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Strategic Market Management

The general who wins the battle


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

Business has only two basic


functions - marketing and innovation.
- Peter Drucker

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 BusinessStrategies 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?