* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Chapter 1
Service parts pricing wikipedia , lookup
Social media marketing wikipedia , lookup
Darknet market wikipedia , lookup
Grey market wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Competitive intelligence wikipedia , lookup
Bayesian inference in marketing wikipedia , lookup
Affiliate marketing wikipedia , lookup
Market segmentation wikipedia , lookup
Perfect competition wikipedia , lookup
Pricing strategies wikipedia , lookup
Market analysis wikipedia , lookup
Food marketing wikipedia , lookup
Resource-based view wikipedia , lookup
Marketing communications wikipedia , lookup
Market penetration wikipedia , lookup
First-mover advantage wikipedia , lookup
Ambush marketing wikipedia , lookup
Marketing research wikipedia , lookup
Neuromarketing wikipedia , lookup
Sports marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Direct marketing wikipedia , lookup
Segmenting-targeting-positioning wikipedia , lookup
Target audience wikipedia , lookup
Product planning wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Marketing channel wikipedia , lookup
Sensory branding wikipedia , lookup
Street marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Multicultural marketing wikipedia , lookup
Target market wikipedia , lookup
Advertising campaign wikipedia , lookup
Green marketing wikipedia , lookup
CHAPTER 2 Strategic Planning for Competitive Advantage 1 Learning Outcomes LO 1 Understand the importance of strategic marketing and know a basic outline for a marketing plan LO 2 Develop an appropriate business mission statement LO 3 Describe the components of a situation analysis LO 4 Describe the criteria for stating good marketing objectives LO 5 Identify sources of competitive advantage Learning Outcomes LO 6 Identify strategic alternatives LO 7 Discuss target market strategies LO 8 Describe the elements of the marketing mix LO 9 Explain why implementation, evaluation, and control of the marketing plan are necessary LO 10 Identify several techniques that help make strategic planning effective The Nature of Strategic Planning Understand the importance of strategic marketing and know a basic outline for a marketing plan Strategic Planning 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. The Market in constantly changing…. Consumers needs Attitudes Technology Demographics Social Economic Environmental Examples of Strategic Decisions The launch of Procter & Gamble's new Gillette® Fusion® ProGlide™ Power Razor represents a first in the packaging industry Partnership with Be Green Packaging--a molded-fiber company based out of Santa Barbara— P&G’s new long-term sustainability goals Absolut Vodka Strategically decided to target the gay community and view its members as important and desirable consumers of its product. Target gay publications Company has long sponsored major gay events, Absolut Vodka has also been the official corporate sponsor of the GLAAD Media Awards Haagen-Dazs Strategically take advantage of trend toward natural and whole foods Launch an ice cream composed of just five natural ingredient. Involves: new product, package design, target market, promotion, same distribution (?) TagHeuer Cellphones Owns high end sports watch category. Trending toward flat sales Diversify cell phone category With a new $5,000 cellphone. Strategic Marketing Management 1. What is the organization’s main activity? 2. How will it reach its goals? Strategic Business Units Large companies may manage a number of very different businesses Each SBU has its own: Distinct mission and target market Control over its resources Its own competitors A single business or collection of related businesses Independent plans Disney SBUs Theme Parks Movie Studios TV networks Cruise lines Strategic Alternatives There are several tools available that a company or SBU can use to manage the strategic direction f its portfolio businesses Ansoff’s strategic opportunity Matrix Boston Consulting Group General Electric Model Selection depends on profit objectives Immediately vs. long run Ansoff’s Opportunity Matrix 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 3 Starbucks Present Product New Product Present Market Market Penetration Product Development Starbucks sells more coffee to customers who register their reloadable Starbucks cards. Starbucks develops powdered instant coffee Via. New Market Market Development Diversification Starbucks opens stores in Brazil and Chile Starbucks launches Hear Music and buys Ethos Water. 15 3 Innovation Matrix Core innovation Use existing assets to provide added convenience to existing consumers Entice competitors customers Adjunct innovation Decisions designed to take company strengths into new markets Transformational innovation Decisions result in brand new markets, products and new businesses. GoPro 3D Printer The Boston Consulting Group The General Electric Model Business Position Marketing Plan Based on the company’s or SBU’s overall strategy, marketing managers can create a marketing plan for individual products, brands, or lines Marketing Plan A written document that acts as a guidebook of marketing activities for the marketing manager. Marketing Plan Elements ccsfmarketing.com Marketing Plans Provide… Clearly stated activities that help employees and managers understand and work toward a common goal Allows you to examine the marketing environment in conjunction with the inner workings of the business. Once written, serves as a reference point for the success of future activities Allows marketing manager to enter into the marketplace with awareness Ideas for a Marketing Plan Food Trucks Restaurants Brewery Organic Café Wireless door locks Branded fashion rental store Diabetic chocolate Organic Cotton Baby Clothes Line Bluetooth pet collar Bulletproof backpack Juice store Car service Home delivery milk service Image consultant Photographer Hair/Make-up artist Jewelry designer Surf shop Child day care Mobile hair/nair salon Doggie day care Alarm ring Sushi restaurant Corner market Paint/construction services Stylist Music App Online retail store Web designer Introduction of Product/Service 1. 