IBM 301 Lecture 2: IBM 3012_ Chapter 2
25 Feb 2019
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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
●
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
