Transcript 2 Marketing Strategy

2
Strategic Planning for
Competitive Advantage
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Objectives
•
Introduce to students the components of:
1. Marketing concept via strategic
planning
2. Marketing management
3. Marketing mix
Marketing Concept
•
Marketing concept is defined as the total effort
to satisfy customers and achieve a profit
(where customer is right comes from).
• Philosophy:
– Production orient: sell what we can produce.
Marketing orient: offer customers what they
want.
Adoption
• Consumer products (GE & Pr. & Gamble)
• The magic eraser
Pr. & Gamble Brands
Customer View (1)
1. Customer value: benefits vs cost
(Mercedes, Gambling, others?)
2. Low price not necessarily good
$3900 Yugo??
Customer View (2)
3. Value is relative to competition (airline
tickets and what else?)
4. Customer service is before and after
sales (example?)
Marketing Management
• What is it??
1.Continuously planning
2.Implementing
3.Controlling marketing
activities
Implementation, Evaluation, and
Control
Implementation
Evaluation
Product
Place
Promotion
Price
Met
objectives?
Audits
•
•
•
•
comprehensive
systematic
independent
periodic
Implementing & Controlling
•
Marketing plan:
1.
2.
3.
4.
•
Marketing strategy + time related details
Includes mix + target market
Resources (new business failures)
Results expected (Wow! Chips)
Control: versus expected results
Planning
1. Must look to the future
2. Match resources to opportunities
(competencies)
3. Develop a marketing strategy
4. Consider the competition
Techniques for Effective
Strategic Planning
Continual
attention
Creativity
Effective
Strategic
Planning
Management
commitment
Business Mission
Statement
Marketing
Plan
Elements
Objectives
Situation or SWOT
Analysis
Marketing Strategy
Target Market
Strategy
Marketing Mix
Product
Distribution
Promotion
Price
Implementation
Evaluation
Control
Marketing Strategy
• Target Market: those you want to serve
– Not everyone should be targeted (mass mkt)
– Search for similar markets (may be big)
– Give an example of a particular market’s
target market and how effective is their
marketing strategy.
Competitive Advantage
Is there ever no competition?
Cost
Types of
Competitive
Advantage
Product/Service
Differentiation
Niche Strategies
What are Ford’s competitive
advantages?
Tips to Obtain Sustainable
Competitive Advantage
Patents
Copyrights
Locations
Equipment
Technology
Skills and Assets
Customer Service
Promotion
Strategic Alternatives
Market
Penetration
Increase market share among
existing customers
Market
Development
Attract new customers to
existing products
Product
Development
Create new products for
present markets
Diversification
Introduce new products
into new markets
In other words…
Identify strategic alternatives
Market development
=
customers
Market penetration
=
share
Product development
=
products
=
new products +
new markets
Diversification
Marketing Mix Strategies
• Marketing Mix: how you serve them
• 4Ps of Marketing:
• Synergy
• What do each of these 4Ps mean to you?
Portfolio Matrix
•
•
•
•
Star (tablet PC)
Cash cow (laptops)
Problem child (phone/PDA)
Dog (mainframe)
Summary
• Marketing concept
• Marketing management: planning,
implementing, and controlling
• Four Ps (marketing mix strategies)
• Difference between marketing strategy
and marketing plan
• Competitive advantages
• Strategy alternatives