chapter 2 – strategic planning for competitive advantage

strategic planning
– managerial process o creating and maintaining a fit between the organizations objective and resources and the evolving market opportunities.
– basis for all marketing strategies and decisions
strategic business unit (SBU)
-subgroup of a single business or collection of related businesses within the larger organization
-must contain: a distinct mission and specific target market, control over resources, its own complicators, a single business, plans independent from other SBU’s.
competitive advantage and its goal:
a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

goal: to be sustainable

cost competitive advantage
being the low-cost competitor in an industry while maintaining satisfactory profit margins
diversification
strategy of increasing sales by introducing new products into new markets

(ex. Starbucks launches Hear Music and buys Ethos Water)

environmental scanning
analyzing aspects of the marketing environment in a process
four P’s
product, place, promotion and price
implementation
process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plans objectives
market development
marketing strategy that entails attracting new customers to existing products

(ex. Starbuks opens stores in brazil and Chile)

market opportunity analysis (MOA)
describes and estimates the size and sales potential of market segments that are of interest to the firm
mareket penetration
marketing strategy that tries to increase market share among existing customers

(ex. Starbucks sells more coffee to customers who register their reloadable Starbucks card)

marketing mix (aka ________)
the 4 P’s (price, product, place, promotion)
marketing myopia
– defining a business in terms of goods and services rather than in terms of benefits customers seek
– myopia: literally means too narrow
marketing objective
a statement of that is to be accomplished through marketing activities
marketing plan
written document that acts as a guidebook of marketing activities for the marketing manager
marketing planning
designing activities relating to marketing objectives and the changing marketing environment
marketing strategy
the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanged with target markets
mission statement
– establishes boundaries for all subsequent decisions, objectives and strategies
– focuses on the market and organization is attempting to serve rather than on the good or service offered
niche compl├ętive advantage
the competitive advantage when a firm seeks to target and effectively serve a small segment of the market
product development
marketing strategy that entails the creation of new products for present markets

(ex. Starbucks develops powdered instant coffee called Via)

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 the competition
sustainable competitive advantage
an advantage that can not be copied by the competitor
SWOT analysis
identify: internal strengths (S), weaknesses (W), examine external opportunities (O) and threats (T).
criteria for stating good marketing objectives:
– realistic, measurable, time specific, and compared to a benchmark.
– consistent and indicate priorities of the organization
– communicate marketing management philosophies, provide management direction, motivate employees, force executives to think clearly, and form a basis for control
techniques that help make strategic planning effective:
– on-going process
– good strategic planning involves a high level of creativity
– top managements support and participation