2. 3. 4. 5. 6. Clearly define your product/service in the first sentence. Evaluating the situation and trends in a particular company's market. Identifying an opportunity for an unserved market Describe how the company was conceived. Why you are qualified? Product/service specifics (location, product lines, items, online/retail) Marketing plans are always written in 3rd person. Morningstar Bakery – Introduction Morningstar Bakery is a new organic bakery specializing in gluten, wheat and dairy free products. Within the last three years there has been significant increases in demand for these bakery products. This can be explained to a large degree by the fact that up until recently Americans have had food allergies that have been undiagnosed. It has been only in the last few years that medical doctors have begun to diagnosis food allergies correctly. What was once an unknown problem that affected so many people with no recourse has become a manageable ailment that is easily dealt with through modification of diets. This is very positive for both those people that are affected as well as bakeries such as Morningstar that specialize in these products. Morningstar Bakery was conceived when the owner, Marilyn, had two son's were diagnosed with celiac disease at age 14 and 7. Celiac disease is a digestive disease that damages the small intestine and interferes with absorption of nutrients from food. People who have celiac disease cannot tolerate gluten, a protein in wheat, rye, and barley. Gluten is found mainly in foods but may also be found in everyday products such as medicines, vitamins, and lip balms. When people with celiac disease eat foods or use products containing gluten, their immune system responds by damaging or destroying villi—the tiny, fingerlike protrusions lining the small intestine. Villi normally allow nutrients from food to be absorbed through the walls of the small intestine into the bloodstream. Without healthy villi, a person becomes malnourished, no matter how much food one eats. Marilyn quickly realized that there were no bakeries in the San Francisco area that carried gluten free fresh baked goods. Grocery stores were carrying packaged pastries and breads, however, they were often hard, gritty, and did not have that fresh baked flavor, smell, or softness. Morningstar will be located in Noe Valley, San Francisco and will cater to consumers who are on a gluten-free diet as well as those who are choosing to eat more organic and wheat-free baked goods. Morningstar Bakery will imbed itself and become part of the Noe Valley community. Outreach programs to both Alvarado Elementary and James Lick Middle School will give Morningstar Bakery a societal marketing orientation. The following marketing plan will written promoting of Morningstar Bakery to the San Francisco area. Fred’s Taxi Cab • Fred’s is a new taxi cab service for people who drink too much. When you are at a club, and you are drunk, Fred will come get you and take you to your car. Then Fred can go pick up your friends and take them to a club or to wherever they want to go. You will always have your keys, so you can get to your home with Fred. You don’t need to worry because Fred is always there with you. Even when you want to drive, Fred can arrange that too. The cops like Fred’s taxi because they can follow you without worrying about your car. Fred’s Taxi Cab (revised) • Market trends show that more and more underage drinkers have fake ID’s and are frequenting clubs. In a downturn economy, night clubs are turning a blind eye toward the obviously fake ID’s and letting underage consumers in. The number of DUI accidents has doubled in the past five years for people between the age of 18 – 21. Fred’s Taxi service is targeted at underage drinkers who are driving to clubs, drinking, and understanding the detriments of driving home. Simply text, HELPFRED, on your phone, and Fred’s Taxi will locate your location (based on your phone), and text back with an estimated time of arrival. Underage drinkers just get in the taxi, and Fred will drive you home. They will come the next morning to take you to your car…. Writing the Marketing Plan A complete marketing plan can allow an organization to achieve marketing objectives… HOWEVER the marketing plan is only as good as the information, effort, creativity and thought put into it. 3 Defining the Business Mission Develop an appropriate business mission statement Mission Statement Statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions Defining the Business Mission Answers the question, “What business are we in?” Focuses on the market(s) rather than the good or service Mission Statements Google: Skype: Google’s mission is to organize the world‘s information and make it universally accessible and useful Skype’s mission is to be the fabric of real-time communication on the web Twitter: “To instantly connect people everywhere to what’s most important to them.” Nike To bring inspiration and innovation to every athlete* in the world * If you have a body, you are an athlete.". 