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 Lecture 2 – Marketing Strategy

MKTG, 13e
Chapter 2: Strategic Planning
for Competitive Advantage

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 Learning Outcomes
At the end of this chapter, you should be able to:

1. a basic outline for a marketing plan. 5. Explain the criteria for stating good
marketing objectives.
2. Develop an appropriate business mission
statement. 6. Discuss target market strategies

3. Describe the components of a situation 7. Describe the elements of the marketing mix
analysis.
8. Explain why implementation, evaluation,
4. Identify sources of competitive advantage. and control of the marketing plan are
necessary.

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 What Is a Marketing Plan?
laction)

• Marketing planning – designing activities relating to

marketing objectives and the changing marketing
environment
(nown)

• Marketing plan – a written document that acts as a

guidebook of marketing activities for the marketing
manager

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Elements of a Marketing Plan

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 Marketing Plan Elements
• Business Mission (Lec 2 and Lec 3)

• Situation Analysis / SWOT (Lec 4 and Lec 12)

• Marketing Objective (Lec1 and Lec 2)

• Marketing Strategy
− Target Market Strategy (Lec 5)
− Marketing Mix
 Product (Lec 7)
 Price (Lec 8)
 Place (Lec 9)
 Promotion (Lec 10)

• Implementation, Evaluation and Control

− Marketing Research (Lec 6)
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 2-4 Defining the Business Mission
Business Mission
Statement
• Answers the question,
“What business are we in?”
• Mission statement
– The firm’s long-term vision  benefits sought by
present and potential customers + existing and
anticipated environmental conditions.
· [t* sales oriented
-

• Marketing myopia – means narrow, short-term

thinking; defining a business in terms of goods and
services rather than in terms of the benefits
customers seek
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2-5 Conducting a Situation Analysis

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 SWOT Analysis

S Strengths - things the company does

well.
Internal

W Weaknesses - things the company

does not do well.

O
Opportunities - conditions in the
external environment that favor
strengths.
External Threats - conditions in the external

T environment that do not relate to

existing strengths or favor areas of
©South-Western College Publishing
current weakness.

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 SWOT - Examples

E ↓
things X control

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 2-6 Competitive Advantage

Performing a SWOT analysis allows

firms to identify their Competitive
Advantage

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 Competitive Advantage

Cost

Types of Product/Service
Competitive Differentiation
Advantage

Niche

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 Cost Competitive Advantage

Having a cost competitive advantage means

being the low-cost competitor in an industry
while maintaining satisfactory profit margins. & #E

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 Source of Cost Reduction

↑ experience (37A7) , ↓ cost . # Fit

eg

I ↓
Experience Curves Product Design
labour En SEVIDE BF4 I
(
↑ outsource , A cost
↓
Efficient Labor Reengineering

↑Production
S
carrier ↓D decoration host
)
cost
&
,

low
,

No-frills Products
Pey I I
.

Innovations

Government New Service

Subsidies Delivery Methods

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 Product/Service Differentiation
Competitive Advantage
• A product/service differentiation competitive advantage exists when
a firm provides something that is unique and valuable to buyers
beyond simply offering a lower price than that of the competition

• Examples include:

− Brand names

− Strong dealer network

− Product reliability

− Image

− Service

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 Niche Competitive Advantage

A niche competitive advantage seeks to

target and effectively serve a single
segment of the market. A niche competitive
advantage:
• Is used by small companies with limited
resources
• May be used in a limited geographic
market
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2-7 Setting Marketing Plan Objectives

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 Marketing Objectives
A Marketing objective is a statement of
what is to be accomplished through
marketing activities. To be useful, stated
objectives should be:

1
• Realistic 5 4) EF set objectives
“Our objective is to achieve 10
• Measurable 16 percent dollar market share in
the cat food market within 12
• Time specific months of product introduction.”
• Compared to a benchmark

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 Marketing strategy

• Marketing strategy – the activities of selecting and

describing one or more target markets and developing
and maintaining a marketing mix that will produce
mutually satisfying exchanges with target markets

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2-8 Describing the Target Market

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 Target Market Strategy

• Segment the market based on groups

with similar characteristics

• Select one or more target markets

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 2-9 The Marketing Mix

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 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”
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 Marketing Mix
• The four Ps of marketing:
−Product (good or service), e.g. Watch, …
−Price, e.g. HK$1,000,…
−Place, e.g. Sogo Department Store,…
−Promotion, e.g. Newspaper ad,…

Details of the Marketing Mix will be taught

from Lec 7 to Lec 10
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2-10 Following Up on the Marketing Plan

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Implementation, Evaluation and Control
Implementation
Evaluation
Control

• Implementation
– a process that turns a marketing plan into
action assignments and ensures that these
assignments are executed in a way that
accomplishes the plan’s objectives.

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Implementation, Evaluation and Control

• Evaluation measure I
>
-
– gauging the extent (deviation) to which the
marketing objectives have been achieved
• Action on deviations
−Exploiting a positive deviation – when actual
results are much better than the plan, find ways
to take advantage of the situation
−Correcting a negative deviation – when actual
performance fails to meet expectations, need to
take action to correct
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 Following Up on the
Marketing Plan
• Implementation

• Evaluation and Control

• A marketing audit is…

−Comprehensive
−Systematic
−Independent
−Periodic
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 Skip Note:
Exclude from
assessment
• 2-1 to 2-3d The Nature of Strategic Planning
to Strategic Alternatives
p. 17 – p. 22.
• 2-11 Effective Strategic Planning p.31

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