Welcome to Created for Marketing, 8th Ed., by Lamb, Hair and McDaniel South-Western/Thomson Learning Chapter 2 - Strategic Planning for Competitive Advantage Created by John T. Drea, Western Illinois University Click here to start

BasicTerms ChooseWisely Sources of CompetitiveAdvantage In the Mix Go to Round 2 Click on a point value to select an answer/question Strategic Alternatives Select another chapter Go to Final Challenge! Who Wants to Be a Marketer? Round 1 Chapter 2 – Strategic Planning

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Basic Terms points Answer:They are the 4 P’s of marketing. Question:What are product, promotion, price, and place (distribution)? Back to the answer board

Basic Terms points Answer:It is the term used to describe the managerial process of creating and maintaining a fit between the organization’s objectives and resources and evolving market opportunities. Question:What is strategic planning? Back to the answer board

Basic Terms points Answer: It is the term used to describe the process of anticipating future events and determining strategies to achieve organizational objectives in the future. Question:What is planning? Back to the answer board

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Basic Terms - Open Challenge Answer: This term describes an organization’s long-term vision, based on a careful analysis of benefits sought by its customers and an analysis of environmental conditions. It is also the first part of an organization’s marketing plan. Question:What is a mission statement? (or business mission) Back to the answer board

Basic terms points Answer:This term, often known by its three letter abbreviation, is a subgroup of a single business (or a collection of related businesses in a large organization.) Question:What is a strategic business unit (SBU)? Back to the answer board

Sources of Competitive Advantage points Answer:This curve shows that costs decline at a predictable rate as experience with a product increases. Question:What is an experience curve? Back to the answer board

Sources of Competitive Advantage points Answer: This category of competitive advantage exists when a firm provides something unique that is valued by customer beyond simply offering a low price. (ex: a strong dealer network for Caterpillar Corp.) Question:What is a competitive advantage? Back to the answer board

Answer:An example of this type of competitive advantage can be found at DuPont, where technicians created a process for producing titanium dioxide which gives DuPont a 20% cost advantage over its competitors. Question:What is a cost competitive advantage? Sources of Competitive Advantage points Back to the answer board

Answer:This means of creating a competitive advantage is defined as the features of a product or service that signal value to a customer. For example, a foil package may connote luxury to a customer. Question:What are value impressions? Sources of Competitive Advantage points Back to the answer board

Answer:This type of competitive advantage is created/achieved when a firm targets and effectively serves a small segment of the market. It may be the only viable option for a small company with limited resources potentially facing large competitors. Question:What is a niche competitive advantage? Sources of Competitive Advantage points Back to the answer board

In the Mix points Answer: The other name for the marketing mix. Question:What is the four Ps? Back to the answer board

In the Mix points Answer: The start of the marketing mix, this P is often considered the heart of the marketing mix. Question:What is product? Back to the answer board

In the Mix points Answer: This P involves all the business activities concerned with storing and transporting raw materials or finished products. Question:What is place? Back to the answer board

In the Mix points Answer: The P that the buyer must give up in order to obtain a product. Question:What is price? Back to the answer board

In the Mix points Answer: The job of this P is to inform, educate, persuade, and remind. Question:What is promotion? Back to the answer board

Strategic Alternatives points (market penetration, market development, product development, diversification) Answer: An example of this strategy is when Burger King advertises to current customers, encouraging them to eat at Burger King more frequently. Question:What is a market penetration strategy? Back to the answer board

Strategic Alternatives points (market penetration, market development, product development, diversification) Answer: An example of this strategy would be a hair styling salon, which had formerly targeted women, begins to offer a new product line (e.g., clothing) for men. Question:What is a diversification strategy? Back to the answer board

Strategic Alternatives points (market penetration, market development, product development, diversification) Answer: An example of this type of strategy would be when Coca-Cola introduced a new product (Fruitopia) to its existing markets. Question:What is a product development strategy? Back to the answer board

Strategic Alternatives points (market penetration, market development, product development, diversification) Answer: An example of this strategy is McDonald’s entry into China with its current product mix. Question:What is a market development strategy? Back to the answer board

Strategic Alternatives points (market penetration, market development, product development, diversification) Answer: Marketers who follow this strategy frequently do so because they are confident that they understand the needs of their existing markets. They know what customers like/dislike about current products and their unmet needs. Question:What is a product development strategy? Back to the answer board

Inside the Box points (answer/questions from chapter boxes) Back to the answer board Answer: By protecting its secret recipe, In-N-Out burger is leveraging this core element of its marketing mix. Question:What is its product?

