MKTG
2
CHAPTER
Chapter 2
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Strategic Planning for
Competitive Advantage
1
Strategic Planning
Strategic
Planning
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.
Chapter 2
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2
Levels of Strategy




Chapter 2
Corporate Level
Business Unit Level
• SBU’s
Functional Level
Operational Level
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3
Strategic Planning
Marketing Plan
A …………….that acts as a
guidebook of marketing activities
for the marketing manager.
Chapter 2
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4
Marketing
Plan
Elements
Business Mission
Statement
Objectives
Situation or SWOT
Analysis
Marketing Strategy
Target Market
Strategy
Marketing Mix
Product
Distribution
Promotion
Price
Implementation
Evaluation
Control
Chapter 2
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5
Step 1:Defining the Business Mission
 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
Chapter 2
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6
Business Mission Statement
Q: What business are we in?
A: Business mission statement
Too narrow
Too broad
Just right
Chapter 2
…………………….
no direction
focus on markets
served and benefits
customers seek
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7
Marketing
Plan
Elements
Business Mission
Statement
Objectives
Situation or SWOT
Analysis
Marketing Strategy
Target Market
Strategy
Marketing Mix
LO1
Chapter 2
Product
Distribution
Promotion
Price
Implementation
Evaluation
Control
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8
Step 2: Defining objectives
Marketing Objective
A statement of what is to
be accomplished through
marketing activities.
Chapter 2
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9
LO3
Marketing Objectives
 Realistic
 Measurable
 Time specific
 Consistent with and indicating
the priorities of the
organization
“Our objective is to achieve 10
percent dollar market share in
the cat food market within 12
months of product introduction.”
Chapter 2
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10
Step 3: Situation or SWOT Analysis
SWOT Analysis
Identifying internal
strengths (S)
and weaknesses (W)
and also
examining external
opportunities (O)
and threats (T)
LO4
Chapter 2
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11
SWOT Analysis
Internal
External
Chapter 2
S
W
O
T
………………………………………….
Things the company does not do well.
Conditions in the external environment
that favor ……………...
Conditions in the external environment
that do not relate to existing strengths
or favor
areas of
current
weakness.
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College
Publishing
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12
A strength could be:
 ?
Chapter 2
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13
A weakness could be
 ?
Chapter 2
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14
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.
LO4
Chapter 2
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15
An opportunity could be
 ?
Chapter 2
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16
A threat could be
 ?
Chapter 2
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17
Step 4: Marketing Strategy
Marketing
Strategy
LO7
Chapter 2
The activities of selecting and
describing one or more target
markets and developing and
maintaining a marketing mix
that will produce mutually
satisfying exchanges with target
markets.
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18
Identifying opportunities through STP
Segmentation
……………………
Positioning
Chapter 2
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19
Competitive Advantage
Competitive
Advantage
Chapter 2
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.
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20
Competitive Advantage: Is
there ever no competition?
Cost
Types of
Competitive
Advantage
Product/Service
Differentiation
Niche Strategies
Chapter 2
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21
Cost Competitive
Advantage
Cost
Competitive
Advantage
Chapter 2
Being the low-cost
competitor in an industry
while maintaining
satisfactory profit
margins.
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22
Product/Service Differentiation
Product/Service
Differentiation
Competitive
Advantage
Chapter 2
The provision of
something that is unique
and valuable to buyers
beyond simply offering a
lower price than the
competition’s.
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23
Niche Competitive
Advantage
Niche
Competitive
Advantage
The advantage achieved
when a firm seeks to
target and effectively
serve a small segment of
the market.
Twitter or Facebook?
Chapter 2
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24
Sources of Sustainable
Competitive Advantage
Patents
Copyrights
Locations
Equipment
Technology
Skills and Assets
of an
Organization
Chapter 2
Customer Service
Promotion
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25
Growth Strategies
Market development =
Market penetration =
Product development =
Diversification
6 Chapter 2
=
________
share
________
new products
new markets
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26
Portfolio Matrix
Chapter 2
Stars
Problem
Children
Cash Cows
Dogs
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27
Target Market Strategies
Target Market Options
Entire Market
Chapter 2
Multiple Market
Segments
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Single Market
Segment
28
The Marketing Mix
Marketing Mix
A unique blend of product,
distribution, promotion, and
pricing strategies designed to
produce mutually satisfying
exchanges with a target market.
Chapter 2
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29
Marketing Mix: The “Four Ps”
 The starting point of the
“4 Ps”
 Includes
 Physical unit
 Package
 Warranty
 Service
 Brand
 Image
 Value
Chapter 2
Product
 Products can be…
 Tangible goods
 Ideas
 Services
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30
Marketing Mix: The “Four Ps”
 Product availability
where and when
customers want them
Place
 All activities from raw
materials to finished
products
 Ensure products arrive
in usable condition at
designated places when
needed
Chapter 2
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31
Marketing Mix: The “Four Ps”
 Role is to bring about
exchanges with target
markets by:
 Informing
 Educating
 Persuading
 Reminding
 Includes integration of:
 Personal selling
 Advertising
 Sales promotion
 Public relations
Chapter 2
Promotion
Online
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32
Marketing Mix: The “Four Ps”
 Price is what a buyer
must give up to obtain a
product.
Price
 The most flexible of the
“4 Ps”-- quickest to
change
 Competitive weapon
 Price x Units Sold =
Total Revenue
Chapter 2
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33
Step 5: Following Up on
the Marketing Plan
 Implementation
 Evaluation
 Control
 Marketing audit is…
 Comprehensive
 Systematic
 Independent
 Periodic
Chapter 2
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Check Yourself
Chapter 2
1.
What are the five steps in creating a
marketing plan?
2.
What tool helps a marketer conduct a
situation analysis?
3.
What is STP?
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Check Yourself
Chapter 2
1.
What are the four growth strategies?
2.
What type of strategy is growing the
business from existing customers?
3.
Which strategy is the riskiest?
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