MKT 301: Chapter 2 " Strategic planning for a successful future"

Strategic Planning
The process of thoughtfully defining a firms objectives and developing a method for achieving those objectives
-can increase success
Marketing Plan
An action-oriented document or playbook that guides the analysis, implementation and control of the firms marketing strategy
Key components of a Marketing Plan
Executive summary
Situation analysis
Marketing strategy
Financials
Controls

-These components communicate what organization desires to accomplish & how plans to achieve goals

Mission Statement
A concise affirmation of the firms long-term purpose
-First step in marketing plan
3 Primary Characteristic of Good Mission Statement
1. Statement should focus on a limited number of goals

2. Should be customer oriented & focused on satisfying basic customer needs/ wants.

3. Capture a shared purpose and provide motivation for employees of firm.

Situation Analysis
Systematic collection of data to identify the trends, conditions, and competitive forces that have the potential to influence the performance of the firm and the choice of appropriate strategies
-Foundation of marketing plan
3 Sections of Situation Analysis
1. market summary
2. SWOT
3. Competition
Market Summary
Description of the current state of the market
-Sets the stage for situation analysis section
SWOT
Evaluation of a firm strengths, weaknesses, opportunities, and threats
Market
Group of consumers or organizations that is interested in and able to buy a particular product
Strenghts
Internal capabilities that help the company achieve its objectives
Weaknesses
Internal limitations that may prevent or disrupt the firms ability to meet stated onjectives
Opportunities
External factors that the firm may be able to capitalize on to meet or exceed its stated objectives
Threats
Current and potential external factors that may challenge the firms short and long term performance
Strategy
Set of actions taken to accomplish organizational objectives
Competition
Effort of 2 or more parties acting independently to secure the business of a third party by offering the most favorable terms
Direct Competitors
Situation in which products that perform the same function compete against one another
Indirect Competitors
Process in which products provide alternative solutions to the same market
3 Basic Characteristics of Quality Marketing Objectives
1. Specific
2. Measurable
3. Realistic
Target Market
Group of customers toward which an organization has decided to direct its marketing efforts
Multinational Company
Firm that operates in 2 or more countries
Positioning
Activities a firm undertakes to create a certain perception of its product in the eyes of the target market
Market Penetration
Marketing strategy that emphasizes selling more of existing goods and services to existing customers
Product Development
Marketing strategy that involves creating new goods and services for existing customers
Market Development
Marketing strategy that focuses on selling existing goods and services to new customers
Diversification
Marketing strategy that seeks to attract new customers by offering new products that are unrelated to the existing products produced by the organization
Competitive Advantage
Superior position of a product enjoys over competing products if consumers believe it has more value than other products in it category
Financial Projections
Bottom line estimate of the organizations profitability
Items included in this are:
-sales forecast
-expense forecast
-break-even analysis
One of the most critical strategic decisions to be included in marketing plan involves _______?
Choosing how to enter foreign markets
Exporting
Selling domestically produced products to foreign markets (least risky)
Licensing
Legal process in which one firm pays to use or distribute another firms resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge
Joint Venture
Arrangement in which a domestic firms partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign companies market
Direct Ownership
Method of entering an international market in which a domestic firm actively manages a foreign company or overseas facilities (most risky)
Executive Summary
Serves as the elevator pitch for the marketing plan. Provides 1-2 page synopsis of the marketing plans main points
Franchising
Contractual arrangement in which a fee is paid to have the right to open a business using the parent company’s business name and to receive marketing and operational support
(attractive method of entering a foreign market)
All nonprofit orgs must?
-Think strategically about marketing plan to ensure success
-Use effective marketing strategies to compete for donor support
Distribution
The _______ section of the marketing plan should outline all the different companies, people, and technologies that will be involved in the process of delivering the product to customers
Marketing Strategy
The _______ _______ component of the marketing plan lists the actions a firm must take to accomplish the marketing objectives it established in its mission statement
Common marketing objective for a nonprofit organization?
-Soliciting volunteers
-Raising funds
Star
Large market share with high growth industry
Cashcow
Large market share with low growth industry
Question Marks
Small market share with high growth
Dogs
Small market share with low growth
Things that cause a firm to adjust their strategy
-Competitive threats
-Changing customer needs
Indirect
Most companies fail to consider their _______ competitors when creating the competition section of the market summary
Analyzing market growth strategies
-markets
-products
Financials
Readers of a marketing plan can see the detailed estimate of an organizations profitability in the _________ section
Employees
Mission statement is to provide _______ with a shared sense of ambition, direction, opportunity
What tools are used when focusing on the promotion aspect?
-advertising
-sales promotion
-personal selling
-public relations
How many steps are in a marketing plan?
5
Sales Forecast
Many departments rely on a ____ _____ which projects how many units of a product the company expects to sell during a specific time period
Expense Forecast
An estimate of the costs the company will incur to create, communicate, and deliver the product an expense forecast, marketers will have a very difficult time allocating resources and predicting when the product will become profitable
Break-Even Analysis
Combines the data provided in the sales and expense forecasts to estimate how much the company need to sell to cover expenses
Flexibility and Self Motivation
Help someone be successful in nonprofit organization
Risks associated with licensing in international market?
-Licensee could potentially misuse trademark
-Licensor may create its own competition
Things to include in the controls section of marketing plan
-Implementation
-Organization Structure
-Contingency Planning
BCG: Boston Consulting Group
Used in developing marketing summary
2 elements
-market growth
-market share