Strategic Marketing Plan Chapter 14

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Questions and Answers

What does the horizontal axis of the General Electric market attractiveness/company strength matrix represent?

The firm's positioning in the market

The firm's ability to exploit market opportunities (correct)

The overall market growth potential

The attractiveness of the market

Which of the following best defines a marketing objective?

A declaration of product features

An evaluation of customer satisfaction

A survey of market trends

A statement of what is to be accomplished through marketing activities (correct)

Which of the following is NOT one of the sources of competitive advantage?

Superior skills

Strategic partnerships (correct)

Operational efficiency

Superior resources

In formulating a target market strategy, which of the following strategies involves appealing to the entire market?

Mass marketing Signup and view all the answers

Which element is NOT included in the marketing mix?

Positioning strategies Signup and view all the answers

What is the primary purpose of a strategic marketing plan?

To act as a guidebook for future marketing activities Signup and view all the answers

What should a mission statement avoid to ensure clarity in a strategic marketing plan?

Being too broad in scope Signup and view all the answers

What is a key component of strategic marketing objectives?

Address the firm as a whole Signup and view all the answers

A competitive advantage is identified during which part of a marketing plan?

Conducting a situation analysis Signup and view all the answers

What is a critical function of strategic marketing management?

Establishing how the firm will reach its goals Signup and view all the answers

What is the purpose of the control element in a marketing plan?

To evaluate marketing results against established objectives Signup and view all the answers

Which characteristic is NOT essential for a marketing audit?

Subjectivity Signup and view all the answers

What is a key feature of writing a marketing plan?

It should have a unique content for each firm Signup and view all the answers

Effective strategic planning requires which of the following?

Management commitment and continual attention Signup and view all the answers

How often should a marketing audit be conducted?

Periodically as part of ongoing evaluation Signup and view all the answers

What is the purpose of conducting a SWOT analysis in a marketing plan?

To identify strengths, weaknesses, opportunities, and threats Signup and view all the answers

Which of the following is not one of the macro-environmental forces studied in a marketing plan's situation analysis?

Cultural forces Signup and view all the answers

What type of corporate culture is characterized by proactivity in seeking opportunities?

Prospector Signup and view all the answers

Which strategy in opportunity-utilization strategies focuses on introducing new products to existing markets?

Product development Signup and view all the answers

In which market structure do several firms control the market but have differentiated products?

Monopolistic competition Signup and view all the answers

Which of the following is a strategic management tool used for resource allocation decisions?

Boston Consulting Group portfolio matrix Signup and view all the answers

Which strategy is not typically classified under opportunity-utilization strategies?

Cost leadership Signup and view all the answers

What does a 'star' represent in the Boston Consulting Group portfolio matrix?

High market share and high growth Signup and view all the answers

Study Notes

Chapter 14: Putting it all Together: The Strategic Marketing Plan

Strategic planning is a managerial process of creating and maintaining a fit between a firm's objectives and resources, and evolving market opportunities.
Strategic marketing management deals with two key questions: what is the firm's main activity, and how will it reach its goals?
Marketing planning is designing activities related to marketing objectives and the changing marketing environment.
A marketing plan is a written document that serves as a guidebook for future marketing activities.
A strategic marketing plan is valuable because it allows for comparing actual performance to expected performance; it clearly states objectives; it allows for examination of the marketing environment in conjunction with the firm's internal workings; it provides a reference point for determining the success of future activities; it enables market entry with awareness of possibilities and problems.

Elements of a Marketing Plan

Define the business mission: The mission statement defines what business the firm is in, and where it's going. It should be neither too narrow (marketing myopia) nor too broad.
Strategic marketing objectives: These are broad objectives for the entire firm, not specific to brands or markets. They must be formulated.
Conduct a situation analysis: This includes a SWOT analysis and macro-environmental scanning (social, demographic, economic, technological, political, legal, and competitive forces).
A situation analysis also includes evaluating the competitive environment (monopoly, pure competition, oligopoly, monopolistic competition, strategic window). A strategic window is a limited time where the key requirements of a market fit with a firm's competencies. Other aspects of a situation analysis are assessing the corporate culture and the types of corporate culture responses (e.g., prospector, reactor, defender, analyser). Opportunity-utilisation strategies (market penetration, market development, product development, and diversification) are included.
Strategic management tools: Tools for a situation analysis include the Boston Consulting Group portfolio matrix and the General Electric market attractiveness/company strength matrix. The BCG matrix categorizes businesses by market growth and market share (star, cash cow, question mark, dog). The GE matrix evaluates market attractiveness and company strength for each market. Allocating resources to SBUs based on the BCG matrix involves building, holding, harvesting, or divesting.
Competitive advantage: This comes from superior skills or superior resources.
Setting marketing strategy objectives: Marketing strategy is about selecting and describing target markets, and developing a marketing mix to create mutual satisfaction. Marketing objectives are statements of what's to be achieved. Criteria include being realistic, measurable, and time-specific; consistent; indicating priorities.
Formulate the Marketing Strategy: This involves target market strategy, positioning strategy, and the marketing mix including product, distribution, marketing communication, and pricing strategies.
Target market strategy identifies target segments to focus on, requiring a market opportunity analysis. This section outlines three strategies for selecting target markets: appealing to the entire market with one mix, concentrating on one segment, or appealing to many segments with multiple marketing mixes.
Positioning strategy is crucial in the marketing strategy component.
Marketing mix: This section covers product strategies, distribution strategies, marketing communication strategies, and pricing strategies.

Implementation, Evaluation & Control

Implementation: Turning plans into action assignments.
Evaluation: Gauging the achievement of objectives during a specified period.
Control: Providing mechanisms for evaluating results and making corrective actions based on objectives. A key aspect of control is the marketing audit - a thorough, systematic, periodic evaluation of goals, strategies, structure, and firm performance. The marketing audit process is characterized by being comprehensive, systematic, independent, and periodic.

Writing the Marketing Plan

The marketing plan should not be rigid, viewing it as a series of steps; the content differs for each plan; plans should be unique to the firm; plans should have a flexible format.
Summary marketing plans can be helpful in a broader sense too.

Effective Strategic Planning

Effective strategic planning requires continuous attention, creativity, and commitment.
This is not a one-time exercise; it needs consistent effort.
Sound planning depends on creativity.

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Description

Dive into Chapter 14, where we explore the intricacies of creating a strategic marketing plan. This chapter covers the essential elements of marketing planning, including aligning firm objectives with market opportunities and evaluating performance against goals. Understand the importance of having a comprehensive plan as a guideline for future marketing activities.