Chapter 3: Strategic Planning for Competitive Advantage Flashcards
Define Strategic Planning
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.
What are the 3 levels of Strategic Planning
- Corporate
- Business Unit
- Marketing
Define Business Unit (SBU)
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.
Define Strategic Decision Making
Made at all 3 levels, with a wider scope, longer in orientation
Define Tactical Decision Making
Made at the operational or marketing level, narrow scope
Define the Corporate Level of Strategic Planning
Focuses on the marketing and operational level (Selling)
Define Corporate Planning
Having a mission statements. The foundation, what value they provide for customers, and establishing boundaries for all decisions
Define the Business Mission
Focus must be on the marketing serving (or wish to serve) vs. goods and services currently offering
How to Design a Business Portfolio
Start with an understanding of the current environment and potential environment (conduction SWOT)
What does SWOT stand for
Identifying internal Strengths and Weaknesses, as well as external Opportunities and Threats
Define Market Penetration
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
Define Market Development
Strategy that involves attracting new customers with existing products
- Ex. Uber vs. Uber Pool (accommodating to more people)
Define Product Development
A marketing strategy that entails the creation of new products for current customers
- Ex. Yearly Apple Products, Fashion trends, Cars
Define Diversification
A strategy of increasing sales by introducing new products into new products
- Ex. Vegan Otions
- Tims introducing fast food menu
Define Competitive Advantage
The set on unique features of a company and its products that are perceived by the target market significant and superior to the competitors
Define Cost Competitive Advantage
Being the low-cost competitors in an industry while maintaining satisfactory profit margins (making good money)
- Ex. Dollerama, Walmart, MacDonalds, No Frills
Define Product/Service Differentiation Competitive Advantage
Providing a unique benefit that is valuable to buyers, beyond offering a low price
- Ex. Canada Goose, Tesla, Whole Foods
Define Niche Competitive Advantage
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
Define Market Planning
Developing a marketing strategy that involves the activities of selecting and describing one or more target market and developing and maintaining a marketing mix
Define Market Opportunity Analysis (MOA)
Estimation of size and sales potential of segments that re of interest
- And deciding how many segments to target
Define Product Strategies
The product offering and product strategy (physical product or a service)
Define Pricing Strategies
What a buyer must give up in the exchange
- The value in the mind of a customer
Define Place Strategies
Making the product available when and where the customer wants them
- Distribution, Storing, Transporting
Define Promotion Strategies
Introduce, facilitate, or sustain conversation and community between company and consumer
- Advertising, Direct Marketing, Sales Promotion
Define Implementation
The process that turns the plan into “action”. Doing what you said you were going to do
- Can be source to failure
