The Strategic Marketing System and Marketing Objectives Chapter Six The Strategic Marketing System and Marketing Objectives

Mission Statement Defines the purpose of the business Includes financial, competitive, consumer, and company objectives Exists at corporate and strategic business unit (SBU) levels Driver of all other subsets of business

Mission Statement Criteria States the business the company is in or will be in Identifies specific competencies of the firm and what makes it unique Defines who the competition will be Identifies the needs of its constituents

Situation Analysis Strengths Weaknesses Internal to the organization Things the firm is good at Examples? Weaknesses Things the firm is not good at

Situation Analysis (cont.) Opportunities External to the firm Examine the different environments Threats

Business Strategies Target market strategy Product strategy Target opportunities and markets the firm can serve better than the competition “Defining the right target market within the broader market segment” Product strategy Offering different products and services to meet the market needs Design the product to fit the market

Business Strategies (cont.) Competitive strategy Find the market to compete in Focus strategy Differentiation strategy Niche Brands Market strategy Meet the right market with the right product McDonald’s Hilton Positioning strategy “Creation and/or enhancement of a specific brand in the customer’s mind”

Functional Strategies Product/service sub-strategy The combination of products and services that will meet the needs of the market Must be consistent with higher-level strategies Presentation sub-strategy All elements that increase the consumer’s perception of the tangible product/service

Functional Strategies (cont.) Pricing sub-strategy The customer’s perceived value for what is paid Communication sub-strategy What the firm wants to say to the customer to persuade them to purchase Distribution sub-strategy All channels that increase the likelihood that the target customer chooses our product In hospitality, usually involves getting the right customer to our service

Feedback Loops Risk/fit loop Synthesis loop Evaluation/fit What are the risks and the overall strategic fit? Synthesis loop Putting the pieces back together after analysis in a clear, concise format Evaluation/fit Does the strategy match the capabilities of the firm? Implementation

Strategy Selection Complex process that requires answers to many questions No right/wrong choices

Strategy Checklist Is it identifiable and clear in words and practice? Does it fully exploit opportunity? Is it consistent with competence and resources? Is it internally consistent, synergistic? Is it a feasible risk in economic and personal terms? Is it appropriate to personal values and aspirations? Does it provide stimulus to organizational effort and commitment? Are there indications of responsiveness of the market? Is it based on reality to the customer? Is it workable?

Why Strategic Plans Fail Inadequate preparation of line managers Poorly defined business units Vague goals Inadequate databases for action planning Substandard linking of strategy with other control systems