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Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 2

1

Strategic Marketing

CHAPTER 2

Strategic Planning for Competitive Advantage

Marketing Plan

Introduction to MarketingMcDaniel, Lamb, Hair

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 2 2

Learning Outcomes

Understand the importance of strategic marketing

and know a basic outline for a marketing plan

Develop an appropriate business

mission statement

Describe the criteria for stating good marketing

objectives

LOI

LO2

LO3


Learning Outcomes

Explain the components of a situation analysis

Identify sources of competitive advantage

Identify strategic alternatives

Discuss target market strategies

LO5

LO6

LO7

LO4


Learning Outcomes

Describe the elements of the marketing mix

Explain why implementation, evaluation, and

control of the marketing plan are necessary

Identify several techniques that help make

strategic planning effective

LO9

LOIO

LO8


5

Understand the importance of strategic marketing

and know a basic outline for a marketing plan

The Nature of Strategic PlanningLOI


6

Strategic Planning

Strategic

Planning

LOI

The managerial process of

creating and maintaining a fit

between the organization’s

objectives and resources and

evolving market opportunities.

The goal is long-term

profitability and growth.


7

LOI

What is the organization’s main activity?

Strategic Marketing Management

How will it reach its goals?

THE ANSWER IS A MARKETING PLAN.


8

Strategic PlanningLOI

Marketing Plan A written document that acts

as a guidebook of marketing

activities for the marketing

manager.


9

LOI

Provides a basis for comparison of actual and expected performance

Provides clearly stated activities to work toward common goals

Serves as a reference for the success of future activities

Provides an examination of the marketing environment

Allows entry into the marketplace with awareness

Why Write a Marketing Plan?


10

LOI

Marketing Plan

Elements

Marketing Strategy

Product Distribution

Price

Marketing Mix

Business Mission Statement

Objectives

Situation or SWOT Analysis

Target Market Strategy

Implementation

Evaluation

Control

Promotion


11

REVIEW LEARNING OUTCOMEThe Importance of Strategic Marketing

LOI

What

Why

How

Strategic Planning

Long-term profitability

and growth

Write a marketing plan

Online

http://www.dmusic.com

http://www.dmusic.com/


12

Develop an appropriate business mission statement

Defining the Business MissionLO2


13

LO2

Answers the question,

“What business are we in?”

Focuses on the market(s)

rather than the good or service

Strategic Business Units (SBUs) may

also have a mission statement

Defining the Business Mission


14

LO2 AMA’s Mission Statement


15

Strategic Business Units (SBUs)

Characteristics:

[SBU HAS…]

A distinct mission and specific target market

Control over its resources

Its own competitors

Plans independent of other SBUs

LO2


16

REVIEW LEARNING OUTCOMEBusiness Mission Statement

LO2

marketing myopia

no direction

focus on markets

served and benefits

customers seek

Q: What business are we in?

A: Business mission statement

Too narrow

Too broad

Just right

marketing myopia

no direction

focus on markets

served and benefits

customers seek


17

Describe the criteria for stating good marketing objectives

Setting Marketing Plan ObjectivesLO3


18

LO3 Marketing Objective

A statement of what is to be

accomplished through

marketing activities.

Marketing

Objective


19LO3

Marketing Objectives

Realistic

Measurable

Time specific

Consistent with and indicate the organization’s priorities

“Our objective is to achieve

10 percent dollar market

share in the cat food

market within 12 months of

product introduction.”


20

REVIEW LEARNING OUTCOMECriteria for Good Marketing Objectives

LO3

Realistic, measurable, and time-specific objectives

consistent with the firm’s objectives:

1. Communicate marketing management philosophy

2. Provide management direction

3. Motivate employees

4. Force executives to think clearly

5. Allow for better evaluation of results


21

Explain the components of a situation analysis

Conducting a Situation AnalysisLO4


22

LO4

SWOT Analysis

SWOT Analysis

Identifying

internal strengths (S)

and weaknesses (W)

and also examining

external opportunities (O)

and threats (T)


23

LO4

SWOT Analysis

©South-Western College Publishing

S

W

O

T

Things the company does well.

Things the company does not do well.

Conditions in the external environment that favor strengths.

Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.

Internal

External


24

LO4

Environmental

Scanning

Environmental Scanning

The collection and interpretation

of information about forces,

events, and relationships in the

external environment that may

affect the future of the

organization or the implementation

of the marketing plan.


25

REVIEW LEARNING OUTCOMEComponents of a Situation Analysis

LO4

production costs

marketing skills

financial resources

image

technology

Strengths

Weaknesses

INT

ER

NA

L

EN

VIR

ON

ME

NT


26

REVIEW LEARNING OUTCOME Components of a Situation Analysis

LO4

social

demographic

economic

technological

political / legal

competitive

Opportunities

Threats

EX

TE

RN

AL

EN

VIR

ON

ME

NT


27

Identify sources of competitive advantage

Competitive AdvantageLO5


28

Competitive

Advantage

LO5 Competitive Advantage

The set of unique features of a

company and its products that

are perceived by the target

market as significant and

superior to the competition.


29

LO5 Competitive Advantage

Niche Strategies

Cost

Product/Service Differentiation

Types of Competitive Advantage


30

Cost

Competitive

Advantage

LO5 Cost Competitive Advantage

Being the low-cost competitor

in an industry while

maintaining satisfactory profit

margins.


