IBM 301 Lecture 2: IBM 3012_ Chapter 2

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Chapter 2: Strategic Planning for Competitive Advantage
Strategic Planning is…
the managerial process of creating and maintaining a fit between the organization’s
objectives and resources and the evolving market opportunities
Strategic marketing management addresses two questions:
What is the organization’s main activity at a particular time?
How will it reach its goals?
Characteristics of Strategic Business Units (SBUs)
An SBU has:
A distinct mission and specific target market
Control over its resources
Its own competitors
A single business or a collection of related businesses
Plans independent of other SBUs
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
What is a marketing mix?
Planning the process of anticipating future events and determining strategies to achieve
organizational objectives in the future.
Marketing Planning designing activities relating to marketing objectives and the
changing marketing environment
Marketing Plan a written document that acts as a guidebook of marketing activities for
the marketing
Why write a marketing plan?
The creation and implementation of a complete marketing plan will allow the
organization to achieve marketing objectives and succeed
However, the marketing plan is only as good as the information it contains and the effort,
creativity, and thought that went into its creation
Elements of a Marketing Plan
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Defining the Business Mission (goal)
Answers the question, “What business are we in?”
The business mission profoundly affects the firm’s long-run resource allocation,
profitability, and survival
SWOT Analysis
Strengths - things the company does well (internal)
Weakness - things the company does not do well (internal)
Opportunities - conditions in the external environment that favor strengths (external)
Threats - conditions in the external environment that do not relate to existing strengths or
favor areas of current weakness (external)
Components of a SWOT Analysis
Examining internal strengths and weaknesses
Focus on organizational resources:
Production costs
Marketing skills
financial resources
Company or brand image
employee capabilities
technology
Environmental Scanning
Helps identify opportunities and threats
Designing a marketing strategy is based on six major environmental forces:
Social
Demographic
Economic
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