Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

Lecture 4 - Strategic Marketing Decisions and Choices
(Researched Examples in blue)
Johnson and Scholes (1999) have three areas of strategic marketing management:

- Strategic Analysis
- Strategic Choices
- Strategic Implementation

Strategic Choices
Strategic choice involves generating a well-justified set of interrelated strategic alternatives and
choose from them the ones that will contribute to the achievement of the corporate overall goals
and strategic objectives
It answers the Where we want to be? part of the planning cycle
Strategic decisions at the corporate level

- Developing/re-stating mission statement
- Directional strategy
- Resource allocation

Strategic decisions at the SBU level
- Choosing Generic Strategy:
Cost leadership strategy, company works hard to achieve the lowest production and
distribution costs
...
Dell Computer, and Wal-Mart are leading practitioners of this strategy
Differentiation strategy, company concentrates on creating a highly differentiated product
line and marketing program so that it comes across as the class leader in the industry
...
Here the company focuses its effort on serving a few market segments
well rather than going after the whole market
...

Strategic decisions at the functional level
- Products to offer
- Market segments to target
- Market position tactics
There are several types of directional strategies that can be taken:
Ansoffs Matrix of development (New/ Current Products v New/ Current Markets)
Market Penetration
Market Development
Product Development
Diversification
Growth strategies include concentration and diversification
Stability strategies promote profit development, with no change and caution

Retrenchment Strategies look at turnaround, selling out, divestment, bankruptcy and liquidation
A Products life cycle goes from Introduction, Growth, Maturity and then Decline
In order to extend a products life cycle:
Expanding the number of brand users
Increase usage of brand by users
Product enhancement to attract new users/more frequent usage
Marketing mix modification: pricing, offers, distribution channels, change of promotional mix,
improved service

-

There are several analytical frameworks and models that can be used by organisations to make
strategic decisions
...

The Star: High Market share/ High Growth

- Strategy is to build

Brand Product: iPad/iPhone
Cash Cow: High Market share/ Low Growth

- Hold, Milk to fund new products
Brand Product: Mac

Wildcat/Question Mark: Low Market Share/ High Growth

- Either build or divest

Brand Product: Beats by Dre
Dog: Low Share/ Low Growth

- Divest

Brand Product: iPod
Can be used for Business Brand products or market competition
The limitations of the BCG matrix is that it is over simplified, and profitability and cash-flow are the
performance criterion (It is certainly possible that a particular dog can be profitable without cash
infusions required, and therefore should be retained and not sold such as M&S clothing autograph
range) and it is ambiguous
...

Industry attractiveness
- Market Size
- Growth Rates
- Profitability
- Technological impacts
- Competitive diversity and structure
- PESTEL
Business position

-

Brand Strength/ loyalty
Growth
Market share
Strengths and Weaknesses
Management
Technology

It is measured by strong medium and weak matrixes
...

Advantages:

- Development from BCG matrix
- Looks at different elements of industry
- Helps extract information about strengths and weaknesses and to devise strategies to
accelerate and improve performance
...
E
...

- Doesn't offer specific strategies



---