OHT 20.

1
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition



Strategic marketing
OHT 20.2
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Interaction between marketing
and corporate strategy
Figure 20.1
OHT 20.3
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Corporate versus marketing strategy
Corporate strategy:
Allocation of resources
within an organisation to
achieve the business
direction and scope
specified within
corporate objectives.
Helps to control and
co-ordinate the different
areas of the
organisation.
Marketing strategy:
Defines target markets,
direction and
requirements in order to
create a defensible
position compatible with
the overall corporate
strategy.
OHT 20.4
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Marketing plans and programmes
Marketing plan:
Turning strategies into implementable actions.
A detailed written statement specifying target markets,
marketing programmes, responsibilities, time scales and
resources to be used within the defined budgets.
Marketing programmes:
Actions, often tactical, using marketing mix variables to
gain advantage within target market.
Means of implementing the marketing strategy.
Normally detailed in the marketing plan.
OHT 20.5
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Influences on marketing strategy
Figure 20.2
OHT 20.6
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Strategic marketing analysis models

All of these models view products as:
Manageable individual entities on an operational basis.
A product portfolio (set of products each of which make
a unique contribution to the corporate picture) on a
strategic basis.
OHT 20.7
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition

Analysis models

Boston Box.
GE matrix.
Shells directional policy matrix.
OHT 20.8
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
The Boston Box
Figure 20.3
OHT 20.9
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Boston Box
Dog - holds a weak market share in a low growth
market.
Question mark - high market growth with low share.
Star - a market leader in a growth market.
Cash cow - as market growth starts to trail off, stars can
become cash cows.
War horses - market leaders, whose cash generating
position under threat due to negative market growth.
Dodos - low share of a declining market means that
sales are dwindling away.
OHT 20.10
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
GE matrix
Figure 20.4
OHT 20.11
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Shells directional policy matrix
Figure 20.5
OHT 20.12
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Analytical models - the advantages

Useful planning tools.
Forces managers to think more strategically.
Useful diagnostic tools giving overview of current
position.
Can stimulate debate on possible consequences of
actions.

OHT 20.13
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition

Analytical models - the constraints

Do not give solutions.
Simplistic use of variables.
Fail to consider synergies between businesses.
OHT 20.14
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Types of growth

Market penetration.
Market development.
Product development.
Diversification - concentric, conglomerate.
Integration - backward, forward, horizontal.
No growth - harvesting, entrenchment, withdrawal.
OHT 20.15
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition

Competitor analysis

A systematic attempt to identify and understand key
elements of a competitors strategy in terms of
objectives, strategies, resource allocation and
implementation through the marketing mix.
OHT 20.16
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Porters Five Forces Model


1. Bargaining power of suppliers.
2. Bargaining power of customers.
3. Threat of new entrants.
4. Threat of substitute products or services.
5. Rivalry among current competitors.
OHT 20.17
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Strategic groupings
Figure 20.8
Source: Adapted from Wilson et al. (1992).
OHT 20.18
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Examining competitive strengths and weaknesses

Provides a valuable insight into their strategic thinking
and actions.
Requires use of various information sources.
Consider in terms of critical success factors.
Rate competitors according to their strong and
vulnerable points.
Information can be used to plan and launch attack.
OHT 20.19
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Useful information about competitors
Table 20.2
Source: Wilson et al. (1992).
OHT 20.20
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Generic strategies
Figure 20.9
OHT 20.21
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition

Choice of generic strategy

Fit between the demands of the strategy and the
organisations capabilities and resources.
The main competitors abilities on similar criteria.
The key criteria for success in the market and their
match with the organisations capabilities.
OHT 20.22
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Competitive positions and strategy
Figure 20.10
OHT 20.23
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Attacking and defending

Aggressive strategies - frontal, flank, encirclement,
bypass, and guerrilla attacks.

Defence strategies - fixed position, mobile, flanking,
contraction, counter offensive.
OHT 20.24
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Attack strategies
Figure 20.11
Source: Kotler and Singh (1981). Reproduced with permission of Thomson Media, Eleven Penn Plaza, New York, NY 10001
OHT 20.25
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition
Defence strategies
Figure 20.12
Source: Kotler and Singh (1981). Reproduced with permission of Thomson Media Eleven Penn Plaza, New York, NY 10001.
OHT 20.26
Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition

Co-operative and independent strategies

Many situations can also be characterised by peaceful
coexistence and co-operative alliances between
competitors.