31

LO5 Cost Competitive Advantage

Obtain inexpensive raw materials

Create efficient plant operations

Design products for ease of

manufacture

Control overhead costs

Avoid marginal customers


32

LO5 Sources of Cost Reduction

Experience Curves

Efficient Labor

No-frills Products

Government Subsidies

Product Design

Reengineering

Production Innovations

New Service

Delivery Methods


33

Product / Service

Differentiation

Competitive

Advantage

LO5 Product/Service Differentiation

The provision of something

that is unique and valuable

to buyers beyond simply

offering a lower price than

the competition’s.


34

LO5

Brand names

Strong dealer network

Product reliability

Image

Service

Examples of

Product/Service Differentiation


35

Niche

Competitive

Advantage

LO5 Niche Competitive Advantage

The advantage achieved when

a firm seeks to target and

effectively serve a small

segment of the market.


36

LO5 Niche Competitive Advantage

Used by small companies with

limited resources

May be used in a limited geographic market

Product line may be focused on a

specific product category


37

Sources of Sustainable

Competitive AdvantageLO5

Patents

Copyrights

Locations

Equipment

Technology

Customer Service

Promotion

Skills and Assetsof an

Organization


38

REVIEW LEARNING OUTCOMESources of Competitive Advantage

LO5

Sources of

Competitive Advantage

Cost

$

Product/Service

Differentiation

A vs. B vs. C

Niche

Strategies


39


Strategic DirectionsLO6


40

LO6 Strategic Alternatives

MarketPenetration

MarketDevelopment

Product Development

Diversification

Increase market share among

existing customers

Attract new customers to

existing products

Introduce new products

into new markets

Create new products for

present markets


41

LO6

Ansoff’s Strategic Opportunity Matrix

Present Product New Product

New Market

MarketPenetration

MarketDevelopment

ProductDevelopment

Diversification

Present Market

http://www.pg.com

Online

http://www.pg.com/


42

Portfolio MatrixLO6

Stars

Cash Cows

ProblemChildren

Dogs


43

Portfolio Matrix StrategiesLO6

Build

Hold

Harvest

Divest


44

REVIEW LEARNING OUTCOMEStrategic Alternatives

LO6


Diversification =

Product development = products

Market development = customers

Market penetration = share

new products +

new markets


45

Discuss target market strategies

Describing the Target MarketLO7


46

LO7 Marketing Strategy

Marketing

Strategy

The activities of selecting and

describing one or more target

markets and developing and

maintaining a market mix that

will produce mutually

satisfying exchanges with

target markets.


47

LO7 Target Market Strategy

Segment the market based on

groups with similar characteristics

Analyze the market based on attractiveness

of market segments

Select one or more target markets


48

LO7 Target Market Strategy

Appeal to the entire market

with one marketing mix

Concentrate on one

marketing segment

Appeal to multiple markets

with multiple marketing mixes


49

REVIEW LEARNING OUTCOME Target Market Strategies

LO7

Entire Market Multiple Markets Single Market

Target Market Options


50

Describe the elements

of the marketing mix

The Marketing MixLO8


51

Marketing Mix

LO8 The Marketing Mix

A unique blend of product,

distribution, promotion, and

pricing strategies designed to

produce mutually satisfying

exchanges with a target market.


52

Marketing Mix: The “Four Ps”

Price

Promotion

Place

Product

LO8


53


The starting point of the

“4 Ps”

Includes

Physical unit

Package

Warranty

Service

Brand

Image

Value

Product

Products can be…

Tangible goods

Ideas

Services

LO8


54


Product availability where

and when customers want

them

All activities from raw

materials to finished

products

Ensure products arrive in

usable condition at

designated places when

needed

LO8

Place


55

Marketing Mix: The “Four Ps”LO8

Promotion Role is to bring about

exchanges with target

markets by:

Informing

Educating

Persuading

Reminding

Includes integration of:

Personal selling

Advertising

Sales promotion

Public relations

Online

http://www.paramount.com

http://www.warnerbros.com

http://www.universalstudios.com

http://www.paramount.com/

http://www.warnerbros.com/

http://www.universalstudios.com/


56

Marketing Mix: The “Four Ps”LO8

Price

Price is what a buyer must

give up to obtain a product.

The most flexible of the

“4 Ps”-- quickest to change

Competitive weapon

Price x Units Sold = Total Revenue


57

REVIEW LEARNING OUTCOMEElements of the Marketing Mix

LO8


58

Explain why implementation, evaluation, and control of the marketing plan

are necessary

Following Up on the Marketing PlanLO9


59

Implementation

Evaluation

Control

Marketing audit is…

• Comprehensive

• Systematic

• Independent

• Periodic

LO9 Following Up the Marketing Plan

http://www.youngbiz.com

Online

http://www.youngbiz.com/


60

REVIEW LEARNING OUTCOMELO9

Product

Place

Promotion

Price

Met

objectives?

Implementation Evaluation

Audits• comprehensive

• systematic

• independent

• periodic

Implementation, Evaluation, and Control


61

Identify several techniques that help make strategic

planning effective

Effective Strategic PlanningLOIO


62

REVIEW LEARNING OUTCOMELOIOTechniques for Effective Strategic Planning

Effective Strategic Planning

Continual

attentionCreativity

Management

commitment


Sesi diskusi dan pertanyaan

63

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