Introduction to. Strategic Planning for Competitive Advantage. Copyright Cengage Learning 2013 All Rights Reserved

Size: px

Start display at page:

Quentin Briggs
6 years ago
Views:

1 Introduction to Strategic Planning for Competitive Advantage Prepared & Designed by Laura Rush, B-Books, Ltd. 1

2 LO 1 LO 2 Learning Outcomes Understand the importance of strategic planning Define Strategic Business Units (SBUs) LO 3 LO 4 LO 5 Identify strategic alternatives and know a basic outline for a marketing plan Develop an appropriate business mission statement Describe the components of a situation analysis LO 6 Identify sources of competitive advantage 2

3 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. LO 1 3 3

4 Strategic Business Units (SBUs) Characteristics: An SBU HAS A distinct mission and specific target market Control over its resources Its own competitors It is a single business or collection of related business Plans independent of other SBUs LO 2 4

5 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 LO 3 Allows entry into the marketplace with awareness 5

6 Business Mission Statement Objectives Situation or SWOT Analysis Marketing Strategy Target Market Strategy Marketing Mix Product Promotion Distribution Price Implementation Evaluation Control 6

7 Defining the Business Mission Answers the question, What business are we in? Focuses on the market(s) rather than the good or service Strategic Business Units (SBUs) may also have a mission statement LO 4 7

8 Marketing Objectives Realistic Measurable Time specific Our objective is to increase sales of Purina brand cat food by 15 percent over 2009 sales of $300 million. Compared to a benchmark LO 7 8

9 SWOT Analysis Internal S W Things the company does well. Things the company does not do well. External O T Conditions in the external environment that favor strengths. Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness. South-Western College Publishing LO 5 9

10 Environmental Scanning Environmental Scanning The collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan. LO 5 10

11 Competitive Advantage Competitive Advantage The set of unique features of a company And its products that are perceived by the target market as significant and superior to the competition. LO 6 11

12 Competitive Advantage Cost Types of Competitive Advantage Product/Service Differentiation Niche Strategies LO 6 12

13 Sources of Cost Reduction Experience Curves Efficient Labor No-frills Products Government Subsidies Product Design Reengineering Production Innovations New Delivery Methods 13

14 Sources of Differential Competitive Advantage Value impressions Augmented product Features of a product that signal value Features of a product that are not expected by the customer 14

15 Niche Competitive Advantage Used by small companies with limited resources May be used in a limited geographic market Product line may be focused on a specific product line 15

16 Examples 16

17 17

18 Target Market Strategy Segment the market based on groups with similar characteristics Analyze the market based on attractiveness of market segments Select one or more target markets LO 8 18

19 Target Market Strategy Appeal to the entire market with one marketing mix Concentrate on one marketing segment Appeal to multiple markets with multiple marketing mixes LO 8 19

20 Marketing Mix: The Four Ps Price Promotion Place Product LO 9 20

21 Ansoff Matrix Present Product New Product Present Market Market Penetration Product Development New Market Market Development Diversification 21

22 Strategic Alternatives Market Penetration Market Development Product Development Diversification Increase market share among existing customers Attract new customers to existing products Create new products for present markets Introduce new products into new markets LO 3 22

23 23

24 24

25 25

26 26

27 MARKET GROWTH RATE LOW HIGH BCG Portfolio Matrix MARKET SHARE DOMINANCE HIGH LOW High growth Market leaders Require cash High growth Low market share Need cash Poor profit margins $ Low growth High market share High cash flow Low growth Low market share Minimal cash flow 27 27

28 Portfolio Matrix Strategies Build Hold Harvest Divest LO 3 28

29 Following Up the Marketing Plan Implementation Evaluation LO 10 Control Marketing audit is Comprehensive Systematic Independent Periodic Postaudit tasks 29

30 Requires Effective Strategic Planning Continual attention ongoing rather than annual Creativity challenging assumptions Management Commitment support and participation from the top LO 11 30

Company and Marketing Strategy: Partnering to Build Customer Relationships. Chapter 2

Company and Marketing Strategy: Partnering to Build Customer Relationships Chapter 2 Strategic planning is defined as: The process of developing and maintaining a strategic fit between the organization