Chapter 3 - Strategic Planning for Competitive Advantage PDF

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Chapter 3 - Strategic Planning for Competitive Advantage → Strategic Planning Leadership and Managerial Process: Organization’s objectives and resources + Evolving market opportunities = Strategic Planning 3 levels: 1. Corporate ● Sets the direction and scope - mission statement, business opportunities, and resource allocation 2. Business ● Takes place at the SBU level ● Goal is to gain a competitive advantage 3. Marketing ● Target market and marketing mix activities Decisions: ● Strategic ○ Made at all three levels ○ Wider in scope ○ Longer in orientation ○ Affect long-run course, allocation of resources, and financial success ●

Tactical ○ Made at the operational or marketing level ○ Narrow in scope ○ Short term ○ Limited impact of long-run profitability ○ Directed from strategic decisions made at the corporate level

→ Corporate Planning ● Defining the Business Mission ○ Foundation ○ What value do we provide for customers? ○ Establishes boundaries for all decisions Business Mission: Goods and Services Offered ≠  Focus = Markets to serve ● Shouldn't be focused on goods and services rather, should be focused on markets to serve

Designing the Business Portfolio: ● Starts with an understanding of the current environment and potential environment ● Conduct a SWOT Swot Analysis: ● Strengths ● Weaknesses ● Opportunities ● Threats ●

Strategic alternatives ○ SWOT analysis will result in themes that can take the form of alternative growth

Growth Strategies: ● Ansoff’s Strategic Opportunity Mix

● → Business Planning Business Planning for Competitive Advantage ● How to go about implementing and executing the strategy ○ More detailed planning at the SBU level ○ The goal is to achieve a competitive advantage that is sustainable ○ Complete a SWOT at the SBU level 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 ○ Cost ○ product/service differentiation ○ Niche strategies

Cost Competitive Advantage

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Product/Service Differentiation Competitive Advantage Apple - competitive differentiation built around innovation Niche Competitive Advantage Serving the needs of a segment that has good growth potential but is not crucial to the success of the major competitors ○ Geographic niche ○ Product niche

Building a Sustainable Competitive Advantage ● An advantage that ○ Cannot be copied ○ Can be sustained ● Sources of tomorrow’s competitive advantages: ○ Skills and assets of the organization ○ Marketing leaders need to continually focus on these skills and assets to create and sustain the competitive advantage → Marketing Planning Selling Marketing Objectives: ● Statement of what is to be accomplished ○ Realistic ○ Measurable ○ Time Specific Target Market Strategy ● Begins with a MOA ○ Estimation of size and sales potential of segments that are of interest

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Then a decision regarding which/how many segments to target

The Marketing Mix ● Product ● Place ● Promotion ● Price Product Strategies ● Heart of the marketing mix ○ The product offering and product strategy ○ Physical product or a service ■ Physical unit ■ Package ■ Warranty ■ After sale service ■ Brand name ■ Image ■ Value Pricing Strategies ● What a buyer must give up in exchange ○ “Value” in the mind of the consumer ○ Quickest element to change ○ Can be an important competitive weapon Place Strategies ● Making the products available when and where the customer wants them ○ Physical distribution ■ Storing ■ Transporting Promotion Strategies ● Introduce, facilitate, or sustain conversation and community between company and customer ○ Integrated marketing communications ■ Advertising ■ Direct marketing ■ Public relations ■ Sales promotion ■ Personal selling ■ Digital marketing

→ Implementation, Evaluation, and Control Implementation: ● The process that turns the plan into action - “doing what you said you were going to do” ● Can be a source of failure Evaluation and Control Evaluation - gauging → achievement of objectives Effective Strategic Planning ● Creativity ● Continual attention ● Management commitment

Marketing Audit

← Control - informal and formal control will create efficiency...