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CH 2 AMS - Strategic Marketing Planning
CH 2 AMS - Strategic Marketing Planning
CH 2 AMS - Strategic Marketing Planning
6th edition
Chapter 2
Strategic Marketing
Planning
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Introduction
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Organization’s Process
EXTERNAL INTERNAL
EMPHASIS EMPHASIS
Outside-In Inside-Out
Processes Processes
Spanning Processes
• Market sensing • Financial management
• Customer order
• Customer linking fulfillment • Cost control
• Channel bonding • Pricing • Technology
development
• Technology • Purchasing
monitoring • Integrated logistics
• Customer service delivery
• Manufacturing/
• New product/service transformation
development processes
• Strategy development • Human resources
management
• Environment health and
safety
Source: George S. Day, Journal of Marketing, October 1994, 41.
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DISTINCTIVE CAPABILITIES
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Defining the Business Purposes or Mission
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2-7
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Google
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Product Orientation vs. Market Orientation
Company Product Market
Missouri-Pacific We run a railroad We are a people-
Railroad and-goods mover
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The marketing strategy process (Figure 2.3)
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Establishing the Core Strategy
Figure 2.4 : Product types in the portfolio (Peter Drucker’s; 7 types of Business)
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Analysis of Organisational Resources
Exp: Southwest Airline’s Distinctive Capabilities
Organizational Processes
Southwest uses a point-to-point route system rather than the hub-and-spoke design
used by many airlines. The airline offers services to 57 cities in 29 states, with an
average trip about 500 miles. The carrier’s value proposition consists of low fares and
limited services (no meals). Nonetheless, major emphasis throughout the organization
is placed on building a loyal customer base. Operating costs are kept low by using only
Boeing 737 aircraft, minimizing the time span from landing to departure, and developing
strong customer loyalty. The company continues to grow by expanding its point-to-point
route network.
Skills and Accumulated Knowledge
The airline has developed impressive skills in operating its business model at very low
cost levels. Accumulated knowledge has guided management in improving the
business design over time.
Coordination of Activities
Coordination of activities across business functions is facilitated by the point-to-point
business model. The high aircraft utilization, simplification of functions, and limited
passenger services enable the airline to manage the activities very efficiently and to
provide on-time point-to-point services offered on a frequent basis.
Assets
Southwest’s key assets are very low operating costs, loyal customer base, and high
employee esprit de corps
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Portfolio Planning
Figure 2.5: Balancing the business portfolio
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Figure 2.6
Unbalanced, present-focused business portfolio
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Figure 2.7
Unbalanced, future-focused business portfolio
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SWOT analysis (Figure 2.8)
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Figure 2.9
SWOT strategic implications
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Core Strategy
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Creation of the Competitive Positioning
• Market Targets
• Differential Advantage:
References:
1.Generic Strategies (Porter)
2. Value-Discipline Positioning (Treacy & Wiersema)
3. Blue-ocean Strategy (Kim & Mauborgne)
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Figure 2.11
Routes to competitive advantage
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Implementation
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