MKT 327 CHAPTER 2

Vision
describes the fundamental contributions the business intends to make to society, its position relative to competitors, and the attributes that make the organization unique.
Strategic Marketing Plan
a document describing the company objectives and how to achieve them in light of competitive activities
4 parts to a companys vision
1. a set of core values
2. a business definition
3. strategic directions
4. strategic infrastructure
1. Core Values
describe the type of behavior expected from a company employees.
2. Business Definition
describes the fundamental contributions the organization provides to customers.
-Marketing Myopia-(Ted Levitt) occurs when executives focus on their companys current products and services rather than on benefits to consumers
-the railroads failure to focus on customers meant they also failed to make themselves more competitive
3. Strategic Direction (intent)
It is the desired leadership position of an organization and the measures used to chart progress towards this position.
-often sets specific growth, profit, share or scope goals relative to the competition and market opportunities
4. Strategic Infrastructure
the corporate configuration that produces the company distinctive or core competencies and provides the resources necessary to satisfy customer wants
-SBU (strategic business unit):may be a division within the company, a separate brand or product line, a distinct group of customers, or a unique technology
-Core competencies:fundamental building blocks of competitive advantage.
Core Competencies can be grouped into five categories
1. base technologies
2. process technologies
3. product technologies
4. people systems
5. information systems
Base Technologies
refer to a broad innovation that a given organization is especially effective at harnessing or pioneered.
-the best are adaptable and can be applied to several different products
Process Technologies
allow the firm to produce quality products in the most effective and flexible manner possible
Product Technologies
a company ability to create new goods and services is supported by product technologies.
People Systems
the procedures that provide the human connection between companies and consumers are called people systems
Information Systems
Robust enough to give an organization a competitive advantage.
Important in global marketing because they provide vast amounts of date almost instantly
Define Strategy
a company long term plan of how to use resources for pursuing goals and objectives in competitive arenas.
Strategic Window- when requirements of the market and competencies of the firm fit together to create a significant opportunity
Low Cost Strategy
Winning through efficiency, the objective is to be the low cost leader
Differentiation Strategy
Involves delivering customer value in a way that clearly distinguishes the product from its competitors.
Customer Intimacy Strategy
Delivering value through superior empathy for customers and solutions tailored to specific customer needs.
(add value, mass customization, information, product bundling)
Sustainable Competitive Advantage
Refers to a strategy that competitors cannot easily duplicate or surpass
5 steps to a strategic marketing plan
Step 1: state the objectives and goals it expects to obtain
Step 2: Situation Analysis, how the company will compete
Step 3: Determine target markets which the organization will serve
Step 4: Decide positioning relative to competitors
Step 5: Develop plans for each aspect of the mix
Step 1 : Objectives
-Companies usually set objectives in terms of desired profit, market share or total sales.
-Profit is the most common
Step 2: Situation Analysis
-SWOT analysis : Strengths, weaknesses, opportunities, and threats.
Strengths: describe the unique resources or circumstances that can be used to take advantage of opportunities
Weakness: aspects of the org. or product that need improvement
Opportunities: indicate advancements that can be made in new or existing markets
Threats: competition, new tech., could impede the companies development

Companies are constrained by their weaknesses and are vulnerable to threats

Step 3: Target Marketing
Process of selecting which market the firm will emphasize its attempts to satisfy the customers better than the competitors
Step 4: Positioning
creating a perception in the minds of the consumers about the company and its products
Value proposition: the compelling reason customers should select the brand
The marketing control process
provides feedback on how well the strategy is working.
1. review objectives
2. Measure performance
3. Evaluate performance
4. Adjust objectives/tactics
5. Take Action
Geographic Scope
-the extent of a companies international activities
1. International
2. Regional
3. Multinational
4. Global
1. International Scope
-when a company conducts business in one or a very few foreign countries
2. Regional Scope
– a company with operations in several adjacent countries
-generally competing in only one area of the world
-tend to be more efficient because the markets are close together
3. Multinational Scope
when companies operate in several countries around the world , unrestricted by region.
4. Global Scope
operations in nearly all countries around the world
-mental image of hovering like a satellite over the earth
-similar segments of buyers within the various regions can be targeted with a universal image
-consumers around the world are growing more alike