MKTG 360 1nd Edition Lecture 3 Outline of Last Lecture 1. Utility and Value2. Value from different perspectives3. The value chain4. Needs and values5. What can be marketed?Outline of Current Lecture 1. Strategy2. Five steps in strategic plan3. Four steps in marketing planningCurrent Lecture1. Strategya. A careful plan or method for achieving a particular goal usually over a long periodof time and under conditions of uncertainty and with potentially limited resourcesi. Think goalsii. Plan course of action to achieveiii. Manage resources to achieve goalb. Three levels of a business plani. Strategic planning1. Managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth and survivalii. Functional (marketing) planningThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.1. Decision process that focuses on developing detailed plans for strategies and tactics for the shot term that support an organization’s long-term strategic planiii. Operational planning1. Decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization’s functional plans2. Five steps in strategic plana. SWOT analysis identifies competitive advantagei. set of unique features of a product/service that are superior to competitor’sii. types of competitive advantage (CA)1. cost, product/service differentiation, nicheiii. sustainable CA1. An advantage that can’t be copied by competitioniv. How to complete a SWOT analysis1. Tool used to complete an objective analysis of a company2. Helps identify both sources of competitive advantages as well as potential liabilities3. Also helpful when evaluating the investment worthiness of a companyb. Set organizational or SBU objectivesi. Objectives flow from mission statementii. Effective objectives are1. Realistic, specific, measurable, and well-matched with mission statementiii. Example:1. Ok: our objective is to better serve customers2. Better: our objective is to obtain customer satisfaction ratings of at least 90% in 2014, and retain at least 85% of our 2013 customers as repeat customers in 2014c. Establish and Evaluate Business Portfolioi. Portfolio1. Collection of brands/units owned by org. that have different income gathering potentialii. Portfolio analysis1. Evaluating an org’s business mix and assessing potential of an org’s SBUsiii. Boston Consulting Group’s (BCG) Market Share Matrix1. Stars= dominant market share in high growth marketsa. Strategy: invest into prod, improve, distib, promo, efficiency2. Cash cows: dominant market share in low growth marketsa. Strategy: maintain price in advantage, product improvement3. Question marks= low market share in high growth marketsa. Strategy: gain market share, buy competitors, or drop SBU4. Dogs: SBUs with low market share in low growth marketa. Strategy: max, short-terms returns, or get rid of SBUd. Develop growth strategiesi. Market penetration1. Increase sales of existing products within existing markets (current, new users, users of competition)ii. Market development1. Introduce existing products into new marketsiii. Product development1. Selling new products in existing marketsiv. Diversification1. Emphasize both new products and new markets3. Four steps in marketing planninga. Strategic plan= overview of goalsb. Marketing plan- how wel’ll get therei. Document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategyc. Steps:i. Perform a situation (SWOT) analysisii. Set marketing objectives (more narrowly defined that org. objectivesiii. Develop marketing strategies1. Select a target marketa. Market opportunity analysis- size and sales potential of target group, and assessment of key competitors2. Develop marketing mix strategiesa. Product, price, promotion, place of distributioniv. Implement and control the plan1. Action plans= implementation of marketing strategiesa. Responsibilities, time line, budget, measurement and control2. Control= monitoring progressa. Compare actual performance to marketing objectives and adjust strategy/objectives as neededb. Must have good marketing metrics3. Marketing audits- evaluation of objectives, strategies structure, performance of marketing organizationa. Should be comprehensive, systematic, independent,