Evaluation Control i Evaluation have been achieved during the specified time period gauging the extent to which the marketing objective ii Control mechanisms for evaluating marketing results in light of the plans objective and for correcting actions that do not help the organization within the budget guideline c Marketing Audit objectives structure and performance of the marketing organization a through systematic periodic evaluation of the
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