Learn: Module 4: Strategic Planning

Strategy

The set of actions undertaken to accomplish organizational objectives.

Objectives

Specific results marketers aim to achieve from marketing activities.

Strategic Planning

The process of thoughtfully defining a firm's objectives and developing an approach for achieving those objectives.

Role of Marketers in Planning

Formulate strategies by gathering information, feedback, and insights from customers, the market, and competitors.

Marketing Strategy

The set of marketing actions taken to accomplish marketing objectives.

Effective Objective Characteristics

Must be Specific, Measurable, and Realistic.

Environmental Scanning

The ongoing process by which a firm constantly monitors the market and collects data to identify direct and indirect competitors.

Direct Competitors

Firms that compete with products designed around the same or similar characteristics (e.g., Mattel vs. Hasbro).

Indirect Competitors

Firms that compete with products that have different characteristics but serve a similar function (e.g., Mattel vs. television networks).

Sustainable Competitive Advantage

A superior position a product enjoys if consumers believe it has more value, especially if it is rare, valuable, and hard to imitate.

Four Elements of Excellence

Customer Excellence, Operational Excellence, Product Excellence, and Locational Excellence.

Customer Excellence

Putting the customer at the center of all marketing activities to deliver consistent value, satisfaction, and quality resulting in loyalty.

Operational Excellence

Focusing operational principles and systems on improving customer satisfaction by maximizing value through employees, supply chain, and manufacturing.

Key Operational Performance Factors

Leadership, Adequate Resources, Clear Company Objectives, Non-Conflicting Relationships, and Specific/Measurable/Realistic objectives.

Product Excellence

A strategy focusing on the importance of high-quality and value-adding products as determined by customer and market perceptions.

Locational Excellence

A focus on having a strong, highly visible physical location and/or an intentional Internet presence.

Market Penetration

A growth strategy emphasizing increased sales of existing goods and services to existing customers (e.g., Pizza Hut's Big Dinner Box).

Product Development

A growth strategy involving creating new goods, services, or innovations for existing markets (e.g., Dr Pepper Ten).

Market Development

A growth strategy focusing on selling existing goods and services to new customer groups grouped by different genders, ages, or countries.

Diversification

A growth strategy seeking to attract new customers by offering new products that are completely unrelated to existing products.

Data Quality Rule

The quality of a strategic plan depends on the availability, currency, relevance, and accuracy of collected internal and external data.

Systematic Collection Systems

Tools used to capture relevant marketing data, including Marketing Information Systems and Customer Relationship Management (CRM).

SWOT Analysis

An assessment framework used to analyze internal strengths and weaknesses alongside external opportunities and threats.