Chapter 14 Flashcards
Strategic planning
The managerial process of creating and maintaining a fit between the firm’s objectives and resources on the one hand, and developing market opportunities on the other.
Marketing plan:
- a written document
- acts as a guidebook for future marketing activities
The elements of a marketing plan:
Define the business mission
Strategic marketing objectives
Conduct a situation analysis
Competitive advantage
Formulate the marketing strategy
Implementation, evaluation & control
Conduct a situation analysis
- Conduct a SWOT analysis
- Historical background of the firm
- Conduct environmental scanning
- Study macro-environmental forces
- Assess the competitive environment
- The economics of competition
Types of corporate culture responses:
- Prospector
- Reactor
- Defender
- Analyser
Opportunity-utilisation strategies
- Market penetration
- Market development
- Product development
- Diversification
Strategic management tools:
- Boston Consulting Group portfolio matrix
- General Electric market attractiveness/company strength matrix
Competitive advantage:
Two basic sources of competitive advantage:
Superior skills: managers and employees special capabilities
Superior resources: more tangible
Formulate the marketing strategy
- Target market strategy
- Identifies which market segment or segments to focus on
- Requires a market opportunity analysis (MOA)
Strategies for selecting target markets:
- Appealing to entire market with one marketing mix
- Concentrating on one segment
- Appealing to multiple market segments using multiple marketing mixes
2. Positioning strategy
- Differentiation
- Positioning
3. Marketing mix
- Product strategies
- Distribution (place) strategies
- Marketing communication (promotion) strategies
- Pricing strategies
Effective strategic planning:
- is not an annual exercise
- sound planning is based on creativity
Implementation, evaluation & control
Marketing Audit
- Comprehensive
- Systematic
- Independent
- Periodic
The value of a strategic marketing plan:
- Compare actual with expected performance
- Provides clearly stated objectives
- Examine the marketing environment in conjunction with the inner workings of the firm
- Reference point to determine the success of future activities
- Able to enter the market with an awareness of possibilities and problems
Strategic marketing objectives
Marketing objective = a statement of what is to be accomplished through marketing activities
Criteria of marketing objectives:
- should be realistic, measurable and time-specific
- should be consistent and indicate priorities of the firm
