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Created for Marketing, 8th Ed.,by Lamb, Hair and McDaniel

South-Western/Thomson LearningChapter 2 - Strategic Planning for Competitive

Advantage

Created by John T. Drea, Western Illinois University

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Who Wants to Be a Marketer? Round 1

Chapter 2 – Strategic Planning

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Basic Terms - 100 points

• Answer: They are the 4 P’s of marketing.

• Question: What are product, promotion, price, and

place (distribution)?

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Basic Terms - 200 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?

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Basic Terms - 300 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?

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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)

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Basic terms - 500 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)?

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Sources of Competitive Advantage - 100 points

• Answer: This curve shows that costs decline at a predictable rate as experience with a product increases.

• Question: What is an experience curve?

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Sources of Competitive Advantage - 200 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?

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• 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 - 300 points

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• 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 - 400 points

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• 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 - 500 points

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In the Mix - 100 points

• Answer: The other name for the marketing mix.

• Question: What is the four Ps?

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In the Mix - 200 points

• Answer: The start of the marketing mix, this P is often considered the heart of the marketing mix.

• Question: What is product?

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In the Mix - 300 points

• Answer: This P involves all the business activities concerned with storing and transporting raw materials or finished products.

• Question: What is place?

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In the Mix - 400 points

• Answer: The P that the buyer must give up in order to obtain a product.

• Question: What is price?

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In the Mix - 500 points

• Answer: The job of this P is to inform, educate, persuade, and remind.

• Question: What is promotion?

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Strategic Alternatives - 100 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?

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Strategic Alternatives - 200 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?

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Strategic Alternatives - 300 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?

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Strategic Alternatives - 400 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?

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Strategic Alternatives - 500 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?

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Inside the Box - 100 points (answer/questions from chapter boxes)

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• 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 - 200 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?

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Inside the Box - 300 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?

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Inside the Box - 400 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) ?

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Inside the Box - 500 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?

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What’sWhat’sthethe

Plan?Plan?

CompetitiveCompetitiveAdvantageAdvantage

Of theOf thefollowing...following... PotpourriPotpourri

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Who Wants to Be a Marketer? Round 2

Chapter 2 – Strategic Planning

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SWOTSWOT

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What’s the Plan? - 100 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?

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What’s the Plan? - 200 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?

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What’s the Plan? - 300 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?

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What’s the Plan? - 400 points (answers/questions concerning writing/implementing plans)

• Answer: Defining your business too narrowly.

• Question: What is a marketing myopia?

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What’s the Plan? - 500 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?

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SWOT - 100 points

• Answer: It is what S.W.O.T stands for.

• Question: What is strengths, weaknesses, opportunities,

and threats?

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SWOT - 200 points

• Answer: It is where a SWOT analysis is typically located in the marketing plan.

• Question: What is the situation analysis?

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SWOT - 300 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?

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SWOT - 400 points

• Answer: These primarily focus on a study of the internal environment surrounding an organization.

• Question: What are strengths and weaknesses?

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SWOT - 500 points

• Answer: These primarily focus on a study of the external environment surrounding an organization.

• Question: What are opportunities and threats?

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Of the following… - 100 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?

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Of the following… - 200 points

• Answer: Of the following, the one that is not a type of competitive advantage.– sustainable– niche– cost– assimilation

• Question: What is assimilation?

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Of the following… - 300 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?

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Of the following… - 400 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?

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Of the following… - 500 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.

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Competitive Advantage - 100 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?

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Competitive Advantage - 200 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?

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Competitive Advantage - 300 points

• Answer: The disassembling of a product to gain clues to the manufacturing process.

• Question: What is an reverse engineering?

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Competitive Advantage - 400 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 differentiationcompetitive advantage?

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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?

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Potpourri - 100 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?

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Potpourri - 200 points

• Answer: This term describes a strategy of selling the same products to new markets of customers.

• Question: What is market development?

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Potpourri - 300 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?

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Potpourri - 400 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?

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Potpourri - 500 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?

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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.”

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Final Challenge!

• Answer: Perhaps the most critical element in successful strategic planning.

• Question: What is the top management support?