33 Coca Cola "To refresh the world; to inspire moments of optimism and happiness; to create value and make a difference." CVS We will be the easiest pharmacy retailer for customers to use. Amazon, Kindle "Every book ever printed, in any language, all available in less than 60 seconds." Ben & Jerry’s To make, distribute and sell the finest quality all natural ice cream and euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment. Mission Statements Facebook Facebook's mission is to give people the power to share and make the world more open and connected. Morningstar Bakery: To nourish and delight everyone we serve by providing the community with healthy, organic, gluten free goods at affordable prices while sharing knowledge with consumers about the positive influence of gluten free diets on the consumers locally and globally Fred’s Taxi Getting you home safely, so you can get on with your future. I have an Idea!!! Popular Car Concert Parking lot Identified a Problem CarDentifier + + Cardentifier Mission Statements Stress free parking, every time, every lot. Empowering your parking experience when you choose, where you choose. To make finding your car easy, stress free, and fun. Conducting a Situation Analysis Explain the components of a situation analysis Marketing Plan Elements Business Mission Statement SWOT Analysis, Competitive Advantage Marketing Objectives Marketing Strategy Target Market Strategy Marketing Mix Product Distribution Promotion Price Implementation Evaluation Control SWOT Analysis SWOT Analysis Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T) Marketers must understand the current and potential environment in which the product or service will be marketed. SWOT Analysis Internal External S W O T Things the company does well. Things the company does not do well. 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 Examining internal strengths and weaknesses. Focus on organizational resources: • Production costs • Marketing skills • Financial resources • Company or brand image • Employee capabilities • Technology 52 5 Examining external opportunities & threats 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. Environmental Scanning Helps Identify opportunities and threats Guidelines for Designing Marketing Strategy Based on six forces: • Social • Demographic • Economic • Technological • Political/Legal • Competitive S Things the company does well. Internal W Internal Factors Things the company does not do well. O Conditions in the external environment that favor strengths. T Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness. ©South-Western College Publishing External Strengths Positive tangible and intangible attributes, internal to an organization. Within the organizations control. Weakness Factors that are within an organization’s control that detract from its ability to attain the core goal. Which areas might an organization improve? 55 S External Factors Internal W Things the company does not do well. O Conditions in the external environment that favor strengths. T Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness. ©South-Western College Publishing External Opportunities Things the company does well. External attractive factors that represent the reason for an organization to exist and develop What opportunities exist in the environment, which will propel the organization? Threats External factors beyond an organization’s control, which could place the organization mission or operation at risk. The organization may benefit to have a contingency plan Classify them my “seriousness” and “probability of occurrence” SWOT ANALYSIS for Morningstar Strengths Experienced Gluten Dietician Baker graduate from CCSF Culinary School Great location in Noe Valley (a lot of foot traffic) Equipment not shared with other foods Only gluten free bakery in Bay Area Experienced Marketer on staff Priced competitively Societal orientation SWOT Analysis for Morningstar Weaknesses Little experience running a bakery Expense to clean equipment nightly of contaminants Gluten products don’t stay fresh as long as wheat based pastries Staff young and at times unpredictable Customer confusion about wheat free and gluten free products Lease is expensive SWOT Analysis for Morningstar Bakery Opportunities Awareness of celiac disease is growing 1 in 10 people have it Movement toward healthier lifestyle Baking with rice flour tastes (almost) as good at wheat flour Baked goods are not seasonal Partnership with celebrity who has celiac Educate the non-celiac market on the benefits of gluten free eating Research still shows that people will give up a meal in exchange for dessert Noe Valley family/community oriented Support of local businesses SWOT Analysis for Morningstar Threats Recession Bakeries in Noe Valley may begin carry GF baked goods Development of a GF pill Local activists criticize for detergents used to clean equipment Noe Valley has many social causes, may get lost or perceived as forced Competitive Advantage Identify sources of competitive advantage 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. Competitive Advantage In the simplest terms possible a competitive advantage is what you have…that another business doesn’t have Nike Brand Name Product Quality (men, women, children) Price Premium Innovation Competitive Advantage Cost Types of Competitive Advantage Product/Service Differentiation Niche Strategies Cost Competitive Advantage Cost Competitive Advantage Being the low-cost competitor in an industry while maintaining satisfactory profit margins. Cost Competitive Advantage Companies Walmart Kmart Target Holiday Inn Express McDonald’s Dollar Value Meal Jet Blue Dollar Car Rental Apple’s Competitive Advantage . Sources of Cost Reduction Experience Curves Product Design Efficient Labor Reengineering No-frills Products Production Innovations Government Subsidies New Service Delivery Methods 70 6 Product/Service Differentiation Product/Service Differentiation Competitive Advantage A firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition. Examples