Chapter 3: Strategic Planning for Competitive Advantage

Question 1

Define Strategic Planning

Answer 1

The process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities. Main goal being long term profitability and growth.

Question 2

What are the 3 levels of Strategic Planning

Answer 2

1. Corporate
2. Business Unit
3. Marketing

Question 3

Define Business Unit (SBU)

Answer 3

Smaller businesses that run out of the main business. Smaller groups that work on specific things within the business

• Ex. Coca Cola has their marketing team, distribution team, merchandising team, retail team, etc.

Question 4

Define Strategic Decision Making

Answer 4

Made at all 3 levels, with a wider scope, longer in orientation

Question 5

Define Tactical Decision Making

Answer 5

Made at the operational or marketing level, narrow scope

Question 6

Define the Corporate Level of Strategic Planning

Answer 6

Focuses on the marketing and operational level (Selling)

Question 7

Define Corporate Planning

Answer 7

Having a mission statements. The foundation, what value they provide for customers, and establishing boundaries for all decisions

Question 8

Define the Business Mission

Answer 8

Focus must be on the marketing serving (or wish to serve) vs. goods and services currently offering

Question 9

How to Design a Business Portfolio

Answer 9

Start with an understanding of the current environment and potential environment (conduction SWOT)

Question 10

What does SWOT stand for

Answer 10

Identifying internal Strengths and Weaknesses, as well as external Opportunities and Threats

Question 11

Define Market Penetration

Answer 11

A marketing strategy that tries to increase marketing share among existing customers, using existing products

Ex. Tims Roll up the Rum, MacDonalds Monopoly, Happy Meals, Points Systems

Question 12

Define Market Development

Answer 12

Strategy that involves attracting new customers with existing products

• Ex. Uber vs. Uber Pool (accommodating to more people)

Question 13

Define Product Development

Answer 13

A marketing strategy that entails the creation of new products for current customers

• Ex. Yearly Apple Products, Fashion trends, Cars

Question 14

Define Diversification

Answer 14

A strategy of increasing sales by introducing new products into new products

• Ex. Vegan Otions
• Tims introducing fast food menu

Question 15

Define Competitive Advantage

Answer 15

The set on unique features of a company and its products that are perceived by the target market significant and superior to the competitors

Question 16

Define Cost Competitive Advantage

Answer 16

Being the low-cost competitors in an industry while maintaining satisfactory profit margins (making good money)

• Ex. Dollerama, Walmart, MacDonalds, No Frills

Question 17

Define Product/Service Differentiation Competitive Advantage

Answer 17

Providing a unique benefit that is valuable to buyers, beyond offering a low price

• Ex. Canada Goose, Tesla, Whole Foods

Question 18

Define Niche Competitive Advantage

Answer 18

Small companies that offer a speciality. Focus on one main service or product and become great at what they offer.

• Usually smaller companies
• Larger competitors cannot compete
• Ex. Freshii, Sensodyne Toothpaste, Sports Channels

Question 19

Define Market Planning

Answer 19

Developing a marketing strategy that involves the activities of selecting and describing one or more target market and developing and maintaining a marketing mix

Question 20

Define Market Opportunity Analysis (MOA)

Answer 20

Estimation of size and sales potential of segments that re of interest

• And deciding how many segments to target

Question 21

Define Product Strategies

Answer 21

The product offering and product strategy (physical product or a service)

Question 22

Define Pricing Strategies

Answer 22

What a buyer must give up in the exchange

• The value in the mind of a customer

Question 23

Define Place Strategies

Answer 23

Making the product available when and where the customer wants them

• Distribution, Storing, Transporting

Question 24

Define Promotion Strategies

Answer 24

Introduce, facilitate, or sustain conversation and community between company and consumer

• Advertising, Direct Marketing, Sales Promotion

Question 25

Define Implementation

Answer 25

The process that turns the plan into “action”. Doing what you said you were going to do

• Can be source to failure