Inside the Box points (answer/questions from chapter boxes) Answer: Texas utility companies are using this element of the marketing mix to fuel what might be considered unethical competition with rivals. Question:What is its promotion? Back to the answer board

Inside the Box points (answer/questions from chapter boxes) Answer: The type of competitive advantage achieved by SVA, a Shanghai-based electronics company, through cheap labor and product design. Question:What is cost competitive advantage? Back to the answer board

Inside the Box points (answer/questions from chapter boxes) Answer: Cirque du Soleil’s five world tours, four permanent facilities, and one permanent theater are part of this element in the company’s marketing mix. Question:What is its place (distribution)? Back to the answer board

Inside the Box points (answer/questions from chapter boxes) Answer: According to the Marketing in Entertainment box, Hallmark has begun using this strategy of developing new customers for its established products. Question:What is a market development strategy? Back to the answer board

What’sthePlan? CompetitiveAdvantage Of the following... Potpourri Go to Final Challenge! Click on a point value to select an answer/question Who Wants to Be a Marketer? Round 2 Chapter 2 – Strategic Planning Select another chapterSWOT

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What’s the Plan? points (answers/questions concerning writing/implementing plans) Answer: It is a written document that acts as a guidebook of marketing activities for the marketing manager. Question: What is a marketing plan? Back to the answer board

What’s the Plan? points (answers/questions concerning writing/implementing plans) Answer: It is a statement of what is to be accomplished through marketing activities. Question:What is a marketing objective? Back to the answer board

What’s the Plan? points (answers/questions concerning writing/implementing plans) Answer:This one-word term involves evaluating marketing results in light of goals and correcting actions that do not help achieve stated goals. Question:What is control? Back to the answer board

What’s the Plan? points (answers/questions concerning writing/implementing plans) Answer:Defining your business too narrowly. Question:What is a marketing myopia? Back to the answer board

What’s the Plan? points (answers/questions concerning writing/implementing plans) Answer: Described as “the broadest control device,” it is a thorough, systematic, periodic evaluation of the goals, strategies, structure, and performance of the marketing organization. Question:What is a marketing audit? Back to the answer board

SWOT points Answer:It is what S.W.O.T stands for. Question:What is strengths, weaknesses, opportunities, and threats? Back to the answer board

SWOT points Answer:It is where a SWOT analysis is typically located in the marketing plan. Question:What is the situation analysis? Back to the answer board

SWOT points Answer:Marketing managers do this when examining external opportunities and threats. It is defined as the collection and interpretation of information about the external environment that may affect the future of the organization or its plans. Question:What is environmental scanning? Back to the answer board

SWOT points Answer: These primarily focus on a study of the internal environment surrounding an organization. Question:What are strengths and weaknesses? Back to the answer board

SWOT points Answer: These primarily focus on a study of the external environment surrounding an organization. Question:What are opportunities and threats? Back to the answer board

Of the following… points Answer:Of the following, it is the one that is NOT one of the 4 Ps of marketing. –Product –Price –Promotion –Production –Place Question:What is production? Back to the answer board

Of the following… points Answer: Of the following, the one that is not a type of competitive advantage. –sustainable –niche –cost –assimilation Question:What is assimilation? Back to the answer board

Of the following… points Answer:Of the following, it is the term that describes pursuing new markets with existing products. –Market penetration –Market development –Product development –Diversification Question:What is market development? Back to the answer board

Of the following… points Answer:Of the following, one way a company can build a cost competitive advantage. –tariffs –experienced labor –product innovations Question:What is product innovations? Back to the answer board

Of the following… points Answer: Of the following statements by three different businesses, the one that is most closely associated with marketing myopia. –“We are in the transportation business. –“We are in the compact disc manufacturing business.” –“We are in the entertainment business. Question:What is we are in the compact disc manufacturing business. Back to the answer board

Competitive Advantage points Answer:Between “increase” or “decrease,” it is direction that the experience curve suggests that unit costs should go over time. Question:What is decrease? Back to the answer board

Competitive Advantage points Answer:It is defined as 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. Question:What is a competitive advantage? Back to the answer board

Competitive Advantage points Answer:The disassembling of a product to gain clues to the manufacturing process. Question:What is an reverse engineering? Back to the answer board

Competitive Advantage points Answer: Example of companies which possess this category of competitive advantage are: –Nieman Marcus (retail) –Caterpillar (strong dealer network) –Maytag (product reliability) –Federal Express (service) Question:What is a differentiation competitive advantage? Back to the answer board

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Competitive Advantage - Open Challenge Answer: Of the following, the one that is NOT a source of a cost competitive advantage. –Experience Curve –Reengineering –Value Impressions Question:What is/are value impressions? Back to the answer board

Potpourri points Answer: Also known as the “4 Ps of marketing,” this term refers to a unique blend of product, distribution, promotion, and pricing strategies to produce mutually satisfying exchanges with a target market. Question:What is the marketing mix? Back to the answer board

Potpourri points Answer:This term describes a strategy of selling the same products to new markets of customers. Question:What is market development? Back to the answer board

Potpourri points Answer: This “statement” should focus on the market(s) and organization wants to serve and should answer two fundamental questions of an organization: “What business are we in?” and “Where are we going?” Question:What is the mission statement? Back to the answer board

Potpourri points Answer:This term refers to a description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in each of those segments. Question:What is a marketing opportunity analysis? Back to the answer board

Potpourri points Answer: It is a term which describes a business that is defined in terms of goods and services, rather than in terms of the benefits consumers seek. Question:What is marketing myopia? Back to the answer board

And now, it’s time for Directions: Get two pieces of paper. On one piece, write your team’s wager. Use the other piece of paper to write the “question” for the final challenge “answer.” Click here for the Final Challenge Answer

Final Challenge! Answer:Perhaps the most critical element in successful strategic planning. Question:What is the top management support?