Chapter 2 notes MAR3023 With more comp in the market companies are spending more time with strategic planning determine how to use their resources and capabilities to achieve their objectives and satisfy their customers Nike apple Nikon UNDERSTANFING THE STRATEGIC PLANNING PROCESS Strategic planning the process of establishing an organizational mission and formulating goals corporate strat mar obj and a marketing plan A marketing orientation should guide the process of strategic planning to ensure that a concern for the customer satisfaction is an integral part of the process and permeates the entire company The process Begins with a detailed analysis of the companies strengths and weaknesses and identification of opportunities and threats within the industry Based on this the company can revise its goals or mission Next each area of the company establishes its own objectives and develops strategies to achieve them that are in line with the company s corporate strat The objectives and strategies of each area much support the organizations overall goals Marketing objectives should be designed so their achievement will contribute to the corporates strategy and so they can be accomplished through the efficient use of the companys marketing and non marketing resources To achieve marketing objectives a company has to set up a marketing strategy A plan for id and analyzing a target market and developing a market mix to the needs of that market Includes a plan of action for developing distributing promoting and pricing products overall goals products When done properly a marketing strat can contribute to the companys Ex Apple reputable with iphone and it translates to its other The marketing strategy is the framework for the marketing plan A written document that specifies the activities to be preformed to implement and control the organizations marketing activities ASSESSING ORGANIZATIONL RESOURCES AND OPPORTUNITIES Strat planning process beings with an analysis of the marketing environment including an analysis of the industry in which the company is operating or intends to sell its products Economic forces affect overall goals and the amount and type of resources the company can acquire and can create favorable opportunities This opp can be translated into overall organ Goals and marketing objectives In strat planning a company must evaluate its resources because additional resources may be needed to achieve the organs goal and missions resources indirectly affect marketing and final performance by helping to create customer satisfaction and loyalty ex Goodwill reputation brand names rolex and bmw their brand name gives them edge against the competitor core competencies things a company does extremely well sometimes so well that they give the company an advantage over their competitor ex Walmart has a core competency in efficiency in supply and chain management has enabled the chain to build a strong reputation for low prices at high quality levels on a wide variety of goods aspect of environmental analysis is to understand the compnays own industry or industries in which it markets its products and services market opportunity a combination of circumstances and timing that permits an organization to take action to reach a particular target market ex Bottled water is bad for the environment and cusomers became aware so sigg USA recognized a market opportunity for its reusable aluminum water bottles strategic opportunity temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competeing in a market ex Eco friendly water bottles competitive advantage the result of a company matching a core competency to opportunities it has discovered in the market place in some cases a company may posses manufacturing tech or marketing skills that it can match to market opps to create a competitive advantage ex Tesco united kingdom market seeks the competitive advantage by offering cheap healthy food options and is more green in the way it runs the store SWOT ANALYSIS SWOT analysis assessment of an organizations strengths weaknesses opportunities and threats strengths and weakness are internal factors strength refers to competitive advantages or core competencies that give the company an advantage in meeting the needs of its target market only a strength is it related to satisfying customers is it a comp advantage ex John deere promotes service experience and reputation in the farm equpit business to emphasize the craftsman ship used in his products weaknesses refer to any limitations a company faces in developing or implementing the market strategy if something affects the customers satisfaction it is a competitive disadvantage ex AOL customers left them due to other companies having low prices and free internet to overcome this aol adapted and made most of its services free to satisfy the customers strengths and weaknesses are only meaningful when they help or hinder the company in meeting the customer s needs should be evaluated from a customers perspective opportunities and threats exist independently of the company opportunities refer to favorable conditions in the environment that could produce rewards for the organization if acted on properly situations that exist but must be acted on to benefit the company threats refer to conditions or barriers that may prevent the company from reaching its objectives ex Even though Chrysler has improved the quality of its vehicle it is still not considered as reliable as Toyota and Lexus according to consumer perception to change this perception they are spending more resources to identify ways they can appeal more to buyers threats must be acted on opps and threats can stem from many places in the environment when a competitor introduces a new product that threatens a company if the company can come up with a better product that threat just became an opportunity swot matrix when an organization matches internal strengths to external opportunities it creates competitive advantages in meeting the needs of its customers internal weaknesses convert into strengths and external threats convert into opportunities ex Procter and gamble converted the weakness of not having competitive advantages in five areas into strengths by investing billions of dollars into areas such as marketing research and supply chain management the company s research has become a core competency that fosters significant
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