of Product/Service competitive advantages Brand Status Patent Product reliability Image Corporate Reputation Service Speed to market Innovation Flexibility Uniqueness Strong R&D Materials patented (intellectual property) Access to talent/employees Celebrity/Partners Niche Competitive Advantage Niche Competitive Advantage The advantage achieved when a firm seeks to target and effectively serve a single segment of the market. Farm Fresh to You Niche Competitive Advantage Used by small companies with limited resources facing giant competitors Serve a limited geographic market Product line may be focused on a specific product category (DC Cupcakes) Sources of Sustainable Competitive Advantage Patents Copyrights Locations Equipment Technology Skills and Assets of an Organization Customer Service Promotion Morningstar’s Competitive Advantage Skill Advantage – Top GF pastry chef Strategic Partnerships (biggest organic rice flour producer in Bay Area) Product reliability – 100% GF machines Location – Noe Valley’s only GF Zoe Deschanel celebrity partner Building a Sustainable Competitive Advantage Can not be copied by the competition Marketing managers continuously focus on the firms skills and assets A sustainable competitive advantage is a function of the speed with which competitors can imitate a leading company’s strategy and plans. Describe the criteria for stating good marketing objectives Marketing Plan Elements Business Mission Statement SWOT Analysis, Competitive Advantage Marketing Objectives Marketing Strategy Target Market Strategy Marketing Mix Product Distribution Promotion Price Implementation Evaluation Control Marketing Plan Objectives Marketing Objective A statement of what is to be accomplished through marketing activities. 83 Competitive Advantage Cost Types of Competitive Advantage Product/Service Differentiation Niche Marketing Objectives Realistic Measurable Time specific Consistent with the priorities of the organization “Our objective is to attract 2,000 new customers to Morningstar within 3 months of store opening 84 7 Examples of Marketing Objectives: Inform target audience about features and benefits of our gluten free baked goods and its competitive advantage, by advertising in two local GF newspapers within 6 months Attract 1,000 non-gluten customer market into Morningstar Bakery by end of year one, with a coupon incentive. Sign one famous local celebrity with celiac to increase product awareness within 6 months of opening Morningstar Objectives To develop the strong presence in the community by supporting one community social objective needed to support sales goals within 6 months. To develop a full menu of lunch alternatives by the end of the second quarter. Criteria for Good Marketing Objectives Realistic, measurable, and time-specific objectives consistent with the firm’s objectives: 1. Communicate marketing management philosophy 2. Provide management direction 3. Motivate employees 4. Force executives to think clearly 5. Allow for better evaluation of results Describing the Target Market Discuss target market strategies Marketing Plan Elements Business Mission Statement Objectives Situation or SWOT Analysis Marketing Strategy Target Market Strategy Marketing Mix Product Distribution Promotion Price Implementation Evaluation Control Marketing Strategy Marketing Strategy The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets. 91 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 92 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 Appeal to the entire market with one marketing mix Concentrate on one marketing segment Appeal to multiple markets with multiple marketing mixes The Marketing Mix Describe the elements of the marketing mix Marketing Plan Elements Business Mission Statement Marketing Objectives Situation or SWOT Analysis Marketing Strategy Target Market Strategy Marketing Mix Product Distribution Promotion Price Implementation Evaluation Control 98 The Marketing Mix is… a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market. The elements of the marketing mix are often referred to as the “Four Ps” Marketing Mix: The “Four Ps” Price Promotion Place Product Marketing Mix: The “Four Ps” The starting point of the “4 Ps” Includes Physical unit Package Warranty Service Brand Image Value Product Products can be… Tangible goods Ideas Services Marketing Mix: The “Four Ps” Product availability where and when customers want them All activities from raw materials to finished products Ensure products arrive in usable condition at designated places when needed Place Marketing Mix: The “Four Ps” Role is to bring about exchanges with target markets by: Informing Educating Persuading Reminding Includes integration of: Personal selling Advertising Sales promotion Public relations Promotion Marketing Mix: The “Four Ps” Price is what a buyer must give up to obtain a product. The most flexible of the “4 Ps”-- quickest to change Competitive weapon Price x Units Sold = Total Revenue Price Following Up on the Marketing Plan Explain why implementation, evaluation, and control of the marketing plan are necessary Marketing Plan Elements Business Mission Statement Marketing Objectives Situation or SWOT Analysis Marketing Strategy Target Market Strategy Marketing Mix Product Distribution Promotion Price Implementation Evaluation Control Implementation Implementation Evaluation Control Marketing audit is… LO9 Comprehensive Systematic Independent Periodic Postaudit Tasks After the audit, three tasks remain 1. Profile and make recommendations about weaknesses and inhibiting factors as well as strengths and new opportunities. 2. Ensure that the role of the audit has been clearly communicated. 3. Make someone accountable for implementing recommendations.