strategic planning for a competitive advantage

strategic planning

strategic planning

managerial process of creating and maintaining a fit btwn the organization’s objectives and resources and the evolving market opportunities. these decisions affect allocations of resources and the financial success of a company.

strategic business unit

Large companies mange this number of very diferent business which are called *** it should have: 1) distinct mission 2) specific target market 3) control over its resources 4) its own competitors 5) a single business 6) independent plans.

ansoffs strategic opportunity matrix

overall: matches products with markets

market penetration, market development, product development, diversification

market penetration

ansoff. increase share among existing customers

market development

(ansoff) attracting new customers to existing products

product development

(ansoff) entails creation of new products for present markets

diversification

(ansoff) increasing sales by introducing new products into new markets

core innovation

these decisions implement changes that use existing assets to provide added convenience to existing customers and potentially entice customers from other brands

adjacent innovation

take company’s strengths into new markets

transformational innovation

results in brand new markets, products and businesses. new assets for breakthroughs

portfolio matrix

tool for allocating resources among products or sbus on basis of relative marker share and market growth rate (boston consulting group)

star

(portfolio matrix) business unit that is fast growing market leader

cash cow

business unit that generates more cash than it needs to maintain its market share

problem child/question mark

business unit that shows rapid growth but poor profit margins

dog

business unit w/ low growth and small market share

build

if an organization has SBU that can be a star, give up short term profits and achieve long term goals

hold

if SBU is cash cow, keep it like that and preserve the market share for the cash flow coming

harvest

sbus that are stars- stop short term cash return w/o concern for long term

divest

get rid of broke low share sbus

planning

process of anticipating future events and determine strategies to achieve organizational objectives in future

marketing planning

designing activities related to marketing objectives and changing marketing environment

mission statement

words and sentences of firms business based on careful analysis of benefits sought by present and potential customers and analysis of existing and anticipated environmental conditions. ESTABLISHES BOUNDARIES FOR ALL OBJECTIVES, DECISIONS, STRATEGIES. focuses on the markets the organization is attempting to serve

marketing myopia

defining a business in terms of goods and services rather than in terms of the benefits customers seek

SWOT analysis

S: strength, W: weaknesses, E: external opportunities, T: threats.

environmental scanning

marketing managers must analyze aspects of marketing environment through this. collection and interpretation of info about forces events and relationships external environment that may affect future of organization and implementation of marketing plan

competitive advantage

3 types 1- cost, 2- product/service differentiation, 3- niche.

niche competitive advantage

seeks to target and effectively serve a single segment of the market- good for single companies with limited resources that potentially face giant competitors

competetive advantage

set of unique features of a company and its products that are percieved by the target market as significant and superiort to those of competition

cost competitive advantage

being low cost competitor in an industry while maintaing satisfactory profit margins

experience curves

curves that show decling costs at predictable rate as experience with product increases

sustainable competitive advantage

advantage that cannot be copied by competition

marketing strategy

activities of selecting and describing 1+ target marketings and developing and maintaing a marketing mix which will produce mutually satisfying exchanges with target markets

market opportunity analysis MOA

description and estimation of size and sales potential of market segments that are of interest to the firm and the assesment of key competitors in these market segments

marketing mix

blend of PRODUCT PLACE (distribution) PROMOTION and PRICING strategies designed to product mutually satisfying exchanges with a target market

implementation

process that turns marketing plan into action assignments and assures these were accomplished in a way which is like the plans objectives.

evaluation

has marketing objectives been achieved

control

provides mechanisms for evaluating marketing results in light of the plan’s objectives and for correcting actions

marketing audit

thorough systematic and periodic evaluation of objectives strategies and structure of marketing organization