Chapter 2

Strategic Planning for Competitive Advantage

** Homework Assignment **
Give the 4 Ps for a company, and are any of the 4ps more important? Why one is or Why aren\'t they?

(due Thursday, turn in on paper)

Homework Assignment 1

The Marketing Mix or four P’s of marketing are listed on pages 24 and 25 of the textbook. Give an example for each of these four P’s for a company you are familiar with. This company could be a store you like to shop at, or a company that makes products you like. Finally, would you say that any of those four P’s are more or less important for your organization? Why or why not?


Strategic Planning
The managerial process of creating and maintaining a fit between the organization\'s objectives and resources and evolving market opportunities.

The goal is long-term profitability and growth.

Key: Understanding what you want to achive!

This isn\'t a one-stop shop, companies should continually re-evaluate and keep this plan active.

"I get a year older every year I teach"
"If you reach every goal you set, your not working hard enough"

Strategic Marketing Management

 What is the organization’s main activity?    

How will it reach its goals?   

THE ANSWER IS A MARKETING PLAN.

 Why Write a Marketing Plan? 

Provides a basis for comparison of actual and expected performance  

Provides clearly stated activities to work toward common goals 

Serves as a reference for the success of future activities 

Provides an examination of the marketing environment 

Allows entry into the marketplace with awareness

Marketing Plan Elements
### Insert Chart ###

Defining the Business Mission

Business Mission Statements - what you wanna do, needs to be pretty broad..

Answers the question,  “What business are we in?” 

Focuses on the market(s)  rather than the good or service (think benefits not products) 

Strategic Business Units (SBUs) may also have a mission statement

Strategic Business Units (SBUs) Characteristics: [An SBU HAS…] 

A distinct mission and specific target market 

Control over its resources 
Its own competitors

Plans independent of other SBUs
(Ex. Procgtor and Gamble P)

Marketing Objectives should be...
 Measureable
Time Specific
Consistent with and indicating the priorities of the organization

"Our objective is to achieve 10% dollar market share in the cat food market within 12 months of product introduction"

SWOT Analysis
S - things the company does well (Strengths)
W- things the company does not do well (weaknesses)
O - Conditions in the external environment that favor strengths. (Opportunities)
T - Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness. (Threats)

Gaining a competitive advantage
Cost
Product/Service Differentiation
Niche Strategies