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

3. 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

4. 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

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

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

8. 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

9. 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”

10. 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

11. 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

12. 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

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

14. 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?

15. 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