Strategic Market Management

The general who loses makes but few calculations beforehand” – Sun Tzu .“The general who wins the battle makes many calculations in his temple before the battle is fought.

Peter Drucker .“Business has only two basic functions .” .marketing and innovation.

Strategy vs Tactics • Strategic • Target marketing decisions • Value proposition • Analysis of marketing opportunities Tactical Product features Promotion Merchandising Pricing Sales channels Service .

Management Tasks Strategic Analysis  Innovation  Multiple Business—Strategies and Issues  Creating SCAs  Developing Growth Platforms  .

Levels of Strategy  Corporate Strategy  Business Strategy  Functional Strategy .

The Strategic Planning Process .

Strategic Marketing Orientation  From mass to need based marketing  Does this mean consumers always know what they want? .

What is a Business Strategy?  The Product-Market Investment Strategy – where to compete  The Customer Value Proposition  Assets and Competencies  Functional Strategies and Programs .

A Business Strategy Where to Compete The product-market investment decision A Business Business Strategy Strategy A How to Compete Value Assets & proposition competencies Function area strategies and programs Figure 1.1 .

The Product-Market Investment Strategy  Invest to grow (or enter a product market)  Invest only to maintain the existing position  Milk the business by minimizing investment  Recover as many of the assets as possible by liquidating or divesting the business .

Product-Market Growth Directions Present Present Products Products New New Products Products Present Present Markets Markets Market Market Penetration Penetration Product Product Expansion Expansion New New Markets Markets Market Market Expansion Expansion Diversification Diversification Vertical Vertical Integration Integration .

The Customer Value Proposition Perceived benefit to customer:  Functional  Emotional  Self-Expressive .

Customer Value Proposition Examples  A good value  Excellence on an important product or service attribute  The best overall quality  Product line breadth  Innovative offerings  A shared passion for an activity or a product  Global connections and prestige .

Assets and Competencies Strategic Competency: ◦ What a business unit does exceptionally well ◦ Has strategic importance to the business ◦ Based on knowledge or a process Strategic Asset: ◦ A resource .

Functional Strategies and Programs  Manufacturing strategy • Global strategy  Distribution strategy • Segmentation strategy  Brand-building strategy • Quality program  Communication strategy  Information technology strategy • Customer relationship program .

Criteria to Select Business Strategies  Is the ROI attractive?  Is there a SCA?  Will the strategy have success in the future?  Is the strategy feasible?  Does the strategy fit with the other strategies of the firm? .